Keeping the Poachers at Bay

Commercial Property Gazette

2 August 2004

By Lynnette Hoffman

Many at the top of the nation’s major agencies are fed up with seeing their best and brightest staff “poached” by competitors. Armed with plenty of research about just what candidates are looking for, agencies are fighting back. They’re investing millions in a slew of new strategies to keep their star performers right where they are—and to snatch up budding talent before their competitors do.

But are they being paranoid? Considering the transient nature of the field, and the enormous shortage of candidates, probably not.

 “There’s such a shortage of graduates that they can really go from one job to another quite easily,” says Dr Peter Waxman, senior lecturer of property economics at University of Technology Sydney. “So if they aren’t getting the opportunities they’re looking for, they go. There’s been a dramatic rise in employment opportunities.”

So much so, in fact, that 95 percent of UTS graduates are already working their senior year, as is 90 percent of the current third year class. And students are often headhunted – the average student has had three to four jobs within five years of graduation.

At RMIT University 80 percent of property students are hired on by their work placement employers, says Kathryn Robson, Acting Program Leader at the School of Property, Construction and Project Management, RMIT. They too are prepared to leave if the right opportunity arises.

“They’re always looking for a better option,” Robson says.

That seems to be the trend throughout the industry. But money is not the motivating factor when employees leave. While most people receive a pay-rise when they switch jobs, and are nearly always better off financially, they’re really leaving for more challenges, more career progression and greater opportunities, says property recruiter Dianne Cassen, National Manager of Talent2. She says candidates are often looking for jobs with different specializations, more roles, change and growth. Rita Avdiev, Managing Director of specialist human resources consultancy The Avdiev Group, also says other factors supercede financial concerns.

“Candidates are looking for employers that give satisfying work, that pay reasonably well—not exorbitantly,” Avdiev says. “Young people are looking for a mentor, someone they can ask questions too. People want the responsibility that’s promised. They want a boss that recognizes their skills and praises them.”

Exit interviews confirm all this, according to Peter Barge, CEO, Asia Pacific for Jones Lang LaSalle.

“What we’ve found is that it’s not because of the salary that these people are leaving, it’s lack of career development, not moving up quickly enough, not enough coaching, not enough training— and traditionally the funds and trusts and institutions have been better at that and so they are attracted to that,” he says.

But now he and other CEOs and managing directors are catching on and catching up.

More and more, agencies are refocusing their efforts—and their budgets— on recruiting staff straight out of university and providing in-depth training in an effort to build a more loyal staff. Barge says the training budget at Jones Lang le Salle has doubled in the past year and 20 formalised training programs have been added, including an extensive orientation program designed to show what sort of opportunities exist within the agency. Competitor FPD Savills is spending about $120,000 a year in an effort to attract new graduates and “grow our own staff,” says CEO Walter Carpenter. Colliers CEO Tony Brasier emphasizes regular and extensive training as a key component of his company’s strategy as well.

Agencies are also upping their efforts to promote lifestyle and opportunity. Global companies like Colliers and Jones Lang LaSalle are offering overseas travel opportunities that are especially attractive to young staff, for example. They are also rebuilding offices to create an environment more conducive to team building and comfort. Jones Lang LaSalle is redesigning the Sydney office complete with hotelling space, lounges and wireless installed in the coffee areas. They are also offering courses and coaching for managers and encouraging them to help staff move into new career divisions.

Other agencies such as DTZ Australia are offering shares as an incentive for more stable employment.

Still, despite their efforts and recent trends toward fewer opportunities in institutions, most people say the stiff competition for star performers is here to stay.

“Poaching has always happened and always will. The more money I spend on training the more my staff will be sought after. I find it quite flattering really,” Barge says.  “The annoying thing is that you get a whole bunch of people that won’t spend money on training, and just take our guys. But I feel like if we combine all these other factors—a fun environment, opportunities to go overseas and to move across business lines, etc…and marry it all together, people will stay. Or they’ll leave and come back. The number of people rejoining our agency is going up every month.”