This article shares the five signs it’s time to let a team go. Inman News published the article by Chris Pollinger.
Wondering if it’s time to let a team go? Moving a team is going to have a cost. Time, money and momentum are all going to take a hit. Is it worth it in the long run? Maybe. Here are five signs it’s time for your team to move on to another brokerage.
There is a big difference between a brokerage who is not set up to serve teams and one that has an anti-team attitude. Most of the brokerages in the country are not optimized to support teams. That is ok. In many cases, the team leader has large ambitions. It’s not uncommon at all for them to be more profitable than the broker themselves.
As a team grows, it is natural to become a “office within an office.” Three danger signs to watch for. One, if you start noticing an undercurrent of adversary with your other agents. Second, hostility with the support staff. Or third, animosity with you as the broker. It’s time for them to move on.
The second sign it’s time to let a team go – Your current brokerage has a culture that is contrary to the team’s
Teams develop thier own internal culture and brand as they grow. Culture is going to show itself internally among the members of the team. It will naturally grow out of the team’s shared core values. Those shared principles are the glue that keep the team together. The team’s brand and reputation is how this culture is displayed to the public. When the core beliefs of the team don’t align with the values of the brokerage, it’s time to have them move on.
The third sign it’s time to let a team go – Your brokerage is limiting the growth of the team
Many brokerages were simply not set up to support teams and encourage their growth. It may be limits in geography or office space that hinder progress. It could be internal brokerage policies that stifle expansion. Whatever the reason, if the team is hitting a glass ceiling where you are, it’s time for them to move on.
The forth sign it’s time to let a team go – Tte team is costing you more than 10% of their GCI
You need to make money. Each brokerage will dress it up it profit model in a different way. Whatever you call your charges, there is a reasonable margin for you to keep to cover your overhead.
A 10% margin on GCI is a good thumbnail for a high producing team. Make sure to add back for the cost of all the advertising, tools and space they are is using. Traditional brokerages typically charge their fees then give “credits” back to the team. The 100% brokerages typically charge monthly and transaction fees while claiming to keep the GCI “whole.” Either way, you want to make sure it is within a reasonable range.
Generally speaking, if they are under the 10% benchmark the team needs to have marquee recruiting value. This means the team has significant market share in a defined area and plays well with others. You can then leverage that market share to recruit agents in the surrounding areas. If they are keeping less than 10% of the GCI, then it’s time for them to move on.
The fifth sign it’s time to let a team go – the team is poaching your talent
The relationship between the team and broker needs to be mutually beneficial. The broker should be excited when the team brings on new agents. Those new agents add to the office agent count without much effort or energy from the broker.
A side note on turnover. Between seven and ten percent in annual attrition is normal with seasoned agents. This loss is natural due to death, relocation or retirement.
Turnover will be higher, around thirty percent, with agents who have been in the business for less than two years. Losing good agents to the team means either you are hiring the wrong people. Or, your team is poaching. Either is a problem which needs to be addressed.
There will be times when the other agents in the office want to join the team. There will also be times where team members may want to leave the team and stay with the office. Both are ok as long as it’s mutually agreeable. But if your team is undermining and encouraging office members to leave you. It’s time for them to move on.
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A Parting Thought
We hope that the information provided is helpful in guiding you on your journey to building a thriving real estate business.
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