When considering the cost of an empty seat in an estate agency, it’s crucial to understand that it’s more than just a vacant position – it is a significant financial burden. Here is a breakdown:
Loss of revenue
Every empty seat means fewer transactions. Moreover, estate and letting agents earn commissions on sales and lettings. Consequently, without your negotiators, managers, valuers, and BDMs, you’re missing out on potential earnings. This issue is especially critical if your agency handles high-value properties where the commissions are substantial.
Fixed overheads
The fixed costs of running the agency, such as rent, utilities, property portals, CRMs, and administrative costs, don’t decrease because a seat is empty. These costs still need to be covered, and without someone generating income in that seat, it directly affects the bottom line.
Empty seats effect team morale
An empty seat puts extra pressure on the existing team. They might need to pick up the slack, leading to increased stress and potentially decreased productivity. Over time, this can lead to burnout and further impact the business.
Recruitment and training costs
Filling that empty seat isn’t cheap. Recruitment processes, advertising the vacancy, and the time spent interviewing candidates all cost money. Once you hire someone, they need training and time to become fully productive, during which time they’re not generating much revenue.
Client relationships
Your agents often have ongoing relationships with clients. An empty seat can disrupt these relationships, potentially leading clients to look elsewhere if they feel they’re not getting the attention or service they expect.
The cost of an empty seat is a mix of lost revenue, continued overheads, increased workload on your current staff, and the expenses associated with finding and training a new agent. It’s a significant issue that underscores the importance of maintaining a full, productive team in your estate/lettings agency.
I recommend to all my clients the importance of building a productive subs bench in your business. If you need more details on how to build an effective subs bench and mitigate these costs or strategies to keep your seats filled, feel free to reach out!
🧔🏼 Sally Asling
⭐️ PROFIND PROPERTY RECRUITMENT ⭐️
🌐 profindpropertyrecruitment.co.uk
☎️ 0204 583 4941
📲 07760 787026
📤 sally@profindrecruitment.co.uk
