In recent years, the phrase ‘recruitment crisis’ is increasingly being bandied about in the intermediary market – and for good reason.
Poaching is endemic and a lack of good people is holding many firms back. This is one of the biggest challenges facing the industry, but hand-wringing will get us nowhere. We need to take decisive action. I’m encouraged to see this is now happening in the broker market, with several initiatives underway to bring new blood into the sector – these have come not a minute too soon.
Of course, experience matters and plenty of mortgage intermediaries have this in abundance – but there is no getting away from the fact that there are too many 50-somethings heading for retirement and not enough trainees to take their place.
Falling into the industry
Ask most people in the mortgage industry why they joined and it is usually the same story. Few will say it was through choice, more often it was a case of ‘falling into the industry’.
We’ve had few, if any, co-ordinated attempts to explain the range of opportunities on offer. In the insurance industry, the Chartered Insurance Institute has launched a so-called ‘talent initiative’ aimed at bringing more graduates into the sector. I’d like to see a similar scheme launched for the mortgage industry.
But, we have been hiding our light under the bushel for too long. It may sound evangelical, but we need to look at outreach projects where we can engage with school, college and university students.
Many in the industry love what they do. For hard-working and talented individuals, this can be a well paid career, offering fast progression.
But, how many are aware of this if they don’t have connections already in the business? Do we make it straightforward enough to find out about job opportunities?
Bringing sexy
Entering is rarely straightforward. Most firms will require a CeMAP qualification as a minimum. But how many school leavers or graduates will have the faintest idea of what this is?
Instead brokers are seen as paper shufflers, offering a product that is necessary, but simply price-driven.
Unlike investment banking, we’re not sexy. While we’re not going to change this perception overnight, we could certainly improve matters.
There could be occasions where brokers could get involved with local careers fairs or even talks in schools. I’m well aware that lenders could do more too. Accountancy firms have for years been active on university milk rounds and producing literature that grabs students’ attention. In my opinion, I’d rather work in mortgages than auditing. It is fast-moving, has more than its fair share of personalities and a great social side – but all this remains a well kept secret.
Beyond this, I would like the regulator to play a greater role. It does produce some educational material for schools, but I’m not sure if this is hitting the spot. Around 70 per cent of mortgages are placed through a broker – from first-time buyers to equity release, there’s a growing demand for guidance.
The Financial Services Authority knows that quality financial advice means consumers are better protected – but the danger is that there are not going to be enough advisers in future.
Trade bodies could spread the word. Perhaps they could address diversity issues too, as we are not only behind the times, but missing out on talent if we do not change.
Trainees are the future
The good trainees of today are guaranteed first rate future careers. Just looking at the specialist market, we can see a host of new lenders have created vacancies at all levels. Poaching is a fact of life and can never be eliminated; in fact it’s a sign of a healthy job market. But currently, almost anyone with relevant experience can easily find another employer willing to pay a higher salary. This will not improve standards.
Instead, we need to see more initiatives, like the broker training academies recently launched by Mortgage Times, which takes on newcomers and trains them to CeMAP level.
Linear Mortgage Network takes on CeMAP qualified advisers, but once on board ensures they are developed to a high level through its residential courses at Wyboston training centre near Cambridge.
Training can be expensive but it is essential. We need a bigger talent pool and we need to develop people at all stages of their careers.
Just because a firm is doing well now is no reason for complacency. A lot is said about the lack of succession planning, but there will be no solutions until we have enough potential candidates to fill the jobs.
Many of us may feel we are too busy to tackle this crisis, but it’s something that we must all take responsibility for. It’s time the mortgage industry became a career of choice.
