How a Mortgage Broker can use a recruiter without paying the fee...


As a recruiters reputation and popularity grows the labour intensive side of the recruitment process drops. Like any sales business, it’s important to maintain a strong sales funnel/pipeline. Identifying a narrow niche affords further opportunity for referrals of both candidates and clients and so eventually this and a few key tasks ensure a pipeline is constantly being filled.

This is certainly plays a role in the conflict some businesses have with a recruiter and their fee. How can a recruiter charge such a high fee when sometimes the process was a couple of calls to arrange a couple of interviews followed up by an invoice for thousands. The service and the value of a recruiter is the network and the access - the time spent developing relationships, marketing to an audience of relevant job seekers etc but this isn’t necessarily seen or demonstrated throughout the process.

Another conflict in using a recruiter in  mortgage broker space is the fact recruitment is such a huge focus for aggregators. This means BDMs  also have a huge network within the niche, brokers can lean their BDMs for support and assistance with the recruitment process at no extra cost, the BDM is paid by the aggregator.

A recruiter's proposition can be a financial stretch for a small broker. Often the alternative is  a seek ad and a chat with the BDM for some advice, this is seen to be a more cost effective but not always the solution.

However, there is a way to leverage a recruiters network without paying a huge fee.

Recently, Loan Market secured a great new hire in Daniel Koutsamanis - iSelects number one Mortgage Broker. An experienced broker undoubtedly an asset to any business and one that some groups would have been more than happy to pay a fee for. However, after initially meeting with Daniel and speaking to him about his ambitions I first pointed him to The niche jobs site specifically targeted at the broker industry.

At the time, there was around 10 Broker businesses advertising their opportunities. A range of different aggregators sub aggregators and smaller businesses and I made introductions to the ones he picked and deemed suitable.

From there, the groups manage the process, each group had the capacity to manage a recruitment process themself, they just needed to enhance their sourcing capability, and to be seen in the right places in order to make it easier to source talent.

Loan Market was one of those groups, they have the resources to recruit and the kind of business model Daniel was looking for. Their award winning Vic based BDM Suzi managed the process throughout, keeping me informed at key points.

On successful placement there was no Recruiter fee - the reason for this is Loan Market did most of the work. They only paid to source people, A low cost subscription fee allowing them access to my network in order to attract candidates I’m speaking to.

If you’re looking to grow your business and have the resources to manage the process, this low cost fee to enhance your sourcing capability may be the solution you’re looking for.