In my writings within the area of management, which have included two management books, I have identified five important management rules:
-Hire the right people;
-Fire the wrong people;
-Tell the right people their jobs;
-Give the right people the tools necessary to do their jobs; and
-Get out of the way.
Of course, the most important rule is to hire the right people. If you hire the wrong people, there is no way to become a good manager. The most costly thing you can do for an organization is hire people who are destined to fail.
The second most costly thing you can do is to hire the right people and lose them because you did not support them the way they should have been supported. Employee turnover is costly, in terms of money, energy and time. In case you did not realize it, money, energy and time are your most precious resources, and when you waste them, they are nonrenewable. You will never recover these wasted resources.
How do you prevent turnover? Here are 10 things you must do to support loan officers and other employees of your organization.
1. Make sure they are the right people. You do no one any good by hiring those who are not suited to the job. You lose resources and so does the person you hire. It disrupts the organization. We know you are inclined to give people a chance. A failure may be a small disruption to an organization, but a large disruption in the life of one person.
2. Make sure they know what they are expected to do, with regard to performing this job. From hours to reports to production levels, you must clearly delineate all aspects of the position. Much turnover results from misunderstandings in this areamisunderstandings that could have been prevented by clear communication earlier in the process.
3. Give them an orientation. Make sure you give them the attention they deserve on their first day on the job. From meeting other employees to obtaining business cards and e-mail addresses, make sure all the details are covered. Don't let them wander through their first week.
4. Make sure they have the training they need. Do a training assessment with every new employee. This does not mean that all training needs to take place in the first week, but the assessment should be accomplished quickly. Set up a training schedule so that the employee is moving forward and understands what is coming.
5. Make sure they have the technology they need. Much of the training they may need may be focused upon technological systems. Perhaps they are learning a new loan origination system or database/customer relationship management system. Perhaps you have to show them how to get loans into automated underwriting systems. Some may need basic computer training. If they don't have the technology or the training on the needed technology, they will be less effective.
6. Make sure they have the marketing support they need. Do they need leads provided or a way to market to their database? Should they be using tools, such as The Mortgage Coach or call capture? Many times, the misunderstandings that happen with regard to job functions occur within this area. They are expecting leads, and you are expecting them to produce their own leads. This miscommunication, which often happens, can be a disaster.
7. Make sure you give them feedback. Everyone wants feedback. They would prefer positive feedback, but even when things are not going well, they need to know. My rule is five positives will equal one negative, because an employee tends to magnify it when you give him negative feedback. Also, positive feedback should be given in public, while negative feedback should be given privately.
8. Be a mentor. Everyone needs a mentor. This is the one advantage you should have over the competition. When you are asked, "Why should I work for you?" you should always be able to answer, "Because I will help you succeed." If you are not a good mentor, make sure they have access to one.
9. Listen to your employees. Listening means that you know what their concerns are. Give them private, one-on-one time on a regular basis. Make sure you know what is bothering them, if anything. Also, make sure you know what their long-term goals are, so you can help them achieve these goals. You will never know unless you ask and listen.
10. Be an example. True leaders set great examples. They don't expect their employees to adhere to one standard while they set another. For example, if you expect them to return phone calls promptly and give great customer service, do you do so with your clients? Do you return the phone calls and e-mails of your customers promptly?
If you want to reduce turnover, these 10 items will show you the road. How well do you stack up in this regard?
Dave Hershman is a top speaker and leading author in the mortgage industry with eight books--including two best sellers for the Mortgage Bankers Association of America. His mortgage school is the only comprehensive advanced curriculum in the industry. For a schedule of classes, free marketing samples, speaking information and articles by Dave, call (800) 581-5678, e-mail [email protected] or visit www.originationpro.com.