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If a top-performing agent tells you they’re leaving, don’t panic. The agent who closes 40% of your company’s sales just walked into your office to tell you they’re leaving so they can start their own brokerage. Don’t panic. “Attrition is a natural and unavoidable part of the business,” says Ben G. Schachter, GRI, broker and president of The Signature Real Estate Companies in Boca Raton, Fla., and co-founder and head of sales of TotalBrokerage Software, a sales and management platform for brokers. “If you have no attrition, you’re not doing enough business.”
So, when the inevitable happens, try to navigate the situation with equanimity. If you do, you could possibly make lemonade out of lemons, convincing the agent to stay, gaining insights into your business, solidifying relationships with your agents and maybe even upping your earnings. Here’s how.
Do the Math
“If you lost a $3 billion agent, that would be catastrophic,” acknowledges Steve Snider, managing broker for One Sotheby’s Realty in Aventura, Sunny Isles, and Bay Harbor, Fla. But perspective is important, and logic and a little math go a long way. Most of the time, after you factor in splits, losing one agent doesn’t result in that much of a financial loss, he says.
Stay Positive
Do your best to take the loss in stride without showing excessive emotion. “A leader must always show optimism,” Schachter says. Make sure to model the behavior you want to see in your agents. Refrain from saying anything negative to or about the departing agent, Snider and Schachter agree. “There are plenty of stories of agents leaving and coming back because the bridge was never burned,” Snider adds.
Schedule an Exit Interview
Always aim for an exit interview, Schachter says. That’s a chance for you to understand the agent’s motivation and possibly even convince the agent to stay. Ask why they’re leaving, and really listen to their answer, he says. “Maybe you can offer them an opportunity to develop in their career or the chance to open an office,” Snider says. When one of his top agents told him she was leaving to work with her husband at his brokerage, he suggested One Sotheby’s Realty buy their business. Ultimately, that’s what happened. The decision proved wise for both parties: This agent recently won a $40 million penthouse listing in South Beach.
Even if there’s no opportunity to keep the agent on your team, a well-run exit interview helps you remain on good terms. Chances are, you’ll do deals with them soon, Snider says. Offer to talk through the new opportunity with them and support them if they still decide to leave, he adds. Even if they head to a different brokerage, you can still provide support and mentorship, should they want it.
Finally, if their move is lateral, ask yourself whether it reveals any issues with your business, says Schachter. “Learn as much as you can from them. Their leaving could be a sign of things to come, with other top producers lured away by similar features or offerings.” Maybe it’s a sign you should make some changes.
Consider How to Tell Agents
On an informal one-on-one basis, Snider offers top agents advance notice of significant changes, including departures. It helps alleviate anxiety and gossip. “I’ll say, they’re leaving and here’s why. We spoke about it, and she really wants to be on a new development project, which we don’t have, and that other brokerage has a project in Coconut Grove, where she lives. She is taking the best next step for her business.”
Schachter is always prepared to address the issue with anyone who asks. When you explain the situation to those who inquire, remain confident and focus on your brokerage’s strengths, he says.
Evaluate Expenses
“Part of making money is saving money,” Schachter says. A routine evaluation of your expenditures and whether or not you’re maximizing your use of the resources is always a good idea. You can always monitor your fixed versus variable expenses and shed some variable expenses, he adds.
Take the time to evaluate the resources and amenities you’re providing to your staff and agents, and make sure your team is using them in a way that justifies their expense. If you find that they’re not, consider cutting some things. Maybe you signed a 10-year lease but can cancel some of your technology subscriptions or cut down on mailers and marketing events.
Plan to Make Up Lost Revenue
You need to know what kind of deficit the loss of a top agent creates. Start by evaluating where that agent’s business was coming from. Were you giving them leads? If they were doing relocations or referrals, can you tap into those sources of business? Put a plan in writing that spells out how you’ll recoup that amount over the course of the business year. Again, it’s important to maintain optimism and stay open-minded to the possibilities.
If too much of your bottom line has been wrapped up in a single agent, for example, it might be time to look for new revenue streams. You could return to selling properties yourself, Schachter says, or explore adding ancillary businesses, like title insurance, property auctions or broker price opinions.
“The agent’s departure could create opportunity and conversation,” Snider says. Think about recruiting a new agent or taking stock of your current team to determine who could rise to the occasion. Sometimes, agents who have the potential for stardom are overshadowed by already-established top performers. How can you provide mentorship and resources—marketing dollars, confidence building opportunities and administrative support? What kind of mentorship does the agent need to help them absorb the departing agent’s market area?
“Maybe,” Snider says, “it’s time to elevate number two.”
