Flexible workers can increase profits and minimise costs, as more and more brokerages are discovering.
Flexible workers can increase profits and minimise costs, as more and more brokerages are discovering.
According to recent research by Hays recruiting, hiring of temporary or casual workers for processing and administration roles has spiked in the mortgage broking industry in recent months.
Director Jane McNeill says this is reflective of a wider trend towards flexible employment across all areas of business.
“People are looking for more flexibility in the workforce; temporary and casual staff offer that flexibility.”
Recent statistics show 40 per cent of employers plan to hire temporary or contract workers (compared to 36 per cent last year) and more than 80 per cent plan to increase their flexible work force.
And with good reason, it seems. Nearly half of all businesses reported savings from employing flexible workers, and 41 per cent reported increased revenue.
Daniel O’Brien, director of PFS Financial, says flexible workers allow him to maximise profits, minimise costs and gives him “elasticity” in his business.
“When I don’t need them I don’t have to pay someone to sit around trying to look busy, and in the busy times instead of having one full-timer I can have a part-timer and a casual worker.”
O’Brien currently has one part-time worker to assist with processing, and plans to bring on another casual employee in the coming months.
The increased workload associated with NCCP requirements has been a key reason for employing the extra staff, and casual staff also help with “menial office jobs” such as scanning, data processing and following up on discharges so that he can focus on clients and the more complex aspects of the mortgage process and his business.
O’Brien mostly hires his casual employees through word of mouth, and some through job search websites.
Although some organisations may still remain sceptical at incorporating largely contract and temp based workers into their business, Matthew Franceschini, CEO of Entity Solutions, says there are many upsides to making the shift.
“Data suggests the productivity of a contract workforce is two or three times greater than a permanent workforce,” Franceschini said. He added that contract workers are often able to bring new ideas to an organisation, as well as greater skills.
The flexibility a contract workforce provides an organisation also has an economic value. Franceschini offered the example of a contractor who charges $100 an hour, when a full-time employee would be less. However, the full-time employee is there constantly, even when there is no work. The freelancer may only work 10 hours a week and achieve the same – if not better – results.
One disadvantage of casual staff can be their lack of commitment, however, says O’Brien.
“Traditionally someone that’s casual or part-time won’t have the same level of buy-in as a full-timer, so that can be a disadvantage, but while they’re only doing menial jobs that’s not really an issue.”
Despite this risk, O’Brien says the benefits of flexible employees are far too great to ignore.
“The key thing is just to have that elasticity in the office; I can scale up effectively in the busy times, and when things get slow I can scale back down again. It’s maximised my profits and minimised my costs at the same time.”
So how do you do it?
Not sure how to go about bringing flexibility into your brokerage? Human resources company Chandler Macleod offers some tips:
- Asses the feasibility: Chances are, flexible working arrangements are feasible. However, to what degree and in what form will vary dependent on team size, the type of work, and a number of other factors that must be analysed.
- Outline the current arrangements: If you have launched initiatives in the past – or your predecessor has – it is important to review them before making changes.
- Facilitate discussion: Discuss the current arrangements and what could be done to improve them with employees, and allow them to raise any queries or issues they may have.
- Ensure there is no stigma: It is important to make sure the organisation’s culture is facilitating to flexible arrangements, and that employees will not come under fire or ridicule for taking them.
