The third instalment in my ‘how to hire a mortgage broker’ series looks at where you find good talent. And, the debate over what is better – hiring established brokers or those new to the industry.
The way I see the market when it comes to hiring talent is this: 20% at the top that are unlikely to ever move; 20% at the bottom that are dissatisfied with their current role; and, 60% in the middle that are, for the most part, satisfied and content.
Firstly, there is the 20% at the top that are realistically never going to move. They are Directors and the like that are successful and happy, and there’s no incentive big enough to make them switch roles.
Then, there is the 20% at the bottom. Now, whilst this may offend some people, these are the 20% that are unhappy in their role. This is most likely because they feel underpaid and undervalued. They aren’t hitting KPIs, and they are under pressure. This 20% typically want to jump ship and are searching for a lifeboat, and the first place they turn to is Seek. This, of course, isn't the case across all of Seek, but it is when it comes to mortgage brokers. The odd diamond in the rough may slip through every once in a while, but not very often.
Then we reach the 60% in the middle – the 60% that are happy in their role. They are successful and valued, and are hitting targets and making money. They aren’t actively looking for a new role because they have no reason too. However, if something was presented to them that sees them getting all they've got and more, they may be tempted.
This is your target. This middle 60%.
The next step? Of that 60%, do you want to find someone new to mortgage broking or someone established?
The more established and successful a broker gets, the closer they get to the 20% at the top that don't want to move. This isn't dictated by time, but by success. There are brokers that have been around 18 months writing excellent volumes and there are brokers that have been around 7 years that are “getting by”.
An established broker is a great hire, and I find everyone is looking for someone with at least two years’ experience so they don’t require a mentor, they don’t need much support and they have an established network. The thing is, to give this broker everything they have and more can be tricky. They don’t need leads, their brand is relatively established, and nothing is necessarily broken, so why fix it? If a broker feels like there are no gaps, what have you got that may tempt them to move? You need to identify a point of difference.
On the other hand, hiring someone new to the industry comes with risk. But, risk is also related to reward. There is potential and opportunity. Ive found hiring someone fresh to the broking industry, that is sales hungry, driven and motivated to build something for themselves that hasn't had the chance to develop bad habits can be one of the best hires. Someone with a fresh outlook that can be moulded, by you, into a great broker.
The best job order I ever took wasn't so much focused on lending experience but more along the lines of hiring the right person. Someone with the personality make up of a sales driven person; someone that was a go-getter.
They were happy to invest in the right person and in the long run get a good return on that investment. They placed priority on the personality and cultural fit – the rest can be taught.