Good hiring decisions are critical to running a successful business for any lender. But there are some hidden factors that many hiring managers fail to consider. Are they doing everything to make a good match? Or are they simply hiring people that seem to be a fit? These four tips will ensure you are recruiting and training loan officers to grow an auto loan portfolio.
Cost of a Poor Hiring Decision
A poor hiring decision has monetary implications. According to Bersin by Deloitte, the average cost per hire is almost $4,000. Add training and onboarding, and that cost can increase quickly. If that employee remains in the job for less than a year, it’s likely the company will not recover that expense and will be forced to fill the same position again and incur all those expenses for the second time. Evaluate the posted job description for financial experience, as well as experience in the industries being served. Automotive acumen, powersports, insurance, or compliance experience can also prove beneficial. Don’t just hire a finance or accounting expert. Hire someone who understands the unique implications of lending in the automotive and powersports spaces.
Know the Customer
Are the customers established baby boomers or up-and-coming millennials? Have they purchased many vehicles in the past or will this car be their first? Knowing the customer base – and their needs – is key to hiring the right loan officers. Is the candidate comfortable advising customers from a broad range of demographics? How much customer relationship experience do they possess? During the interview process, inquire about the candidate’s own experience making those larger purchases, like vehicles and homes, and how they draw on those experiences when consulting with customers.
Count on Compliance
As with other areas of the financial institution, compliance regulations play a major role. Given the specific local, state, and federal regulations surrounding all lending activities, including auto loans, it behooves a lender to hire staff who are compliance-focused. Does the candidate have experience working in highly-regulated businesses? Do they take compliance seriously or do they view regulations as a burdensome nuisance? A lender cannot afford legal ramifications of a casual compliance attitude.
Financial institutions do not sell cars. Dealerships sell cars. The two industries are inextricably linked. Possessing a clear understanding of, and appreciation for, the relationship between dealer and lender goes a long way to quickly onboarding a new hire. But hiring a team member who prefers to live in a silo can quickly unravel a carefully crafted relationship. Does the potential new hire appreciate the symbiotic nature of automotive lending? Are they comfortable in this type of setting? A team member with a collaborative nature is more suited to the position than a “not my job” type.
When it comes to filling a loan officer position, remember that poor hires can do more damage than being understaffed. Instead of filing the position with the first candidate that looks good on paper, spend a little time and dig into the topics that make the position unique.
Administrators such as EFG Companies can bring lenders up to date on the latest F&I products, methods of building strong dealer relationships, and methods for working with dealers to implement sound compliance systems. Fortify the business with EFG. Contact us today to learn how our solutions provide the greatest return to lenders and their dealership partners.Like This Post