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McGrath CEO Geoff Lucas has downplayed persistent rumours that some, if not many, of the high-profile agents that staged the unprecedented and much-publicised McGrath walkout are making their way back to their network of origin.
Instead, the CEO said that his main priority is to find the right agents to replace them.
“Rather than focusing specifically on one sector of the pool, which might be people that have left here for whatever reason, we are looking at the broader agent pool,” Mr Lucas told REB.
“There is a very large pool of agents out there and emerging agents and people entering the industry.
“Some people may have chosen to leave because of the instability and change in leadership, et cetera, and we have a view on that which is that we can’t hold anybody for the entirety of their careers.
“We hope and we plan to be an attraction business, but if they have made that decision to go, then that is entirely their own view. But we are looking at the entire agent pool rather than just one particular part of it.”
Bad press
Mr Lucas also said that the recent bad press directed at founder John McGrath has hurt the business because it has deflected focus away from the better things the network has done, and continues to do so.
Headwinds created by leadership instability has not helped either, the CEO said.
“My job is to reduce the focus on that noise and increase the focus on those great activities that are happening on the ground, really highlighting to people in the industry and also in the marketplace the benefits of this great business and brand, and why it is productive to people to come here and work with this business, and why people historically and in the future will continue to and do continue to become successful when they do come here.
“The noise in and around John McGrath makes it more difficult for people to focus on some of the better things that the business and its agents are doing on the ground.
“Instability around management and leadership changes is challenging in any business, and in our business, that created some instability and contributed to the departure of some agents.”
Recovery
Mr Lucas said that he doesn’t envisage any material changes to the company’s senior management team as he charts its recovery.
“In terms of the corporate office structure, the previous board embarked on some cost cutting and we are starting to see the benefits of that.”
His priority, he said, is to make sure that the corporate office is “right sized and right shaped for where we want to go”.
“And so we will continue on that program,” the CEO said.
“It is early days in terms of the senior management team, but my base case is that I am working in conjunction with that team and focusing on supporting the agents in the network to utilise that team.
“It’s more about harnessing the skills of that team to be directed and focused on getting a better outcome for the trading of the business.”
