Cost Per Hire – Guess The Cost Of Hiring a Negotiator In To Your Business…

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IMPORTANT – Before reading through the costs calculated below, have a guess as to how much you think an empty Sales or Lettings negotiator seat might cost an Estate Agency or Property Developer…

Write it in the comments below and see if you’re close!

So, I’ve been doing some workings on the cost per hire for Sales people within the Property sector.

Here are the potential costs of what might go into securing a suitable Sales Negotiator, Lettings Negotiator or Property Consultant…

  • Assuming that the position will remain open for 2 months and it will take this person 2 weeks to be fully integrated into the company – (based on a conservative £10k / month target) lost revenue – £25,000.
  • Job Advertised across multimedia platforms– cost of £1500
  • 600 CV’s will be received and need to be reviewed:
    • Typical review time is 3 minutes per resume – 30 hours of time.
  • 25 phone screens will take place (15mins / screening) – 6 hours, 15 minutes of time.
  • 8 face to face initial interviews will occur – 8 hours of time.
  • 3 face to face, 2nd, more detailed interviews will occur – 3 hours of time.
  • Background checks and reference checks will take – 2 hours total of time.
  • Hiring Manager earns £100k per year or £48.08 per hour (assuming only one person is involved in the hiring decision). Time invested of 49.25 hours = £2367.94.
  • Training and two-week ramp up of new employee – £1,500.

Total cost: £30,367.94

But wait…

I haven’t included the time lost from the core responsibilities of the hiring manager; they could be devoting a whole extra week per hire to generating revenue for the business.
Or they could be spending more time with the existing team to develop them and increase productivity and retention. This, in turn, would reduce the need to recruit.

Then, of course, you must also take into account the bad hires, people who aren’t right. These are the people who also take a wage out of the business and don’t generate revenue!
If you lose 1 out of 4 people hired at the end of their 3-month probation that would be £30k in lost revenue PLUS their wage cost of £4500 (3 months at £18,000pa) = £34,500 in total.
Spread that over the 4 placements = £8,625 / placement extra for each hire.
If that turnover is higher, I know many property companies and estate agencies where the turnover rate is as high as 1 in 2, that’s £17,250 extra/placement!

This makes the total cost per hire = £38,992.94 (or £47,617.94 if there’s a 50% dropout rate)

Of course, the biggest cost here is the loss of revenue – £33,625 / placement and the cost of bad hires.

So you want to see the best people as quickly as possibly but it’s important not just to hire anyone as you will be going through the whole process again, at more cost. Of course, recruitment companies can help but make sure you pick the right one – but before going down that route see my blog “recruitment agencies are a waste of time!”

The most important thing is getting the RIGHT person and do all you can to keep your BEST people. If you would like more information or advice on interviewing and selection as well as the best ways to increase retention – feel free to get in contact with me (alex@cherrypickpeople.com)

Really interested to hear if your guess on the cost per hire was close! And if you have anything to add or feel I’ve missed anything in my calculation please comment!

If you are interested in further reading on this topic here is an article posted in the Telegraph, it’s not specific to property sales people, however they calculate similar costs across various sectors…

http://www.telegraph.co.uk/finance/jobs/10657008/Replacing-staff-costs-British-businesses-4bn-each-year.html

Why being in the wrong job is like being in a bad relationship!

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Why being in the wrong job is like being in a bad relationship!

So a while ago I wrote a blog about how going for an interview is a little like going on a first date (Why a failed first interview is like a failed first date!!), and the more I think about it the more I believe the similarities to be true. I also believe that being at work is very much like being in a relationship… There’s the honeymoon period, the break ups and the make ups!… And there’s always that one colleague you would like to suffocate while they’re sleeping like you would your partner!

So how does being at work relate to being in a relationship, I hear you ask?…

 

The honeymoon period and making it last!

It’s great when you’re starting off in a relationship and things are very much rose tinted! Very much like starting a new job; you’re full of enthusiasm and getting to work early, getting involved and giving it 110%. But that day comes when you wake up (maybe next to your partner) and question the past three months and whether you have done the right thing! The trick here is thinking about the reasons why you took the job in the first place, giving yourself some space from work by perhaps booking a holiday and ensuring you have a good work-life balance.

 

Working through the good times and the bad

Like any relationship, there will be good times and bad times, but we tend to forget about the good times a lot quicker than we do the bad times… However being successful at work requires you to learn from both the good and the bad; why did things work out the way they did and could they still be improved? However, with the bad times can always be a time to learn but also reflect on why we took the job in the first place and the “honeymoon period”.

 

Taking it to the next level

Just like going from base to base (you know what I mean) you don’t want to be in a stagnant career. A lot of the time employees will wait for an appraisal or a review to voice their opinions or their desire to progress their career. As you would make a move in a relationship, there’s nothing stopping you from speaking to your seniors inside or outside of work and expressing your ambition to move up the ranks

 

Trying not to kill your colleagues (or partner)

Do you ever look at your partner while their sleeping, think how peaceful and great they look, but also at the same time how easy it would be to get a pillow and cover their face? I get that from time to time with my colleagues too! In a relationship either one of you can end up on the sofa for the night or give each other the silent treatment until one of you breaks the silence. The same goes with your colleagues, take some time out, have a chat about things, kiss and make up (if you’re into that sort of thing)

 

Staying faithful

Not that I’m condoning cheating! But there are bad days in our careers where we may think the grass may be greener on the other side. Change in role? Pay rise or better work-life balance? Before making the move to another company or entertaining a call, what measures have you taken to iron out any issues which you have with your current company?

With the debaucherous work Christmas party soon approaching are you going to remain faithful or do you want to explore how green the grass is? If it is the latter get in touch with us!

So there you have it, my overview on work and relationships.

How to avoid annoying your boss

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When most people start their job they’re on their best behaviour with their boss, but with the best will in the world, those standards can slip as the months go by. Everyone can get annoyed with their colleagues from time to time, but annoying your boss is a definite no-no.

At the end of the day, your manager can have a big influence on your career, so you want to avoid annoying them as much as possible. To be fair, you might not be aware of some of the niggling things that are really grating on them – so here are five things to avoid.

 

Not responding to emails

The working world is a busy place – especially if you’re working within the property industry which means that emails can be easily forgotten about. But if your manager has sent you an email, make sure you acknowledge it – otherwise, they might think you’re either being rude or you’ve been negligent and forgotten about it.

Your boss will not have the time to chase up emails that you should have replied to. If you’re rushed off your feet and you’ve been sent a task that you won’t be able to do that day, just let your manager know the situation and the time scale that you’ll be able to get the task completed by. This way, everyone knows what is going on and your manager will have no reason to feel frustrated.

 

Not pulling your weight

There are certain duties that most offices have like washing up or making a round of hot drinks. If you’re always the one who sits there and waits to be served, then your manager will probably have taken note of it. No one likes laziness so make sure you get stuck into the daily office routine – you want to show that you’re a team player and don’t mind getting involved.

 

Being too loud

At Cherry Pick People we love a laugh and a giggle but at the end of the day the office is a place of work – so if you keep talking incessantly then you could actually be distracting others from their work, which could really irritate your boss.

 

Moaning

We understand that some days you wake up and everything that could go wrong has gone wrong – you wake up late, burnt your breakfast and get stuck in a long traffic jam on your way to work. However, avoid bringing the rest of the office down with you – a manager’s job is to keep team morale up and if you’re putting a dampener on the office environment then you’re going to get on their nerves.

 

Taking feedback to heart

Constructive criticism can be hard to hear at times because all you want to hear about is the good things you’ve done, but in order for you to progress it’s great to hear both positive and negative feedback.

If you’re defensive to constructive criticism, then your manager is going to wonder whether you’re the right person for the job. So when your boss gives you some points to improve upon, take them on the chin. Your boss will be especially impressed if you turn the negatives into a positive.

 

So there you have it; five things to watch out for that could annoy your manager. If you’ve got any more ideas feel free to comment below.

5 Things to Avoid if You Want a Pay Rise

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5 Things to Avoid if You Want a Pay Rise

So you think you deserve a pay rise and its time to make a visit to your boss and see if this is realistic. However, there are a few things to consider before doing this, so take a look at Cherry Pick People’s tips before asking for that increase in salary.

  1. Don’t ask if you’re not performing well

One of the first and most important considerations is your job performance. Look at your current duties to assess what you are doing to not just achieve your objectives that are expected, but the extras that you accomplish during your daily routine. What do you bring to your company that other people do not? 

  1. Don’t ask for a ridiculous increase

Be realistic; don’t ask for a 50% pay increase. This will only hinder your boss’s view of you and question how seriously you take the job. Do your homework and talk to others in your profession at a comparable level, use salary surveys, speak to specialist recruiters and research roles being advertised that are similar to your own to understand the salary brackets and commission being attributed to them.

  1. Don’t ask if it doesn’t benefit your boss

A pay rise is warranted by the value that you add to the company. Will you carry on at the same level if your salary is increased, or is there something you can offer which will make that increase in pay much more worthwhile? Identify which of your unique skills aren’t being fully utilised in your role. Can you work at a higher capacity? Suggest ways that you can add more value to the company over the next 12 months.

 

  1. Don’t ask if targets are not being met

If your targets aren’t being hit for that month or worse, that year, then don’t make a visit to your manager’s office asking for a raise. Be aware of how your team and the company as a whole are doing, if it isn’t up to scratch, then it is likely that the company will not be in a position to authorise any unnecessary spending in the meantime.

  1. Don’t ask in front of others

This type of conversation should always be private or in an organised meeting, this is not something to drop into casual office chat when your boss is around. Make the time to speak to your manager on a one to one basis, giving you the chance to provide your full thoughts on why you deserve that pay rise, also allowing them to give their own opinions.

To sum up, always be attentive to what’s happening in your organisation before looking to start up a conversation about pay with your boss. Additionally, be aware of how you are performing as an employee to certify perfect timing for such a discussion.

Why not use Cherry Pick People’s brand new Salary Survey to give you an idea of how your salary compares to the rest of the property sector?  Click here

If you would like more advice or a bit of an update on the property market then please contact one of our consultants:

Why lazy recruiters are a problem for estate agency

Posted by & filed under Advice, Opinion, Uncategorised.

 

It’s interesting when I meet with my property clients as they often explain what they don’t like about using recruiters and why lazy recruiters are a problem. Very often they say it’s people throwing irrelevant CVs at them or meeting inappropriate candidates and wasting their time.

It’s also interesting  when candidates say they have spoken to recruiters and have 3 interviews lined up with various different estate agents – having never met the recruiter. Then once I have met the candidate I have no idea why they were put forward to those companies, it might be that they don’t fit the brand, aren’t qualified or just won’t fit in with the team.

At Cherry Pick People we spend a lot of time making sure we find the right opportunity for our candidate’s and the right candidate for our clients. As I’m sure you’re aware, finding the right candidate is not an easy task. If it were I’d be out of a job. The right candidate isn’t just someone with a good CV it’s so much more than that which is why I believe all good recruiters should meet their candidates.

Every company is different and has something unique to them whether it be the way in which they operate, the culture, or their brand, and whether someone is going to be suitable can only truly be ascertained upon a face to face meeting. Particularly in the estate agency industry where personality is so important. I often meet sales and Lettings Negotiators with lots of estate agency experience thinking they’re going to be a fantastic candidate for my client but upon meeting them I quickly realise that they’re not the right fit at all.  This stops my client wasting their time interviewing the wrong people and stops my candidate wasting their time seeing the wrong companies.

I think lazy recruitment is becoming a problem within our industry and is taking away some of the hard work and effort we do as recruiters. After all, I provide sales and lettings negotiators who make in some cases huge amounts of money for estate agents so the difference between the right candidate and not the right candidate might mean you make an extra £100,000 revenue at the end of the year.

If you are looking to recruit a sales or lettings negotiator or looking to get into estate agency, start here with Cherry Pick People – we will do our best to find you the RIGHT candidate or RIGHT opportunity.