Are you debating whether or not to expand your coaching program by hiring a coach? We look at the data to determine what coaching means to your brokerage.
Providing coaching for agents has been a long-standing pillar of many brokerages’ value proposition. With increased competition and compression on company dollar, many companies are asking if they should still offer coaching to their agents. After all, it can be time consuming and difficult to measure a return on investment (ROI.) It can be difficult getting agents to attend training sessions, and some flat out don’t want to be coached.
After analyzing data (from clients of 3DataPulse) concerning agent productivity and level of coaching, from a variety of companies from all over the country with different brands, independents, commission plans, etc., we found that there is a direct correlation with coaching your agents and an increase in their productivity. But the question remains, is the juice worth the squeeze?
Hiring a coach can be expensive
It could easily cost $100,000 to hire a good coach, especially once you factor in bonuses, taxes, benefits, etc. So, is it worth it? In looking at the data across all the companies we analyzed, we found that if an agent received no coaching, their production was down an average of 9% in 2021 over 2020.
If the agents received any coaching (at least one coaching session during the year), their production was up an average of 21% in 2021 over 2020.
To take that a step further, agents who received four or more coaching sessions in 2021 increased their production by an average of 28% in 2021 over 2020. There were several companies that we analyzed that had agents involved in coaching and had increases of 30%, 50%, and even 60% in one case.
So what does all this mean and how can you take advantage of it?
What about the agents who don’t want coaching?
Phillip Gagnon is the founder of 3DataPulse.
This column does not necessarily reflect the opinion of RealTrends’ editorial department and its owners.
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