The True Cost of Staff Turnover
Did you know it can cost you roughly $190k each time a staff member leaves your business? Learn what you can do to help retain the talent in your business.
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Brad: Hi and welcome to another edition of Rent Roll Insights. My name is Brad Miller from Real Estate Dynamics where we help Property Management businesses build, buy and sell through our Rent Roll coaching, Property Management training and business brokerage right across Australia. Today I’m joined with Sandra Larkin. Sandra is here and she’s going to talk to leaders specifically about some areas you need to consider for the wellbeing of your business. Welcome along Sandra.
Sandra: Thank you.
Brad: Great to have you here.
Sandra: Thank you Brad.
Brad: Sandra can you tell us a little bit about what you do?
Sandra: I help people transform their lives from ordinary to extraordinary every day.
Brad: That sounds impressive. How do you do that?
Sandra: I mentor people through change in four core areas of their lives and that is to help them cope with the demands and stress that Real Estate puts on them every day.
Brad: And do you find those transformations are helping them?
Sandra: When you start working with people because their personal lives are affected, it directly affects their professional life and when you start find people aren’t performing you start working on their personal habits and behaviors and get their mindsets changing and they start to overcome fears and they start to overcome lethargy, fatigue and they just operate at a much higher level. That’s what successful people do.
Brad: There has got to be some sort of balance between your professional life and your personal life.
Sandra: That’s right. And most people sort of have this pendulum swinging where they’re putting everything into either professional or personal, but we need to get them into a very healthy equilibrium.
Brad: It’s one of those things too I believe will affect profit in a business and one of the things we want to cover today is about profitability and how, what you see out there as far as that goes, how it relates to the emotional intelligence to what you do about people to help them fulfill their lives.
Sandra: I know the lack of profits is contributed in a business to many things. And I know leaders learning to budget with income and expenses, I’ve worked with budgets in offices before, that is one definite issue. However, I think there’s other things that really do affect the bottom-line, and that’s the profit, and that is staff retention.
Brad: Of course.
Sandra: So I think that’s affecting a lot of businesses today that people aren’t able to retain staff and it costs money to lose staff and recruit staff.
Brad: Yes and train them, run them through all the processes and they’ve got to get up to the skill level. I mean you can’t just download someone’s brain into a new person, can you? It’s a challenge.
Sandra: All the time that goes into recruiting new staff and the on-boarding process, it’s a lot of hours and a lot of money. Not only that, the staff that you lose, whether they’re Property Managers or Sales Agents, take a lot of business with them.
Sandra: So, I’ve actually done a scenario on a spreadsheet of exactly that and roughly and very conservatively it costs an agency that’s losing a Sales Agent or a Property Manager, in a year about roughly $198,000. And that is conservative. That’s a Sales Agent taking away listings, say four to five average, and Property Managers taking about 15% of their portfolio.
Brad: That’s definitely going to affect profit and the bottom-line, there is no doubt there. Sandra what can you do to help leaders in your field as far as assist with the profitability of a business?
Sandra: What I believe leaders need to focus on is spending the money to keep the staff; so, to retain them. Leaders need to learn emotional EQ skills differently where you can identify people’s emotions and actually identify things that are going on with your staff. Sometimes as a leader we can get so focused on running the business we forget to look at the people. So that’s what EQ is all about. I believe when you spend money on that sort of stuff and also retaining them with their personal development, not just skill set, we spend a lot of our budget in a year on skill set training and that’s important, but I do think there’s a big push and a big move now for organizations spending money on their personal development because they know it actually creates loyalty, care and nurturing, and the staff feel that they belong into a family. So, they’re less likely to move away if they feel that connection and that family belonging. So, I really believe in spending that budget to retaining staff through personal development is key.
Brad: I think that one of the things we’re seeing here Sandra is a movement to virtual assistants or AI where a lot of the repetitive office type tasks are going to get taken up with processes that can be done outside of the office which is going to mean that leaders are going to need to focus on soft skill development of their people.
Sandra: That’s right some of the offices that I have worked with and the Sales Agents, I can do that with leaders, my ideal client are leaders to help them build that skill set of EQ and how to identify staff problems and also Sales Agents; working on them and also Property Management teams. Property Management teams it’s a great skill set if they engage me to do some mentoring as a group, it’s a very cost-effective way to mentor a group of people; Admin and Property Managers and get them changing all of that and then also reporting back to the CEO or the leader or the Principal what changes they can make to help nurture those staff. When you do that I believe you then build an attraction business.
Sandra: When you build an attraction business people want to work for you, they don’t want to leave.
Brad: We will definitely want more of that, don’t we?
Sandra: Look at Google, when they get looked after people don’t want to leave, people are lining up to get a job there. Why? Because they have built an attraction business.
Brad: Yes, fantastic. Sandra, how can people find out a little bit more about what you do or get in touch?
Sandra: I have a website www.SandraLarkin.com.au. I do one-on-one personal mentoring sessions with leaders or Sales Agents that need to increase productivity and performance and income. Also, I can do group mentoring sessions with Property Management teams and help them on a monthly basis or do webinar sessions for a group. I have done that for some franchises where I do national webinar sessions. Or a half-day workshop so there’s lots of different ways to get that message and let people know how I can help.
Brad: Well if you’re concerned about profit in your business maybe this is an area you might have missed. Give Sandra a call, get in touch and find out what you can do to help the development of your people. Sandra thanks for joining us today and thank you guys for joining us for another edition of Rent Roll Insights, I’m Brad Miller we’ll see you soon.