Retaining Top Talent: Real Estate HR Practices Reducing Turnover

Quick look: Real estate companies need dream teams to sell dream homes. In response to rising employee turnover in the industry, many are adopting real estate HR strategies designed to support their workforce and improve retention. Keep reading to learn more about the latest tactics helping real estate agencies strengthen their teams and maintain a competitive edge.

Real estate companies rely on dedicated employees to earn property listings and drive successful closings. High turnover rates, however, impact industry leaders’ ability to maintain such valued teams. In 2021 alone, turnover rates reached 35% in the real estate and rental industry.

Fortunately, effective human resource practices can help companies reduce turnover. Explore this blog to discover what real estate HR strategies are elevating employee retention in the real estate sector.

Organize employee data for payroll processing

A successful payroll process influences strong employee retention. When a workforce receives the correct wages at the right time, they have a greater appreciation for their employer and are more motivated to be loyal and productive in their role. Payroll errors like underpayment can have a detrimental impact. These errors cause employees to face periods of low pay, which inspired 63% of workers to quit in 2021.

Properly organizing employee data is one real estate HR strategy that helps payroll run smoothly. Multiple jobs exist within an agency, from salaried administrative staff to realtors and real estate agencies who get paid through commissions. Verifying employee roles and payment structures spares companies from misclassification errors and repercussions. Gathering workers’ payment details like banking and direct deposit info allows professionals to receive their wages correctly. These practices lift payroll accuracy and protect employees from taxation issues, which encourages employee engagement and retention.

Monitor labor laws

Staying ahead of homebuying and rental laws like the Fair Housing Act is second nature to real estate companies. Today, more agencies are applying the same level of vigilance to labor laws. These laws impact employee operations and workplace safety standards. Examples of federal regulations include:

• The Equal Pay Act
• The Fair Labor Standards Act (FLSA), including its overtime pay final rule
• The Occupational Safety and Health (OSH) Act
• Title VII of the Civil Rights Act of 1964

Keeping close tabs on these laws is a trending real estate HR practice because labor laws change as fast as the housing market. This approach also ensures real estate companies stay compliant with local and state government regulations, fostering a safer and more equitable work environment. As a result, employees are more likely to remain with the company long-term.

Promote employee wellness

Stress is no stranger to the real estate sector. Full-time real estate agents work an average of 30-50 hours per week to reach their selling goals; realtors operate between 40 and 60 hours weekly. Behind every closing is a trail of mandatory paperwork for the selling and buying parties to complete. These extended hours and heavy workloads make real estate workforces more susceptible to burnout. If left unresolved, burnt-out employees are nearly three times more likely to actively search for a new job.

Wellness programs enable real estate businesses to alleviate such stress from their team. Company leaders include comprehensive employee benefits across medical, vision, and dental networks to support employees’ physical health. Definitive leave policies, employee assistance programs, and access to therapy resources address employees’ mental health needs while encouraging work-life balance. This real estate HR practice fosters healthy employee well-being and positively impacts their workplace productivity.

Document workplace policies

Workers in the real estate sector follow a non-traditional workplace structure. Instead of an in-office workweek, realtors and real estate agents spend most workdays traveling to different properties for showings or inspections. Agents often operate on a flexible schedule, as client availability typically falls on weekends or evenings. This hybrid work structure can impact a company’s ability to maintain effective internal communications and protocols.

Written workplace policies are great solutions for this challenge. They outline a business’s guidelines and norms for operations, interactions, and other activities occurring in remote and office environments. Documenting policies, additions, and updates in an employee handbook ensures all information is accessible in one place. This strategy gives hybrid teams clarity and consistency despite their alternating schedules.

Support continued education

Professional development is a valued asset in the real estate industry. A person must pass a state licensing test and an array of educational courses to become a certified real estate agent. Each state government also requires professionals to complete continued education (CE) courses to maintain their license. For example, the New Jersey Real Estate Commission mandates all real estate licensees to earn 12 CE credit hours every two years.

Today, professionals often want to explore learning opportunities outside of their licensing requirements. Real estate companies can assist with this goal by establishing a learning and development strategy. First, businesses outline what types of development they’d want their employees to access. Topics of interest may include:

• Onboarding intro classes
• Cybersecurity training
• Annual DEI and anti-harassment training
• Team building exercises

Businesses then create a plan of execution to connect their teams to the learning opportunities. For extra assistance, real estate companies that partner with a professional employer organization (PEO) can leverage its learning management system to track training progresses and assign custom development paths to employees. 

This practice allows workers to sharpen their career skills and uphold company standards. Addressing employees’ learning and development goals also strengthens their desire to stay at a company. According to LinkedIn’s Workplace Learning Report 2024, 80% of workers say learning adds purpose to their work. 70% also state learning improves their connection with their workplace.

Assure employee loyalty with ExtensisHR’s PEO expertise

Don’t get stuck appraising an “as-is” human resource strategy. As a certified PEO, ExtensisHR tailors HR services for real estate firms that streamline employee operations and nurture a positive workplace culture. Real estate firms also gain access to our retention-boosting advantages, including:

• Fortune 500-level health and wellness employee benefits
• Highly trained compliance experts who ensure you meet regulatory standards
• Comprehensive payroll administration and management, including custom reporting and tax compliance assistance
• A full-scale account team dedicated to your HR strategy, including an HR Manager, a Payroll Manager, and an Implementation Manager
• Learning management system access via our secure HRCloud tech platform
• HR guidance, policy assistance, and employee handbook creation

Real estate professionals go above and beyond to support homebuyers—their employers should follow suit with their HR management. By partnering with ExtensisHR, you can tap into extensive industry knowledge and a customer-first service model to retain top talent and achieve a competitive edge in the housing market.

Ready to renovate your HR strategy? Contact ExtensisHR today to speak with one of our certified experts.