By November, the combined age of the candidates running for President of the United States will be 160. Age is a factor. The President of the United States is likely a hard job, loaded with stress, and a need for conscientiousness and the ability to maintain a certain level of stamina. Regardless of your political stance, it is hard to deny that both possess intelligence and experience. No matter who you are for or against, the country must pick a leader. That decision might be a nightmare. This scenario is not unique to politics. In fact, it mirrors a trend we're seeing in the mortgage industry, where age - for better or worse - can be a significant factor in hiring decisions.
The composition of our political candidates mirrors a significant trend in the American workforce. According to the Bureau of Labor Statistics, the employment of workers aged 65 or older has surged by a staggering 117% in the past two decades, with a similar increase for those aged 75 or older. While this demographic brings a wealth of experience and education to any workplace, they also face a significant age bias. Shockingly, reports suggest that up to 90% of individuals between the ages of 50 and 80 experience age discrimination.
For the last ten years or more, the average age of a mortgage professional has been 53 to 55 years old. The number is now 44 to 47. So, the question must be asked: Why is there an exodus of older adults in the mortgage space?
In the mortgage industry, all sectors are experiencing a compression. But when they're ready to hire again, how can companies ensure highly qualified, educated mortgage professionals are well-suited for a new position? Here are some recommendations that can be applied to all candidates to ensure you find professionals who meet your expectations.
Implement technology competency testing. Not all young people are technologically competent. If you are a technology-heavy company, there is no reason to take anyone's word for it. Develop a test or leverage a service that will allow you to understand an applicant's ability to use technology to complete the tasks in their job.
Provide reference criteria. When asking for references, clarify what questions will be asked so that the applicant will provide a relevant reference, not just someone who will agree that they are a great person. Employers need to understand recent victories or recent defeats that an applicant overcame. Ensure the questions cover the areas that align with the company's expectations and that they aren't just going through the motions.
Clearly define expectations. Cover every detail from work stress and hours to micro and macro goals. Make it abundantly clear what someone is agreeing to. What does a good performance look like? What does lousy performance look like? This step begs applicants to have self-awareness, hoping they will gracefully decline if they can't meet the presented expectations. However, if they aren't honest about their ability to meet the expectations, the decision to move on later should be less painful.
Professionals of every age should take note. Twenty-somethings may look upon the 40-somethings as relics of a different generation, asking questions about life before the internet. Our joints may hurt, our metabolism may be a distant memory, and bedtime may get earlier every year. There isn't a Tik-Tok filter cure for what is happening. It is crucial to practice empathy and compassion.
As the mortgage industry continues to navigate the market, we must increase the due diligence of all candidates. High-level talent is crucial to survival. There is great wisdom in the mortgage industry. None of us can afford to hire the wrong professionals. Whether entry-level or C-level, the dream candidate can become your worst nightmare.
