{"id":2134,"date":"2021-03-23T09:48:53","date_gmt":"2021-03-23T09:48:53","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2021\/03\/23\/using-your-leading-indicators-to-recruit-talent\/"},"modified":"2025-03-13T02:37:07","modified_gmt":"2025-03-13T02:37:07","slug":"using-your-leading-indicators-to-recruit-talent","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2021\/03\/23\/using-your-leading-indicators-to-recruit-talent\/","title":{"rendered":"Using your leading indicators to recruit talent"},"content":{"rendered":"\n

Sure, leading indicators can help agents with income by clarifying the work needed to achieve. Brokers can benefit from them with recruiting. How many people are you touching in your database? <\/p>\n\n\n\n

Over the years, I have heard the reporters on the nightly news mention the economic leading indicators time and again. As most leaders know, leading indicators are trends that you can look at today that give you a glimpse into what\u00a0is likely to\u00a0happen in the future. For example, the number of housing permits issued today is a leading indicator of how many new houses will be available in the next several months which then indicates the number of household appliances that will be sold shortly thereafter and so on.\u00a0One indicator \u201cleads\u201d another indicator.<\/p>\n\n\n\n

The challenge is for us to look at our future desired outcome and then back up to the one or two things that we need to do today that will lead <\/em>to a successful outcome somewhere in the future. As real estate leaders, you can apply this to recruiting as well. The first step is to identify the outcomes\u00a0you want, then\u00a0spend some time figuring out the appropriate\u00a0leading indicators or predictive activities<\/a> that will lead to those outcomes.<\/p>\n\n\n\n

Recruit, retain, find profits<\/h4>\n\n\n\n

So what\u00a0are the\u00a0leading indicators for the things you are trying to achieve?\u00a0 In most\u00a0businesses, there are one or two clear leading indicators that will\u00a0predict your future profits. In real estate, recruiting talented agents is one of your most important leading indicators. Let\u2019s say that your net income is typically driven by\u00a0your revenue<\/a>, which\u00a0is driven by the number of units sold, which is driven by the number of clients you have,\u00a0which is\u00a0usually driven by the number of people that refer or recommend\u00a0you to others. The number of people that could refer or recommend you is usually driven by the combination of the number people that know\u00a0of you\u00a0combined with your top of mind position with them.<\/p>\n\n\n\n

Stated differently, people must know your story, remember your area of expertise and be willing to share it when the time is right (a.k.a. sending you referrals). Repetition and memorability build brand awareness or \u201ctop of mind.\u201d People\u2019s ability to recommend you is likely a function of the number of times\u00a0they interact with you, recognize your value and in turn, relate your story to others.<\/p>\n\n\n\n

We have now\u00a0arrived at two\u00a0of the primary\u00a0leading indicators of your future income \u2013 the number of people you regularly communicate with and the message you give them that helps them recall your story. These two indicators, the number of people you know\u00a0and the number of times you remind them of our story,\u00a0can be combined into a singular\u00a0measure \u2013 the\u00a0\u201cTOUCH\u201d. <\/p>\n\n\n\n

Increasing your touch<\/h4>\n\n\n\n

A \u201ctouch\u201d is defined as one quality contact with one person. This doesn\u2019t mean physical touching although face-to-face interactions should be part of the mix. As an illustration, if we contacted 50 people 10 times each last year with a small item of value such as a neighborhood report of pricing trends, a summary of the mortgage market, or a brief phone call about a new listing, it counts as 50 X 10 = 500 touches. Next year, to grow our business, we might want to have a goal of contacting 100 people 15 times a year, for 1500 touches. Increasing from 500 touches to 1500 touches should result in an increase in referrals.<\/p>\n\n\n\n

If your business is not performing at the desired level,\u00a0try generating more\u00a0touches. This means\u00a0sharing a clear,\u00a0consistent, value-based message\u00a0through\u00a0a systematic and repetitive series of interactions with a growing number of people<\/em><\/strong>. If we measure, study and increase the effectiveness of our touches over time, it should eventually lead to\u00a0future improved income. Touches could be a primary leading indicator of hiring high quality agents, and getting more referrals. Increasing touches today should increase referrals later which would increase revenue and profits shortly thereafter. Over time, we understand and improve our ability to predict our income from the leading indicator of the number of touches.<\/p>\n\n\n\n

I am constantly amazed at the number of real estate professionals that\u00a0are dissatisfied with\u00a0their\u00a0income yet don\u2019t know how many people are in their database and how often they\u00a0touch them. This goes for brokers too. Who’s in your recruiting database and how frequently are you reaching out to them to offer them something of value, such as an invite to an education program or company event? I am even more amazed at the people that confess to having\u00a0no database at all or no system for communicating value to them.\u00a0These are\u00a0typically the leading indicators of future income\u00a0yet they are\u00a0frequently ignored. Don\u2019t let this leading indicator go unmanaged. Know it, manage it, improve it and grow from the use of it. It\u2019s too important to ignore.<\/p>\n\n\n\n

Dr. Steven Tufts<\/a>, licensed real estate instructor, is a clinical professor at the Warrington College of Business, University of Florida. He teaches sales, marketing, entrepreneurship and real estate classes at both the undergraduate and graduate levels.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Sure, leading indicators can help agents with income by clarifying the work needed to achieve. Brokers can benefit from them with recruiting. How many people are you touching in your database?<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[748],"class_list":["post-2134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nUsing your leading indicators to recruit talent - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"What are your leading indicators as it relates to recruiting? 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