CMA’s Are Not Just For Properties – The Importance of Offering Fair Compensation
I came across an online job posting seeking a Real Estate Assistant in the GTA. It’s a typical full-time real estate assistant role; they are looking for someone to coordinate getting listings ready for market, conduct site visits to meet vendors, assist with staging, prepare CMA packages, prepare transaction paperwork, create marketing materials, update the team CRM, assist with client follow-up, keep the team’s paperwork in order, and otherwise support the Sales Representatives and tend to clients as needed. They require 2 years of prior real estate administration experience, and the candidate must have a reliable car for running errands. Sounds reasonable, right? Not quite. Here’s the kicker: they are offering a salary of $35,000 to $45,000. I do not know how they came up with these numbers, but they are not reasonable nor fair; $35,000 a year is not a living wage in the G.T.A. In fact, it’s quite tone-deaf to offer such low compensation, particularly for a realtor, who arguably should know the cost of living in their area better than most people. $45,000 should be at the lower end of the salary range, not the higher end.
In the last quarter of 2021, TRREB pegged the average rental cost for a one-bedroom apartment at $2,099 a month. With a salary of $35,000 a year, 72% would be consumed by rent alone. Not to mention, gasoline prices were up by 31.7% year over year in January 2022, transportation costs rose by 8.3%, food prices are up 6.5%, and overall inflation exceeded 5% for the first time in over 30 years! According to the Ontario Living Wage Network, the living wage, meaning the minimum hourly wage required to cover basic expenses and participation in the community, in Toronto was $22.08 as of November 2021. This equates to a shade under $43,000 a year, not $35,000 a year.
Note to realtors: Much like how you conduct comprehensive comparative market analyses (CMA’s) to determine the fair market value of properties, you need to conduct a CMA to decide on a fair salary for your employees.
The job market is competitive right now, you’ve undoubtedly heard of ‘the great resignation’ and labour shortages across many sectors. This has led to a candidate’s market, where supply of jobs is higher than demand, and as a result, one candidate may have many job opportunities to choose from. Now more than ever you need to offer not only fair, but competitive, compensation if you want to attract and retain qualified talent.
You must also bear in mind that your employee’s financial security greatly impacts their quality of life and emotional well-being, which in turn impacts their productivity and job satisfaction. If your Assistant is working hard day in the fast-paced, high-stress environment that is real estate, but they underpaid or undervalued at work and struggling to make ends meet at home, they will not be happy. Their performance and/or attendance will suffer, and they will most likely resign.
Human Resources are the most valuable resources. You need to invest in your employees if you want them to be invested in you and your business. This starts with offering a salary that’s in line with fair market value.
Not sure what a fair and competitive salary is for the real estate position you’re trying to fill? We can help. Contact AGENTC today.
References:
https://trreb.ca/index.php/market-news/rental-market-report
https://www150.statcan.gc.ca/n1/daily-quotidien/220216/dq220216a-eng.htm
