Personnel and Recruiting Archives - Scotsman Guide https://www.scotsmanguide.com/tag/personnel-and-recruiting/ The leading resource for mortgage originators. Fri, 29 Dec 2023 20:37:46 +0000 en-US hourly 1 https://wordpress.org/?v=6.0.2 https://www.scotsmanguide.com/files/sites/2/2023/02/Icon_170x170-150x150.png Personnel and Recruiting Archives - Scotsman Guide https://www.scotsmanguide.com/tag/personnel-and-recruiting/ 32 32 The Seismic Shift Occurring in Your Workplace https://www.scotsmanguide.com/residential/the-seismic-shift-occurring-in-your-workplace/ Mon, 01 Jan 2024 09:00:00 +0000 https://www.scotsmanguide.com/?p=65831 The ways that mortgage companies attract top talent and build teams are changing drastically

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Mortgage lending has always been a relationship-based business. For nearly every borrower, a home purchase is the most important transaction of their life. It’s understandable that the mortgage originator’s interactions with a client must be meaningful.

Originators must earn the trust of their clients and provide sound advice beyond considering factors such as the interest rate or the loan term. Understanding clients’ finances and short- and long-term goals is critical for providing effective advice and ensuring affordability in the community where the borrower desires to live.

“Mortgage companies are recruiting the top-producing and most talented professionals, a fundamental reminder that relationships and service are still at the core of corporate success.”

Facing a highly competitive home purchase market, lenders and originators are diversifying their product mixes and updating their tech stacks to capture additional market share. Mortgage companies are recruiting the top-producing and most talented professionals, a fundamental reminder that relationships and service are still at the core of corporate success.

Lenders face a substantially different recruiting and retention landscape as the baby-boomer generation, a large segment of the mortgage labor pool, begins to reach retirement age. Even as talent is becoming more indispensable than ever before, current employees and potential recruits are seeking positions based on changing criteria.

The nationwide lockdowns fueled by the COVID-19 pandemic significantly impacted how many younger generations perceive employment and their careers. Specifically, their goals and standards for job satisfaction have changed.

Suddenly, commuting to a downtown office wasn’t simply a matter of fact but an option alongside remote or hybrid employment. This was a seismic shift of the workforce’s fundamental perception of job satisfaction. And it’s something that mortgage companies seeking to thrive through the remainder of the current market cycle — and into the eventual rebound — must account for in their business models.

Evolving management

Mortgage lenders still depend on qualified originators to act as front-line specialists and decisionmakers. Even as the industry discusses concepts like “automating everything possible” or advanced technology like natural language processing, the reality is that most borrowers still desire a trained, professional expert when the time comes to select and commit to a mortgage.

While technology is essential, its role is to assist and empower mortgage professionals, not replace them. This inherent demand, combined with the significant change in how the labor pool views potential employers, has started to mean a need for more flexibility in the workplace and greater empowerment for the employee.

“Highly recruited top producers will consider how well they’ll be able to perform their jobs with a new employer, especially if they fear they’ll be hamstrung by a lack of technology or poor tools.”

Performance management has long been a popular strategy for all types of employers. In essence, this requires the collection of measurable results to determine how efficiently and effectively a particular employee has been performing their role. The employee then receives performance-based feedback, meriting increased compensation and/or promotion for success (or accountability for mistakes or shortcomings).

Today, many executives and supervisors are moving past performance management and toward an enablement-based coaching and empowerment approach. With this method, the manager accommodates reasonable errors as employees perform their jobs and uses these mistakes as instructional examples.

Of course, this approach also requires that an employer cede more decisionmaking authority to front-line employees than they might have traditionally done in a performance management environment. Many studies show that today’s employees — and not just those in the mortgage industry — increasingly base job satisfaction not solely on compensation but on the pride they take in performing their roles.

In the mortgage industry, there is some disagreement over the effectiveness of the work-from-home approach. Its popularity is a strong indicator that employees value flexibility. This includes flexibility in where and when they perform their duties. Although the efficacy of a hybrid approach can vary dramatically based on what the business does and how it operates, it’s clear that the flexibility (and inherent trust) that comes with such an environment is often considered by current and potential employees.

Office culture

Management must provide the most effective tools for their teams to perform their duties — including practical, real-world training. Highly recruited top producers will consider how well they’ll be able to perform their jobs with a new employer, especially if they fear they’ll be hamstrung by a lack of technology or poor tools.

Finally, leadership and management are about much more than coaching or measuring metrics. The availability and presence of executives and decisionmakers at all levels is something that employees notice.

In office cultures where managers and leaders are willing to explain critical decisions or receive constructive feedback, employees tend to feel more empowered and ultimately more loyal. Trust is a powerful motivator for productivity and employee satisfaction.

Similarly, employees are aware of the communication styles of their leaders. Do they only hear from the CEO once a year via an all-hands teleconference? Do interactions between executives and front-line employees tend to be one-way communications, or do decisionmakers legitimately accept and interact via two-way conversations? Again, the most robust cultures and desirable employers tend to feel like comprehensive, collaborative teams that pull in the same direction.

Like many industries, the mortgage business is undergoing massive change in many ways. As a result, the most successful mortgage companies will build upon a team mentality that fosters empowerment, coaching, adaptability and effective communication. These companies will attract the top talent and, even more importantly, retain it. ●

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Cast Adrift https://www.scotsmanguide.com/residential/cast-adrift/ Wed, 01 Nov 2023 08:00:00 +0000 https://www.scotsmanguide.com/?p=64688 Navigate the rocky shores of remote work to find how it can benefit employers and workers

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Even Andy Jassy is having trouble getting his employees back into the office — and the Amazon CEO is only asking for them to work on-site three days a week. The trend of remote and hybrid work accelerated during the COVID-19 pandemic and no business, large or small, has escaped the challenges being presented. The mortgage industry is grappling with the trend too.

Ninety-five percent of mortgage companies implemented remote-work policies in response to the pandemic, and 52% of them plan to continue or expand remote-work options in the future, according to a survey by the Mortgage Bankers Association. The consensus is that remote work is the new standard, but this has created a lot of controversy as companies across the country struggle with engagement and productivity among their remote workers.

“Remote work is here to stay. Originators and lenders actually stand to gain by embracing it as an opportunity rather than a threat.”

While the debate rages, it is important to remember that remote work can offer many benefits for both employers and employees, such as lower costs, higher productivity, greater flexibility and improved work-life balance. It also poses some challenges, particularly for mortgage brokers and lenders that need to engage and retain their remote workers. Companies may also need to entice employees to return to the office when necessary to support business needs and nurture client relationships.

Solving the equation of employee engagement is a task for any organization, and post-pandemic employee engagement is creating a new challenge. But there are solutions for mortgage companies that face issues in getting employees back to the office — solutions that can be implemented right now.

Strengthen communication

One of the main challenges of remote work is maintaining effective communication and collaboration among team members and clients. A recent Gallup poll showed a trend of increasing disconnection among remote and hybrid workers — pointing out that only about one in three respondents feel connected to their company’s mission, a share that has steadily declined since 2019.

Remote workers may feel isolated, disconnected or out of the loop when working from home. They may also experience difficulties in accessing information, sharing feedback or resolving issues. If you’re going to get them back in the office, you’re going to have to start by meeting them where they are, which means strengthening communication channels across the organization.

To overcome this challenge, mortgage companies need to leverage technology tools that facilitate communication and collaboration among remote workers. The obvious examples are videoconferencing platforms (such as Zoom or Microsoft Teams) that allow face-to-face interactions and meetings, and instant messaging apps (such as Slack or WhatsApp) that enable quick and informal communication and updates.

There’s some important questions to ask: Are you establishing clear guidelines for how teams can best leverage these tools for the inclusion of all? And could you set up regular types of engagement on these platforms to ensure that all employees are being activated in a manner that increases their sense of connection? It’s worth a look to see if anyone is being left out.

Also consider project management tools, such as Asana or Trello, that help organize tasks and track progress. Whatever tools are used, be sure to somehow tie them to key performance indicators, or KPIs, to help you measure productivity and engagement for how your particular organization is set up. In addition to using tech, lenders and originators also need to establish clear expectations and guidelines for communication and collaboration among remote workers, as well as standards for communicating to clients.

This can include setting regular check-ins and feedback sessions with remote workers to monitor their performance and well-being. You might look to create protocols that specify the preferred channels, frequency and tone of communications for different situations and purposes. Mortgage professionals should also encourage a culture of openness and transparency that fosters trust and mutual support among remote workers.

Recognize effort

Another challenge of remote work is in motivating and rewarding employees who may lack recognition, feedback or incentives. People may feel undervalued, unappreciated or unmotivated when working from home. They may also experience burnout, stress or boredom when working alone for long periods.

To overcome this challenge, companies need to provide recognition and feedback for remote workers who perform well or achieve their goals. Praise remote workers publicly or privately for their accomplishments or contributions. Provide constructive feedback for remote workers who need improvement or guidance. Celebrate milestones or successes for remote workers through virtual events or gifts.

In addition to providing recognition and feedback, mortgage companies should consider offering incentives for remote workers who exceed expectations. This can include bonuses, commissions, raises or promotions for remote workers who generate additional revenue or referrals.

Provide perks, benefits, rewards or recognition programs for remote workers who demonstrate loyalty, engagement or innovation. Create opportunities for career development or advancement for remote workers who show potential or ambition.

Achieve balance

The final challenge is to balance remote and in-office work for optimal results. Remote work may not be suitable or preferable for all tasks, clients or employees. Some tasks (such as appraisals, inspections or closings) may require a physical presence. Some clients (including first-time buyers, seniors or high net worth individuals) may prefer face-to-face interactions. And some workers — including extroverts, mentors or new employees — may benefit from in-person social interactions.

To overcome these challenges, mortgage companies need to adopt a hybrid model that allows for remote and in-office work based on different situations and preferences. Acceptance is the first step. Realize that as it stands, the focus must be on improving remote-work dynamics in order to move the needle on employees’ enthusiasm to come back on-site.

It can also be good to regularly point out improvements in the office, which can make employees feel safe to return and be in close contact with others. Meet employees where they are and adopt an exploratory approach together to find what works best for all concerned.

Allow remote workers to choose when and where they work, based on their personal and professional needs and preferences. Encourage remote workers to come into the office occasionally or regularly, depending on the nature and urgency of their client needs or individual tasks. Provide remote workers with the necessary equipment, resources and support to work effectively and comfortably from home or the office.

In addition to embracing a hybrid model, mortgage companies also need to be flexible and adaptable to the changing needs and preferences of their remote workers. For instance, solicit feedback from remote workers about their satisfaction levels, challenges or suggestions. Evaluate the performance, productivity and profitability of remote workers using data metrics. Adjust the policies, procedures and incentives for remote work based on feedback and evaluations.

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Remote work is here to stay. Originators and lenders actually stand to gain by embracing it as an opportunity rather than a threat. By addressing the challenges and adopting an exploratory mindset toward the solutions, mortgage companies can engage remote workers, improve productivity and entice them back to the office over time. This way, companies can create a win-win situation for themselves, their employees and their clients. ●

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A Counterintuitive Growth Strategy https://www.scotsmanguide.com/residential/a-counterintuitive-growth-strategy/ Wed, 01 Mar 2023 09:00:00 +0000 https://www.scotsmanguide.com/?p=59681 An industry downturn may actually be the best time to step on the gas

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To say the U.S. housing market has been going through turbulent times would be an understatement. Most signs point to inflation as the main driver of the recent cooldown, with both potential buyers and sellers catching a whiff of trouble. The Federal Reserve’s response to inflation is further complicating matters. The central bank responded to runaway inflation by steadily raising benchmark interest rates to their highest levels in 15 years. In turn, mortgage rates have more than doubled over the past year.

Problems and solutions

The Fed’s moves influenced mortgage rates, with the average 30-year fixed-rate loan briefly topping 7% late last year. As of this past summer, average monthly mortgage payments were up more than 50% year over year, according to the National Association of Realtors’ Housing Affordability Index. Inventory shortages and home price increases have made the picture even gloomier.

So, as a recession looms and tech behemoths shed employees, no one knows what kind of housing market we will see in 2023. The overall mood in the mortgage and real estate industries, and more broadly across the economy, has been doom and gloom. But behind adversity lies opportunity.

“If you spend money and subsequently bring revenue to your top line, you may put yourself on a quicker path to strategic success.”

In adverse marketplaces that seem to be heading in an even more difficult direction, many business leaders look to cut expenses to cure their problems. But if you spend money and subsequently bring revenue to your top line, you may put yourself on a quicker path to strategic success.

Mortgage companies should be continuously improving and adding value for their referral partners and clients. For industry-leading companies, this is a natural result of their passion and dedication to making homeownership dreams a reality.

Companies and originators can add value by committing to providing product offerings, tools and ideas for clients and real estate agents that help lessen the impact of the ever-changing market. These tools also can help counteract other factors, such as disruptions to closings, by anticipating and preventing issues or by allowing for speedy problem solving as needed.

Inventive programs

Some mortgage companies have focused on creating more products and opportunities for both referral partners and borrowers. For example, products that help agents have more productive conversations with sellers and buyers can add value for all parties involved in a transaction.

Additionally, offering rate-lock options can protect a Realtor partner’s listings from rising rates while simultaneously protecting affordability for borrowers. Likewise, giving your Realtor partner tools to educate clients on different topics within the homebuying process, such as seller contributions, can help a borrower qualify for a larger home.

Some lenders even offer programs that provide a guaranteed financing commitment. These result in a faster closing process and increased trust from sellers.

Training and education

Lenders and originators should continually invest in training to help agent partners know the latest tips, tricks and techniques about borrower qualification methods, and how to set up clients for success both today and in the future. These include webinars, in-person trainings, and “lunch and learns,” in addition to other educational content that helps them to be subject matter experts.

The key to product development in this market is to give people the dream of homeownership by innovating, creating affordability and minimizing barriers to entry. As we collectively navigate the current interest rate environment, mortgage companies must develop solutions that help more borrowers qualify. For example, cash-offer products (free from financing contingencies that can make a purchase bid less competitive) are now available through some traditional lenders for the first time ever.

It’s also valuable to provide education on these products to borrowers. By helping potential homebuyers understand their options and the mortgage process, you can inform and capture clients who qualify through programs they don’t know exist. This window of opportunity, while shadowed by fear of marketplace conditions, can allow mortgage professionals an opportunity to engage with clients who were not previously in position to buy a home.

Growth focus

Thriving in difficult times is all about market expertise and knowledge of how to work through problematic conditions. This is certainly not the mortgage industry’s first rodeo in a challenging market. Every time the industry has gone through cyclical, recessionary activity, the greatest opportunities for growth have emerged.

Longtime industry professionals see market situations like today’s as a prime position to capture amazing talent. Focus on reinvesting into your team whether it’s the worst of times, the best of times or somewhere in between.

For companies with the financial capabilities, this reinvestment means recruitment of the absolute best talent out there. Because the market is weak right now and some companies are struggling more than others, it provides opportunity to reengage friends, former colleagues and industry peers.

In these tough times, mortgage companies should position themselves for both stability and an appetite for growth. They should take the opportunity to hire good people who didn’t fit into another company’s strategic trajectory. While many companies aren’t doing this, others are doubling down and bringing on sizable groups of new employees.

Many mortgage companies have built their platforms on the concept of hiring people to be sprinters, but the winners are the marathon runners. Right now, we’re on the final laps of that long race, and thinking long term includes being prepared for market shifts in both directions. Hiring will prepare companies for the eventual upturn while simultaneously creating more sales opportunities in the here and now.

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As longtime executives and salespeople in this ever-shifting industry will say, you will likely find more success in down times by growing and adding revenue streams rather than downsizing and cutting your way out. With more turbulence likely on the horizon, take the initiative to step up, add more top talent and bravely grow within a marketplace where others may be living in fear. ●

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More Movement at the Top Is Needed https://www.scotsmanguide.com/residential/more-movement-at-the-top-is-needed/ Wed, 01 Feb 2023 10:00:00 +0000 https://www.scotsmanguide.com/uncategorized/more-movement-at-the-top-is-needed/ The mortgage industry has ground to make up in opportunities offered to women

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Thirty years ago, few women occupied top leadership positions in the mortgage industry. Although things have improved, the industry as a whole still has a long way to go. Look around today and men still fill the top jobs at most mortgage companies. There needs to be a concerted effort to elevate women into leadership roles and recruit young professional women into the mortgage business. Why? Because women have the skill set to succeed in the mortgage industry and deserve the chance to do so.

Women aspire for greatness. They are willing to work as hard and as effectively as their male counterparts. But women definitely need to have a bigger voice in the industry’s future.

Take a look at higher education, the legal profession and politics. Other industries have shown a willingness to accept women at the highest levels of their professions. When they receive the opportunity, women quickly become top leaders.

Fulfilling occupation

Women early in their career should consider loan origination, underwriting, processing or other related tasks in the mortgage business. If you are a young woman who is searching for that perfect career, why would you choose the mortgage profession? There are plenty of reasons.
You can usually set your own hours, the pay is great, and you have the chance to be entrepreneurial and treat your career like you own your own business. Perhaps the most important thing is that you are helping others reach their dream of homeownership. In turn, you are enjoying a lucrative and personally fulfilling occupation.
You can deliver a service to people who need it. There are people who might not have the best credit profile. Maybe they believe all the myths about what it takes to get a mortgage or they don’t know where to start. They may even have had a bankruptcy in the past. In your career, you’ll find people who have tried to get a mortgage and have been turned away.
Everyone who walks through your front door or calls you on the phone has a different scenario. That’s a challenge, but you will never get bored. People are out there just waiting for the right mortgage professional to help them and you could be their point person.

Passionate mentors

Women have long been top mortgage originators, expert underwriters or first-class processors. Too often in the past, however, the door was closed for them to move beyond these roles in the mortgage ranks. Part of the reason for not having room to advance was a lack of women mentors.
This was simply a matter of numbers: There were too few women leaders. But that’s changing. The ones who have broken through to the top are passionate about helping other women rise to the top of the profession. They can reflect on their own struggles in fighting to rise to leadership positions.
Mentorship groups by women and for women are starting to emerge. These groups work toward the goal of assisting women to succeed in business and helping them achieve what they aspire. If you’re a woman who is new to the profession or looking to reach a higher level, you should consider joining one of these groups. They’re often free, and their only goals are to help you climb the corporate ladder or improve your skill set in your current position. These mentorship groups offer an excellent way to network with professionals who have been in your shoes. More women are getting involved in these groups every day.
Additionally, some of the oldest, most venerable associations in the mortgage industry are supporting women, embracing them for leadership roles, giving them a seat at the table and fostering an opportunity to succeed. The next generation of powerful female leaders in this industry will rise from these mentorship groups and other professional organizations.

Aspirations of greatness

Women aspire for greatness. They are willing to work as hard and as effectively as their male counterparts. But women definitely need to have a bigger voice in the industry’s future. And to do that, women need to help other women in this business.
It’s already happening as women are helping other women get a foot in the door and succeed once they’re here. Female leaders in the industry are looking to inspire, empower and share experiences with others. If you’re a woman who is new to the business, you should reach out and join a mentorship group or professional organization to further your development.
Conversely, if you’re a woman who has been in the industry for some time and have gained experience and skills, you should consider giving back to the next generation. Reach out to these groups to offer your voice and support for other women.
You could pursue any career in life. The reason to choose mortgage origination is to earn a strong income for your family while helping others reach their goal of owning a home. This is a wonderful profession and one that more women should consider. ●

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Attracting Talent in a Changing World https://www.scotsmanguide.com/commercial/attracting-talent-in-a-changing-world/ Fri, 01 Jul 2022 09:00:00 +0000 https://www.scotsmanguide.com/uncategorized/attracting-talent-in-a-changing-world/ The hiring and retention of employees continues to evolve

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Within the past two years, employee sentiment about their jobs and workplaces has shifted dramatically. The days of most employees arriving at their desks in an office building at 9 a.m. and punching out at 5 p.m. five days a week are behind us. In fact, the concept seems almost archaic given how widespread full-time remote work and video conferencing have become.

Recruitment company RETS Associates recently completed an employment survey of more than 200 people across the country with a mix of roles and tenures in commercial real estate. The survey revealed that about 75% of respondents intend to or would consider searching for a new job outside their current company this year. Also, more than 55% of respondents said they would decline a position at a company that didn’t allow remote work as an option for at least part of the week.
How does this impact the commercial mortgage industry? In a sector where competition for talent is fierce, staying up to speed on employee preferences is crucial.

Distinguish yourself

Successful mortgage origination teams have been garnering increasingly higher salaries and overall compensation as the levels of commercial real estate lending activities have continued to rise. To lure top employees away from their current high-paying positions, however, commercial mortgage companies must find ways other than compensation to distinguish themselves from the competition.
Companies need to identify their value-add elements and highlight them to candidates. These might include the company’s exponential growth; a commitment to environmental, social and governance (ESG) initiatives; an enviable culture; or opportunities for quick advancement. It may require intense assessment and examination to discover the elements that set a company apart from its competitors. This can be accomplished through a variety of methods that encourage high-level thinking about the organization’s “special sauce,” including leadership retreats, full-team meetings, and employee surveys and contests.
In addition, trusted third-party professionals can provide a more objective view on the subject. For example, a search firm might strategize with a commercial mortgage company by immersing itself in the client’s unique environment. This helps the search company to understand the mortgage company’s culture and business style from the inside out.

Involve executives

Whatever the advantages of a company are, top executives must clearly outline the aspects of the firm that are special to the people they want to hire. One way for mortgage companies to stand out while seeking new talent is to involve C-suite leaders in the interviewing process.
From the CEO on down, the more executives who meet a candidate during this period, the better. The reason is simple — people are impressed when leaders share their valuable time with them. There’s one caveat: Companies should be mindful of how bringing in several executives to speak with a candidate can impact the length of the interviewing process.
Ninety-eight percent of respondents to the RETS Associates survey felt that the hiring process should last no more than two months, with 65% wanting less than a month from first contact to an offer letter. Based on this data, arranging a group interview rather than a series of meetings could be the better choice.

Retention is crucial

While remaining competitive in the industry requires a strategy for attracting key personnel, it also is critical for commercial mortgage companies to have a strategy for keeping their current team members satisfied and productive over the long term. The RETS survey found that dissatisfaction with a current employer caused 25.6% of respondents to consider searching for a role outside their company. This can have serious consequences for employers as the time, money and effort required to replace employees can be significant enough to delay firms from reaching their business goals.
One reason for this survey response may be that companies are neglecting their team members when it comes to compensation. This issue can result in distracted workers and can cost companies key personnel. Some mortgage professionals earn higher salaries than the people interviewing them for a position, which can cause dissatisfaction among in-place employees.
Also, at a time when the cost of mortgage debt is rising, salaries at these companies may be decreasing. This means that more people may be looking to leave a stagnant desk. In these times, retaining talent becomes critically important. To combat this issue, management must have a plan in place to keep the current team happy and motivated. This means examining everything from the corporate culture to compensation, benefits and amenities.

More resources

Given the competitive hiring environment in the mortgage markets, locating candidates who will help companies grow and thrive can be challenging. Although developing the right talent acquisition strategy can help, many firms don’t have the time or networking capabilities to identify candidates who are not actively looking to leave their posts but could be enticed if they knew what was available.
This is where professional-services companies can make a measurable difference, especially for employers whose names are not as easily recognizable in the commercial mortgage industry. For example, there are instances when a company with a low name-recognition factor signed a candidate working for a company with a high recognition factor, simply because the recruiting firm was able to highlight the many opportunities that the less-recognized company offered and the high-profile employer did not.
In today’s job market, commercial mortgage companies must utilize well-thought-out strategies to draw in the best and brightest candidates. By highlighting their differentiating factors, formulating a retention plan, and pulling in additional resources to identify and attract talent, they can maintain strong teams that keep them at the top of their industry. ●

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Jessica Morin, CBRE https://www.scotsmanguide.com/commercial/jessica-morin-cbre/ Fri, 01 Jul 2022 09:00:00 +0000 https://www.scotsmanguide.com/uncategorized/jessica-morin-cbre/ Employees are heading back to a changed office

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While many sectors of commercial real estate have come roaring back in the past year, office space has been one of the well-known laggards. But with the COVID-19 pandemic subsiding, an increasing number of companies have reopened their offices and are beginning to require employees to come back, at least for part of the week.

The question remains, what aspects of the pandemic-era work life will survive this shift back to the office? This past May, CBRE Americas research director Jessica Morin spoke to Scotsman Guide about how the office sector is beginning to make a comeback. She discussed some of the changes to expect in the office environment going forward, including a push toward hybrid work strategies.
What are the major trends you are currently seeing in the office-space sector?
One major trend is the return to the office. After a long period of stagnation, the return to the office is ramping up and office occupancy is gradually improving. Occupancies are at the highest level since the pandemic started at 43.4% of pre-pandemic levels nationally, and it’s above 60% in certain cities, including Austin.

Other trends include strong employment growth, which is supporting demand for office space. Leasing in the first quarter (of this year) was driven by technology companies, financial services, life sciences and professional services. We also see a flight to quality underway. As new construction is delivered to the market and new development moderates, it will be more challenging to find top-tier space — especially large blocks of space — in high-demand markets. The headwinds include uncertainty in the sector. Slower economic growth and the broader adoption of hybrid work may temper demand.

Our baseline view is that we expect to see a net reduction in office demand, but it’s not severe.

How is the U.S. office-leasing environment changing?
Tenants are coming off the sidelines and making lease commitments. Leasing volume in the first quarter was approximately 46 million square feet, which was less than in the previous two quarters but up by 26.3% year over year. Of those leases, about 75% were new, which is a vast improvement from when the share fell to 50% in late 2020.
Where in the country are you seeing the strongest recoveries?
Demand has been the strongest in lower-cost, high-growth Sun Belt markets such as the Austin, Dallas-Fort Worth and Charlotte areas. We are also seeing growth in the technology and life-sciences hubs such as San Jose, Boston and Los Angeles. Though it’s still negative, net absorption markedly improved quarter over quarter in places such as Manhattan, San Francisco and Seattle.
The pandemic has resulted in many new office trends. What aspects of this period do you expect to last long term?
Our baseline view is that we expect to see a net reduction in office demand, but it’s not severe. It’s about a 9% reduction. You will continue to see the adjustment of space designs that promote collaboration. This will include more space set aside for meeting areas. We expect that this shift to meeting spaces will prevent most companies from significantly reducing their office space in the near term. We do expect the work-from-home trend to continue and we are still seeing growth in the suburban office sector. The impact on the office will be offset over time by continued employment growth and a moderation in new office development. If job-growth expectations worsen, the reduction in demand could be more significant.
CBRE has highlighted the move toward hybrid work strategies. What are hybrid work strategies and how widespread are they in corporate America?
Hybrid does not mean the same thing for every company, and it shouldn’t be a one-size-fits-all approach, as organizations have varying operations and needs. We see that the desire among companies to foster a culture that supports hybrid working arrangements is strong. That means creating flexibility for employees and maintaining some level of predictability for companies.
The approaches vary from hybrid work strategies that give employees complete autonomy over when and where they work to companies requiring employees to come in on specific days or for certain activities. What is widespread is the desire by companies to have employees in the office on some level. We have found that 85% of respondents in CBRE’s Spring 2022 Office Occupier Sentiment Survey indicated that they wanted employees in the office at least half the time.
How do you expect hybrid work strategies to change the way we work?
I think we can expect more inclusive work patterns in the future as we shift away from the traditional five-day, 9-to-5, office-based workweek. Employers will create new working models, and provide high-quality spaces that accommodate more lifestyles and promote productivity and employee wellness. ●

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Untapped Potential at the Top https://www.scotsmanguide.com/residential/untapped-potential-at-the-top/ Thu, 28 Apr 2022 17:00:00 +0000 https://www.scotsmanguide.com/uncategorized/untapped-potential-at-the-top/ There needs to be an industrywide push for more female leadership

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Did you know that while women comprise roughly half of entry-level mortgage jobs, they account for less than 20% of executive-level jobs at U.S. mortgage, banking and insurance companies? Similarly, while more than 65% of all Realtors are women, females account for only 38% of the nation’s managing real estate brokers.

Reflecting on these statistics shortly after the end of Women’s History Month in March seems striking. For an industry that offers countless positions for women at the entry level, why aren’t more able to climb the ladder in the mortgage world?
Across all industries, research shows that women have what it takes to guide companies through a crisis — such as the ongoing COVID-19 pandemic — and often perform better under pressure due to strong relational bonds, learning agility, communication styles and collaborative abilities. So, why aren’t more female leaders in the mortgage arena?

Career puzzle

Take, for example, a recent discussion with a group of female students at an East Coast university. Despite being highly motivated leaders on their campus, many of these young women still had doubts and fears about entering the workforce in the coming years.
These future professionals have specific priorities when it comes to career fulfillment. And it’s noteworthy that the mortgage industry checks many or all of these boxes. These college students had many pressing questions and goals in regard to their career paths, which are explored below. Today’s mortgage company executives should engage these prized assets and start building the industry’s next generation of business leaders.
  • “I want to make a difference.” It used to be all about the paycheck, but today’s young female professionals are all about purpose. They want to find a job that makes a positive impact on the world. Mortgages aren’t always associated with mission-driven work, but the reality is that the real estate finance industry is all about changing lives by literally putting roofs over people’s heads — in many cases, making homeownership a reality for families, seniors and others who never thought it possible. It’s truly rewarding to have a client tell you that you’ve enabled them to give their family a home and a future for years to come.
  • “I want to have a career and a family.” Mortgage careers are among the most flexible in all employment sectors. Long before COVID-19, mortgage professionals of all types were working from home, making their own hours and successfully balancing family life alongside flourishing careers. And it’s an industry with huge income potential, which creates incredible opportunities for women to support their growing families both emotionally and financially.
  • “The future of work is not in a 9-to-5 office job.” The mortgage industry, in general, couldn’t agree more. Some would venture to say that mortgage companies have been ahead of this trend for decades. Mortgage careers are pandemic-proof. Some of our most successful executives work from anywhere, make their own hours and have completely abolished the concept of a commute.
All of this makes a career in the mortgage industry sound like a perfect fit. So, again, where are all the women?

Deep connections

There’s so much more that the industry can do to communicate the benefits of a career in the mortgage business to the many young women about to embark on their professional journeys — not to mention the thousands of female executives in other industries who may be looking for a career change. Thousands of people became Realtors during the pandemic and it’s past time for the mortgage industry to get the same boost. But how?
The first way is through existing networks. The mortgage industry has a number of highly valuable professional organizations, many of which are being driven by strong female leaders. Some of the resources for women in the mortgage industry include the mPower group through the Mortgage Bankers Association (MBA), local MBA women’s committees, the National Association of Minority Mortgage Bankers of America, the Association of Independent Mortgage Experts, the Women’s Mortgage Network, Women With Vision, and High Heels in High Places. For new professionals, these organizations create strong opportunities for networking and creating deep connections to drive career growth and success.
A second method is greater education. There are many ways for the industry’s future female leaders to continually expand their knowledge about the industry and build fulfilling careers that truly make a difference. Knowledge is power — and that’s the truth.
From classes that focus on different loan options within the industry (such as manufactured housing, Veterans Affairs loans, renovation mortgages and downpayment assistance) to becoming a certified mortgage advisor or a certified mortgage banker, the industry is rich in professional development opportunities. And in true alignment with flexible, pandemic-proof and family-friendly approaches, many training webinars are available on demand.●

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Navigate Staffing Challenges in Turbulent Times https://www.scotsmanguide.com/residential/navigate-staffing-challenges-in-turbulent-times/ Thu, 28 Apr 2022 17:00:00 +0000 https://www.scotsmanguide.com/uncategorized/navigate-staffing-challenges-in-turbulent-times/ Finding and retaining talent can be difficult while dealing with one curveball after another

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It can be hard to think back to the start of pandemic-induced lockdowns amid COVID-19 variant surges and continuing uncertainty. For human resources managers in the mortgage industry, the initial challenge was to suddenly oversee the effort to convert thousands of employees from in-office to remote work. It remains an evolving scenario to this day.

Many companies instituted a work-from-home policy of some sort, and while some companies are now asking employees to return to the office, others are choosing to stay the course. Some employees will prefer to work in the office and others will prefer to stay at home. Some mortgage companies are dedicated to leaving the choices of work-life balance in the control of their people.

The goal is to have the right people in the right jobs to get to the right results that the business is striving for.

Indeed, mortgage companies that want their employees in the office are facing pushback. That’s not a problem for companies that offer the work-from-home option. But it also doesn’t mean that companies with workers at home haven’t faced challenges to implement work-from-home policies or keep them going.
Maneuvering an organization of hundreds or thousands of employees through a business climate that can be very volatile is a process that requires nonstop attention. To be clear, this is true for all mortgage lenders, big and small. And in the current market dynamics where mortgage lending conditions are as turbulent as ever, it is not just a question of attracting the right talent to get the job done.

Engage employees

As the outline of a post-pandemic world comes into shape, it’s clear that the mortgage industry is facing a situation where the workforce is aging and fewer replacement prospects are available. How do mortgage companies retain employees and achieve their goals during the ups and downs of the cycle?
Many companies rely on enhancements that can or should be added. To do this, mortgage companies need to constantly remain engaged with employees. Over the past couple of years, of course, navigating through a pandemic and an unprecedented mortgage market has truly tested this strategy, primarily with the workforce moving away from the office to a work-from-home culture.
This has been a turbulent time for everyone working in mortgage lending — not just the executives, midlevel managers or originators. Everyone’s experience was different and meaningful. Mortgage companies not only had to survive a global pandemic, but they also had to make sure that their workforces were stable and had the support that they needed while also hiring in droves to support what was coming in from a sales volume standpoint.
Companies that were in growth mode before the pandemic had a decided advantage. There’s constant volatility with hiring, reducing and maintaining staff. But companies that were hiring when the pandemic struck were already looking at their benefits plan.
This goes beyond pay to outside-the-box compensation. For instance, for a company looking to grow, why not do something like offering scholarships for continuing education or even for family members? That’s a huge draw that an employer can offer when looking to attract employees, since many do have families, and the offer to enrich their whole community is quite enticing.

Right results

Another big part of making sure people in your organization are happy and content is to make sure your teams are well-balanced. How do you do it? Each year, evaluate your workforce to understand who’s coming in and what their demographics are (age groups and things of that nature) so you can ascertain whether you have the right balance of employees.
The goal is to have the right people in the right jobs to get to the right results that the business is striving for. Even for organizations that are downsizing or considering it, the need is apparent to be able to keep the employees most vital to the enterprise. These are the people who will help lead the company to success once the mortgage cycle turns positive.
Companies want to be able to provide their mortgage originators with the support to close loans as quickly as possible. Originators need to know that at any time throughout the process of working on a loan, they can get instantaneous support. The heartbeat of a mortgage company is its speed in responding to sales-support staff. From a retention standpoint, first and foremost, salespeople should know and feel comfortable with the fact that they have an umbrella over them to help them, upping their confidence to close loans as quickly as possible.
Another key to attracting, retaining and managing the right workforce — small or large — is communication. This means having a lot of touchpoints within the organization when employees first arrive. It also can mean multiple touchpoints for the first 90 days to assess feedback.
It is equally important to have methods to correct the course when things go wrong. The first step is to recognize that something is happening. One way to do this is to provide a forum where employees can offer feedback concerning operations. An anonymous call line that employees can use to share their experiences can be useful. If you have an option like this, make sure to circle back and do a deeper dive to get a better handle on employee concerns and what’s really happening out there.
It’s important to remain transparent as an organization, and this requires open and honest communication throughout the cycle of employment. The flexibility and nimbleness of making decisions is based on the best interests of employees, and not necessarily making “policy in a box” decisions. This foundation is what supports a corporation’s ability to reach major goals in normal business cycles as well as during challenging and unusual cycles. ●

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Attracting the Right Talent https://www.scotsmanguide.com/commercial/attracting-the-right-talent/ Tue, 30 Nov 2021 20:49:04 +0000 https://www.scotsmanguide.com/uncategorized/attracting-the-right-talent/ Being flexible and embracing change will help mortgage companies in recruiting efforts

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It is no secret that many industries across the U.S. are experiencing labor shortages. These shortages are further exacerbated by the ongoing “Great Resignation.” In August 2021 alone, a record 4.3 million Americans quit their jobs, according to the U.S. Department of Labor.

In commercial real estate, shortages are being witnessed in construction, property management and other subsectors. This has been a serious challenge for employers across the industry.

With increasing activity in the commercial real estate finance markets over the past several months, mortgage companies are beginning to see a talent shortage as well. As a result, commercial mortgage lenders and brokerages must be creative in their employment practices to recruit and retain the best possible talent.
Commercial mortgage companies looking to fill vacant positions — particularly for midlevel and upper-level management roles — should utilize creative solutions to recruit talent. Here are some tips when hiring across all types of debt-market positions.
A candidate’s market
The first thing to understand is that prospective employees in commercial real estate finance are in the driver’s seat in today’s market. Talent that matches specific skill sets will cost employers more than ever before. According to labor statistics from this past August, there were 8.4 million people actively looking for work in contrast to 10 million job openings. This significant disparity also applies to hiring within mortgage companies.
One recruiting company, for example, recently faced a talent shortage when placing candidates only a few months apart for the roles of vice president and senior vice president at a large bank. This past January, the company was able to present five strong candidate options to the client for the vice president’s role. In contrast, by June, only three candidates qualified for the senior vice president’s position.
The significant decrease in the candidate pool is coupled with an active debt market that is seeking talent. In fact, on a daily basis, recruiting firms receive a variety of talent requests from large and small real estate finance companies. With increased activity across commercial mortgage markets, there is simply not enough talent to meet the growing need. This means that an employer must be proactive in their approach to hiring talent.
Embrace flexibility
As debt-market job openings surge to all-time highs, current employees continue to look for new work with flexible schedules. According to Bankrate’s August 2021 Job Seeker Survey, 56% of respondents cited flexible hours or remote-work capabilities as primary characteristics of their jobs. Given this economic context, employees are using the ongoing talent shortage as leverage for negotiating better benefits in their new roles.
The recruiting industry has learned this past year that various jobs, particularly midlevel and executive-level positions, do not have to be done in person in the traditional office setting. Rather, employees have efficiently and successfully worked in remote settings, sometimes in different time zones, throughout the pandemic.
Schedule flexibility — including the option to work from home — allows employees more autonomy over when and where they work. Offering this perk can set employers apart, especially in a crowded job market. In fact, if workers are not appeased, they are likely to go elsewhere for more accommodating privileges and opportunities.
Specific to commercial mortgage companies, employees tend to remain in their current roles until they receive bonuses and often leave soon after for better remote-work opportunities. Adopting flexible-schedule benefits can improve employee retention rates among real estate finance firms. If a team member completes his or her work on time and to satisfactory quality, where and when they work has now become arbitrary. In today’s job environment, employers must accommodate candidates’ demands for schedule flexibility or risk becoming extinct.
Positive company culture
One of the byproducts of the COVID-19 pandemic is that while remote-work flexibility is highly preferred, a positive work culture has become an absolute must in today’s job market. According to a survey from Glassdoor, more than half of the 5,000 respondents ranked workplace culture as more important than salary. In addition, 73% of candidates review a prospective employer’s work culture before applying for a specific role there. And the existence of a strong company culture was a top factor in employee satisfaction for two-thirds of respondents.
Andrew Chamberlain, Glassdoor’s chief economist, said that a common misperception among many employers is that pay and work-life balance are among the top factors that drive employee satisfaction. Instead, he emphasized that employers looking to boost recruiting and retention efforts should prioritize the creation of strong company culture and value systems.
When it comes to culture in the debt markets, employees want to feel valued and listened to in the workplace. Increased activity in the real estate finance sector has led to increased stress and pressure in these jobs. Therefore, it is essential for employers to provide a supportive work environment.
Given the competition to recruit seasoned talent, employers with creative compensation packages and a positive company culture will have the best chances at luring quality employees. Recruiting companies are finding that employers that value a collaborative work environment are having greater success in filling positions and retaining talent over time.
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In light of the Great Resignation and the subsequent labor shortage, commercial mortgage companies need a focused approach to recruiting. Employers increase the likelihood of hiring talented workers by partnering with seasoned and results-oriented recruiters that possess an in-depth knowledge of the industry.
By understanding that it’s a candidate’s market, offering flexible work schedules and developing a positive company culture, mortgage finance companies can remain competitive for top talent in their fields and position themselves for success well into the future. ●

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Learn First, Then Teach https://www.scotsmanguide.com/commercial/learn-first-then-teach/ Fri, 30 Jul 2021 22:29:52 +0000 https://www.scotsmanguide.com/uncategorized/learn-first-then-teach/ Mentorships can pay countless dividends for your mortgage company

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A much sought-after speaker once shared to a crowd that, as a kid, he wanted to become an excellent baseball pitcher. He had no particular talent, but he did succeed in learning how to throw an effective curveball. Aside from hard work, his secret was to study professional pitchers and mimic their moves.

This single insight can apply to any profession, especially the competitive world of commercial real estate finance. No new mortgage broker steps into a job prepared to put together the financing for a $50 million downtown office building. You learn by mimicking the habits of your colleagues and others whom you know to be successful. This is what makes mentoring so important for mortgage companies that seek to attract and retain the best talent.

As with all businesses, commercial mortgage companies can benefit from fostering these types of relationships. The junior employee should gain knowledge in efficient ways of doing business while the mentor should gain different perspectives from a new generation of talent. Aside from directly helping employees improve, the mentor (who is most often a supervisor, manager or CEO) can get a good read on their subordinates. Employees who actively seek out mentors tend to be the company’s next generation of leaders.

Act boldly

Seeking out at least one mentor should be the first step for mortgage brokers looking to advance their careers. All industries — and especially the real estate finance business — are relationship based.

Mentoring should be thought of as a more intimate form of networking. The mentor-protégé relationship, however, doesn’t necessarily have to be a lifelong one or even a long-term commitment among the parties. A person should seek out many mentors on life’s journey. The more relationships you have, the greater the pool of knowledge from which to draw. You may consult with a mentor for only a few days or weeks. Others can remain mentors for life.

It is important to note, however, that mentoring relationships don’t tend to happen spontaneously. The junior employee has to be bold in seeking out a mentor. Chances are you’ll be approaching a busy, high-ranking individual — such as a manager, top sales performer or CEO — and asking them to spend time teaching their secrets. In asking for this favor, you will need to be aggressive and willing to risk rejection. Fortunately, skilled and successful people tend to see the value in these relationships, and they are willing to help others who reach out to them. But the protégé almost always needs to take the first step.

Reaching out to a mentor can be intimidating. Fortunately, commercial mortgage brokers don’t tend to be shy and are conditioned to sell themselves. Part of your DNA is to talk to people daily. When approaching a mentor, however, you’ll need to convince them that you are worth their time and effort. One way to do this is to show them that you are listening to their advice and following it. If you ignore them, it will damage the relationship.

A commercial mortgage broker can be helped by a mentor in several ways. Some of the more obvious questions of a mentor are what works to generate new leads, how to revitalize your career when in a slump, how to generate solutions in a down market and which tools are effective in building a portfolio. A mentor also can teach you about what to avoid — such as potential client turnoffs, unproductive habits, pervasive negative talk, clothing that communicates failure and unappealing mannerisms.

Mentors can help to guide you to a long-term path for achieving your career goals and avoiding pitfalls. An experienced mortgage broker has typically made plenty of mistakes in their career and has overcome obstacles.

Any employee, regardless of their success or experiences, should strive to keep learning, and younger people with new ideas have much to teach.

Reciprocal benefits

A senior employee might ask why they should become a mentor. After all, top company performers are already successful. Why bother taking an interest in a junior employee?

The fact is that mentors have much to gain by surrounding themselves with talented people who are eager to learn. Any employee, regardless of their success or experiences, should strive to keep learning, and younger people with new ideas have much to teach.

Successful people and strong leaders tend to surround themselves with people who have different points of view. Here we can learn a lesson from Abraham Lincoln, arguably the greatest U.S. president. Lincoln surrounded himself with people who made him better and they didn’t always agree with him.

Mentoring someone is a reciprocal act. You are teaching them, but through this process, you also learn. Teaching forces you to consider how you’ve been doing things. A student can challenge your preconceived ideas and even help you to overcome flawed processes that have become automatic. Taking on a pupil may force you to rethink some of the ways you do business.

Another benefit that veteran employees or managers can gain through mentoring is insight about their employees. A junior employee who seeks out advice is typically the individual you want on your team. By asking you to be a mentor, this employee has already shown leadership. You are not only helping these individuals become more efficient employees, you are grooming the next generation of top performers for the company.

Experienced mentors, teachers and influencers are a secret weapon for career advancement. Without a doubt, connecting with a mentor is a great adventure that can mold a mediocre career into an extraordinary one. Once you have been mentored, you also should look to help another mortgage professional who is early in their career. Taking these straightforward steps today can help any career-minded professional power forward and lift others to higher levels of achievement while creating harmony in a post-pandemic world. ●

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