Creating a successful mortgage brokerage requires help, especially as your business grows.
That help can come in the form of an employed worker or a self-employed mortgage broker.
The number of self-employed workers now accounts for around 15% of the working population and it’s not surprising given the level of flexibility that self-employment can provide for both workers and business owners.
But could employing a mortgage broker have advantages for your business?
Profit margins could be greater in the long run
The payroll responsibilities for a self-employed mortgage adviser are significantly less than for an employee but have you ever considered that employing someone could be more profitable?
Most self-employed mortgage brokers will negotiate their rates and depending on their experience and appetite for financial gain, this can get expensive.
To reduce this cost, you could consider employing a mortgage broker and paying a salary upfront.
In exchange for putting up a salary, you could reduce the percentage of commission you payout for each sale and make this non-negotiable, which could result in you paying out less overall.
According to Salesforce, a salary plus commission style plan is one of the most commonly used in sales organizations.
Less pressure could equal better performance
The freedom for a higher earning potential can be a draw for many self-employed mortgage brokers but in reality, a guaranteed income can be more dependable and for many, this provides more security.
It could be argued that not all mortgage brokers are motivated by pressure, so adding a level of security in the form of employment could result in a better sales performance and a reduced employee turnover rate.
In fact, a 2018 study by Samuel Ajayi on how job-related stress affects performance found that fears of joblessness and economic instability can have a negative impact on work-related performance.
Research throughout the study also suggested that “With well-designed jobs, dissatisfaction, decreased motivation, absenteeism and low productivity will be prevented.”
They’ll only work for you
If you hire a mortgage advisor as an employee, they are contractually obliged to work solely for you which can provide some assurances.
Having employees and therefore being known as a good employer builds you a solid reputation in the marketplace. This is important as a bad reputation can prevent successful mortgage brokers from working with you.
To make more profit, you need to attract the best possible mortgage advisors and they’re usually attracted by:
- A fair and secure income
- Opportunities to progress
- A sense of purpose and feeling that they are part of the business
You’ll have more control
When hiring a self-employed mortgage broker, keep in mind that while you can assign them tasks and impose deadlines, you cannot tell them how best to get the job done.
This can prove frustrating as a business owner as you’ll know what works and what doesn’t work when it comes to finding clients.
Hiring a mortgage broker allows you to work closely with them and therefore gives you more control over how they spend their time during working hours.
With your guidance and watchful eye, you can encourage and even require your employee to work within your guidelines, using your methods and strategies to generate leads.
Thinking of offering employment to a mortgage broker?
When deciding whether to hire a self-employed broker or employ a professional on a permanent basis, it can be helpful to ask a recruitment expert for advice.
Our experts will take the time to listen to what you need from an employee and this allows them to identify and recommend the candidates who are most suited to your business.
Call 0117 9450450 today or alternatively, view our latest candidates.
We have access to fully qualified and experienced professionals, actively looking for mortgage adviser jobs across the UK.