High expectations and rigid performance-based management systems are causing large numbers of new recruits to exit the industry, according to BPG managing director Tony Rowe.
Speaking to Real Estate Business, Mr Rowe rubbished claims that poor education standards are to blame for the high number of agents leaving the industry, stating a lack of support and mentoring from management has forced large numbers of new blood to exit.
“In the first year of entering the industry there is around an 80 per cent turnover rate nationally and this is very high when compared to other industries,” he said.
“I believe there is a failure to adequately induct and provide ongoing support for many of these new entrants.”
Mr Rowe said current performance-based management systems and expectations need to change in line with flatter market conditions.
“Real estate is a fairly intense sector where sales performance is closely monitored and a failure to perform will often result in termination.”
“It is unrealistic to expect new entrants to be able to walk through the door and perform in today’s challenging market. I believe expectations and management systems are removing the responsibility of the employer to provide some ongoing development to their staff.”