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Tag: Culture


Competitive Retention Strategies: Mortgage Division

New market, new demand!

Ask yourself, what are we doing as a company to retain our talent within our mortgage division?

The mortgage industry is in high demand of employees, as mortgage rates continue to remain under 3%. Due to the urgency of hiring candidates with mortgage operations experience, employers are seeking mortgage leaders to join their organization.  Quality talent is being swept away by other mortgage companies by virtue of monetary base compensation and incentives.

As an organization facing some of these challenges, employers are being creative on compensation structures to incentivize workers.  Incentives offered are hiring bonuses, retention tools tied to compensation, with the ability to work remotely.

If your company is facing the same challenges, reflect on your incentive strategy and retention tools needed to be competitive in a demanding mortgage rate environment.

Retention Strategies for Executive Hires!

Securing quality talent within your organization should include an internal strategic plan. Retention plans for top credit union Executives comprise of competitive salaries, targeted performance incentive goals and retention bonuses, stock options, paid time off, and ancillary allowances and benefits.

Robust, targeted performance incentive plans are successful when implemented at the offer stage/onboarding process, and even more lucrative when these plans align with industry standard. Specifically, quarterly, semi-annual, and annual performance incentives are beneficial at the Executive level and should be established to incorporate non-financial metrics and financial metrics. Non-financial metrics might include engaged members, member survey results, staff turnover ratios. Financial metrics may encompass loan growth and earnings, return on assets, capital ratio, membership growth, net income, and board evaluations (if applicable).

Once you establish the targeted goals, each metric should be broken out to a percentage of the final goal. Non-financial metrics could be 10% of the total bonus, while financial metrics are 90%, it depends on the organization’s focus to meet the needs of its employees and business strategy. Evaluating your Executive Compensation plans should be assessed annually to ensure they are in-line with the industry standard to achieve employee engagement and retention.

Chasing the Money or the Opportunity

Should you chase the money or the opportunity? Well first, ask yourself, ‘Is it the right fit?’ Organizations may pay well, but if they have a high turnover rate and don’t fulfill your career goals, it may be in your best interest to really think it through.

This is an internal dilemma that many people go through. Of course, you shouldn’t undervalue yourself monetarily should a job prospect check all your career boxes, but don’t let an opportunity slip away that could benefit your long-term career development. Success can be subjective, and how it is measured and valued differs from person to person.

Some companies do entice candidates with short-term monetary goals, which can burn out employees quickly, causing high turnover within an organization. It may not be in your best interest to weigh opportunities based on compensation alone; career advancement, skill development, and passion should be considered. Chasing short-term benefits could prove unfruitful in the long-run, and you may not want to look back and wish you would’ve done things differently.

The Offer

You’ve reached the final stage in the recruitment process, the offer – After the application and multiple interviews, you landed the job!

Generally, the incentive for candidates to move organizations or positions would allow candidates to seek opportunities that will provide a promotion, ability to be a key contributor within the organization, and an increase in pay structure.

When seeking a new opportunity, the motivation to make a change for a new role should be discussed initially, setting the expectations from the onset. Once an offer is extended and accepted, you have agreed to the terms and negotiation ends. Strive to find a balance to determine if a counteroffer is necessary or if it is about its monetary value or the position. Most often, it is the position job seekers are trying to attain.

Organizations have set wage bands for positions based on market and internal value, from minimum, mid-point, to maximum of the salary range. Various other factors could help offset any wage bands misalignments when pursuing a job offer, including sign-on bonuses, targeted variable (bonus) pay, allowances, paid time off, supplemental retirement plans, and additional benefits.

These are all part of the equation when evaluating your next opportunity!

What defines a high-performing organization?

The ability for an organization to perform adequately doesn’t begin with goals and end with results. High performance is paired with strategic organizational structure and goal output.

Company leadership paves the way towards effectiveness. Through strong leaders, comes engaged and passionate employees focused on the organization’s goals and values. Leadership must have the understanding of the importance of acknowledging strengths of employees and building through weaknesses. This cultural design will, in turn, result in employees understanding their role within the company.

Effective organizational processes and procedures also allows for businesses to see high-performing results. From HR practices to marketing tactics, organizations must have established processes to yield wanted results. Granted, not every position allows for a clean step-by-step process. Solidifying a clear path towards company goals will provide employees and management the proper tools to focus on success should a situation arise that may initially detract from that.

The ability to react appropriately to change and complications sets strong organizations apart from the rest. While laying out an ideal plan of action provides the proper support for success, when things don’t fall according to plan, it is important to have a system that adapts. Growing a staff and culture that is able to manage a shift in plans, shows the strength and longevity of a company’s future.

How Giving Back Influences The Bottom Line

The holiday spirit is in the air, with businesses focusing on how they can give back to the community. While acts of gratitude positively affect personal health and happiness, there is also a strong correlation between charitable giving and boosting the bottom line.

By focusing on an impactful community cause, companies are able to connect on a deeper level with customers, partners and employees who share the same values to make a difference, opening the door for new and meaningful business ventures to arise beyond just the holiday season.

Beyond the public relations advantage that the spirit of giving provides, tax advantages also affect the bottom line. With a certain amount donated, organizations are able to claim a charitable deduction offering businesses the opportunity to give back with money not being a major deterrent to do so.

Taking a few moments out of the work day to volunteer at a local food bank or donate time to deliver presents to less fortunate children increases company visibility within the community and provides employees a unique insight into the culture that the organization was built on.

Giving of time and financial support to those in need is a simple and easy reminder to be grateful. When given the chance, employees develop a sense of accomplishment for their service and appreciation for the position they are in and the company providing the opportunity. Morale increases and the desire to work hard for a company that believes in helping those in need grows a bit stronger.

Employee Company Reviews – how important are they?

Employee reviews can reveal a lot about an organization. Do you know what your employee reviews say about your company?

Sites such as Glassdoor and Indeed provide direct employee feedback about companies which can either make or break the recruitment process. Scouting for talent, in most cases, has a direct connection to how a company is perceived by its employees. So, how can organizations stay on top of these reviews and use them to their advantage?

Turn the critical reviews into opportunity! It is best to dedicate the needed time to monitor your online brand and use this feedback to make a difference in the company’s culture. Knowing the honest, and sometimes, painful truth about how employees discern their time within the business can help strengthen the structure of the workplace.

The idea of transparency should not be something to shy away from either. Knowing the ins and outs of a certain position or department and the impression it holds both internally and externally, will give managers the ability to identify weaknesses, be pragmatic and fill in the gaps recognized by employees.

The Impact of a New Position

Creating a new position is, in most cases, associated with filling a need for a specific role that is lacking within the company’s current business model. What is often overlooked is the impact it has on employee morale and overall view of the business opportunities.

Whether it be an entry-level or C-suite position, the addition of an employee’s career progression heightens the outlook of the company as it shows strength, sustainability, and regard for growth in its employees. Investing in the company’s support system not only positively correlates with business success but, contributes to maintaining a stable and continued future.

By creating a new position, the culture of current employees shifts to recognize and appreciate the support their existing position will be backed by. This can allow for duties to be redistributed and focus to be reprioritized to maintain continuity and support of overall values for the organization.

On the other hand, the creation of an executive position highlights the ideals of continuous employee growth. With a new executive-level added, companies are able to show their investment in the employees, emphasizing a culture of sustainability. Not only will lower-level employees aim to advance towards new levels but, current top executives will be motivated to continue to learn and grow within the organization.

While adding a new position may fill a void in the company’s overall business structure, the impact that a new position holds for current and incoming employees is far greater than what meets the eye.

Attracting Out-Of-Town Talent

Skills, compatibility, and drive – these are a just a few characteristics companies seek in potential new hires; however, there could be other various factors which makes a candidate more favorable. For instance, geographic location plays a large role in determining the difference between a suitable candidate and the perfect candidate.

The key to successfully broadening the hiring search pool is to understand the work style and abilities of the prospective hire and communicating how the company is invested in their future.

In order to attract job-seekers from in and around the company’s geographic location, focus on the industry and economic environment of the company that the employee may relocate to. Does this transition provide the best path for success and growth?

Rather than looking at the qualifications of a job, it is important to understand how, outside of the corporate structure, this candidate can find success and be happy about the decision to move. Highlight the location of the company by sharing favorite parts of the city and why many have chosen to build a career there.

Continue to stay true to the company’s roots. Make the culture of the workplace a central part of the discussion. Focus on the people, values, and opportunity the company has found success with as those qualities are what will continue the cycle of achievement.

Considerations for the Future

Making a career change can be difficult for anyone. However, the dependence of a transition for an executive weighs on the prospective employer and their future with the company.

Personal growth remains to be the most significant factor an executive considers when considering a career change. With an emphasis placed on continual learning, most executives search for opportunities that allow them to expand their skill set rather than chasing a title advancement.

And like any other searching candidate, executives also rely on the opportunities that the potential company offers. When given a chance to stretch their skills and abilities to new levels, allowing for them to see a significant change, executives are far more willing to shift to that new role than stay complacent in what they know.

Environmental factors come into account during the decision process, too. Is a shift in career going to make a positive impact on work-based culture? Will a transition allow for greater responsibility and oversight of a larger team? How will this position fall into the entirety of the organizational success? These questions all play a factor in an executive deciding whether to make a move or not. This element is mostly dependent on the overall goals of the executive candidate and the current state of their ongoing position.

While direct compensation does not play a significant role in an executive move, the financial stability of the organization does. If the prospective company shows greater return and less risk in company sales, work hours, employee turnover, mergers and acquisitions and competitive advantage compared to their current position, a top-level executive will realize those benefits and make the move into a new career.