Recruiting top talent is a skill honed over time. Sure, you can read as many “how to” articles, like this one, as you want, but the seasoned recruiter will tell you that beyond the written word is experience. Experience is the best teacher and most often when the experience is a bad one.
Do you remember when you first started out in the mortgage business and made a flat-out mistake on a loan file? One where you said something to the effect of, “Wow, I’ll never to that again!” Experience is the best teacher but sometimes you may be doing things the wrong way and never know it until it’s too late.
Here are three costly misconceptions you can have when recruiting top talent.
You’re Well Known. Top loan officers know who you are and what you do. Especially so if you garner a pretty good market share in your area. But top producers pay attention to their own pipeline, their own methods and clients. Why would a loan officer know about the benefits of your company when they’re busy taking care of their own business?
You might think everyone in the industry knows about your company but that’s not going to be the case. There are some very aggressive, successful mortgage companies staffed with top talent you may have never heard of. And just the opposite is true.
Your Rates And Programs Are The Key. It used to be that mortgage companies could craft their own loan programs and specialize in a certain niche and dominate it. Subprime is a classic example. So is having an answer to a stubborn overlay. Yes, it’s a good thing to stand out or even have a product offering that few others do but the reality is top producers don’t jump ship because of a certain loan program.
Face it, mortgage lenders offer the same basic suite of loan programs. There may be a few portfolio products out there but those are very few and far between. Your prospective hire will certainly take a look at your rates to see if they’re in the market, which they always will be, but they’re not looking for a company with the lowest rates and the most mortgage programs. They want someone that can build on their current success with a strong support team.
The Best Pay is the Key. No one wants to change companies because they want a reduction in pay. That’s silly. In fact, most moves are based upon a better compensation package. But you don’t have to have the best compensation on the planet. Competitive, certainly, but don’t think you have to pay the highest in town for top talent.
Successful loan officers start thinking of a move when they get frustrated with underwriting or processing. Or their secondary department has been out of the market for quite some time. You may have the exact same compensation model as what the loan officer is receiving now but what is your fallout rate? If you close a higher percentage of your loans than your competitor, that’s a pay raise in itself.