Time to Recruit – What Will Your Agent Population Be In 12 Months?

“We want to recruit a bunch of agents, open up some more offices, and grow the company”

This is what I hear all the time. So what does that mean and what does it look like? Is it specific? Is it measurable? What is it all based on? A number picked out of the sky that sounds good?

My purpose for this post is to support you in creating a crystal clear picture of where you’ve been, where you’re at, and where you want to go. Ready, Fire, Aim is something you will hear from me over and over because it’s what I see ALL the time with leadership in our industry. I am going to support you in the agent population silo of your business with Ready, Aim, Fire. By no means is this an exercise of “getting ready to get ready,” but some simple analysis and planning to support the growth of your office or company as you recruit.

In my “Predicting your Revenue Outcome” I take you through the exercise of determining the dollar value a recruit brings to you the first year they are with your company. This number allows you to create a picture of what X number of recruits will mean to your bottom-line in a 12 month time frame. Where I am going to take you now is down the path of growing your agent population numbers as the dollars will always follow.

We are going to take a look at attrition numbers, recruiting numbers, net gain, year-end population, and action steps you will take to accomplish those numbers.

Here are the steps to take in creating that.

1. Establish your historical attrition rate:

  • How many agents did you start the year with last year and how many agents left your company last year? This will establish your attrition percentage.

Example: If you started the year with 100 agents and 30 agents left you have established a 30% attrition rate.

2. What kind of growth in agent population do you want to have over the next 12 months?

  • What will your agent population be at the end of the year? I hear numbers all the time that are rarely hit because of the simple lack of planning and calculations of agents that leave.

Example: Staring with 100 agents, simple math illustrates that if we want to have 25% growth in agent population, 125 agents is the target number for year end. So how many agents do you need to recruit to hit that number? If your attrition rate is 30% and you start with 100 agents, you have a projected year-end agent population of 70 agents if you don’t recruit any agents for the next 12 months.

  • To experience a 25% growth in agent population based on your established historical attrition numbers you will need to recruit 55 agents. This will compensate for the 30 that will leave based on empirical data you have established. Your attrition rate may be lower, but this is a number I have found to be average throughout the industry.

3. How are you going to get there?

  • I have gathered more data to support you in making this as simple as possible. I have tracked and surveyed brokers over the past 15 years and here are the baseline numbers I have established from my experience and feedback.
    • Calls to contact ratio: You will get 3 live contacts for every 10 recruiting calls you make. 30% is your ratio.
    • Contacts to interview ratio: Following a specific market-tested, market-proven telephone script you will schedule 33% of the prospects into an interview.
    • Interview no-show/reschedule: 50% of the appointments you schedule will no-show or reschedule.
    • Hire to interview ratio: You will hire 33% o the prospects you interview. This number calculates in the fact you won’t want to hire or recruit everyone you interview.

Example:

  • 400 calls in a month (20 a day) = 120 contacts
  • 120 contacts = 40 interviews scheduled
  • 40 interviews scheduled = 20 interviews completed
  • 20 interviews completed = 6 hires per month

In “Predicting your Revenue Outcome” we used an assumption of $10,000 as an average realized company dollar number for a recruit in their first year. With 72 hires you will add $720,000 in retained company dollar to your bottom-line! The above has been provided as an example. You may be thinking “were not that small” or “were not that big”. The size of your company is not important, but the ratios are universal and should be applied to your respective company objectives.

Summary: Do you currently have a clear picture of where you’ve been? Where you’re at? Where you want to go? More important, what you need to do to get there? Take the time to map out where you want to go and make the specific daily commitments to get there. Many brokers experience overwhelm and time starvation when they think about recruiting. Keep it simple and take the action steps.

Note: Numbers are a great guide to see how you’re tracking against a plan and provide the ability to measure your skill-sets that you may need to improve on. If you are not hitting the rations for contact to interview, you need to brush up your telephone skills. If you have a high no-show/reschedule ratio you are either over-selling on the phone and or not confirming your interview appointments. Finally, if you are not hiring at the established ratio of interview to hire, you need to focus on your interview skills.

Need To Recruit More Agents? Start Here!

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