The HR or human resources department plays a crucial role not only in a real estate firm, but in nearly any business out there. Needless to say, the people that are employed within the Human Resources department play a vital role in every company across the United States. While HR professionals may seem a bit excessive while your firm is still a fresh face in the real estate market, they quickly become invaluable as your business grows and as you become more known throughout your niche.

Let’s break down what exactly HR does in a professional real estate firm.

Recruiting and Hiring Personnel


For starters, your Human Resources staff will be in charge of recruiting real estate agents and hiring personnel for your office(s). This responsibility is of the utmost importance due to the fact that there is only one way to expand your business, and that’s through the addition of more staff members. 

Another comprehensive role the Human Resource team must fill is the maintenance of people that are working for your company. People will always come and go, and their reasons are always theirs alone. However, vacated positions within  your company can cost you time and money. It is therefore imperative that you keep a well-established team of experts within your Human Resources Department.

Your Human Resources Department is responsible for the following:

  • Actively screen, interview, and recruit new real estate agents
  • hire qualified candidates for appropriate and open positions
  • Assist current real estate agents with any issues they may be having

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Training New Hires and Current Employees


Hiring new real estate agents is only the beginning of a long list of responsibilities that must be completed by the Human Resource department each and every day. The people involved with the HR department are also responsible for new agent orientation, training, as well as informing them of up-to-date agency practices. This allows the new real estate agents to understand how the company operates on a personal level so that they will know what to expect from you and establish what you expect of them.

As new standards are issued, Human Resources will also be responsible for bringing current, long-standing employees up to speed on those standards. In a world that is ever-changing, the regulations and protocols should be ever-changing as well. Training, just as well as learning, never really ceases and it is important that your HR department is devoted to this ideal. 

Your Human Resource department plays a crucial role in taking care of any and all aspects surrounding the hiring and retention process at your company.

Compensation and Benefits


Compensation, vacation time, and other benefit packages are handled solely by the Human Resource department. Money is often a subject that you may not want to discuss with everyone. Human Resources experts vow to never leak any personal information regarding another so that any communication between employee and HR is confidential. 

Human Resources also manages compensation programs that otherwise would have been a disaster for you to manage on your own. They also ensure employee payroll is working and good order (i.e. employees are paid in a consistent, routine manner and that the amounts are up to date and correct). Benefits packages are another aspect the Human Resources department will have domain over, and they will be asked to explain the various pros/cons of each package to the new employees.

With the additional tasks of ownership that you are responsible for, taking care of all these other aspects of business management can prove to be overwhelming. Human Resource departments are therefore one of the most important sectors within your company as they take care of hiring/firing, employee relations, and employee payroll and payroll services.  

Handling Employee Relations and Disputes


Even in the most peaceful of real estate firms, people will sometimes have disagreements that cannot be resolved on their own. Sometimes a mediator is required, and Human Resources provide the expertise necessary to resolve disputes between employees as well as all other aspects of employee relations.

As an example, if two employees cannot come to terms to work together and just are not getting along in the least, Human Resources will get involved to discuss the issues in private. One individual discusses their concerns In private with HR, and once complete, the other individual completes the same interview. This enables issues within the workplace to be resolved in an efficient, professional manner so that the productivity of the entire firm is not put at risk.

This is not to mention the fact that Human Resources have the ability to side-step any potential lawsuits or employee relations issues due to their mediation service. This can potentially save you thousands of dollars if worse were to come to worse.

Legal Code Enforcement


With specialization of vast legal codes and ongoing legal responsibilities, Human Resources will aid your business by ensuring that no violations within the workplace are being practiced. No matter if it was accidental or not, a legal code violation within your agency could spell disaster if word was ever to get out or if your company had a surprise inspection. As an example, they will make sure that your agency  abides by the fair labor standards act as well as the minimum wage and work hour requirements of national and state governments. This saves you the hassle of ever having to consider those limitations.

Improving Organizational Workflow

Real estate companies have tons of internal things they need to focus on to boost their growth. They rely on their HR department to create a workflow hierarchy to ensure that all their needs are met correctly.

A proper workflow ensures that a real estate company can achieve new heights by boosting its capability of managing tasks.


In the business world today, Human Resources play an essential role in the workplace. Your real estate firm will see the benefits of their services within only a few weeks, so it is imperative that the value of Human Resources’ services not be devalued in any way. The better that the Human Resource sector is funded, the more successful your agency can become.

Human Resource departments will inevitably save your real estate agency time and money by handling all aspects of the hiring/firing process, employee training, and employee compensation programs offered by your real estate agency.