Employee Retention in the Real Estate Sector : a qualitative case study

Abstract

Employee retention among young real estate agents have proven to be a challenge in the highly competitive real estate business. The line of business suffers from high turnover rate and the average age among real estate agents is higher compared to other occupations. This qualitative single case study answers the questions how a real estate agency can improve their retention among young real estate agents and what affects their turnover intention to help agencies retain young real estate agents. The data was collected through semi-structured interviews among real estate agents belonging to Gen-Y, who work or have worked for the case company. Statistical information from industry relevant organizations and the case company was collected and reviewed. Gioia methodology was used for data analysis, resulting in a data structure explaining what affects young real estate agents job satisfaction and job dissatisfaction. The results reflect the three basic psychological needs, found in the Self-determination theory, as well as intrinsic motivation and negative occupational factors. The study conclude that young real estate agents experience intrinsic motivation but lack of systematic training, development and feedback alongside perceived negative occupational factors, such as commission-based salary, results in occupational turnover. Even though employee turnover is a general problem in the line of business, this case study is describing the situation in a small company in a Finnish context and thus the results cannot be generalized.