Dave Hershman on competing for talented loan officers
I read the recent column from a producing manager having trouble with coaching their non-productive loan officers. I understand your point regarding recruiting the right personnel, but attracting talent is hard. Everyone is offering signing bonuses and crazy commission schedules --- sometimes for lower-level producers. How do you compete against that? Lenny from Ohio
You bring up a great question. I have never been an advocate of attracting loan officers through outrageous bonuses or commission plans that don't make sense monetarily. The key is to not get into playing that game. Yes, a competitive commission plan is important. Whether they are managers or loan officers, I always coach my students to focus on the real needs of their targets.
What are the real needs of loan officer recruitment targets? There should be two basic needs--to get their loans closed with less stress and to make more money. Obviously, you need to provide the operational support and the culture. And if you are not doing that, you will have a horrific time recruiting. Beyond operational support and a positive culture, you will need to focus upon their income goals.
How much do they want to make and how much are they making now? If their goal is $150,000 per year and they are making $70,000, is a 10% bump in commissions going to make the difference? I think not. So how are you going to help them reach that goal? Next week we will focus upon two important factors which will help you come up with the answer—relationship and support.
DaveHershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. Do you have a reaction to this commentary or another question you would like answered in this column? Email directly at [email protected].
Related links:
