Purposeful Onboarding: Track Your Failed Hire Rate

by | Jan 18, 2019

by Ben Hess, Managing Director, ThirdPool Recruiting

Failed Hire Rate is a common metric for determining how successfully you’re onboarding new agents to your team.

To calculate this metric, we must first agree upon a definition of a “failed hire.”

For real estate hiring, a common definition is someone who joins the organization and then leaves within 90 days without completing a transaction.

Building upon this definition, the Failed Hire Rate is the ratio of the failed hires to the total hires during a defined time period.

For example, if your office hired 10 agents last year and 2 were failed hires, your Failed Hire Rate would be 20%.

What’s an acceptable Failed Hire Rate?

We’ve worked with some organizations who have Failed Hire Rates of 25% or higher. This level of attrition is exhausting and expensive.

These organizations quickly benefit from making improvements to their onboarding process.

Organizations who have a selective hiring process and a purposeful onboarding process have failed hire rates at 10% or below.

Do a quick inventory of your hiring for the previous year and calculate your team’s Failed Hire Rate.

If it’s too high, that’s a quick indicator that your onboarding process could use an overhaul.

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