| Once you have made the commitment to hire an | | | | significant other. In the monthly approach, the |
| assistant, you will begin the process of hiring | | | | amount is probably not big enough. |
| someone for the job. | | | | We also can run into trouble when things go really |
| Do not be in a hurry to fill your available positions. | | | | well. We hire an assistant on a straight percentage |
| Staff turnover is a major money-loser for your | | | | of gross sales. They get 10%, 15%, or even |
| business. The lost productivity and time in rehiring | | | | 20% of your gross. You make $200,000 a year |
| and retraining is astounding. Make it your goal to | | | | and have for the last few years. You find |
| hire the right person the first time. It is better to | | | | someone who is willing to ride the ups and downs |
| invest more time up front to get the right person | | | | with you for 15% of the gross. I can guarantee |
| than to hire a person who will then have to adapt | | | | they won't be a high S/C behavioral style. That is |
| to the situation. The effort to make the person | | | | not their definition of security. The assistant is |
| fit the job rarely yields good results. Again, the old | | | | doing a great job, and your production grows to |
| adage of hire slow and fire fast is true! | | | | $350,000 the first year. The assistant is really |
| Prior to beginning the interview process, clearly | | | | happy; she was expecting about $30,000 and |
| define the compensation package. Determine your | | | | made $52,000. That's a 75% increase in her pay |
| policies on compensation, sick time, vacation time, | | | | over what she expected. The next year is |
| insurance, and retirement plan. To some people, | | | | another great year; you are now at $500,000 in |
| these areas of compensation are at least as | | | | gross, and she is paid $75,000. That's a 150% |
| important as the hourly wage. My advice on | | | | increase in two years! |
| compensation is keeping it simple. I find that most | | | | I had a client who started working with me with |
| agents use these complex systems of | | | | exactly this structure. I begged her to change it |
| compensation with hourly wages, bonus systems, | | | | because, based on her talent, she was going to |
| and pay-per-transaction bonuses like $100 per | | | | explode her business. She didn't listen, and after |
| closing. There are a number of problems with | | | | the second year of explosive business growth, |
| these kooky models. The first is we usually design | | | | she paid her assistant (only administrative) about |
| the model to create incentive for performance. | | | | $150,000. She had to go back and try to |
| That's how we think as salespeople, not how a | | | | re-negotiate the compensation plan down and lost |
| good administrative assistant thinks. They want to | | | | a good assistant. The truth is she could have had |
| be able to have the security of knowing what | | | | three really top-notch people for the same |
| they are going to get paid. They want to be able | | | | $150,000. There is no way one person can do the |
| to budget and control their money. This is | | | | same volume of work as three people in |
| especially true if you hire a high S/C behavioral | | | | administration. Keep your comp plan simple! |
| style. They want security, and the monthly salary | | | | The first step is to determine what qualifications |
| or hourly pay is that security. | | | | you are looking for in an assistant. Write down |
| By giving them a percentage of the gross or pay | | | | five to ten qualifications you want this person to |
| based on a pre-determined amount per closing, | | | | have. Qualifications may include computer |
| you are setting them and yourself up for failure in | | | | background and a minimum amount of experience. |
| two areas. The areas are extreme success or | | | | Determining what you are looking for will make it |
| failure. Failure in a month or two of low closing | | | | much easier to find the right person. |
| numbers can change their attitude, stress level, | | | | The next step is to submit an ad to the local |
| and performance. | | | | newspaper or find an Internet job-listing site. Most |
| Say, for example, you are compensating this | | | | job hunters look in the Sunday paper or on the |
| assistant with $100 per closing. Things are going | | | | Internet for employment. It is important to have |
| fine for a number of months. You are closing six | | | | an ad that will draw qualified candidates to apply |
| transactions a month, so she is getting her $600. | | | | for the position. You may want to run the ad one |
| In her mind, she has $600 a month in | | | | or two weeks, depending on the response you |
| compensation monthly, so she goes out and buys | | | | receive. Following is an ad that could be used for |
| a new car on payments and a few other items | | | | an administrative assistant position. The bolded |
| she has been putting off. Then, you hit a rough | | | | items need to be changed to reflect your |
| patch in production. Those six closings a month | | | | information. |
| drops to two for two months in a row. She is | | | | ADMINISTRATIVE ASSISTANT |
| down $400 a month for two months. She can't | | | | Opening for an administrative assistant to a real |
| pay for her new car now, and it's your fault (in | | | | estate agent. Should be an organizer, a positive |
| her mind). It is your fault, not because of the | | | | person, and be stable and predictable in work |
| production drop, but because you created a losing | | | | performance. Should have good written and |
| compensation plan. | | | | verbal communication skills, computer experience, |
| Pay your assistant the going rate in the | | | | and word processing skills. Should also have a |
| marketplace without these transaction incentives. | | | | sense of humor, be a fast learner, and be willing |
| If you have a good quarter, give her a bonus for | | | | to work hard. Will work in a fast-paced real |
| helping, based on how you feel she did. Don't | | | | estate office. We offer an exciting atmosphere in |
| create any kind of bonus system where they can | | | | a people-oriented business. This is NOT an |
| begin to project what they might earn. That will | | | | entry-level position. If interested, the first step is |
| get you into trouble. They begin to expect it and | | | | to send your resume to: Name of agent, real |
| live on it. A bonus should be unexpected, not | | | | estate office and address, OR fax to fax number. |
| planned for by the receiver. The frequency should | | | | If you are set up with Internet service, you could |
| be determined by the amount you can afford. I | | | | also have your e-mail address listed as another |
| wouldn't pay a bonus monthly as some agents do. | | | | way for job applicants to submit their resumes. |
| Why just give someone a couple hundred dollars | | | | After the ad has been published, you will start to |
| a month? That amount is too little. Save that | | | | receive resumes for the position from candidates. |
| money up and give them $500 at the end of the | | | | The next step is to go through the resumes to |
| quarter or $1,000 at the sixth month mark. Give | | | | determine which applicants meet your |
| them an amount they can use to get something | | | | qualifications and whom you want to interview for |
| that they will have longer than a dinner out. A | | | | the position. Using a three pile system of "Yes", |
| bonus should allow them to buy that new TV, | | | | "No", and "Maybe" will help you narrow it down |
| I-POD, couch, or a memorable trip. It should allow | | | | fast. |
| them to take a long weekend away with their | | | | |