Rebuilding talent to fill that void has been a challenge, but forward-thinking companies are maneuvering to attract a new generation of mortgage professionals — Millennials or M’s. This much-sought-after group brings different perspectives and diverse skill sets that can help lead the industry forward.
Much has been written about the nation’s largest generation — born between 1980 and the mid-2000s. But it is clear that employing, and motivating millennials to succeed, will become increasingly important as they mature into the mainstay of the American workforce. With the average age of loan originators currently standing at 54 and the median age of Realtors at 57, the industry needs an infusion of new talent to service a new generation of homebuyers.
M’s are fast becoming the housing industry’s front-line workforce. They are taking roles in loan processing and loan servicing, and are gaining valuable experience that will help them evolve into the next generation of mortgage executives.
Although M’s are not a single monolithic group, several themes do hold true for those working in the mortgage industry. They tend to be values-driven, expect transparency and seek emotional connections in their jobs. Mortgage companies would do well to consider these themes if they want to engage and inspire the next generation of employees.
Gone are the days when an employee went to work at a bank or manufacturing plant as a young adult and retired several decades later from the same company. The M’s expect to move from one job to another throughout their careers, but they also expect to connect to their work in deeper ways than their parents or grandparents did.
In an era of constant, free-flowing digital information, M’s can clearly see the values of the organization where they work. It shows up in social media, whether the company wants it to or not. Do M’s want their personal values to align with the values of their employers? Yes, however, they are just the most visible sign of a broader social shift where consumers and employees expect businesses to lead with core values.
Core values invest employees in the “why” of their work. They explain why customer service, teamwork and leadership matter to the company, and values connect internal processes with external outcomes — families finding new homes in the case of mortgage companies.
As mortgage companies add younger staff, it is important that they make all employees understand how they fit into the overall vision of the company and how they contribute to the goal of growing homeownership, which is the core of the mortgage industry.
Core values also can help eliminate a lot of micromanagement that is often necessary in companies without a clear cultural direction. They can be entrepreneurial. … In organizations (or even in a society) where culture is weak, you need an abundance of heavy, precise rules and processes.”
If you lead with your core values as a company, not only will you engage with M’s in a deeper way, you also will engage with employees of all ages in unexpected and positive ways. Millennials expect organizations to be values-driven. Other generations don’t necessarily expect it, but they do appreciate it.
Progressive companies are more transparent than ever before. Many openly reveal the details of their supply chain, their business partners, their values and their charitable endeavors. This openness goes a long way with millennials. They want to understand the inner workings of the ownership team and management, and they want transparent and accurate answers when they have questions.
Some companies use online communication tools to generate direct and transparent feedback across the company. Direct interaction like this can eliminate the communication silos that often separate frontline employees from executives. This is particularly useful in large mortgage companies where executives need to keep their fingers on the pulse of diverse departments, including sales, operations, servicing, accounting and compliance.
M’s especially respond strongly when greeted with transparency at work. An ORC International study found that just 61 percent of millennials believe the leadership in their organization is open and honest. This may be because — according to the study — M’s want feedback from company leadership a staggering 71 times per year.
If you lead with honesty, transparency and open communication, millennials will respond by aligning themselves with the company’s goals and values. In turn, this transparency will inspire millennials to remain loyal and do great work for your company.
Emotion drives the world. It motivates, inspires and connects us to the world around us. Emotional connection in the workplace is vital to millennials who seek something beyond a paycheck as a reason to come to work.
Despite its mixed reputation, the mortgage industry is actually involved in an inspirational and important mission — putting families into homes. This is a very noble profession. Mortgage companies that take a step back and realign their core values around this mission will help connect all of their teams to the company vision. This is a critical way to keep millennials engaged.
Core values should be crafted to continually remind employees about the “why” of their work. Whether employees are wading through granular details of processing applications or underwriting loans, mortgage companies can keep core values front of mind in an employee’s day-to-day work by making sure rewards and recognitions tie back to particular core values that reaffirm the company’s goals and its positive impact on customers.
M’s need this emotional connection to their work. They need to know they are making a difference both in the world at large and in the workplace. Ultimately they, and employees of all ages, want to be a part of a company that has a story to tell about how it is impacting the world positively, effectively, truthfully and continuously.