WorkPuzzle

Looking in Your Neighbor’s Windows: How Much Effort Does it Take to Produce a Hire?

Comparing ourselves to others is something human beings have been doing since the beginning of time.  At some level, we all need validation that our efforts are on par with those who have similar jobs and responsibilities.

If you are responsible for recruiting agents, have you ever sought to compare yourself to other offices within your company?  Is your company doing as well as your competitors?  How does your recruiting performance stack up to companies in other markets?  These are all important questions.  Hopefully you’ve spent some time contemplating and researching this issue.

One of the things you may not have studied is how your recruiting efforts compare to other industries.  Is it possible that the real estate industry operates at one level, but the insurance industry operates on a higher performance plane?  On the other hand, you could be pleasantly surprised to learn that your hiring systems and performance far surpass typical performance in the medical industry.

Of course, this type of data is very difficult to collect and analyze.  So, when I came across the question below and subsequent answer on this topic in the Electronic Recruiting Exchange (ERE), I thought it was worth sharing.  The contributor is Richard Newsom, the VP of Recruiting Operations for Fifth Third Bank, and the question is shared by an anonymous reader who works for a publically-traded company.  Here is the exchange:

"Question:

I manage our company’s recruiting organization.  We are a four billion dollar company, publicly traded, and employ 4,000+ employees.  I have a team of seven full-time recruiters and just recently brought on two contract recruiters.  Here is my challenge:

I am being asked to show that my team is at capacity, and what it would take to complete the recruiting team to address the business needs (requisitions).  When I joined the company two years ago, we had 15 recruiters.  In the last two years we have had three reductions in force, hiring freezes, etc.  It made sense for the company to decide that we could downsize the recruiting organization.  Last year with seven recruiters, we filled 774 requisitions.  Is there anyone who could help me build a business case that we are working at capacity?

Answer:

There are many different ways to approach this, and not every solution works for every company.  I’d like to discuss one particular approach….  Using your example of 774 hires (and making some broad assumptions that you’ll need to validate)…

Assumptions:

• We need to hire 774 people in 2011
• 90% of the offers extended result in a hire
• 25% of the interviews conducted result in an offer
• 80% of the candidates submitted to a hiring manager get interviewed
• It takes 1.5 hours to source a candidate worthy of submitting to a hiring manager
• Each recruiter has 2.5 hours per day dedicated to sourcing candidates for submission
• There are seven recruiters dedicated to recruiting throughout 2011 — thus seven recruiters X 2.5 hours per day for sourcing = 17.5 sourcing hours per day total

Calculations:

• 774 hires needed/90% acceptance rate = 860 offers need to be extended
• 860 offers/25% offer rate = 3,440 candidates need to be interviewed
• 3,440 interviews/80% interview rate = 4,300 candidates who need to be submitted to hiring managers
• 4,300 submissions X 1.5 hours per candidate = 6,450 sourcing hours needed
• 6,450 sourcing hours needed/17.5 hours per day = 369 business days to source all candidates (516 calendar days)

Using these assumptions, it would take your team of seven recruiters nearly a year and a half to fill all 774 positions….”

Hopefully, this recruiter will be able to take this information and fend off another reduction of staff among her recruiting group. Even if she maintains here current staffing level, I’m not sure I’d want to work there—it sounds like a death march!

But, that’s not the point.  Through his assumptions, Richard Newsom has given us some insight into hiring practices in the banking industry.  In essence, we have the opportunity to look in his office window and see the recruiting conversion metrics of one of the most prominent companies in the financial industry.

How do these benchmarks compare to what you experience in your company?  For high performing companies in the real estate industry, we commonly see an interview-to-hire ratio of 25% to 35%.  While this is similar to Newsom's bank, their candidate-to-interview ratio is very high compared to most real estate companies.  To secure 3,440 interviews, most real estate companies would need to source 15,000 to 20,000 candidates.  Analyzing the hours dedicated to each task is even more interesting, but I’ll leave that for you to consider on your own...

The bottom line is that we all need goals in order to exceed.  If these goals are set with a limited exposure to what others are accomplishing, we may not reach high enough.  I encourage you to use all the information you can possibly collect to establish your personal expectations, and then push yourself to succeed.

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below. 

Jet Blue Moments and Resilience

As I pointed out in my last blog, when people are undergoing economic and job-related stress, evidence confirms some important principles that determine what direction one takes.  Namely, that under economic and job-related stress, either people grow and go on to achieve, or they regress and become physically and emotionally unhealthy.  

I used the Jet Blue incident as a backdrop to launch some learning on what happens to people who respond like Slater and alternatively, what happens to people who actually reframe their current job-related stress in a different way.  I actually received a comment from someone that implied that Slater (the airline attendant who threw a public temper tantrum) was not in the wrong.  If you share this opinion, you are headed in a precarious direction.  There is more than ample evidence that adulthood stress can help you grow, if you're willing to reassess how growth and achievement takes place.

Dr. Kerry Sulkowicz makes it clear that you are going to need resilience if you are going to maintain a clear head during  tough times:

“Many psychologists consider [resilience] a key component of emotional health.  Resilient people, they have observed, are naturally better at containing their anxiety.  And that enables them to see in hardship the seeds of opportunity.  What would emotional resilience entail in the face of the current crisis?  The ability to resist being swept up in the global state of panic and to adapt as creatively as possible to one's setbacks and losses.”

We see this principle played out with our clients every day.  Some people are not very good at containing their anxiety and they become paralyzed as a result.  But, others are busy working to find new opportunities.  We all feel the strain, but certain people have figured out how to use that strain as a catalyst for action.

If you find yourself in the former group, Dr. Sulkowicz has some advice for you:

“But just as there is no shortcut to emotional health, you can't become resilient overnight, or by sheer will, or by reading the latest book on the subject.  Instead, resilience is acquired through increasing self-awareness.  You must connect with trusted and candid intimates who help you build confidence.  You need to repeatedly expose yourself to a range of difficult circumstances and then overcome them.”

If you are responsible for coaching those around you, you have a great opportunity to put this into practice.  You are the “trusted and candid intimate” your protégés need to overcome their anxiety.  Can you help them identify the things they are already overcoming?  This is the foundation to build upon that can give them courage to take on the next challenge.

If you are struggling yourself, then you need to connect with others who can provide you support.  The first tendency will be to just talk with those who will compassionately identify with your circumstances.  Slater has an entire fan club filled with this sort of support....all people who are going nowhere fast.  While sympathetic support is important, but we also need those “tough love” friends who can give us the push we need to take on the next challenge...

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Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.  

How to Prevent your own Jet Blue moment: And Succeed

Our recent blog regarding the Jet Blue incident was more popular than we had anticipated.  Last week we wrote about the bizarre behavior of Steven Slater, the now infamous Jet Blue flight attendant who decided to grab two beers and take the short cut home from work.  (If you need a quick refresher on what happened, here is a quick video: http://www.youtube.com/watch?v=0mNRhlrBqOc)

Feedback we received shortly after our posting suggests that frustration is gaining momentum in the Real Estate industry as well.

Here is one of the responses we received:

"I have noticed frustration, anger and impatience toward other agents, clients, staff, and managers.  Deals fall apart frequently, obsessive agents hound each other to try and keep a deal, disputes are abounding, and rudeness seems to be a daily dose of medicine." 

Clearly this outlandish display of immaturity by Slater is somewhat of a "cannery in the coal mine" when it comes to today's stress in the services industry sectors.  So, if you can at all sympathize with Slater's frustration or have experienced some growing frustration toward clients, other agents or managers, it may be time to take a deep breath, and really try to figure out what is causing your stress and what you can do about it, before you have your own Jet Blue moment.

Psychologically if you have been more irritable and angry on the job, it can mean a variety of different things, as these are symptoms and could be completely personal in origin.  But, when it happens to an entire culture it points to something much more general in nature regarding stress from factors that are probably inherent in the culture itself.  Instead of delving into factors such as economic conditions, changing customer solutions, change in lifestyle related to the above, etc... I'm going to address the consequences of these stressors and the solutions to reducing stress by reframing your current condition.

The research on resilience tells us there are two potential outcomes when it comes to responding to today's economic stressors:  Either you’ll become stronger and more successful, or you’ll become weaker, less mentally healthy, and less likely to do great things in the future.

Which outcome best describes you?  The answer to this question will depend on how you’re able to handle job-related stress and whether you can become a resilient person.

Management consultants, Salvatore Maddi and Deborah Khoshaba, conducted a 12-year study of the Illinois Bell Telephone (IBT) company staff who were enduring almost constant organizational change during the de-regulation changes in the telephone industry.

Every year for 12 years, 450 IBT employees (including supervisors, managers and executives) were interviewed, evaluated, given psychological tests, and given medical examinations.  While everyone in the organization was feeling stress, almost 50% of those sampled lost their jobs.  The purpose of the study was to research how people under job-related stress handled these difficult conditions. 

The research revealed that the employees reacted to the stress in two distinct ways:

• 65% of the employees suffered additional serious stress-related events in their lives such as divorce, heart attack, depression, anxiety, and drug/alcohol abuse.
• 35% of the employees thrived under the stress. If they stayed at IBT, they rose to the top of the heap. If they left, they either started companies of their own or took strategically important employment in other companies.

When the data started to show a distinct difference between the two groups of employees, the researchers then attempted to quantify what caused a person to be part of the second group.

In their book, Resilience at Work, the researchers outlined their findings.  A “resilient person” is someone who possesses and embraces the following:  commitment, control, and challenge.

“As times get tough, if you hold these attitudes, you'll believe that it is best to stay involved with the people and events around you (commitment) rather than to pull out, to keep trying to influence the outcomes in which you are involved (control) rather than to give up, and to try to discover how you can grow through the stress (challenge) rather than to bemoan your fate.”

In short, a steadfast commitment allowed the resilient employees to engage more fully in the job at hand (or with a new opportunity for those who lost their jobs).  This helped them to understand and interpret the events that were having an impact on them.

Their sense of control empowered the resilient employees to consider ways that they could proactively influence the changes that were affecting them.  Their less resilient colleagues tended to passively withdraw effort, believing there was little they could do to impact what they believed was their fate.

Furthermore, the resilient employees interpreted the stressors and changes as a challenge, and tended to look for the potential opportunities that change would bring about.  They took the outlook that change is an inevitable part of life.  It didn’t mean that these people enjoyed the stress, but the positive outlook they took positioned them to keep an eye open for new opportunities.

My hunch is that Steven Slater didn't view his stress in this way.  The brain simply can't sustain any problem solving when your fight or flight response is firing as if your being chased by a saber tooth tiger. You have two choices:  remain frustrated and take it out on yourself and everyone else, or GROW!  Anyone can act like they have their act together during good times, but only people who want to develop great strength of character will respond well when times are tough.

In the next blog I'll write more on the characteristics of resilience.

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Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.  

How to get things done: Best answer yet

If you're finding yourself struggling to get things done, or worse yet, having trouble even remembering what you have to get done, this blog is for you.  There are several tips I have found over the years that have helped me make the most of each hour of the day.  Many of the tips have been put to use religiously, - like David Allen's tip... that if something will take two minutes or less of your time to complete, do it now!  I've practiced that one and have benefited greatly from it.

Having said this, I haven't found an entire system, yet, to pull it all together.  I have several ways of reminding myself of various projects, and fortunately I have a good memory, so far...but sometimes I fear that I'm forgetting something important.

But, thanks to Michael Hyatt, I have a new system in place.  It involves using the idea of a primary "command center" as your to-do list system.  This command center functions to maintain your central focus throughout the day.  I especially like the tool he uses and plan to purchase it.  Here's what Michael does to make his to-do list his personal command center:   

1. Make sure your to-do list consists of “next actions.” This is the secret to getting things done and avoiding procrastination. You have to break a project down into discrete actions. For example, “Prepare Thomas Nelson Strategic Plan” is a project. “Write first draft of updated vision statement” is a discrete action within that project. I try to create a bite-sized action that I can complete in less than a few hours. If it’s going to take more than that, I break the action down further.
2. Prepare your to-do page the night before. I like to do this toward the very end of the day. This gives my subconscious a chance to work on the items overnight. I find that I am much more productive the next day if I do this. It also gives me a chance to hit the ground running, knowing exactly what needs to be accomplished.
3. Review your to-do list first thing in the morning. Before I do anything else, I review my calendar and my to-do page. The calendar provides the “hard edges” of my non-discretionary time. These are the things I must do. My to-do list provides the discretionary items I will have to get done when I am not in a meeting or otherwise committed. Reviewing these items first, provides me with the opportunity to make last minute adjustments to my game plan. I also arrange these items in roughly the order I plan to do them.
4. Stay focused on your to-do page throughout the day. I always have my to-do list in front of me. I use Things, a software program for the Mac, so it is only a keystroke a way. But the tool is really unimportant. There are tons of great ones on the market, including Nozbe (another favorite) or even a plain old Moleskine Notebook. The main thing is to stay focused on one project at a time, check it off, and then go to the next one. When your to-do page is your command center, it keeps you from getting distracted by everything else pinging your brain.
5. Add to your to-do list as items occur. You want to be able to get to-dos out of your head and into a reliable system for follow-up at the appropriate time. If they keep rattling around in your head they “consume psychic energy,” as David Allen puts it. Again, I try to keep this a keystroke away. With Things, I just press ^⌘-Space, and it opens a new to-do window. If my cursor is on an email message, it automatically links that message to the new to-do item. But again, the tool is not important. Use what makes it fast and effortless.
6. Rinse and repeat. I rarely get everything on my daily to-do list done. Items that I don’t complete become candidates for tomorrow’s page. Sometimes, that makes them more important for tomorrow’s list or I realize that these items are no longer a priority and delete them altogether. Regardless, at the end of the day, I start the cycle over and prepare for tomorrow.

If you have tools or systems for getting stuff done, I'd love to hear about them...

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Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.  

What Can You Learn from the Jet Blue Flight Attendant’s Tirade?

Unless you've been vacationing on a remote island with no contact with the outside world, you’ve no doubt heard about the bizarre behavior of Steven Slater last week.  He is the now infamous Jet Blue flight attendant who decided to grab two beers and take the short cut home from work.  (If you need a quick refresher on what happened, here is a quick video:  http://www.youtube.com/watch?v=0mNRhlrBqOc )

Since his arrest, something strange has happened.  Slater has become a hero.  Take a look at this partial summary from Yahoo News:

“And as is the case with anyone who stumbles upon sudden infamy in the digital age, Slater has been the subject of much discussion in the past week.  As David Allan Coe advocated in song, he took that job and shoved it.  Here's a random sampling of reactions from around the Web:

• Gawker's Maureen O'Connor labeled him a 'hero' for 'doing that which everyone who has traveled by airplane dreams.'  She added, 'Unfortunately, his heroism may result in criminal mischief and trespassing charges.'
• New York magazine's Chris Rovzar predicted that hero status for Slater is imminent:  'You know, it's amazing you don't read stories like this more frequently.  You'd assume that, just as passengers periodically go berserk, so would flight attendants.  Prediction:  This guy becomes some sort of folk hero.'
• The New York Daily News' Joanna Molloy sympathized with Slater's plight, which she thinks is 'part of the frustration all over the country as employees take pay cuts and have to do double the workload as they take on the responsibilities of their laid-off co-workers.'
• The Awl's Alex Balk is ready to raise a glass in celebration of Slater, writing, 'I think even the most airline-phobic among us can sort of look at his great escape and offer a silent cheer.'
• In a recent issue of the New Yorker, essayist David Sedaris wrote about air travel and the tendency for humans to behave at their worst on planes and in airports.  'We're forever blaming the airline industry for turning us into monsters,' Sedaris wrote.  'But what if this is who we truly are, and the airport's just a forum that allows us to be our real selves, not just hateful but gloriously so?' "

(To read the summary with all the links to the original articles, please visit:  http://news.yahoo.com/s/yblog_upshot/20100810/bs_yblog_upshot/rogue-jetblue-flight-attendant-being-hailed-as-a-modern-american-working-class-hero )

Why is it that so many people have connected with Slater’s outburst?  As I’ve read the articles mentioned above and others, the consensus seems to be that there are many employees who are very frustrated with their jobs.  While most individuals cannot afford to abandon their posts like Slater did, they can cheer on someone who publically demonstrated the angst they feel every day.

Digging deeper...it appears the frustration is most intense in the service industries (i.e. those jobs that involve directly serving the public).  In the U.S, there are a total of 150 million people with jobs, and 107 million of these individuals work in the service industry.  That’s a huge amount of collective frustration and it’s not hard to see why it occasionally bubbles over into the media when a focal point presents itself.

So, what can you learn from Slater’s tantrum to increase your recruiting effectiveness?  Here are some quick thoughts:

1. Connect with the Frustration People Feel in Their Jobs.  As you know, change is painful.  People do not make changes in their employment status unless the change of remaining in their current situation exceeds the pain of trying something new.  So, spend time asking questions about a candidate’s current situation to bring the pain to the surface.  What bothers them about their current job?  What other options have they tried in the past that have not worked out?  Where do they see themselves in five years if they remain on the same course?  Etc.
2. Tone Down the “Opportunity Speak.”  Managers are often too eager and thorough in describing the benefits of becoming a real estate agent. If there is too much of this opportunity speak too quickly in the conversation, the walls go up.  You’re talking, but the candidates are no longer listening because they feel like they are being sold something.  It is better to admit that being a real estate agent has its own set of struggles.  Realistic hope is kindled when the new struggles seem more bearable than the ones they’re experiencing right now.
3. Encourage Candidates to Take Small Steps.  As you find points of pain in the discussion, encourage the candidate to take small steps to remedy the pain.  For example, one of the common frustrations people feel in a dead-end job is boredom.  If a candidate is considering real estate for the first time, enrolling in a real estate school is a great way to learn if the new career has the potential to be more interesting and engaging. In most states, this is a small step (low cost, flexible) towards answering the question:  Does the topic of real estate really capture my interest? If the answer is yes, the next step will be even easier.

Like most people who grab their 15 minutes of fame, Steven Slater will soon be forgotten.  But, the frustration that many employees feel in their current situations will remain.  Tap into that frustration and you’ll gain an advantage over the competition and ultimately become a more savvy recruiter.

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below. 

8 Behaviors of “Restraining” Leaders

Earlier this week I posted the research-based list of behaviors of successful leaders, found in the book by Hodgson and White called “Relax, It's Only Uncertainty.”  Don’t you love that title?  Chances are if you love the title, you're one of the successful leaders/managers who naturally embody the traits that were found to lead people well.

 

The latest issue of one my professional journals focuses its entire publication on how to best lead in uncertain times.  Having outlined the traits that successful managers possess, I'll next present the behaviors of managers who tend to fail.  It turns out that those who don’t deal well with uncertainty tend to not fair so well...

 

Now, before I share with you the list of behaviors, let me warn you... If you find yourself guilty of these behaviors, don’t get too discouraged.  There is a place for you... it just may not be leading an organization.

 

Hodgson and White were able to identify the following clusters of behaviors found in managers who tend to not lead well.  He called these managers the “Restrainers.”

 

“Restrainers” demonstrated these measurable actions:

1. “Poor Transitioners” have difficulty shifting from one kind of activity to another. These individuals have a limited repertoire and tend to rely too much on a select few areas of strength.
2. “Wet Blankets” dampen the energy of an organization. They convey enthusiasm for their own work and respond poorly to the excitement of others.
3. “Conflict Avoiders” tend to be overly accommodating to others, often the result of being averse to interpersonally heated situations.
4. “Muddy Thinkers” exhibit confusion that is sometimes self-inflicted. They process information in a way that makes things more complicated that it has to be.
5. “Complex Communicators” explain in unnecessarily complicated language.
6. “Detail Junkies” can’t see the forest for the trees. They often obsess over smaller tactical issues to the exclusion of larger strategic trends.
7. “Narrow thinkers” have tunnel vision. They are focused on the moment and blind to new possibilities.
8. “Repeaters” are tethered to the past and continue to rely on actions that worked in the past, but may no longer be relevant for the present and future.

Let me know if any of these traits resonate with you.  Have you seen leaders fail?  Did they possess any of these traits?  Here’s another question... What do the best leaders do with those on their team who do practice the above?

 

People who display these traits have an important place.  Some of the above traits can be essential in certain roles.  For example, I want a detail junkie doing my taxes, bookkeeping and software development.

 

Do you have other examples for where these kinds of people would flourish?

 

(Reference:  Consulting Psychologist Journal: Practice and Research, Acceptance of Uncertainty as and Indicator of Effective Leadership, June 2010.)

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Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.  

8 Key Behaviors of Successful Leaders

I want you to ask and answer the following question as honestly as you can: With the future of business being unpredictable and evolving quickly, how important is it to employ flexible and adaptable managers?

The latest issue of one my professional journals focuses its entire publication on answering this question.  Although the article focuses on businesses in general, I could relate everything I read to challenges in the real estate industry.

Rapid technology advances, more diverse workforces, more use of outsourcing specialized tasks, new forms of social networking, increased use of virtual interactions, and the need for online branding capabilities, have all contributed to an interest in this topic.  

While I can't cover everything here, one of the insights I thought most helpful concerns a manager's ability to embrace uncertainty and manage it effectively.  Hodgson and White, in their book Relax, It's Only Uncertainty, were able to identify some very interesting clusters of behaviors in managers who did this well, and clusters of behaviors in managers who did not excel.

The Adaptive Group (or most successful managers) demonstrated these measurable actions:

1. “Mystery Seekers” are fascinated by what they do not yet know.  We might describe them as taking a road just to see where it goes.  Curiosity is high.
2. “Risk tolerators” are not necessarily risk takers, but they have the willingness and ability to make choices with incomplete information.  They see mistakes as a way to learn.
3. “Future Scanners” are those who want to understand how a business operates, and constantly consider how it will play out in future states.
4. "Tenacious challengers” are tireless in solving problems.  They continue to seek solutions in a relentless way.
5. "Exiters” want everyone to be energized by what they do.  Behaviors that come out of this include wanting to make work fun.
6. “Flexible adjusters” exhibit two tendencies:  the ability to admit they are wrong and the ability to sell change to people whose self interest is against the change.
7. “Simplifiers” are able to take complicated ideas and help everyone in an organization understand where they are going.
8. “Focusers” have the ability to identify and attack a critical few actions that need to be done, as well as the ability to shift to a different few critical actions at the right time.

Which of these describes you?  Which characteristics do you struggle with or wish you possessed?  I recommend resisting the urge to become overly concerned with your weaknesses and spending a lot of time trying to overcome them - This would be very difficult to accomplish.  Instead, focus on becoming even more purposeful in developing the traits you naturally possess.  Then, fill in the gaps by surrounding yourself with people who are good at the other items.

In the next edition, I’ll share the eight traits found in “Restrainers” - those people who aren’t good managers because they resist change.

(Reference:  Consulting Psychologist Journal:  Practice and Research, Acceptance of Uncertainty as an Indicator of Effective Leadership, June 2010)

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Editor's Note:  This article was written by Dr. David Mashburn.  Dave is a Clinical and Consulting Psychologist, Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.  

6 Things You Need to Know to Successfully Address Compensation Issues

In our most recent discussions, I’ve attempted to provide some insight regarding how candidates who work in traditional jobs perceive the real estate industry.  When we talk about this topic, the elephant in the room is compensation.  How do you get an individual who is used to working in a “normal” occupation to quit his or her job and take on the risks that are inherent to working as a full commission real estate agent?

While this is a challenge, it is not impossible.  There are many talented people among the 13 million individuals who find themselves unemployed.  There are also an additional 26 million people who have jobs today, but are constantly looking to apply their talents to new career opportunities.  Many of these people have great skills, competencies, and motivation, but they’re frustrated, lack opportunity, or think they’ll find themselves unemployed in the near future due to circumstances they can’t control.

When the individuals in one of these two groups start to consider real estate as a possibility, the first and most significant obstacle that must be overcome is compensation.  Unless a person can see a clear and highly probable path for making income, there will be immediate resistance and most people will disengage--especially the talented ones.  Here are some ideas on keeping this from happening:

1. Discuss Compensation Early in the Conversation.  Acknowledging the issue and addressing it early in the conversation frees a person up to hear the rest of what you’re going to say during an interview.  It is not hard to say something like, “I bet your number one question about real estate is how you’re going to get paid for doing this kind of work…”  Avoiding the issue or waiting until the end of an interview to discuss compensation makes candidates think you have something to hide.
2. Answer the Most Common Questions Before They’re Asked.  The most talented people among us have more than one employment option.  They want to know whether the option you’re offering is better than the others they are considering.  They have questions like, “What percentage of the people who work with you make my desired level of compensation?”...“What are the obstacles that tripped up those who are not making it?”...“Do you have two or three people who I can talk with who were in my situation a year ago who are meeting their compensation goals today?”
3. Learn About The Candidate’s Other Options.  Ask questions about what else a candidate is considering for employment.  Talented people always have options, so if you can get a person to articulate these options you can start to have a fair discussion regarding whether real estate is right for them.  Try to maintain the perspective that you are an objective third party who is honestly trying to help the person make a good decision about their future.  Validating the existence and viability of other options is the best place to start.

Once a person feels heard and believes that you understand their circumstances, they are much more willing to consider the things you have to say.  There is still the hurdle of getting someone who is used to a normal salary with benefits to feel comfortable with a real estate compensation model.  Here are some ideas to help you over this obstacle:

1. Discuss the Decline of Traditional Jobs with Benefits.  As mentioned in an earlier post, about 30% of the workers in the United States now work as independent contractors, and this percentage is trending upwards quickly.  Some experts expect this level to exceed 50% in the next 15 to 20 years.  As the traditional job becomes scarce, opportunities to succeed will naturally follow this trend.  Teaching someone to operate in the independent contractor world is a valuable contribution you can make to an individual's career.
2. Discuss the Long Tradition Americans Have of Becoming Business Owners.  The U.S. Census Bureau reports that there are 23 million businesses in the United States.  Of this total, over 17 million are businesses that have zero employees.  Think about that number... There are about 17 million people who own their own business by themselves.  And these aren’t just goofy businesses, they contribute almost $1 trillion to the gross domestic product.  Use the paradigm of starting a business when you introduce someone to idea of becoming a real estate agent.  While such a change may still feel scary, it can make it seem more normal, doable, and even exciting.
3. Discuss the Idea of Duel Careers.  Many real estate companies resist hiring “part-time” agents.  This policy has some merit because there is a lot of data that suggests that those who work part-time do not maintain the necessary focus to be successful.  For the large majority of people who have been involved in real estate in the past, this has been true.  However, there is an emerging trend among working individuals that is worth noting: many of the most talented people in our society want to work more than one job for the sake of interest and flexibility.  The real estate industry has an opportunity to tap this resource in some new and exciting ways.  I’ll write more on this topic in a future blog, but for now be on the lookout for this issue when you interview highly talented individuals.

Compensation will always be one of the major issues in discussing any employment scenario.  Being able to discuss the issue with confidence, a sense of creativity, and hope, will increase your chances of hiring talented agents.

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below. 

What are Your "Competitors" Offering Your Candidates?

Last week, we started a discussion on how companies can more successfully attract talented individuals to the real estate industry.  When there is a limited number of people who are seeking out real estate careers on their own, the competition for new agents naturally has to grow beyond that small pool of candidates.  When this happens, a real estate company has to compete with traditional companies (i.e. companies that offer traditional jobs with salaries and benefits) for the attention of talented individuals.

Last week, I challenged you to find out what other companies are offering in the geographic region close to your office.  Did you do your homework?  Just in case you didn’t, I put together a couple of examples for you.

Our company (Tidemark) is located in Woodinville, WA.  This is a community just outside of Seattle.  As I search in my geographic area, here are a couple examples of what candidates are being offered:

1.  Email Marketing Manager, Classmates.com.  Classmates.com is one of the few “dot com” companies that survived over the last decade.  It appears to be a healthy company and has a good brand.  Here are the responsibilities for this position:

Manage the concept, development and execution of email marketing campaigns, including new feature notifications, segmented lifecycle campaigns, newsletter & triggered emails.

Partner with other members of the marketing team to develop new customer segmentation and contact strategies and act as the team’s resident expert of email.

Write effective, creative briefs that include campaign objectives and strategic messaging and work with our internal creative services to formulate compelling copy and design that ensures successful results.

Develop new messaging strategies that leverage the data we have on our members and provide business requirements to technical teams to construct more compelling, dynamic email.

What are the motivations of someone who would apply for this job?  The most obvious factor is the opportunity this position affords to someone who wants to make use of their marketing training and skills.  Someone who is attracted to this position would enjoy working in a team environment and interfacing with vendors (internal creative and technical service providers).  Additionally, a person who would be successful at this job would probably have a knack for understanding the needs and interests of customers.

Estimated pay for this position:  $50,000/year with full health benefits.

2. Customer Service Representative, Precor.  Have you ever went to the gym and used one of those elliptical trainers?  Most likely, it was made by Precor.  This company is also a healthy company that has a good brand and reputation.  Here are the responsibilities for this position:

Provides technical assistance to internal and external customers using both oral and written communication skills.  This includes diagnosing the problem and walking the customer through the solution.

Maintains contact with customer accounts and end-users through phone contact, email, faxes and correspondence.

Explains and administers company policies and procedures pertaining to customer service (e.g., warranty policy, parts credit, return policy, etc.)

Communicates effectively with customers (within Customer Support and other appropriate departments) on the status of current field failures, and assists in determining corrective action to ensure Precor customer satisfaction.

Assists customers with part orders through an on-line computer system, this includes data-entry of customer numbers, part numbers, quantity, etc.

A person who is attracted to this job will be someone who enjoys working with people to get problems solved.  The individual who is successful at this position would have to be a good listener and be willing to push through obstacles (both internal and external) in order to get good results.

Estimated pay:  $30,000/year with limited benefits.

Note:  Pay and benefit research was conducted through www.glassdoor.com.  Neither of the positions advertised contained detailed pay and benefit information in their job posting.

Speaking the Candidate’s Language

Hopefully, you’re starting to get the idea of what “normal” candidates experience as they look for a job.  As you consider this information, don’t get too caught up in the details.  Rather, spend your time trying to understand “the language” that the candidate is expecting to hear when they consider new employment.

More specifically, you need to be able to see things and answer questions from the customer’s perspective.  Candidates want to know…

• How do my skills and training specifically apply to what an agent does?
• Who am I going to be working with as an agent?  Am I going to like my manager and coworkers?
• Who, outside of the organization, am I going to be working with?
• Does your company have a great brand? (i.e. Will I want to tell my friends I work at your company?)
• As an agent, am I going to enjoy working with your company’s customers?

If you’re not crafting your message in terms that the candidate finds familiar, there is often a decisive breakdown in communication that develops.  The red flags quickly go up in a person’s mind and the talented people disengage.

It’s similar to the feeling you probably get when you attend a timeshare sales presentation.  You know that there are all kinds of normal people in the world taking normal vacations, but the salesperson is hell-bent on convincing you that all those other people are idiots and his unique model of vacationing is the only way to go.  At this point, you’re looking the for the door and wondering whether the two free nights in the hotel was really worth it!

While this kind of pressure and focus may work for timeshare sales, but it doesn’t work for employment.  Helping someone consider a range of fair options in terms a candidate is familiar with hearing is the formula for building trust and getting the most talented candidates to engage.

Next time, we’ll discuss how you can better compete with traditional companies on the issue of pay and benefits. 

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Editor's Note:  This article was written by Ben Hess.  Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.  Comments or questions are welcome.  If you're an email subscriber, reply to this WorkPuzzle email.  If you read the blog directly from the web, you can click the "comments" link below.