Business outcomes - Hiring for growth

Whatever the situation, the transition from sole operator to employer is not always a simple one, and brokers have a number of options at hand.

The number one question most brokers need to ask is whether they should first take on another loan consultant or alternatively bring in administrative support staff to help manage current business and free up time?

Wendy Higgins, an Adelaide-based Mortgage Choice franchisee, says hiring one or two support staff can often be a better option for brokers that are looking for extra help.

Ms Higgins’ team consists of nine specialist staff that includes herself, four loan consultants, four administrative staff and one marketing person.

She says the composition of her team is crucial to its ongoing success and has helped it secure Mortgage Choices’ National Franchisee of the Year title three times running.

“Support staff can do much of the administrative work that often unnecessarily swamps brokers. This, in turn, enables them to spend more face-to-face time with clients,” he says.

Ms Higgins says her team is a real asset to her business because they ensure the quality of loan applications to help meet lender metrics.

“Our administrative staff perform a range of tasks, including rewriting loan applications and promptly dealing with mortgage leads as they are received, usually via email,” she says.

But aside from allowing brokers to spend more quality time with their clients, Ms Higgins says her administrative team also allows her brokers to quickly and affordably manage any increase in customer demand.

“They are easier to find, train and manage compared to new loan consultants. New office staff can also have an immediate impact on productivity as they can largely hit the road running,” she says.

In addition, support staff that choose to work in the mortgage industry typically have a background in banking and finance, which means they often bring with them a wealth of experience, Ms Higgins says.

“Our administrative people have banking experience, which makes them an invaluable resource to our team,” she says. “It is something that I look for, and have looked for in the past, when hiring staff.”

However she says that someone with good general administrative skills should be able to pick up the slack straight away with some basic in-house training.

BOOSTING BROKER NUMBERS

Despite the extra challenges in taking on loan consultants compared to administrative staff, expansion through increasing broker numbers can be a key tactic to accelerate business expansion.

This has been a strategy that has worked for Ben White, active broker and director of Sydney-based brokerage FYI Group.

FYI Group currently consists of nine staff, including five loan consultants, two real estate agents, one administration manager and one recently-appointed financial planner.

Mr White believes the key to FYI Group’s growth has been the continued expansion of its broker base, in particular the recruitment of successful broker Sam Ayliffe in 2002.

“A broker’s ability to have an existing network is important,” Mr White says, referring to the relationships Mr Ayliffe developed through his own broking operation prior to merging with the FYI Group.

Bringing on a rookie loan consultant can be a very different proposition however.

“Brokers who try and get loan consultants onto their team solely for the purpose of getting more leads will be disappointed – that it just doesn’t happen,” Ms Higgins says.

Ms Higgins believes choosing the right loan consultant for your business can be a challenge and that brokers seeking to expand need to undertake rigorous research.

“When engaging another loan consultant, take your time and do your home work. Consultants have different levels of skill and experience; find one that will compliment your business,” she says.

“Senior loan consultants might handle five to six loan applications a day or more if they are working with their established client base. This compares with a new broker that may handle only three to four applications a day, or even less if the applications relate to new borrowers, “she says.

Brokers therefore need to consider the type of work their business is currently generating and hire based on those needs while keeping in mind overall growth strategies.

Mr White says the key to identifying a potential new loan consultant can be summed up in three key traits.

“The first is the ability to be a networker or to have an existing client base. This is closely followed by a burning desire to assist people to achieve – much like a coach of a sporting team.

“The last is a virtue of patience and the ability to handle pressure and meet expectations under those conditions,” says Mr White.