Building a Strong Team Culture: Retaining Top Talent in Real Estate

In our last newsletter, we explored how personality tests can help you create a high-performing real estate team. But once your team is in place, how do you ensure it stays intact?

Why Real Estate Teams Fall Apart

The phrase “People don’t leave bad jobs; they leave bad managers” is often cited in employee turnover discussions. While it's a bit of an oversimplification, there's truth to it. After you've built and trained your team, you don’t want to start over. So, what causes real estate agents to leave?

Here are the top reasons:

• Culture mismatch

• Lack of support

• Lack of fairness

• Personal changes

Let's break down each of these and explore how to address them effectively.

Culture Mismatch

Culture encompasses both your team’s core values and mission, as well as the everyday dynamics between team members. A culture mismatch is often the hidden cause behind a team’s downfall. Here’s how to get ahead of it:

Team Values, Vision, and Mission

Before you onboard any agents, you must clearly define your team’s values and how those values translate into client interactions, collaboration with agents, and partnerships. If you’re unsure about your team’s values, now’s the time to craft a script that you can confidently present.

If you haven’t yet formalized a mission and vision, involve your team in the process. Host a half-day offsite session to collaborate on defining them. If you already have a clear mission, revisit it regularly with your team. Make sure prospective agents are not only aligned with your values but are enthusiastic about them. A mismatch here could spell trouble down the road. By the way, a Values/Vision/Mission worksheet can help you get started here.

Everyday Interactions

The small, daily interactions among team members can have a big impact on team culture. Look out for common mismatches, such as:

• Communication preferences (text vs. phone vs. in-person)

• Feedback loops (comfort with giving and receiving feedback)

• Work cadence (night owls vs. early risers)

To address these, consider using a "Manual of Me," where each team member documents their preferred ways of working. This helps identify potential friction points early on.

Lack of Support

When agents join your team, they expect training, mentorship, and an environment that fosters growth. But not all agents require the same level of support. Some thrive with minimal guidance, while others need more hands-on help as they gain experience.

To prevent agents from feeling unsupported, have a clear understanding of each team member’s needs and provide tailored support. A personalized approach can keep agents engaged and committed.

Lack of Fairness

Real estate teams often face challenges around fairness, especially regarding commission splits, database ownership, lead distribution, and MLS transaction tracking. These issues should be addressed upfront and in writing to avoid resentment.

• Commission Splits: Make sure commission structures are clear and consistent across your team. If there are variations, explain the reasoning behind them.

• Database Ownership: Have a written agreement about what happens to your database if an agent leaves. Treat it like a “work divorce” scenario, even though we all hope that won't happen.

• Lead Routing: To avoid favoritism, use a transparent, fair method for distributing leads, such as a round-robin system.

• MLS Transactions: Avoid the practice of listing transactions under the team leader’s name for volume recognition. Instead, ask to be listed as a co-agent while keeping the primary agent’s name on the transaction.

Personal Changes

Sometimes, life happens. Agents may leave for personal reasons, such as relocating or stepping away from real estate altogether. These decisions are usually not a reflection of you as a leader, but rather part of the natural course of life. When this happens, be supportive and wish your team member well on their new path.

Trends to Reduce Agent Turnover

If you’ve made it this far, you've likely noticed key strategies for keeping your team together:

• Hire the right people.

• Offer consistent support.

• Foster a culture of transparency.

• Build trust across the team.

When you focus on support, trust, and transparency, your team will be more resilient and better equipped to handle challenges before they become deal-breakers.

Happy team building!

Note: For more details, I found this article especially helpful: https://www.rismedia.com/2025/04/21/why-real-estate-agents-leave-team-leaders/

Curious about what a "Manual of Me" is? This is the definitive resource on this amazing tool: https://manualof.me. And - stay tuned; I'm working on a Real Estate Team edition!