R
eal Estate Insiders Unfiltered podcast host Sean Soderstrom, founder and CEO of Courted, shares data-driven insights on attracting and retaining top talent in the real estate industry. As a management consultant and former Compass executive, Soderstrom assesses data to help brokerage leaders identify agents at risk of leaving.

    Agent turnover has a significant financial impact: over $480 billion in sales volume and $12 billion in commissions changed hands between brokerages last year alone. This is roughly double what Compass generates annually. The industry's sales volume has shifted by 16-18% each year for the past five years, with more agents switching brokerages during thriving market periods.

    Soderstrom notes that 87% of new agents drop out within two years, a number likely higher in recent years due to a "depressed" market. Early predictors of potential turnover include significant changes in production or managerial shifts. His company can forecast four out of five agent departures with 12 months' notice by analyzing these variables.

    For recruitment, Soderstrom recommends two successful business models: compensation-based approaches that offer agents a larger share of their earnings and support-focused models providing marketing and technology tools to help agents grow their businesses. In a down market, the latter model appeals more to agents seeking stability.

    Soderstrom emphasizes the importance of recognizing and celebrating agents' achievements, even those who seem low-risk for leaving. Personalized communication and genuine follow-ups can make a significant difference in retaining top talent.