What do you do if your performance evaluations are causing high employee turnover in Commercial Real Estate?
In commercial real estate, high employee turnover can often be a red flag indicating deeper issues within the company, particularly with performance evaluations. If your performance evaluations are causing dissatisfaction, it's crucial to reassess your approach. Performance evaluations should be fair, constructive, and tailored to the unique demands of the commercial real estate sector. They must reflect the dynamic market conditions and the diverse skill sets required in this industry. It's time to take a closer look at your evaluation process and make necessary adjustments to retain your valuable employees.
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Abdennour SamahriEmpowering Real Estate Success | Expert in Property, Utilities & Insurance Services
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Ankesh JainReal Estate Investment| Fractional commercial Assets |Passive Income| Portfolio Diversification| Wealth Creation|
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ZACH FURR*** MULTIFAMILY / APARTMENT INVESTOR *** Joint Ventures ** GP/LP/ - Syndication ** Due Diligence ** Asset…
Commercial real estate is a results-driven business, but if your performance goals are unrealistic or unclear, employees may feel overwhelmed and undervalued. It's essential to set achievable, clear objectives that align with your company's strategic vision and the realities of the market. By involving employees in goal-setting and providing them with a clear roadmap for success, you can increase engagement and reduce the pressure that leads to turnover.
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Ankesh Jain
Real Estate Investment| Fractional commercial Assets |Passive Income| Portfolio Diversification| Wealth Creation|
Assess whether the performance evaluation standards are aspirational, reasonable, clear, and achievable for the roles held in the industry. Ensure that they are in keeping with the goals and guiding principles of the company. Most crucially, it should be well communicated to employees with a roadmap to help them accomplish it.
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Tom Warrender
Solicitor | Commercial Property Expert Helping You And Your Business With Their Commercial Property Transaction | Partner | Board Member | Legal 500 recognised Solicitor | Head Of Social Housing | #tomwarrender
Goals and targets should be challenging, but they should have some logic behind them... how did you decline upon the goal? Have you fully explained that to the employee? Have you explained to them how you can help them reach that goal?
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Jeff Hicks, MAI
Founder Realwired | CRE Valuation Expert | AI Proficient
The churn may be due to a lack of clarity. Use a position statement (PS) to spell out the strategic and technical items (in great detail) that the position requires. It's a fantastic outline to discuss during the hiring process to understand the scope of work of the position. Hiring based on titles only will likely result in misunderstandings. A PS removes any confusion and provides crystal clarity. Performance reviews are also much easier with a PS since business outcomes are spelled out. If things don't work out, a PS takes out the emotion of letting go of an employee since it’s an outline for the exit interview.
Constructive feedback is a cornerstone of effective performance evaluations. In commercial real estate, where deals can be complex and market conditions fluctuate, it's important to provide regular, specific feedback that helps employees grow. Ensure that your evaluations are a two-way conversation where employees feel heard and their concerns are addressed. This can lead to improved performance and greater job satisfaction.
Ongoing training and professional development are key in the fast-paced world of commercial real estate. If employees feel they're not getting the support they need to excel in their roles, they may look elsewhere. Offer training that helps them keep up with industry trends, sharpen their skills, and feel confident in their ability to meet performance standards.
Recognizing the achievements of your employees can significantly boost morale and reduce turnover. In commercial real estate, where the work is often high-stakes and fast-paced, a little recognition goes a long way. Implement a program that celebrates both big wins and small victories, and make sure to personalize recognition to make it meaningful for each individual.
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Abdennour Samahri
Empowering Real Estate Success | Expert in Property, Utilities & Insurance Services
If performance reviews in the commercial real estate industry lead to high employee turnover, implementing a recognition system can be beneficial. This system should value and reward employee contributions in a fair and transparent manner, incorporating rewards that range from verbal praise to tangible benefits like bonuses or extra days off. By establishing clear criteria tied to company goals and openly communicating how the system works, employees can view reviews as opportunities for growth rather than threats, thereby reducing turnover and improving engagement, performance and overall job satisfaction.
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ZACH FURR
*** MULTIFAMILY / APARTMENT INVESTOR *** Joint Ventures ** GP/LP/ - Syndication ** Due Diligence ** Asset Management ** Passive Income Investments ** Acquisitions ** Dispositions **
Here are some recognition programs that can be implemented to help reduce employee turnover and improve morale: 1. Employee of the Month 2. Top Performer Awards 3. Peer Recognition 4. Performance Bonuses 5. Professional Development 6. Team Building Events 7. Flexible Work Arrangements 8. Public Recognition 9.Mentorship Programs 10. Wellness Initiatives
The culture of your workplace directly impacts employee retention. In commercial real estate, a competitive, cutthroat environment can be counterproductive. Foster a culture of collaboration, respect, and mutual support. By doing so, you create a workplace where employees feel valued and are more likely to stay, even when faced with challenging performance evaluations.
Finally, if performance evaluations are leading to high turnover, it's time to create an action plan. Start by identifying the specific issues within your current system and involve your team in finding solutions. This may include revising evaluation criteria, improving communication channels, or offering more support. With a solid action plan in place, you can turn performance evaluations into a tool for growth rather than a reason for departure.
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