Turnover Rates and Employee Retention Strategies: Mortgage sales managers and loan officers looking
Great mortgage companies are built with exceptional people!
Finding the “right” mortgage company for your career as a producing sales manager or loan officer can be challenging. Companies implement a number of strategies to attract and recruit you. However, do they have the infrastructure and integrity to deliver on their promises and retain you after you make the transition?
One of the best ways for a manager or originator to determine the ideal company for their business and career goals is to pay attention to the company’s turnover rates and retention strategies. Turnover rates reflect how often employees leave the company in a specific time frame. Many companies will tell you they have low turnover rates; press them for specifics and do your own due diligence.
If a company has a high turnover rate in their sales force, find out why. It is probably because of one or a combination of the following:
Lower recruiting standards. Hiring originators with low production, limited referral networks, change jobs often, poor cultural fits, or have major personal issues.
Poor hiring processes. The onboarding and training resources are insufficient.
Inadequate operations. Poor turn times, lack of production support, inconsistent underwriting, etc.
Lack of opportunities for advancement within the company.
Unrealistic expectations and/or misrepresentations on the company’s infrastructure (operations, pricing, products, support, technology, marketing, compensation, culture, coaching/training, etc.)
Unhappy with senior leadership or direct managers.
Poor employee engagement.
Hiring the wrong person is worse than hiring no one at all. These bad hires take company resources away from productive branches and originators.
Change is inevitable in the mortgage industry. During the recruiting process, if a company doesn’t focus on their employee retention strategies, it should be a huge red flag for you as a manager or originator.
Companies that have high retention rates tend to be the most transparent, have authentic leadership, excellent operations, a solid balance between pricing and compensation, advanced technology and marketing resources, be financially stable, entrepreneurial, along with a servant leadership culture.
Mortgage companies can implement retention strategies to reduce their turnover rate:
Increase transparency and communication. Employees are more satisfied when they understand why senior management made specific decisions along with knowing what their specific goals and responsibilities are.
Invest in your people (coaching, training, and education). The cost of employee development is much less than the cost of employee turnover.
Recognize and thank excellent employees. Facilitate a culture of appreciation. By thanking employees for their hard work and success, leadership encourages the kind of actions the company values.
Recruiting, hiring, and retaining talented employees are critical to the long-term success of mortgage companies. Every company has turnover. In fact, turnover rates around 10% are considered normal and healthy for a company as low producers who take up time and resources can move on. The problem is when experienced, successful, high producing professionals are leaving the company.
As an experienced mortgage recruiter, I pay close attention to companies with high turnover rates, the retention strategies of companies, and the frequency sales professionals change companies. Furthermore, I pay special attention when successful managers and originators leave and where they transition. If you truly want your next change to be your last, I recommend you do the same. If you need guidance, let me know. Our expertise can save you valuable time and money.
Loan Academy is an independent mortgage recruiting and consulting company. We specialize in connecting exceptional managers and loan officers with leading mortgage companies that maintain a culture of excellence, trust, and transparency.