HR Solutions for Real Estate Teams

In our article on the various real estate team structures we cover multiple team compositions based on size and a number of other factors. But successful real estate team operations hinge on more than just size and structure of the group – they’re also about effective management. This is where HR solutions for real estate teams come into the picture.

A quality HR solution supports a team’s operations seamlessly in the background. The solutions we’ll cover can handle many HR functions from handling complex payroll functions to ensuring compliance and benefits administration. These solutions play a powerful role in minimizing administrative workloads and allowing teams to center their energy where it is most needed – closing deals.

Here’s what we’ll go over:

• Why Use HR Software
• What HR Software Does
• The Best HR Solutions for Real Estate Teams
• Alternatives to Using HR Software

Why Use HR Software

Running a real estate team requires many forms of software but HR software is often overlooked. Why? Because it doesn’t directly participate in any of the value creation of a real estate business. However a good HR solution manages the people that are directly responsible for nearly every element of value creation.

What HR Software Does

Human Resources (HR) is a broad bucket of responsibilities which is why HR software platforms offer a broad range of functionalities…and real estate teams usually don’t need all/many of these features…so first let’s go through and cover all of what HR Software does and see what may be most applicable for a real estate team :

1. Payroll Management
   • Process commissions for agents and other employee payments, handle taxes, and manage benefits such as insurance.
2. Personnel Information Management
   • Store and manage agent, contractor, and employee personal data, emergency contacts, and documents.
3. Recruitment & Onboarding
   • Track job openings, applicants, interviews, and streamline new employee/agent/contractor onboarding processes.
4. Time & Attendance Tracking
   • For applicable personnel, monitor working hours, track attendance, and manage leave requests.
5. Performance Management
   • Facilitate performance reviews, set goals, and give feedback.
6. Learning & Development
   • Manage personnel training programs, track certifications, and professional development.
7. Benefits Administration
   • Oversee personnel benefits like health insurance, retirement plans, etc.
8. Compliance Management
   • Help ensure company HR practices adhere to local, state, and federal laws.
9. Reporting & Analytics
   • Generate reports on various HR metrics for strategic decision-making.
10. Employee Self-Service
    • Allow personnel to manage their own HR-related tasks such as updating personal information or requesting time off.
11. Succession Planning
    • Plan and manage the development of employees to fill key roles within the company.
12. HR Workflow Automation
    • Automate repetitive HR tasks to increase efficiency.

So as you can see from this extensive list HR software capabilities extend beyond simple administrative tasks. Unsurprisingly, many items on this list won’t be relevant for a specific team (and very few software platforms encompass all of these). That’s why, in the next section, we’re going to go over specific solutions feature sets and focus on the use cases they serve best.

Top HR Software for Real Estate Teams

Alternatives to Using HR Software

DIY HR Management

While purchasing HR software provides a targeted solution, a DIY approach can offer a practical alternative especially when managing small teams. Using office software like Google Docs or Microsoft Office, teams can create custom spreadsheets to track payroll, benefits, and employee performance. Google Sheets, for instance, provides cloud-based collaboration, enabling team members to update information in real-time. Similarly, Microsoft Excel’s powerful data analysis tools make it possible to build intricate tracking systems for commissions and general performance.

Pros:

• Cost-Effective: No additional software expenses are required beyond existing office software subscriptions.
• Customization: Complete flexibility to tailor data tracking and reporting systems to specific business needs.
• Accessibility: Tools like Google Docs provide cloud-based collaboration, allowing real-time updates and remote access.
• Integration with Existing Tools: Can easily integrate with other office tools like email or calendar applications.

Cons:

• Manual Data Entry: Increased risk of errors due to manual data input.
• Time-Consuming: Building and maintaining tracking systems requires significant time and expertise.
• Lack of Automation: Limited automated functionalities compared to dedicated HR software, resulting in more manual work.
• Security Risks: Spreadsheets may lack the security features needed for sensitive HR data, increasing the risk of data breaches.

In summary, while the DIY approach using spreadsheets and office software can be beneficial for cost-conscious real estate teams, the lack of automation, data security concerns, and potential for human error make it a less scalable and efficient solution compared to dedicated HR software.

Professional Employer Organization (PEO)

Another option is a Professional Employer Organization (PEO). PEOs, in essence, function as a fractional HR department for businesses without the burden and intricacies of managing one internally. This approach is particularly suitable for small and mid-sized teams that may lack the resources or expertise to efficiently manage HR tasks.

PEOs can take on all HR responsibilities for real estate teams – from payroll and employee benefits to compliance with labor laws. Unlike the DIY solution, PEOs aren’t free…often costing the employer between 2% to 11% of all wages.

HR solutions for real estate teams are often overlooked but can streamline the diverse human resource needs that a team takes on as it grows.

In addition to efficiency, these solutions drastically reduce errors in payroll processing and benefits administration, ensuring compliance and operational efficiency.

Moreover, HR software empowers leaders with real-time insights and data security, helping them make informed decisions while protecting sensitive HR data. As teams add non-agent personnel, these HR platforms become more and more critical especially with the rising trend of remote work and cloud-based operations.

In conclusion, at a certain team size (probably 10+ in total personnel), HR solutions for real estate teams are not just a luxury; they are a necessity. By incorporating such software into their business models, real estate teams can free up resources to focus on prospecting, closing deals, and exploring new revenue generating opportunities.