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Tips to Overcome Loan Officer Resignation
Turnover is one of the principal problems facing Sales Managers today. This is due to an increasing trend of mortgage industry; Loan Officers are changing jobs more frequently than ever before. If a Loan Officer resigns, you have to deal with fiscal losses as a consequence of breaks in revenue, together with the expenditure of recruiting and training their replacement. Retaining staff is a hot topic for Sales Managers attending my recruitment training programs.
The cost of recruiting and training the average Loan Officers including paying them guarantees before they are bringing in any revenue is around $25,000. There is the additional cost of the Sales Managers time to focus on recruiting. This is a time consuming task, which most Sales Managers struggle with already.
As a result many companies have implemented critical steps that will considerably reduce turnover. These guidelines should be put in place for dealing with Loan Officers who want to leave as follows:
1. React immediately! This means within the first five minutes. When a valuable Loan Officers has just tendered their resignation, this most become your number one priority.
Comments, such as "We will discuss this later, after the meeting" are not acceptable. Interrupt or postpone whatever you are doing and speak with the Loan Officer immediately. This is the only chance you will have of changing their mind.
2. Do not mention the resignation to anyone else! This is extremely important for both sides. The Loan Officers on the point of resigning must have the opportunity to revise their decision without losing face in front of their colleagues. Silence is also the best policy from the point of view of the company: if you do manage to persuade a Loan Officers to stay and their intention to resign was common knowledge, there would be wild rumors of massive pay rises in order to keep them. In principle, you do not use more money as a bargaining chip in order to keep top salespeople.
3. Listen attentively to what the employee has to say! Try and isolate the precise reason for the Loan Officer's intention to resign. Any attempt to try and dissuade them will fail if you have been unable to ascertain and accept the real reason(s) for this. Give an unvarnished report of the reason(s) to your immediate superior, even if you find this uncomfortable. A major topic on any management course is effective communication and is therefore a core skill requirement of any manager.
4. Find out what opportunities are available with a different company: a more interesting area to work in, more money, less stress, more stress or a bigger career step? You only have a chance of convincing the Loan Officers to stay with your company if you have this information.
5. Think out your rebuttal! Verify which rebuttals can be used to try and persuade the Loan Officers to stay. The safest ones are those which give the reasons outlining why it is in the Loan Officer's interests not to go.
6. Remember that there are basically two reasons to tender a resignation: Firstly the Loan Officers may have had feelings of frustration for a long time and it has taken this one incident to make up their mind to leave. Alternatively, another business may have presented them with a more attractive offer.
7. Solve the Loan Officer’s problems! The majority of Loan Officers who have acknowledged their intention to give notice like the corporation, their occupation and their colleagues and would like to stay.
8. Prevent further resignations! Think about the rest of your Loan Officers; try and recognize problems early on and deal with them before they become too big!
Implementing these points can help to retain good Loan Officers and therefore make a positive impact on business performance.
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