At first glance, planning to automate the many processes related to compensation management for mortgage brokers may not be necessary. After all, when spreadsheets already do the job well enough, shelling out an extra dollars to purchase additional software doesn’t seem necessary.
However, as the real estate industry grows stronger and more brokers are needed, upgrading compensation management methods is essential. Hence, investing in automation is fast becoming a must. Here are four benefits of following through with automation, especially at your firm:
The average mortgage brokerage doesn’t only employ three or five agents. Most of these companies have around 20 agents at a local office, each one dealing with various kinds of loan products and clients at any given time. With these many employees, sticking to using spreadsheets to compute commissions and figuring out deductions isn’t the best course of action. This would just cost the company a lot of time and effort, with employees spending hours just trying to untangle complicated commission tiers.
By using an automated compensation management platform for mortgage brokers, companies can avoid this entirely. Software in this category automates all those processes, ensuring that brokers get their commissions on time.
Dealing with spreadsheets and computing commissions manually can also result in a lot of mistakes. According to a 2014 blog post by Salesforce, up to 88% of spreadsheets—or 9 out of 10 spreadsheets—contain errors. And yes, many of these inaccuracies are bought on by manual input. By switching to an automated solution, you can avoid these pitfalls that can cost your brokerage hundreds or thousands of dollars.
Allows More Engagement
With an automated compensation management platform, brokers can easily check their compensation and start a conversation about what they’re earning. This can also motivate them to work harder at achieving goals—like chasing more leads to close more deals.
In larger mortgage brokerage firms, coordinating with different departments can get tough. This is especially when it comes to dealing with each department’s compensation arrangements. When you’re using spreadsheets, you may end up spending more time emailing different departments for the details you need to put in the spreadsheet, rather than fixing the spreadsheet up itself.
You can minimize that back-and-forth with an automated compensation management platform. Some of these platforms have built-in tools that allow administrators to disseminate information about compensation easily, such as sending notifications to specific groups. This also helps with auditing, as these platforms can easily integrate additional information, allowing for faster compliance with new regulations.
As you can see, these four benefits won’t just help minimize the time and effort needed to compute compensation for mortgage brokers employed by your company. They also remove many pain points for those involved in the business, even offering them more motivation to perform better. With these advantages, investing in an automated mortgage broker compensation management platform is definitely worth it.