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When a trio of Keller Williams franchises filed a lawsuit against an eXp team leader last week alleging a member of her team was improperly recruiting agents, it would have been easy to pass it off as yet another legal spat between rivals.
But the objection actually tapped into a much deeper concern in the real estate industry, particularly among brokers who are fighting to grow their businesses by attracting top producers and holding onto them once they’re in place.
Recruiting and retention is cited as the most challenging aspect of today’s business climate, according to the latest results from the Inman Intel Index survey of real estate professionals in March — and there are early signs that it may be a growing concern.
Outweighing interest rates, margin compression, regulation and other concerns, more brokers reported last month that recruiting and retention is their top challenge.
The survey was conducted before economic turmoil caused by the Trump administration’s tariff whiplash, so it’s possible brokers now have a new concern.
But the results show that attracting new agents and holding onto them remains one of the biggest challenges facing industry leaders today.
Come, stay a while
The Inman Intel survey has long shown that brokers are on the hunt. 74 percent of agents who responded to the survey said that another brokerage tried to recruit them within the past two months.
More than half of agents said they’re typically recruited at least once a month.
- 42 percent of brokers told Inman Intel that recruiting and retaining talent was the No. 1 most challenging part of today’s business environment.
- 20 percent of brokers said interest rates are the most challenging aspect of business today, significantly fewer than those who said recruitment.
- Recruiting and retention is becoming more intense. In February, 32 percent of brokers told Intel that recruiting was their top challenge.
This could be why some brokerages spend millions on their recruiting efforts. @properties spent $7.3 million on recruiting and retention in 2023. Fathom Realty reported spending $2.7 million on recruiting the same year.
During an intense battle for market share, brokers are feeling the heat and the temperature is apparently rising.
- In March 2024, 23 percent of brokers said recruiting and retention was their top challenge. At that time, recruitment and retention was tied with other, unspecified concerns.
- A year ago, broker concerns were spread fairly evenly, with 20 percent saying their top challenge was interest rates, 17 percent saying it was regulation, and 17 percent of brokers saying their top concern was regulation.
Heating up?
Brokers also expect recruiting to remain a challenge. Perhaps for good reason: three out of four agents say they’re frequently being asked to jump from one brokerage or franchise to another, according to the survey.
- 74 percent of agents said that a broker tried to recruit them at some point in the past two months.
- That was down slightly from February, when 76 percent of agents said they’d been recruited in the past 60 days.
- Still, there may be signs that activity is picking up: 21 percent of agents reported in March that brokers try to recruit them at least once a week, up from 17 percent in February’s Inman Intel survey.
The results give another indication that fighting for agents is heating up. In March 2024, 71 percent of agents said they were recruited within the past two months. 19 percent said they were recruited at least once per week.
What agents want
What are agents looking for from their brokerage? The Inman Intel Index asked agents what they value most from the company they work for, and the results aren’t cut and dry.
- 26 percent of agents who responded said they wanted to make sure their company was a cultural fit for them, which was the top category.
- 24 percent said they most valued the firm’s technology and education.
- 22 percent of agents said they most valued the consumer’s brand perception of the real estate company.
- Just 16 percent of agents said they most valued their firm’s commission split.
It wasn’t just talk, either. Of the agents who responded to the survey, 10 percent said they switched brokerages at some point in the past year. 47 percent said they did so because the new firm was a better cultural fit for them.
Methodology notes: This month’s Inman Intel Index survey was conducted March 18-April 7, and received 412 responses. The entire Inman reader community was invited to participate, and a rotating, randomized selection of community members was prompted to participate by email. Users responded to a series of questions related to their self-identified corner of the real estate industry — including real estate agents, brokerage leaders, lenders and proptech entrepreneurs. Results reflect the opinions of the engaged Inman community, which may not always match those of the broader real estate industry. This survey is conducted monthly.
