Real estate, like many other industries, faces the reality of an aging work force and must take on the task of succession planning. ERA Real Estate identified that recruiting additional members of Generation Y was a necessary part of this process and set out to identify recruiting best practices for the real estate industry. The findings, many of which debunk current thinking about Gen Y, provide key tactics, messages and area of opportunity to enhance recruiting efforts of this segment, in the real estate industry and beyond. For full report visit - http://www.era.com/Pages/ERAResearch.aspx.
2. THIS PRESENTATION COVERS:
The research in Generation Y: Rethinking Recruiting gives
you the information you need to help bring Gen Y agents
into your company.
Defining Generation Y – Who they are and what they
think about work
What about real estate? – Gen Y opinions about the
pros and cons of a real estate career
Recruiting – 4 key messages and 6 critical tactics
for recruiting Gen Y
4. WE NEED THEM
Succession planning isn’t just about who will take over your business when you
retire. It’s also about who will be out there selling houses when your top producers
retire.
5. WHY GEN Y?
CHANGING FACE OF REAL ESTATE
A big question in real estate is how to attract younger people into the
profession. The numbers tell the story that this is an imminent need.
56 – Average age of a REALTOR®
30 – Average age of a first-time homebuyer
Generation X does not have the numbers to replace the Boomer
Generation in the workforce
Generation Y is large enough to replace the Boomers
Gen Y Offers
Tech savvy can help find new efficiencies in the field
New perspective can bring fresh ideas
Extensive personal networks
Sources: The 2011 National Association of Realtors® Member Profile & The 2011 National Association of Realtors® Profile of Home Buyers and Sellers; ERA Broker
Focus Group; Perception vs. Reality: 10 Truths about the Generation Y Workforce, Randall S. Hansen. Ph.D., www.quintcareers.com
6. WHAT DO WE NEED TO KNOW?
Generation Y has it’s own characteristics, it’s own way of interacting with the
world. How does this affect the possibility that they will want to work in real estate?
7. RECRUITING GEN Y: ERA INDUSTRY REPORT
Original Research
Attitudinal survey to determine real estate benefits and barriers to entry
of 1,000 Gen Y individuals (Conducted by Wakefield Research)
One-on-one interviews with Gen Y agents working for ERA Real Estate
ERA Broker focus group
Secondary research
Best practices for recruiting/retention in parallel industries
Business and human resource journals
Generational studies
8. WHO THEY ARE
The “Decide What You Want to Be and Go Be It” Generation
-The Avertt Brothers
9. GEN Y DEMOGRAPHICS
Gen Y totals over 77 million
Currently Aged 16-34
Born between 1978-1995
Account for 25% of America’s
population
Source: U.S. Census Bureau, 2010
10. GENERATION Y & EDUCATION
40% are still in high school or college
30% of those not in college, plan to go back to finish
Source: Surging Student Loan Debt Threatens Homeownership, Jacob Gaffney, Housingwire.com, 12/12/2011; Clean Design research 2011
11. GENERATION Y WORK ETHIC
Work to live
Career is something that you
enjoy and have a passion for
Higher material expectations
than previous generations
Financial success is extremely
important
60% don’t expect to say with
their current employer for the
rest of their working life
Source: Generation Y: The Millennials, Ready or Not Here They Come, NAS Insights
12. DIGITAL NATIVES
Raised on the internet
Technology is a staple in
their existence
Source: Pew Research Center 2010 report, Millennials: A Portrait of Generation Next
13. CHARACTERISTICS OF GENERATION Y
PROS CONS
Adaptable: used to change and Impatient: raised on technology
comfortable in a variety of settings and instant gratification
Technologically savvy Skeptical of advertising
Ability to grasp new concepts Blunt and expressive
Efficient multi-taskers Image-driven: make personal
statements with their appearance
Diverse: high level of comfort with
and acceptance of diversity They are still young; but they are
willing to learn
Source: Generation Y: The Millennials, Ready or Not Here They Come, NAS Insights
15. Wouldn’t seriously consider a
50% career in real estate.
HOWEVER
Admit they don’t know a great deal
90% about being a real estate agent.
Because this generation is willing to learn, there is a huge
opportunity for brokers to educate millennials about real estate.
Source: ERA Real Estate Combat Test, 2011, Wakefield Research
16. REAL ESTATE PROS AND CONS: GEN Y AGENTS
WORKING AT ERA REAL ESTATE
REAL ESTATE PROS REAL ESTATE CHALLENGES
Schedule flexibility Unprepared for stress of job
Accountability for personal Costs of marketing and education
success
Necessity for working nights and
No office attendance requirement weekends
Ability to experiment with Managing multiple personalities
marketing and business practices
Lack of mentoring programs
Opportunity for networking
Lack of up-to-date technology
Money making potential
Budgeting
Source: Generation Y: ERA Personal Interviews with Gen Y agents, 2011
17. BARRIERS TO ENTRY
Individual sales and performance reports are public record, which
means everyone can see just how well you are, or aren’t doing in
you job.
From gas to marketing materials, expenses come out of your own
pocket, which is a significant challenge to a young person starting
their career in an industry where they don’t have much experience.
Real estate professionals work evenings and weekends. They
don’t get the predictability and comfort of a Monday through Friday,
9-5 job.
Results from the ERA Attitudinal Survey
Source: ERA Real Estate Combat Test, 2011, Wakefield Research
18. A NOTE ABOUT “FLEXIBILITY”
There are conflicting messages when it comes to the value of the
“flexible schedule.”
General research indicates that Millennials want to be able to fit work
into their lives.
ERA® agents, who are also Millennials, indicate the flexibility in their
schedule is important to them.
In the attitudinal survey, Millennials reacted negatively to messages of
flexibility.
Takeaway: Real estate is a career that can help fit work into life.
You don’t need to be at a desk all day, every day and you can
plan your schedule.
19. HOW DO WE RECRUIT THEM?
Generation Y does not respond to traditional recruiting messages. So, how do we
get them interested in real estate?
20. REFRAME YOUR RECRUITING
Talk about what resonates
Focus on “low-hanging fruit”
Increase social recruiting
Develop/Promote programs that match Gen Y desires
Address concerns
Leverage your current Gen Y talent
Source: LIMRA – Life Insurance Marketing and Research Association; ERA Research 2011
21. KNOWLEDGE = INTEREST
We have the opportunity to provide them with knowledge about
the industry.
Source: ERA Real Estate Combat Test, 2011, Wakefield Research
22. TALK ABOUT WHAT RESONATES
BE IN THE KNOW
Real estate agents develop extensive personal
and professional networks. You’ll meet and get
to know lots of people. And that’s exciting.
Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
23. TALK ABOUT WHAT RESONATES
NEVER A DULL DAY
As a real estate agent, every day is different and
exciting. Real estate agents don’t have boring,
repetitive days. They’re always multi-tasking on
a range of different projects.
Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
24. TALK ABOUT WHAT RESONATES
BEST OF BOTH WORLDS
Most real estate agents are represented by a
broker, but still independently employed. This
means you get to be your own boss, with the
support of a larger company.
Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
25. TALK ABOUT WHAT RESONATES
EMOTIONAL BENEFITS
Real estate professionals help build
communities. They help families find their
homes. The satisfaction from a job well done in
this field is unlike any other.
Results from the ERA Attitudinal Survey Source: ERA Real Estate Combat Test, 2011, Wakefield Research
26. TALK ABOUT WHAT RESONATES
The previous four messages ring true for all groups of millennials.
Source: ERA Real Estate Combat Test, 2011, Wakefield Research
27. TALK ABOUT WHAT RESONATES
Millennials who say they are interested in a career in real estate.
And they have the power to change millennials minds.
Source: ERA Real Estate Combat Test, 2011, Wakefield Research
28. FOCUS ON LOW-HANGING FRUIT
Millennials who have some experience working on commission
are much more likely to be interested in a real estate career.
Source: ERA Real Estate Combat Test, 2011, Wakefield Research
29. INCREASE SOCIAL RECRUITING
59% of millennials look to social media for career information
Facebook
Host networking events; use Facebook to promote
Build relationships (personal profiles)
Provide information about your company (business pages)
LinkedIn
Post job openings
Find prospective agents
Sources: ERA Real Estate Combat Test, 2011, Wakefield Research; “How to Use Social Media for Recruiting, American Express OPEN Forum;
“How to Use Social Media as a Recruiting Tool”, INC. Magazine, Tiffany Black, April 2010
30. DEVELOP AND PROMOTE PROGRAMS THAT MATCH GEN
Y DESIRES
Career Support
Mentor/coaching programs
Resources of knowledge
Constructive feedback from broker, peers and clients
Sources: “The Next Generation of Real Estate Teams,” Bernice Ross, Inman.com“; Three Tips fro Gen Y About the New Workplace, www.careerjournal.com;
“A Boomers Guide to Communicating with Gen X and Gen Y”, Bloomberg Business Week
31. DEVELOP AND PROMOTE PROGRAMS THAT MATCH GEN
Y DESIRES
Career Path and Business Planning
Goals
Related to outcomes other than money
Direction on how to reach them
Define necessary skills
Assessment criteria and defined rewards
Broker as a resource
Identify market direction and opportunities
Source: “Why Hiring Millennials is Good for Your Business,“ Diane Spiegel, American Express OPEN Forum
32. DEVELOP AND PROMOTE PROGRAMS THAT MATCH GEN
Y DESIRES
Collaboration and Community
Idea sharing
Company-wide goals
Impact on community
Putting families in homes
Giving back
Events are an opportunity for team building within the office
Sources: “A Boomers Guide to Communicating with Gen X and Gen Y”, Bloomberg Business Week ; ERA Real Estate Combat Test, 2011, Wakefield Research;
New Generations at Work, McCrindle Research
33. ADDRESS CONCERNS
High Start-Up Costs
Financial planning
“Closing” positions
Company leads
Getting started on a team
Source: “The Next Generation of Real Estate Teams,” Bernice Ross, Inman.com“; ERA Broker Focus Group
A Boomers Guide to Communicating with Gen X and Gen Y”, Bloomberg Business Week;
34. LEVERAGE YOUR CURRENT GEN Y TALENT
Millennials who know a real estate agent their own age are more
likely to be interested in a career in real estate.
Source: ERA Real Estate Combat Test, 2011, Wakefield Research; ERA Broker Focus Group
35. LEVERAGE YOUR CURRENT GEN Y TALENT
Enlist their help in getting recruiting messages out via social media
Create video(s) to showcase them
Have them identify potential candidates; invite them to networking
events
Sources: ERA Broker Focus Group, 2011
36. GENERATION Y: REFRAMING RECRUITING
AN ERA® INDUSTRY REPORT
Original Research
Attitudinal survey to determine real estate benefits and barriers to entry
of 1,000 Gen Y individuals (Conducted by Wakefield Research)
One-on-one interviews with Gen Y agents working for ERA Real Estate
ERA Broker focus group
Secondary research
Best practices for recruiting/retention in parallel industries
Business and human resource journals
Generational studies
37. WHERE TO FIND THE PAPER
Full Paper, Executive Summary & Press Release
http://www.era.com/Pages/ERAResearch.aspx
Editor's Notes
ERA wanted to answer this question, but as we started to look through existing research about Gen Y, their likes/dislikes, recruiting etc. We found that no one had answered the important questions: Is real estate an appealing career choice for Gen Y? What aspects of real estate appeal to Gen Y? What would make a career in real estate appealing? What are it impediments that keep real estate out of the consideration set of young adults entering the workforce?
We set out to answer these questions ourselves
ERA wanted to answer this question, but as we started to look through existing research about Gen Y, their likes/dislikes, recruiting etc. We found that no one had answered the important questions: Is real estate an appealing career choice for Gen Y? What aspects of real estate appeal to Gen Y? What would make a career in real estate appealing? What are it impediments that keep real estate out of the consideration set of young adults entering the workforce?
These responses are based on interviews that ERA did with current ERA agents who are part of Gen Y
The ERA combat test presented 1000 millennials with statements about real estate. These three are the ones that millennials agreed with most strongly and were the biggest barriers when it came to considering Real Estate as a career.
Our research highlighted several steps that brokers can add into their current recruiting in order to attract more Gen Y.
58% of millennials who know about the real estate industry indicated they were interested in a career in real estate Compared to just 14% who didn’t. (47% of the millennials in general) Since we’re starting from a clean slate in many cases, we should ensure that we are using messages that Gen Y responds to.
The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
The ERA combat test presented 1000 millennials with statements about real estate. These four characteristics of a real estate career were highly positive and motivational when it came to considering Real Estate as a career.
What makes these four messages so powerful, is that they are the same for all millennials. You don’t have to create recruiting campaigns or messages that only work for one group or another.
Plus, they are effective. In the ERA Real Estate attitudinal survey, we found that these messages increased the number of millennials who were interested in real estate by NEARLY a THIRD!
However, if you are going to target a particular group. You should consider finding those millennials who currently work on commission.70% of millennials who work on commission indicated they were interested in a career in real estate Compared to just 30% who weren’t. (47% of the millennials in general)This is likely because these individuals already have some experience / comfort with a variable paycheck“Commission” refers not just to sales based jobs but also jobs where you work for tips.
Our research highlighted several steps that brokers can add into their current recruiting in order to attract more Gen Y.
Millennials are Our ERA Broker focus group helped shed light on how important it is to get Gen Y agents their first paycheck within the first 30 days. Companies are currently employing several methods including – “closing” positions within builder divisions, providing company leads, or getting them started as part of a team.
Millennials are future oriented and opportunity driven and so look for a way to assess career progress, set goals and milestones.It is important to note that:Millennials are not as driven by money as other generations and so outcomes related to something related to lifestyle and community are important. Education is important to this group, but many cannot afford college at this point. The skills and education they receive are highly transferrable and will benefit them even if they leave real estate.
Millennials report that working with other members of a team make work more pleasurable. Research stops short of proving that Gen Y is motivated by the idea of teams, Instead it is more about the importance of having a strong network of support and collaboration
Millennials report that working with other members of a team make work more pleasurable. Research stops short of proving that Gen Y is motivated by the idea of teams, Instead it is more about the importance of having a strong network of support and collaborationOur ERA Broker focus group helped shed light on how important it is to get Gen Y agents their first paycheck within the first 30 days. Companies are currently employing several methods including – “closing” positions within builder divisions, providing company leads, or getting them started as part of a team.
Millennials are very interested to know/ see examples of agents their own age who are doing well in the business. It is very important to
Plus, Gen Y felt more comfortable that they could do well in this field when they saw others doing it.