Sixty-four percent also include some a bonus structure, and the bonus structure can add anywhere from 20 to 35 percent, to a candidates total salary. Subject: RE: [compensation-strategy] Bonus Structure for HR and Finance Employees Posted by marylynch (Compensation Director) on Jul 22 at 5:42 PM Mark as helpful Our company uses EBITDA actual versus goal. That's the benefit when everybody is tied to the one key benchmark of the firm. The most common is just a flat bonus amount per closed transaction. The overall thumb even that I first learned in the industry about 20 years ago was that you can basically split the process for getting a new client into four roles: the finder, the binder, the grinder, and the minder. Base salaries compare well with the other property types, and top multifamily development executives are the best compensated development professionals among the four major property types. Responsibilities include managing all paperwork while complying with legal paperwork procedures, scheduling appointments with clients for final walkthroughs, and acting as a liaison for all involved stakeholders to provide excellent customer service. Also, keep in mind that most of our placements happened in the San Francisco and Los Angeles markets. To complete this Course purchase, you must log in to your Kitces.com account, or create a Reader account if you don't already have one. 1+ years' experience as an administrative assistant (real estate environment an asset). The caveat, however, is that in a business model that aims to create and increase annual recurring revenues over time, percentage of revenue bonuses whether tied to new or gross revenue have the potential to become quite large after a number of years, and can even compound to the point where they end up hindering the firms ability to reinvest into the business itself. Problematic bonus structures are much harder to fix later than they are to structure properly in the first place. we believe in dreaming big, achieving big, and impacting lives. Some assistants file copies of bills, while others are totally responsible for the bottom line of the profit & loss statement. 40 Reflection Questions & Journal Prompts. Your company sets aside a predetermined percentage of its earnings, often between 2.5 and 7.5% of its payroll, but not more than 25%. Let me be clear here I am talking about full-time administrative/operations team members, not part-time or virtual assistants. Ive calculated and reported total pay, or the sum of salary and bonus, as well as the percent change in total compensation from 2013 to 2021 and 2020 to 2021 for each of the positions. Aid in the closing procedures. Do they receive per-deal bonuses? Search for jobs related to Real estate assistant bonus structure or hire on the world's largest freelancing marketplace with 21m+ jobs. Because our industry has its roots in product sales and commissions, the most common bonus structure is to share in the sales to new clients by sharing a percentage of new client revenue where any new revenue thats generated is split amongst advisors and the support team in such a way that recognizes their various levels of participation in the process of generating that revenue in the first place. Anyone you add to your team should be a multiplier. Which means if you're going to have bonuses tied to the financial success of the business in the first place, it's a good idea to have a bonus that rewards retention of existing clients as well as just getting new ones. He had the goal of bringing in $10 million of new assets. It might be 5% or 2% or 1% or less for a very large firm, but it's still meant to equalize. Interestingly, the least growth among all property types was experienced by office and industrial acquisitions professionals whose all-in pay grew by just 2.46%. And by then, well, by then it's a money thing, and it'll be much harder to change it because it'll feel like you're taking something away. The real estate assistant's responsibilities include telephone duties, ordering supplies, preparing and distributing marketing materials, documentation, and reports. Its really all over the map. Related: Small Business Owner's Guide to Holiday . They must be designed around these three factors to ensure continual growth, retention, strong profit margins, market dominance and long-term team and client loyalty. The industry saw the largest percentage increase in compensation (3.9%), as well as the largest total increase in compensation from 2020 to 2021, since we began tracking compensation in real estate. Which not only rewards team members when the firm grows by adding new clients, but motivates them to work hard and provide great service to retain existing clients, too. real estate investing strategy that makes financial freedom Because in the early days with the finder, binder, grinder, minder framework, it was popular because advisors were all getting paid upfront commission, so the only revenue was the new revenue anyway. When you hire talent, you should expect them to be an investment, not just an expense. After logging in you can close it and return to this page. See How Successful Advisors Are Demonstrating Their Ongoing Value To Clients, The 5 Languages of Appreciation in the Workplace: Empowering Organizations by Encouraging People, Top 10 Influential Blog for Financial Advisors, #1 Favorite Financial Blog for Advisors. Because, once you have employees, you have to figure out the best way to keep them challenged and motivated, and how to financially reward them while keeping their interests aligned with those of the business. This is Office Hours with Michael Kitces. And while extrinsic motivators can give us a helpful nudge, the problem is that we soon adjust, and then we expect them, and then we can get to the point where not only are they not very motivating anymore, but if you take them away completely eliminates anybody's motivation to do the task at all, even if they previously enjoyed it. And in some cases, you know, advisory firm owners, as all small business owners, get a little, shall we say, creative about business expenses because, you know, anything you can put through that business P&L as a tax write-off, except when employees are getting bonused based on the profits of the firm, your creative tax strategy, you know, running your car through the business or hiring your kids in the business, becomes your employees' foregone bonus, which is not always healthy for your employee relationship. So it's not necessarily a different number, it's just instead of doing a bigger percent on the new business, it's a smaller percent on the entire revenue of the practice. What Is the Average Salary of a Real Estate Assistant? Several years ago, we published a careers in real estate series where we discussed the various job sectors, business fields, and job functions that exist in the real estate industry. This particular individual could then be incentivized to achieve an increase of the nominated amount of income to be rewarded with their desired weekend away once that income level is achieved. Survey the top teams in your office, along with the top teams at other companies in your area. A licensed Real Estate Assistant typically has increased responsibilities and are qualified to relieve the agent or broker of major duties, like assisting with closings and co-managing open houses. Posted 5 years ago. August 24, 2015 11:58 PM. 3. In 2018 Pro R.E.A. Average total compensation for all 76 positions reviewed (high end of range) from 2016 to 2021. And you have to be really careful not to project what you would want into what you think they want. So, how do you figure out what to pay your assistant? Things cooled off in 2018, and there wasnt much of a change in San Francisco. In this book, author and investor And if you want to, take the money you would have put aside as a bonus and put it instead in emergency fund for your business to keep your paraplanner employed. This benefit depends on the company's performance. And you had to always be going out to get new revenue because otherwise as soon as you stop getting new clients, you stop getting commissions and your income went straight to zero. The structure of real estate teams varies based on state requirements and commission splits, and there are pros and cons to choosing a team structure rather than an individual agent career path. bonus structure for real estate assistant. However, going down to Los Angeles, we saw that same kind of phenomenon happen in 2018. Real estate assistant: Typically paid a base salary; may receive a percentage of the commission. A showing assistant fits into a real estate team's organizational model by enabling buyer's agents to close more buyer-side transactions and increase commission income by utilizing one or more showing assistants to service more clients at once. To illustrate this point, if the property manager signs up and leases two new managements at $750 per week each, then the target total has been achieved and any new management signed and leased after the target total can now be paid as a bonus incentive to the property manager. It's NOT what was posted on the Lab Coat Agents' blog last year about hiring an assistant: "In general, an assistant might get anywhere from $12+ an hour." (Anyway, not unless it's WAY on the PLUS side of $12/hr.)*. NOTE: All past service of an employee engaged as a Real Estate Employee Level 1 (Associate Level) as at the coming into force of . Total compensation from 2020 - 2021, across the 76 positions we analyzed, rose on average 3.1%. You know, it's rather traumatic to the business when you literally double your headcount from you to two, and often feels like a really big step back financially that you have to carve out, you know, from your income to hire this full-time employee in the hopes that eventually you'll be able to grow beyond it. Ops Boss Leader Retreat Once a year weekend event for high level operations leaders. 1. One-on-One Coaching Forty 30-min calls a year. IAR CE is only available if your organization contracts with Kitces.com for the credit. Schedule a free consultation to discuss your hiring needs. Does your bonus and incentive plan strike a happy accord? Well wait. New York University average salary is $109,651, median salary is $74,999 with a salary range from $28,600 to $1,366,206. They have therefore increased profits by 2% over goal (14% - 12% = 2%). When your survey is complete, share it back with the participants. When youre hiring an assistant, youre not just competing with other REALTORS for talent, youre also competing with other industries. In addition, many agents on this plan are required . Just in case you need a simple salary calculator, that works out to be approximately $38.74 an hour. Now, we didnt place all of the assistants in Los Angeles in those two years, and its possible that just we happened to do more high-level placements last year versus the year before. I'm planning to start her out at a $60,000 base, but I'm concerned with how to set her bonus. The 50/50 split plan's adoption rate also relies on ease of implementation. A lot of my clients would like to avoid that scenario. And one of the hires left after a month for a job outside real estate for a LOT more money. However, under that umbrella of real estate assistant, we have a lot of different job titles and different levels of responsibility. 3. Recommendation. First, on average the bonus as a percent of salary is lower for multifamily positions compared to their office, industrial, and retail counterparts. And you want to pay them what you pay your 14-year-old babysitter who has no life/business experience. The amount of these bonuses are all over the map. Some assistants work with a single agent; others lead teams. 2 For example. . The Real Estate Assistant Master Course is a self-guided learning program designed to completely transform any real estate office that desires to run more efficiently, establish proven procedures, and increase sales. Real Estate compensation from 2020 2021 grew at its fastest pace in five years. Urgently hiring. If our sales growth is 22%, the quarterly bonus will be $2,500.00. Which isn't anything nefarious, it's just a simple recognition, as the business grows, successful employees still get a smaller slice of a larger pie. That would be $100,000 in new revenue. But if the business didn't grow as well, for some reason, my advisor friend wouldn't have to pay as much in salary and could save a little on the bonus, right? That's why you choose to be an advisory firm business owner and the employee chooses to be an employee. Both were hired at the top of the real estate pay range for their area $60K. Would you like to participate? (Its VERY rare for someone to say no when you reassure them of confidentiality and offer to share the results. All while being outrageously mindful of the client before, during, and after every interaction. The individual can have a list of goals as long as their arm, but if they have a negative image of money, they are unlikely to achieve their goals. And because of this, a number of advisory firms, including and especially I think ones that have maybe even burned on the past from some of these compounding risk percentage of revenue or percentage to new growth bonuses, are instead shifting to more fixed bonus structures instead. Before you can decide what to pay someone, you need to know what they will be doing. Property Management Structure: 3 Ways Companies are Currently Organized. 3. If the employee wants more comp and a bigger bonus, the employee needs to either support more and more growth on top of the clients loss, or do a better job helping to retain those clients so they don't leave in the first place. Hi All, I'm trying to determine a typical bonus structure for a RE Assistant (paid hourly). Your duties include greeting clients, answering the telephone, making follow-up calls, preparing correspondence, scheduling meetings, and making travel arrangements. Now, this is a little different than the prior bonus because that's typically only paid on new revenue from new clients. So to get back to the original question that Adam asked, Adam, I know your inclination and temptation is to pay a percentage of new revenue because that's what motivates you, but I'd really encourage you to go another direction. It was managing business risk. Thanks for joining us, everyone, and have a great day. And while advisory firms now are increasingly going to an AUM fee model and they're not necessarily on the upfront commission model anymore, old habits die hard, and I find a lot of firms are still engaged in these kinds of new business splits. David Greene shares the exact systems he used to scale his Lease Purchase, Lease Options, Tax Liens, Notes, Paper, and Cash Flow Discussions, Private Lending & Conventional Mortgage Advice, Property Insurance Questions & Discussions, Tax, Legal Issues, Contracts, Self-Directed IRA, Real Estate Guru, Book & Course Reviews & Discussions. Example: A salesperson's base commission is 5% up to a total of $100,000 in sales. The login page will open in a new tab. However, as the advisory industry shifts from upfront commissions to ongoing recurring revenues (e.g., AUM fees), firms that are hiring often have even more recurring revenue than new revenue, and its equally important for employees to not just help get new clients and revenue but retain the existing clients and revenue as well. And I'm not talking about the bonuses that get paid to advisors for managing client relationships, I'm talking about the bonuses that you set for the rest of your employees, the administrative and operation staff, the paraplanners and the associate planners who don't have business development or direct client relationship responsibilities but also may want and need bonuses and incentives tied to their compensation. Asset management professionals saw the highest growth in their compensation, among industrial and office professionals. Post the job here for free. Because in this recurring revenue model which started out as just 20% of new business growth after 10 years became 20% of the business. Fast-forward one year, and our average starting salary for 2018 was $67,957. ), but theyve also just given themselves a whole slew of new responsibilities as an employer that, no matter how good they are at delivering great advice to their clients, they may have little to no experience in. Now, the big question everyone wants to know is, what is the average starting salary of a real estate assistant? The next common practice and this is one that I do not advocate for, is a percentage of GCI. Or, for every month that the monthly newsletter goes out on time and you get a 25% open rate, they get a certain bonus. While ZipRecruiter is seeing annual salaries as high as $221,500 . Again, check out the salary guide for more details. New York University salaries are collected from government agencies and companies. However, we still did see an increase, and I can tell you from recruiting in that market throughout those two years, we saw a tightening of the availability of candidates and peoples willingness to pay more for top talent. How much does a Real Estate Assistant make in Ontario, CA? Research salary, company info, career paths, and top skills for Real Estate Agent Assistant The amount of total salary can begin from 29,000 USD and rise to even 53,000 USD per year. Thats $14.40/hr less than a babysitter earns in most areas, and certainly NOT a salary anyone could support themselves on in many areas of the country. Get Client Information. Total compensation grew 2.6% 3.5% year-over-year for the retail positions we analyzed, with senior executives seeing a similar compensation growth rate as other retail real estate professionals. According to Hartman Income REIT Management, a Texas-based corporate broker, for example, "a typical commercial real estate commission can vary from 4%-8% in deals under $1 million. That look is visualized below. bonus structure for real estate assistant. This amount varies according to the company they work for and the location. You could even tell her you're building up business reserves to ensure she has a job. More and more are offering some money toward health insurance, and almost all of our clients provide at least five days of paid vacation in the first year, and that usually goes to 10 days in year two. Some teams pay their showing assistants a flat salary or an hourly rate, but many pay them according to . The one other thing I notice, as we wrap up the discussion as well, just because I often see it in advisory firms, is that sometimes we as advisors and entrepreneurs and business owners sometimes forget that our motivations are very different than our employees'. The goal of all compensation and incentive programs is to drive desired behaviors across the organization. 7 Sales Commission Structures (& How to Decide What's Best) Real Estate Assistant Jobs (with Salaries) 2021 - Indeed Real Estate Assistant salary in Kansas One of the most common sales commission structures is a base rate plus commission on every sale. If your mindset is to get away with paying as little as you can, youre going to get what you pay for. quotas) However, the bonus is not paid as a rental fee, rather a percentage of the increased weekly rental they have attained. Or Reach Michael Directly: This browser is no longer supported by Microsoft and may have performance, security, or missing functionality issues. So we are also talking about executive assistants, marketing coordinators, listing coordinators, transaction coordinators, and a few other roles. The property managers focus is now shifted from management numbers to income, so the focus instinctively switches to weekly rental returns on potential new managements. But if you were the advisor and someone else was the finder who provided the lead, they got 25%, and then you kept the rest. We need to actually generate a profit as a business owner. Otherwise, all duties will be weighted equally and you wont have clarity for step #2.) It includes things like accountability, goal setting, mega mindset, and the 3X Rule (how to generate income to the team through systems). Back in 2016, we told clients in San Francisco that they needed to pay at least $55,000 in base salary to get a licensed, experienced real estate assistant. Additional working opportunities on Saturday's from 10am - 4pm. When in truth it's not actually what their employees were asking for, it's just what they would have wanted themselves. On average, a real estate administrative assistant makes about 39,868 USD. Because even if the employee wasn't there to get the client, the employee is still there to retain the existing client. Join the Accelerator today. But for most advisory firms, profit-based bonuses don't work well in practice. Monthly property management resources will be delivered to your inbox! 7 percent get paid per task. New Real Estate Administrative Assistant jobs added daily. The salary for a real estate assistant can vary depending on the years of experience that a person has, from entry level to senior level. And I find this approach to be increasingly common in advisory firms more so than the percentage of new revenue for a couple of reasons. So, what does this mean for you? You want someone who you will fully rely on to ensure your livelihood, to totally run your business, who is super smart, fast as a whip, executes and is strategic who will do everything from copying and getting breakfast to building high level systems to scale with tomorrows technology. Log in toKitces.comto complete the purchase of your Course. The average hourly rate for Real Estate Administrative Assistant ranges from $19 to $24 with the average hourly pay of $21. Here are the 4 Steps I followed for the 23 years I was the COO of one of the nations top real estate teams, and for the 10 years I led offices in multiple states for a national mortgage company. This was essentially Adam's plan. An IB analyst typically earns a total of $150,000 to $200,000, while a PE analyst usually earns $100,000 to $150,000 on average. The problem the property managers focus is on numbers and not quality. Therefore, the business owners focus is solely on new business numbers and not income achieved from the new business. We did not meet our sales growth goal. A real estate administrative assistant provides administrative support to the real estate team to ensure smooth real estate transactions. Compensation packages for salespeople often include performance-based commission or standard bonuses (when the entire sales team achieves quotas, or when the entire company achieves its goals.) 3 Center Plaza, Suite 400 For acquisitions professionals in office and industrial for instance, on average the bonus makes up 30% of an Associate-level professionals pay while the bonus makes up 59% of the acquisitions executives pay. This is the equivalent of $1,549/week or $6,715/month. One big takeaway from the survey is that compensation for commercial real estate professionals continues to grow and has only accelerated of late. And you have to change the percentages or you get stuck in the situation my friend where one successful employee chokes off all the money for you to hire anybody else. And now the percentage of the bonus starts going down as the business grows and compounds. These are only our placements and I only included the regions in which we did at least three placements, If you want more detail, download the salary guide. Royal Lepage Signature 4.2. This year, we also analyzed the change in total compensation from 2013 to 2021 to understand how pay has changed over time. This is the 3X Rule we teach in our BE A BOSS class.). Your email address will not be published. Of course, bonuses dont have to be monetary at all, as financial rewards on top of base salaries may be motivating initially but can become less so over time once employees begin to expect them as just another (implicitly-guaranteed) piece of their compensation, especially for otherwise-successful firms that regularly hit their bonus targets anyway. Newly minted MBA in Real Estate and Masters in Real Estate graduates can expect to earn in retail-focused Associate-level positions on average anywhere from $110,000 $180,000, with pay among asset management associates beating pay among acquisition associates. An Assistant Maintenance Supervisor is the right-hand person to the Service Manager and responsible in assisting in maintenance operations of the property. salary All Salaries $40,000+ (18,775) $46,000+ (15,141) $55,000+ (11,923 . Maple Valley, WA. Because they may have different goals. So take that with a grain of salt. I've seen some assistants received a bonus based on a fixed rate per closed transaction. And while the business owner might make that back in the higher value of the business in the future with growth, the employees just lose when the business owner reinvests, which is not a good dynamic for the business. Sellers often wonder if offering a "Selling Bonus" will work to get agents to sell their houses quicker. Questions About BiggerPockets & Official Site Announcements, Home Owner Association (HOA) Issues & Problems, Real Estate Technology, Social Media, and Blogging, BRRRR - Buy, Rehab, Rent, Refinance, Repeat, Real Estate Development & New Home Construction, Real Estate Wholesaling Questions & Answers, Rent to Own a.k.a. You DONT post in Facebook groups and ask. These are high-end markets. (Michaels Note: The video below was recorded using Periscope, and announced via Twitter. And I see a lot of advisors take what I think is sometimes an excessive focus on, "Sure, there's some risk in their bonus, but I want to give my employees the upside." And the short answer is, yes, a little bit, but it depends on where you live. Approximately how much will that add up for them this year? Heres what pay (salary plus bonus) in real estate looked like in 2021. Only 8% got a year-end bonus, and only 3% got a holiday bonus. Because obviously, if they're under financial distress, they'll be pushing to make more money because they really need more money. The average salary for a Real Estate Assistant is $23.18 per hour in Ontario, CA. According to the website, as of October 29, 2021, the average salary in Texas for licensed real estate professionals $43.443. ). If so, how much per deal, and approximately how much will that add up to for them this year? $120K. We respond well to them. This way, any time a member of the team is dealing with a challenge, there's an in-house ally to help figure it all out. There is a slight nuance to this situation however: the assistant is actively participating in creating . Is your assistant paid hourly or on salary? Regardless, senior executives in Retail continue to be the highest compensated professionals in real estate. With the market starting to soften, I anticipate that these numbers are going to level off, and they might even go down a little bit in 2019. What should you be reading for real estate? One final option to consider is tying the bonus to certain goals met or projects completed. Thanks for your thought in advance. The property manager could in fact reach the target of five new managements, but the five properties average only $200 per week. Instead, firms can offer experiential rewards for the whole team (and even their families! feet: 13.5%; She's now making $200,000 a year as a paraplanner. 1. Territory volume commission. Monday - Friday 09:00AM-6:00PM. Consequently, another approach for bonuses is to base them on a percentage of the firms gross revenue instead of off new revenue from new clients. )*, Its NOT the rate high school babysitters charge. If the incentive is a bonus equivalent to one week's rent for each new management (which seems to be the norm bonus in most businesses), the business owner will pay $1000 as a bonus to the property manager or business development manager. If they wanted a bunch of risk-based compensation, they can go find another job that works in commissions or sales or something else with a high-risk high-reward potential, but instead, they're coming to the tables as employees for us because that's not the path they're choosing. How to hire a world-class Real Estate Assistant Its all about the numbers and hence a fundamental reason why we have so many problems and therefore a negative perception within the industry and from our clients. Join our Real Estate Financial Modeling Accelerator Program to land the job, get the raise, and learn to model your own deals. Typically, with these plans, the agent does not pay for any of their desk costs, and the brokerage covers operational expenses like signs, marketing materials . Or alternatively, if you're, you know, actually paying what appears to be a very reasonable starting salary, $60,000 to a paraplanner in the first place, consider not making a financial bonus at all and instead tying the accomplishment of your quarter or the annual business goals to something else that's maybe a little more fun and a little less financial. Global Headquarters The real key, though, is that by setting bonuses that are flat dollar amounts based on concrete metrics, you as the business owner can budget as a percentage of revenue if you won, but you don't create a permanent expectation in the minds of employees that they'll get a permanent indefinite sharing of a percentage of revenue in a manner that you can't actually sustain if you really do continue to grow and compound the business.