Since the start of 2022 I’ve been recruiting because, like many directly authorised firms, the success of my business entirely depends on our ability to attract and retain talent.

One thing that’s entirely unique to recruitment and often overlooked is that you get to have an honest, unvarnished appraisal of the working conditions of an external brokerage. This ‘warts and all’ discussion transcends any marketing and messaging.

I understand the temptation to insist that brokers stay responsible for the whole client journey

Each time we come to the same point in the interview, the broker takes a deep breath, looks to the sky and sighs. A lament of some intolerable sacrifice made in previous weeks and months or of the death knell of their financial aspirations often follows.

Balancing act

Irrespective of the firm, its size, its life-span or its target market, one consistent complaint across the industry leaves me scratching my head: the ever-present balancing act between business development activities and the administration of new cases.

It has occurred to me that the leadership teams of these brokerage firms are not approaching this as a problem to be solved but as a dichotomy that must be managed — forever.

What a bleak, debilitating and pessimistic approach to the business of being a mortgage broker.

The gap created by removing the administrative demands is filled with business development and, eventually, more cases

Most join a brokerage because they genuinely find the experience of providing financial solutions through advice and problem solving rewarding. Building relationships and closing deals are the key tenets of a successful broker.

Glass ceiling

With the fruits of a broker’s success, sadly, comes the glass ceiling. The associated administration prevents a broker’s earning capacity from growing any further, unless sleep or personal relationships are sacrificed to a level that’s unsustainable.

I understand the temptation to insist that brokers stay responsible for the whole client journey, including the administrative tasks. From a profit-and-loss perspective, retaining adequate numbers of experienced administrative staff to facilitate the freedoms the advisers desire is expensive, reduces profit margins and places substantial risk as payroll liabilities rise.

In my experience, however, freeing up our brokers to focus on what they love doing while employing experienced administrators who also love their job has created a culture of continued growth, for both the firm and everyone involved.

The leadership teams of these brokerage firms are not approaching this as a problem to be solved but as a dichotomy that must be managed — forever

Our brokers are able to concentrate on what they find most fulfilling. They create ideas and strategies to do more of what they enjoy professionally. They have the freedom to explore channels that would otherwise not be available through capacity restraints.

The net effect is everyone wins. They are happier because they earn more, learn more and operate within a work-life balance that ensures external responsibilities are not usurped. The profit-and-loss line wins because the gap created by removing the administrative demands is filled with business development and, eventually, more cases.

I will continue to bet on our team.