Why Succession Planning is so Important
We have an aging problem in real estate. The median age of a Realtor in the US is 55 years old which is down slightly from a high of 57 in 2015. I suspect the broker owners of real estate firms average age is higher than that. When I look around the relocation industry, it mirrors the real estate industry. Many relocation leaders entered the industry in the 1980’s when the notion of moving executives for a job kicked into full swing. If those people were in their 20’s at the time and have remained in relocation, they are likely fast approaching retirement age. We have seen many high profile retirements in the last year.
Some companies do a better job of creating a succession plan than others. Small companies may have one person in charge of all things relocation. When that person leaves or decides to retire, they can be left stranded if they don’t have a plan to hire, train and continue on without an interruption in business. Larger companies are more likely to have a bench of employees that could possibly move into the lead role. But being a coordinator and leading a busy relocation department are very different roles and the bench may be comfortable staying where they are or not have the right skill set to move into leadership.
Creating a succession plan takes work and it’s not always comfortable facing the end of our own career or time at a company. We all do things a certain way. We would like to think that when we move on from a role that we imprinted on it so strongly that it would never change.
I can say with confidence I created many excellent programs (in my mind) that fell by the wayside once I was no longer at that company. It’s not that they weren’t good programs, it’s that someone felt like it was time for a change or they didn’t have anyone to champion them any longer. So sometimes we have to let go of our legacy and hope that we have queued up the future generation who learned the necessary skills from us to take the department into the future. That may mean changing everything by putting a new and fresh twist on it. It’s not about what we created and keeping it around forever, it’s about what we accomplished while we were in that role and how it contributed to the company at that time. Being a mentor is to pass along what we learned along the way so the new person can apply that lesson as they see fit.
We owe it to our company to ensure someone will keep the business flowing when we depart. A lot of agents, suppliers, companies, clients and transferees are dependent on us to keep the relocation business humming along. Making sure there is no hiccup when a staff change occurs is imperative. It just takes a little planning and forward thinking and maybe getting some outside help to facilitate the process.
When seeking a staff replacement or someone to groom to take the lead role, look for these traits:
Self-starter. Takes initiative, doesn’t just react to what’s going on around them.
High emotional intelligence. Can read a room.
Strong communication skills, verbal and written. Comfortable speaking in front of a group or willing to practice until they are.
Flexible. Capable of working with various groups, all with different interests.
Unafraid of technology. Comfortable using various software programs and learning new programs.
Business minded. Willing to learn how the company and department financials work and manage a budget.
Natural born leader. If its not natural, open to learning from those who are.
Collaborative demeanor. This is team play internally and externally.
Willing to travel. Whether it’s visiting branches or attending conferences, they have to get out there.
Good listener. Sometimes you have to be silent to learn.
Willing to share. Whether it’s training agents or leading an industry roundtable, help others learn.
Cultural match. They share the same values and goals as your company.
Business development minded. Always thinking about strategic growth, not comfortable staying static.
People person. They have to like people.
Open to new ideas. Flexibility is key.
Perpetual student. Always seeking to learn and improve.
When seeking to bring someone into a succession plan, we might look in different, but related industries. We can also look in different markets as they may be willing to make a move for the right opportunity. Don’t feel confined to hiring someone who has performed the role before. I spend a lot of time helping people understand their new role in their company and the industry and preparing them for growth.
It’s less about knowing the elusive details of relocation and more about having the appropriate skill sets. The details of relocation and real estate can be taught to those with the right mindset.
“The delicate balance of mentoring someone is not creating them in your own image, but giving them the opportunity to create themselves.” ~Steven Spielberg, Director, Producer, Screenwriter
