A couple of weeks ago, I had dinner with a real estate executive on the East Coast. The topic of conversation turned to the difficulty his organization is having in recruiting experienced real estate agents from his competitors.
In the past, this individual had great success recruiting his competitors’ agents. In addition, he was able to teach his first-line managers to duplicate his accomplishments. That is, until recently…
As the real estate market initially soured and then remained stagnant in his area, he noticed the recruiting results of his managers start to diminish. He coached and prodded his managers with little improvement.
Eventually, out of frustration, he picked up the phone and started making recruiting calls on his own, in an effort to determine the source of the problem. His frustration grew stronger:
“I just can’t seem to shake anyone loose right now! The agents in our market are just not willing to make a move no matter what you offer them.”
We discussed some strategies for growing his agent base outside of traditional techniques. All the while, his mounting frustration got me thinking. Why would agents be less willing to move during difficult times? Wouldn’t people seek out better opportunities when things are challenging? Not necessarily.
Lou Adler offers some insight into this topic in a recent article he wrote:
"As part of his ‘Hierarchy of Needs,’ Maslow suggested that while people consistently strive for personal improvement, they become conservative in difficult economic times. During these periods, trade-offs are made where people protect their assets, including their jobs, avoid any unnecessary risk, and reduce their expenses. This is why good people, who are fully employed, are reluctant to move during economic slowdowns."
We all know what goes on in a person’s mind, has a profound effect upon his/her actions. This sense of “hunkering down” is not easy to overcome. In fact, it may be a waste of time to try to push against this kind of psychological perception. There is no magic bullet.
Any results that are realized in this kind of environment will be gained through perseverance, grit, and acceptance that the conversion metrics are going to be much lower than they would be during better times. In other words, to produce the same results you experienced in the past, it is going to take three times the effort!
Here’s the good news: Things won’t stay this way forever. Tomorrow, we’ll discuss what to expect when the economy begins to improve and people beginning exploring opportunities once again, and the penned up demand from the last couple of years starts to be released. These coming changes could have a profound effect on your recruiting and the make-up of your current organization.
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