HR assessment in real estate/property business

Recent economic crisis has proved that if a company wants to improve it should start with the employees.  Even if a business has investors and sufficient production facilities to introduce new products and services the process of conquering the market will be a failure unless such a company has professional and loyal personnel.  It is not very easy to manage personnel if the company has hundreds and thousands of employees.  Much depends on employee attitude and satisfaction.  It is not a secret that most satisfied and loyal employees have most satisfied and loyal customers.  What does a loyal customer mean to a company?  He is a regular source of income.

In a tough competition companies have to improve and develop all the time.  It is impossible to develop without having a strategy.  And it is impossible to reach strategic goals without aligning operational in strategic management.  This is where balanced scorecard helps.  This performance evaluation tools measures key performance indicators to evaluate company progress on its way to implementation of strategic goals.  Human resource management, as an inseparable part of any business management system, should be also measured.  Moreover, HR goals and strategies should comply with requirements of the company general strategy and its vision.

It is important to say that different business areas have different approaches to evaluation of human resource management.  In fact, top managers should select the most important key performance indicators which a logical a different in different business areas.

In the field of real estate/property business the following KPIs will help company management evaluate efficiency of HR department:

  1. Bonus payout as of total possible.  It is a fact of common knowledge that real estate agents earn money by selling and letting property and having their commissions paid.  This indicator is very tricky.  On the one hand, real estate agent must be satisfied with the commission he receives so that he will show high performance as he is financially interested.  At the same time the company he works for is interested in greater profits for itself.  This is where balance needs to be found.  Ideally, requirements of real estate agents should be taking into account, but on the other hand the company should get sufficient profits.
  2. Average travel costs per employee. Real estate agents really work in office.  All the time they have to show real estate objects to potential customers.  Houses and apartments may be scattered throughout the city or even the state.  Of Course, sometimes deals are concluded via phone.  But it is important for some customers to listen about a house or an apartment.  Besides, some real estate agents can persuade even those customers who are unwilling to buy or just don’t need property.  For this reason property agents travel a lot.  Of that’s why such expenses should be controlled and minimized if possible.  Real estate agents should not use bicycles, but they should not use taxi either.  It would be reasonable to use economy cars consuming little gas.  This indicator may be measured as often as possible as the work of real estate agent is very intense.
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