A common challenge among title agencies is finding the optimal balance between hiring experienced employees and budgeting payroll costs. On the one hand, experienced employees come with the ability to hit the ground running. On the other hand, they also come at a premium salary and often bring habits or practices that don't align with the title agency's standards or needs.
In my experience, recruiting less experienced employees and investing in their training and development has proven to be a viable solution.
Here are three key reasons why this strategy is a smart move for title agencies.
Reduction in Payroll Expenses & Salary Increases Based on Proven Value
A reduced salary expense is just one of the advantages of hiring a less experienced employee as their salary requirements are significantly lower than those of an experienced candidate. This is especially true for those just entering the industry.
By hiring new talent, title agency owners can budget payroll expenses and free up resources that can be invested in the type of training and development that will benefit the team as a whole.
One advantage of this approach is that it ensures payroll expenses are based purely on proven performance and value, as opposed to hiring and basing an employee's salary on experience and the perceived performance and value associated with that experience. Instead, each salary increase and promotion is based on the title agency owner's knowledge of the proven return on investment the salary increase will generate.
Establishing and Maintaining Agency Standards and Values
When you hire experienced employees, they often bring with them habits and approaches to completing tasks and engaging with clients that may not align with your agency's standards. This usually results in inefficiency, miscommunications, and ultimately, dissatisfied clients. However, when you hire an individual that is eager to learn and receptive to guidance, you play a role in molding and mentoring them in a way that is consistent with your agency's values.
When your entire team is in alignment with your agency's standards and values, your clients will receive the high-quality service they deserve.
Investing in the Future and Removing the Element of Chance
When you invest in the training and development of new employees, you not only contribute to their growth and success, but you are also contributing to the growth and success of your title agency as well. By playing an active role in building the future of your agency, you remove the element of chance while creating a stable and reliable workforce that will carry your agency in the future.
Ultimately, title agencies that acquire smart and motivated new talent and provide them with the tools and training they need to excel in their positions continue to grow and prosper, while those that do not continue to face a high employee turnover rate.
Claudette Espendez is a specialized title industry consultant. Her dedication to each of her client's success and her ability to identify areas for improvement and provide step-by-step practical solutions has made her a sought-after resource among real estate attorneys and title agents looking to elevate their title agencies to the next level. Inquiries may be sent to info@titleteampros.com.
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