When a leading agent leaves to launch as an independent in the same market

Some of the thoughts that entered my mind initially had the potential to be true but weren’t necessarily productive. They were, however, part of a bigger cycle at play.

“This doesn’t make any sense,” I mused. The agent has had record year after record year.

My first instinct was to see it as bad news, and bad news can throw you into an emotional tailspin, stall forward momentum, or push you towards irrational and reactionary decisions.

Instead, I thought about my business, my team, our successes … then I knew how to move on.

Five-step strategy:

1. Breathe.
2. Frame the news into its proper context or perspective. (We have just recruited three great agents. Our business is strong.)
3. Refocus away from negative outcomes to best and most likely.
4. Transform the situation into something with positive aspects.
5. Take the news on board and integrate it into your business view.

When a top real estate agent leaves an established real estate office to start an independent business in the same market, it can lead to various challenges. There are likely to be sensitive and challenging conversations, and their departure can create a ripple effect through office culture.

The big four in my mind were:

Brand reputation: We might face negative perceptions in the market, with other team members and clients questioning why such a high performer left. As part of a larger real estate network, fellow broker owners and other agents might question the office environment. As a high-profile agency, other agents in the industry might speculate.

Action – Address the market and maintain reputation. Have the conversations with both internal staff and external stakeholders to address rumours, manage perceptions, and clarify the business position and future direction; have the conversations with vendors, lenders and partners who worked with the departing agent, clarifying how operations and partnerships will be managed moving forward; reassure all parties that the office will maintain strong relationships and service standards; and do this without casting the departing agent in a bad light.

Culture, morale and loyalty: The morale of others in the office can be affected, so there is a need to alleviate any concerns.

Action – Have conversations that focus on reassurance, your business growth plans, their roles and your continued support as they grow as individuals. Your team wants to hear about the future opportunities, and your commitment, confidence and clarity of purpose.

Client confusion: When the exiting agent has been a prominent figure in the office, the real estate network, the industry and the community, the transition to a competing business can lead to confusion of loyalties, miscommunication and misunderstandings.

Action – Face up to the conversations with clients about the agent’s departure, no matter how challenging, because it’s essential they are reassured of the office’s continued commitment to their needs and the team’s capabilities and strengths – once again, without having anything negative to say. If a client prioritises their relationship with the departing agent over the office or brand, be gracious about it.

After that, there are more pragmatic issues to deal with.

The agent’s departure might disrupt ongoing transactions, so all matters pertaining to financial obligations, such as unpaid commissions, pending bonuses or split fees, need resolving.

You should ask: Do matters of confidentiality and information ownership need to be addressed? Are there difficult conversations to be had around the scope and enforcement of non-competition or non-solicitation agreements, as well as confidentiality boundaries?

It is in the business owner’s hands whether the departure of a top agent is allowed to destabilise or strengthen the office culture. The leader must effectively manage the transition and reinforce a positive, forward-looking vision for the team. I have seen many businesses flourish after the departure of “big personality” agents.

Once you move past taking it personally, you might clearly see the opportunity for redefining or reinventing the culture in your business. It can open the door to look at core values, team unity and direction. It might help to emphasise that the most resilient and cohesive culture is reliant on collaborative and inclusive team members than any one dominant individual.

In summary, when a top agent in your business leaves to become competition:

1. It can be a positive thing when the dynamics change.
2. Take it as a compliment.

I like to think that, as business owners, we are in the business of hiring and cultivating incredible talent, of creating an environment that fosters responsibility and leadership. We place trust in our team, and our team has trust in us, sharing dreams and goals without fear of negative consequence. The reality is that fantastic talent is hard to come by and even harder to keep, and when you have a high-performance team working within a valued and connected business culture, that talent can soar … and even fly away … because you’ve provided the solid footing for take-off.

The reality is that business is hard. Creating and driving culture can be difficult. As the saying goes, if it were easy, everybody would do it.

No one will stay with you forever. Agents do leave, but many return when they discover what has been promised in a new business environment is not being delivered. I always endeavour to leave the door open as I have seen this play out many times.

I know that culturally our business won’t miss a beat. New conversations will start because of the new dynamics. New opportunities are already surfacing.

Business goes on, and your attitude and response to these things are what defines your abilities as a leader.

Travis Gill is the business owner of RE/MAX Advantage in Wynnum, Queensland.