Making sure your employees are properly compensated can take a lot of time and manpower, but things can get even more complicated if you’re in the real estate industry as a mortgage brokerage company. With a recent surge of activity in the market during the last few years, being able to run a brokerage company greatly depends on consistently being able to compensate your team of real estate agents.
Fortunately, software developers have made it possible to take most of the burden of compensation management off your payroll specialist and have most of the process automated, including actual payments. You’re probably wondering if your firmcan do well without automated brokerage compensation management solutions, but the truth is you’ll need it if you want your business to have any chance of keeping up with today’s fast-paced real estate industry because of the following reasons.
Compensation Management Is Complicated
Paying commissions to an agent can get very complicated. A single agent can make as little as 10 or as many as 150 sales or even more for any given time! Each sale can be very different from others due to certain variables such as the product costs, fees, terms and conditions, and even rate schedules. Now, consider the fact that your brokerage has more than 1 agent and that number of sales can easily multiply at an exponential rate.
Each sale requires careful computation that simply isn’t feasible if done manually. Every computation is prone to having mistakes caused by human error, and the smallest discrepancies can lead to big pay disputes. By automating the compensation management process, all these computations are handled by the system, greatly reducing the risks of issues related to incorrect payments.
Compensation Management Has to Be Fast
Maybe you have the best people assigned to handle the calculations and process the payments, but that still won’t be enough to keep your brokerage floating, given the current nature of the industry. Your team may be able to make accurate computations, but chances are the entire process will take so much time, and if there’s anything that agents hate, it’s not getting paid on time.
There’s no need to risk driving away your top agents simply because of delayed payments. By automating the compensation management process, payment can be handled accurately andat a much shorter time. You can even schedule payment dates to be a few days earlier than usual to account for delays in bank processing so agents will be happy to know that they’ll always get their commissions on or before the agreed-upon dates.
Compensation Management Should be Scalable
The real estate industry is still picking up pace, and that means your brokerage needs to be able to adapt to the growing market. That means having to take more agents and making compensation more attractive to your agents. If you scale upthe old-fashioned way, you have to be prepared to spend a lot of time and resources adding more manpower and making sure changes are implemented to all future compensations.
Automated compensation management systems are speciallydesigned with adaptability in mind. Any changes required to make the system ready for scaling upcan be implemented within seconds. To make things even better, these changes are logged so it’s easy to backtrack on things in case you need to take a look at something prior to the system update.
Automation in different aspects of a business has already been proven to increase the efficiency of businesses in all sorts of industries. Your brokerage’s compensation management is no exception, so there’s really no reason why you should miss out on the big benefits provided by automating this aspect of your business.
