WorkPuzzle

Can Your Real Estate Company Attract and Hire Veterans?--Part 2

Last week, I started a discussion concerning the noteworthy desire many real estate companies have to hire ex-military individuals.  There are some significant obstacles that make this process a challenge, and very few real estate companies have been successful in this endeavor.   If you didn’t catch the previous discussion, you may need some background to understand today’s WorkPuzzle.

While real estate companies have not been overly successful in hiring veterans, there are some other industries that have cracked the code.   For example, insurance companies and financial services companies have demonstrated success at transitioning military personnel into sales positions.

The compensation model for real estate agents (full commission from day one) is a “deal breaker” for most individuals leaving the military.  Other industries have overcome this hurdle by offering “commission draws” or startup compensation packages, but real estate companies have not embraced this practice.

So, are we at an impasse?  Perhaps.  However, I’d like to suggest you consider one more example of an industry that has been successful at hiring veterans—the franchise industry.

This may come as a surprise, but some franchises have been remarkably successful at attracting and “hiring” ex-military individuals.   This topic was recently identified as one of the top small business trends in the country.  Also, Michelle Obama recently promoted the marketing of franchises to veterans.

Why are franchises so interested in hiring veterans?  For the same reasons you’re interested in hiring them---they believe they are uniquely qualified to be successful in the role as a franchise owner. 

There is much to read on this topic (starting with the articles cited above), and I hope I have peaked your interest on investigating this connection on your own.  As I’ve studied this connection, I’ve noticed three things that franchises do well in attracting veterans.

The Cookbook Mentality.  Franchises are famous for promoting the idea that success is the result of closely following a proven system developed by the franchisor.  “If you meticulously follow these 50 steps, you will be successful,” is the franchise promise.

Military veterans connect with this line of reasoning because it is very similar to what they’ve experienced in the military.  A soldier is not expected to develop his or her own plan for shooting a missile at a target.  That would be crazy.  Instead, they are expected to follow a detailed specification that, if executed correctly, will guarantee the missile will hit its target.

If you want to be more successful at hiring ex-military individuals, develop your own “cookbook,” and then promote the idea by following the step-by-step procedure that will guarantee success.  Be ready to demonstrate how other veterans have stepped into this position, followed the cookbook, and experienced success according to the plan.

The Expectation of Camaraderie.  Some of the best memories I have from serving in the military center around shared experiences.  The solidarity in purpose allows relationships to flourish in a unique manner.  When people leave the military, they miss this feeling and often seek-out other individuals with military backgrounds with which to reconnect.

Franchise companies have noticed this pattern and use it to market to veterans.  Research this topic and you’ll quickly notice that franchise aggregators make a big deal of highlighting the number of veterans who are successful franchise owners.

It doesn’t stop there.  Some franchise companies highlight support and mentoring groups for ex-military personnel.  These companies are purposely attempting to duplicate the camaraderie the service members felt when they were in the military.

Convincing a person that he/she will be successful in a new role is an important selling point, but convincing a person that they belong there is a powerful attraction.  Notice the company highlighted in the graphic—this company produces a searchable list of names, branch of service, rank when they left the military, and location.  A candidate who goes on this company’s career site quickly sees how he or she could potentially fit into this community of veterans.

The Path to Financing.  As you may know, buying into a franchise is expensive. Start-up costs for most franchises are $50,000 and up.  There are very few veterans (or normal citizens) who are able to afford this expense as a lump sum. Every franchise company has to deal with the issue of providing financing options to potential franchisees. 

Real estate companies are fortunate that their startup fees for agents are not this substantial.  However, to a military member with a family living paycheck-to-paycheck, even $5,000 can feel like an insurmountable hurdle.  You’re in the same boat as the franchise company.

Franchise companies have become very creative on this issue.  Options include commercial loans, SBA loans, collateral-backed bank loans, crowd-sourced funding, angel investors, third-party lenders, etc. The Wall Street Journal recently reported that the Department of Veterans Affairs runs a program called Patriot Express (it is called this because of the fast approval times for the loans) that makes business loans up to $500,000 to active-duty military preparing to transition to civilian life, as well as to spouses and survivors of veterans.

When a veteran makes contact with a franchise company, they are ready and well-prepared for the financing question.  They assume the candidate will not be able to afford the start-up costs, and they put time and effort into helping them solve the financing issue.

To successfully hire veterans, real estate companies need to adopt the same posture.  The financing issue needs to be “front and center” and addressed early in the hiring process.  To someone leaving the military, there is not much to talk about until this issue is addressed and solved.

 Summary

I had one of our readers write me earlier this week and mention (after reading the previous WorkPuzzle) she was looking forward to hearing about my “magic bullet” for hiring veterans.

I wish there was a magic bullet.  Unfortunately, hiring veterans takes strategic focus and a lot of hard work. 

Most real estate companies have not boiled down their process to the franchise “cookbook” level.  Often new agents are expected to be self-directed and creative in how they build their businesses.  This is a tough transition for most veterans to make.

Most real estate companies do not have groups of veterans working in the company who are ready and willing to provide the camaraderie that makes an ex-military person feel at home. This takes time, effort, and focus to build.

Most real estate companies have not thought through the financing challenges that veterans face in making a transition to the real estate industry.  On this issue, franchises are very proactive.   They know the challenges the candidates face and they’re ready and able provide solutions.

If your company is ready and willing to address these issues, you can be successful at hiring veterans. Franchise companies have proven it can be done.  Real estate companies could potentially have even greater success because the financial barriers to entry are not as significant as franchises. 

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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. 

Can Your Real Estate Company Attract and Hire Veterans?

One of the questions we often get from owners and hiring managers is this:

“Can real estate companies successfully source candidates who are leaving the military (usually because their service commitment is complete) and attempting to transition to the civilian employment world?”

The motivation for this question is usually two-fold.  Many companies (especially those in close proximity to military instillations) simply want to help veterans in their communities.  They feel a sense of gratitude towards those who have served our country and know many of these individuals have a difficult time finding a job in the civilian workforce.  If a company can offer a helping-hand at this critical juncture, many are glad to help.

The second motivation for seeking out the veterans is the perception that many of these individuals would potentially make outstanding real estate agents.  Traits such as integrity, self-discipline, attention-to-detail, persistence, and service mentality are many of the qualities that also make agents successful.  I’ve had several owners introduce me to new top-performing agents who recently left the military.  It is an impressive package when it all comes together.

I know what I’m describing sounds like nirvana.   If you could fill your company with these outstanding men and women, you’d be unstoppable.  Right?

I wish it were that easy.  The problem in this equation is the veterans themselves.  From their perspective, the real estate employment world does not look very enticing. 

How do I know this?  First, I am a veteran and I have many friends who are ex-military as well.  I have some personal insight into the military to civilian employment transition, but there are very clear indicators in military publications that also make this point.

Here are a several articles/publications to consider:

1.  Top 10 Ex-Military Employers.  Forbes and Payscale.com recently completed research benchmarking the top ten companies in the U.S. who hired “skilled labor” ex-military employees.  These are individuals who typically have advanced training that would equate to a bachelor’s degree or higher.  Here are the companies that made the list:

Booz Allen Hamilton

Science Applications International Corporation (SAIC)

Northrop Grumman

L-3 Communications

Lockheed Martin

U.S. Department of Defense (DOD)

BAE Systems

Computer Sciences Corporation (CSC)

CACI International

The Boeing Company

What do most of these companies have in common?  They are all defense contractors or the government itself (i.e. DOD).    Many people who have advanced skills and training find it comfortable to seek employment in an organization that operates much like the military—both in the work they perform and company culture.

2.  Hourly-Wage Employment.  It’s natural to believe that specially skilled workers would seek employment in specific areas of their expertise, but what about “blue-collar” workers?  Military.com recently cataloged the most enticing jobs in this arena:

Aircraft Mechanics and Service Technicians –Average Salary: $54,500

Boilermakers --Average Salary: $56,650

Rotary Drill Operators, Oil and Gas –Average Salary: $58,540

Commercial Divers –Average Salary: $58,640

Subway and Streetcar Operators –Average Salary: $59,400

Electrical Power-line Installers and Repairers –Average Salary: $59,450

Petroleum Pump System Operators, Refinery Operators and Gaugers –Average Salary: $60,290

Transportation Inspectors –Average Salary: $65,770

Electrical and Electronics Repairers, Powerhouse, Substation and Relay –Average Salary: $65,950

Elevator Installers and Repairers –Average Salary: $73,560

While some of these jobs require unique technical skills that can be transferred from the military (ex. aircraft mechanic), many do not (ex. subway operator, commercial drivers, etc.).  The common thread among these jobs is stability.  Employees show up to work, they’re told exactly what to do, and perform well.  Much of the military operates on this formula and many people joined the military because they want and enjoy this type of stability.

3. Corporate Employers.  As you might suspect, there are many traditional corporations (outside the real estate industry) who are trying to hire military veterans as well.  A military career site called GIJobs.com has tracked and ranked the top 100 corporate employers on this topic since 2003.  GIJobs (in partnership with a website called MilitaryFriendly.com) produces a list of the “Most Military Friendly Employers.” 

You’re welcome to page through this list (they broke the list into ten pages so it takes a while to load the pages one-at-a-time), but here are some things that I noticed: 

There are no residential real estate companies on this list.  None. Zero. Nada.   The closest thing to residential real estate is one commercial real estate company (CBRE..#79 out of 100).  Also, there is a secondary list of “Most Military Spouse Friendly Employers.”  No residential real estate companies made this list either.  This is surprising considering there are large, prominent residential real estate companies in areas that have high military populations (ex. Long and Foster in Washington DC, Prudential California Realty in San Diego/LA)

There are multiple insurance and financial services companies on the list.   The insurance industry (ex. USAA, Allstate, Hartford, etc.) and the banking/financial services industry (ex. Charles Schwab, JP Morgan Chase, CITI, etc.) seemed to have cracked the code on hiring ex-military.  Many of these companies hire ex-military personnel into sales positions.  

Many of the top companies hiring ex-military are brands you probably do not recognize.    Do you know these brands?

ManTech

Combined Insurance Company of America

J.B. Hunt Transport

All three of these companies are among the top ten companies who are most successful at ex-military hiring.   By the way, you’re not the only person who finds these brands unfamiliar.  Most military personnel have never heard of them either.

Summary

So, let’s get back to the original question:

“Can real estate companies successfully source candidates who are leaving the military (usually because their service commitment is complete) and attempting to transition to the civilian employment world?”

 The answer:  Yes, but not easily.

The greatest challenge to accomplishing this goal is that veterans are not familiar or experienced with the idea of being a real estate agent.  There is no job like this in the military and many will find the culture of a real estate company unfamiliar.  There does not appear to be prominent, widespread success stories of real estate companies turning veterans into successful agents.

The good news is other industries have figured how to accomplish this goal.  If others have done it, there is a possibility that you can do it too.  It is also good news that being successful in this arena does not require a nationally recognized brand.

In our next discusssion, I’ll give you some ideas on becoming more successful in hiring ex-military individuals. In particular, we’ll study a group of  companies (that have some close similarities  to real estate companies) that will teach us how to break through the barriers that keep veteran hiring from happening in your company. 

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Already of a member of TMOC?  If so, join the WorkPuzzle Dialog Group by clicking on the WorkPuzzle Group icon on the left side of your TMOC homepage.  Questions?   Email the WorkPuzzle editor (workpuzzle@hiringcenter.net) and we'll walk through the process.

 

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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. 

Understanding Why Recruiting is So Difficult—The Assembly Line Mentality

I recently read an article about procrastination that helped shed some light on what I’ve frequently observed concerning recruiting in the real estate industry.

Although real estate owners put a great deal of emphasis on recruiting, first level managers (ie. hiring managers) often struggle to consistently perform the high number of the well-known tasks that lead to acquiring the best hires. The hesitation to perform the correct tasks soon turns into full-blown procrastination.  

This procrastination eventually morphs itself into the development of bad recruiting habits—a focus on a low number of more enjoyable tasks that equip poor candidates to progress through the recruiting process, but keeps high-quality candidates at bay. 

As our company has studied the recruiting process over the past seven years, I’ve noticed it often takes a multitude of two-minute tasks to get one high-quality hire. In contrast, low-quality hires rarely take this level of individual task volume.  Instead, it tends to be a low number of tasks (sometimes involving longer, more emotionally draining interactions) to get to the final signing.

You’d think that a bunch of two-minute tasks would be an easier “basket to empty,” and a hiring manager might even welcome the brevity of the tasks.  But, this is not the case. For some reason, if hiring managers are given sixty two-minute tasks to knock out, they get overwhelmed and throw in the towel (even though it is only two hours of work). Why is this?

Although diagnosing such a problem may seem simple (common causes are assumed to be traits such as laziness, lack of focus, poor attention to detail, etc.), it is actually quite complex.  This pattern of behavior can be most likely attributed to a set of erroneous internal expectations.  In essence, it’s an aversion to, what I call, “assembly line” work.

Think of it this way: Managers are hired with the expectation they will be called on to coach, train, inspire, manage office personalities, and see to it that everyone is productive. These tasks take thought, strategy, and emotional intelligence.   This is the type of work most managers get excited about doing, and it is not “assembly line” work.

Assembly line work requires a completely different mindset than creative work. There is a different rhythm involved in knocking out a set of tasks quickly and then moving on to the next task.  But this is the work of recruiting.  I estimate that 90% of recruiting is assembly line work.    

Is it even possible for real estate hiring manager (who spends a majority of their time in the creative realm) to be successful at recruiting? Yes, it is. 

But, he/she must become aware or the creative / assembly line reality.  Successful hiring managers understand they must consciously switch into a different mode of mental output when they put on their recruiting hat.

Part of the reason I figured this out was that I have a similar problem with my clinical work. Even though conducting psychotherapy for eight hours straight might sound like difficult work, it’s work I am very comfortable with doing.  After more than 20 years in this role, I am an expert. I know how to respond and the work is right there in front of me.  Because I have a stable client base, I don’t have to pick up the phone and prospect.  I get to enjoy the creativity of the work itself.

But, part of my practice (and some of the other consulting work I do) involves dictating reports and completing insurance paperwork. This is “assembly line” work, and as you might suspect, I don’t enjoy it.

Like many real estate hiring managers, my natural tendency is to procrastinate on these tasks.  To be successful, I too have to change my mindset and move into an assembly mind mode.

Here’s the bottom line:  For a real estate manager, creative work is going to seem easier because it tends to be reactive.  It is going to take more energy to do the proactive tasks of recruiting.  Proactive work will continue to seem uncomfortable until you list it out, get in an assembly line mindset, and knock it out.

As Sir Isaac Newton once said, “Objects in motion tend to stay in motion. Objects at rest tend to stay at rest.”  The real estate hiring manager must understand both realities and know how to be effective in both arenas.

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Already of a member of TMOC?  If so, join the WorkPuzzle Dialog Group by clicking on the WorkPuzzle Group icon on the left side of your TMOC homepage.  Questions?   Email the WorkPuzzle editor (workpuzzle@hiringcenter.net) and we'll walk through the process.

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. 

5 Tips for Networking at Conferences

There are many businesses that still depend upon face-to-face networking for generating new prospects.  Obviously, most real estate companies rely on this important business strategy, but there are many others as well.

While some believed that the rise of online social media would cause face-to-face networking to decline in importance, this has not happened. The traditional techniques for networking are as relevant as they’ve ever been.

I was fortunate to read some invaluable information on this topic back in 1987 as I began to build my clinical practice. By putting into practice the principles I discovered, I was able to reap the benefits that well-executed networking activities consistently provide.

For my work at Tidemark, many of the same networking concepts have applied and produced predictable results.  However, there was a new wrinkle to the process that I didn’t anticipate—the art and science of networking at conferences.

I’ve developed some methodologies in this arena, but I still have a long way to go before tapping the full potential of the conference venue.  This is why I’m always on the lookout for good articles written on this topic.  I ran across such an article last week. 

The article is written by Dave Kerpen.  Kerpen is the founder and CEO of Likeable Local,  and the best selling author of Likeable Social Media and Likeable Business.   Here are some of his thoughts on the topic:

1) Research speakers and attendees ahead of time - and reach out. A week or two before the conference, look at the speaker list and, if available, the attendee list. Research the people you'd most like to meet and spend time with, and then reach out via email, Twitter or LinkedIn. Figure out how you can truly help them - and then offer your help. By showing your friendship first, you'll be differentiating yourself from everyone else, who just wants to get something from them. Set up a 10-15 minute meeting over coffee or a drink. That way, you won't have to scramble and compete to get their attention once at the conference.

 2) Use social media to connect with and compliment the speakers.  Chances are, you want to meet and network with speakers even more than with fellow attendees. But so does everyone else. One of the best ways to grab a speaker's attention is to engage with him or her on Twitter before the conference, and pay him/her a genuine compliment before or during the speech. I'll often then send a private message on Twitter to set up a meeting, so that I don't have to fight through the crowd after his/her speech for 2 meaningless seconds of conversation.

3) Skip a panel or two and hang out in the break room. As valuable as the content of a conference can be, if you're there to meet people, it can be more valuable to hang out outside the panels, in the break room, trade show floor, or by the coffee or snacks. There, you'll have more time to meet people - a speaker who's just arrived, or an attendee who stepped out to take a phone call, or a sponsor you might be able to partner with. Most conferences have built-in breaks and networking time, which can be very valuable. But consider making more of this time for yourself - you can always get the notes from that panel later.

4) Forget just giving out business cards - collect them. The traditional thinking for conferences is "Bring lots of business cards to hand out to everyone you meet." I bring my business cards to conferences. But I'd rather be in control of who I connect with - collecting cards from the people I most want to stay in touch with. So, do ask each person you meet for his/her card- and then, do connect with them on LinkedIn - either after the conference, or right then and there. Always include a personal message when connecting.

 5) Ask meaningful questions of the people you meet. Everyone else is asking, "Where are you from?" and "Where do you work?" and other small talk at conferences. Larry Benet taught me to ask better questions, such as "What are you most passionate about?" and "What charity do you care most about?" and "Who at this conference would you most like to be connected with?" That way, you get people talking about something they really care about, and you can form a more meaningful relationship faster. Of course, the most important question you can ask of someone is, "How can I help you?" When you ask these questions, listen well, and be genuinely interested. This will make a difference for you."

While I don't personally connect with the questions Kerpen recommends asking, I do think the questions need to be personal and different.   I would also add that questions should be genuine.

If you are a naturally inquisitive and thoughtful person, utilize your gift for reaching out and connecting with new people. In looking back on my career across multiple domains, it may be the most valuable thing I have ever done.

Question:  In what ways could you increase your value to others and your business by being more proactive about face-to-face networking?

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Already of a member of TMOC?  If so, join the WorkPuzzle Dialog Group by clicking on the WorkPuzzle Group icon on the left side of your TMOC homepage.  Questions?   Email the WorkPuzzle editor (workpuzzle@hiringcenter.net) and we'll walk through the process.

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Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle.