True Cost of Recruiting

By March 1, 2020Latest Insights

Hiring talent isn’t easy, especially experienced Loan Officers.

In today’s competitive mortgage market and with talent at a shortage, timing is still a critical element in the process. We are seeing desperate sales managers that want to expand, hiring an individual that can do the job, but may not fit the company culture and that is under-qualified or if you’re really desperate enough the first person who doesn’t completely bomb the interview and has a track record.

It may be tempting to make a quick decision on hiring. Hiring a person that can do the job, but is not quite the right fit for the job and the corporate culture can have drastic consequences—on you, the organization and the morale of your existing team. Not to mention the reputation of the organization in the market.

Hiring talent in any industry has a variety of cost associated with, the highest cost is generally on the front-end recruiting process, to include; advertisement and posting jobs, the time required for an internal recruiter/hiring manager to review all applicants, and resumes and an array of other recruitment-related tasks, not to leave out the time to conducting the series of interviews.

Additional cost for the final selection process cost of; drug screening, background checks and the recommended pre-employment assessment testing. And that’s not all, now add up the cost of onboarding. If not you, someone on your team will have to train the new hire, plus the man hours required to bring the new hire up to speed in their new role.

Not all new employees require all of this attention. To put this into perspective, a minimum wage employee, earning $8/hour, costs of turnover, can end up costing a company around $3,500. Unfortunately, there is no universal formula that calculates the total costs for hiring. The general rule of thumb is that the cost to replace an employee ranges from 30% — 50% of their annual income. That would mean, a $100k a year bad hire could cost your company up to $50k. So, take the time to properly vet the talent that walks through the doors to interview.

One of the best ways to vet someone, is to talk to other folks that worked with the prospect in the past, such as a processor, another loan officer or even a previous manager. Due diligence is the key to avoiding bad hires. This may seem like a time consuming process, but it is the best invest of your time. Providing you with the time needed to develop your current employees organically, while recruiting to find the best match talent for your team.

Whether an organization is hiring new employees or replacing under-performers, the cost will have a huge impact on the bottom-line. This is the #1 reason why organizations are challenged to hire new talent, because of the actual costs of their bad hires ate into their budget. Every employee, has cost above and beyond the salary which can be substantial all by itself, calculate the cost of recruiting, training, and onboarding and watch those dollars grow.

paperbackthinstack_1466x1785-1-246x300 True Cost of RecruitingThere is a solution that can put you on the right path to hiring the best of the best. If you can invest a few hours of your time to learn our proven system… you will learn; how to quickly identify talent that fits the culture, recruiting techniques to attract the best talent and how to AVOID the most common costly and time wasting hiring mistakes made by many hiring managers.

A Great Sales Leader knows how to draw the essential skills, unrecognized strengths out of their team members that can effectively inspire them to implement new strategies to accomplish their life goals. Partnering with your team of Loan Officer creates an employee-centric environment that fosters continued success.

Loan Officer Recruiting PlayBook eLearning transforms and restructures your approach to recruiting and hiring Loan Officers that have years of experience, an existing “book of business” with established referral partners.

The PlayBook Series is designed to help individuals assess their current situations, solve problems, and take action toward achieving their goals.

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