Got 10 minutes with nothing to do at your desk? Bored? Why not click around to some of your go-to sites. Is one of them a jobs board? If so, you’re more like everyone else than you might think. The work force today has drastically different views on career tenure than previous generations. People today think nothing of considering a new job, if only in passing, and it seems quite normal to keep your head on a swivel these days. The reasons are many, and so are the effects.
Generations
Baby Boomers and Generation X have been the largest groups in the US workforce for some time now and their influence on the norms has been significant. Boomers are starting their exit, albeit a few years later than they probably thought, and Gen X is about to have a birthday (2015 marks the first year that Xers will turn 50. Happy birthday, kid). Gen Y is in the on-deck circle and they’re going to make up about 45% of the workforce by 2020.
Boomers brought a brick and mortar work ethic with them. They thrived in the post war economic upticks. Boomers and, to a lesser extent, Gen X stuck with the theme of company loyalty. Xers are the independent latch-key kids that grew up with both parents working. The sense of loyalty from these two seems to be less and less important to the new kids on the block. Gen Y has a reputation of being impatient and entitled. They might be, but in any event, they are growing in number and influence.
How does the job-hopping trend affect loan officers?
Loan officers have a particularly high turnover rate in the first place. Many who attempt to enter the industry simply under-perform, leading them to leave on their own (some estimates are up to 70%!) But under performance and job-hopping are worlds apart. Most job-hoppers tend to be hardworking employees that make their presence, and their absence, noticed. Top producing loan officers that switch employers do so because the new opportunity offers something the prior couldn’t.
The reasons are many, and often more than one is in play. University of Michigan economist Justin Wolfers put it this way: “Approach your career ambitions the same way you approached your romantic ambitions at college. Sure, you’re looking for ‘The One,’ but the only way to find that is by going on a lot of dates. And you should think about your first job as a good first date. Try it out. If you like it, stick around for another year. But if not, ask another employer out. And keep playing the field until you’ve found the job you want to stay with.” For Loan Officers, there are some unique reasons.
- Closings. When you miss a closing date due to back office issues, it’s not just a loan that went bad, it’s a relationship with your referral partner and borrower that is also tainted and unlikely to continue. In a commission driven environment, 3rd party mistakes are something that can’t be taken lightly.
LOs are, by nature and job description, sales leaders. They are building a small business every day. If the people supporting them are not coming through, the LO will take the business and run. By having an efficient back office along with proper communication between LOs and the support team, closing issues will be reduced, providing stability and reliability across the organization. - Management is key. We’ve all had that one manager with whom we just didn’t click. Problems between LOs and upper management can push otherwise good people out the door, or at least on a downward spiral towards job dissatisfaction. If you’re talented and successful, but you don’t get along with the person to whom you report, you like your job less. Obvious, right? The result is often taking your talent where it will be appreciated, and there is nothing wrong with that.
- Training. For an ambitious LO, progressing upwards is a must. And upward movement needs training and experience to match. The industry can throw a million and one things at you from every direction, and keeping up to speed is a crucial need. Not having proper training agendas in an ever changing work environment is a red flag. In order to have an ambitious team working for you it’s necessary to keep them up to date with training that is relevant as well. Building well informed teams leads to high employee morale, and that leads to tenured employees. The alternative is LOs that move to better pastures, taking team members and business with them. Keep in mind, it can be far more advantageous to a company to train than to replace. If you and your team are not getting the training you deserve, ask for it.
But don’t miss the obvious either. Moving jobs is not a guarantee that the same issues won’t reappear. Are some of your issues traveling with you? Understanding why you are leaving is as important to you as it is to your former and new companies. New doesn’t always mean better, and there are some folks that handle the status quo better than change.
Going up?
Overall, the trend lines show a seismic shift in progress, where talented employees are mobile, active, informed, and constantly on the look out for opportunities to advance. We are in an employee driven age where employers are forced to compete for the most qualified individuals as much as the the most qualified individuals compete for the job. Gen Y is catching this wave, and they’re bringing a very different take on company loyalty and personal success with them.
If you are considering making a move, the industry seems to support your choice. Even if you’re not looking, keep your resume up to date, and your eyes and ears open. Job-hopping has a funny way of sneaking up on you. It might even do so when you’re clicking around with 10 minutes of downtime at your desk.