The estate agent said the new status for its workers will allow it to quickly scale up to meet consumer demand as well as offering new opportunities for career development
() Group PLC () said it has started a transition to make its local property sales agents fully employed in a move it says will allow it to “scale up quickly to meet consumer demand”.
The online estate agency said the alteration, made following a review of the business, follows the rollout of new pricing structures in July that it said will “accelerate revenue growth, increase market share and drive progress towards the group’s medium-term targets over the coming years”.
The group also said the fully employed status will incentivise its agents as well as offer new opportunities for career development.
The change in the employment model is expected to incur exceptional non-recurring costs of £3-£4mln in the 2022 financial year (FY22), () said, with ongoing administration costs expected to be around £1mln higher in coming years.
The firm also said it expects “significant increased investment in a new marketing campaign” later this year, resulting in marketing costs for FY22 being £3-£4mln higher than previous guidance.
Purplebricks also said its medium-term guidance remains unchanged and that it expects to deliver annual revenue growth of over 20%.
“I am proud to be announcing plans to make our sales team permanent employees. The pandemic highlighted the challenges of being self-employed for many people – which is why we created the £2.2mln fund to support the agency field during recent challenging times. As normality returns, we believe that moving to a fully employed sales model will benefit and support our people and make Purplebricks fit for the future,” Purplebricks chief executive Vic Darvey said in a statement.
“Not only will this enable us to better protect and incentivise our agents, it will also allow us to scale up quickly to meet consumer demand, and continue to deliver a high quality, locally based service for our customers. It will also ensure that we can continue to drive a more consistent, high-performance culture and experience for all of our customers, helping us deliver a next generation estate agency service to buyers and sellers alike. The board strongly believes this move will increase market share and enhance performance in the coming years,” the CEO added.