“It’s a huge beast to turn but if we can’t attract the calibre of candidates now then we are at risk of losing them altogether to industries perceived as being trendier or sexier.”
These are the words of Mortgages for Business managing director Gavin Richardson, and the “beast” is one of the big challenges facing the mortgage industry: how to present itself as an appealing career choice to young school leavers and graduates.
A good start would be if every business engaged with at least one secondary school
The industry demographic is no longer quite the elephant in the room it once was, with lots of work being done to attract a more diverse workforce. However, there’s still a long way to go in securing the industry’s future, according to Richardson and his peers.
“Turning the beast” will involve not only challenging lingering stereotypes of the mortgage industry — perhaps dull, maths focused and male dominated — but also highlighting the wide variety of career opportunities that exist within it.
Richardson says: “It is an issue. There is more gender equality now but, overall, the industry is ageing.
“We’re not seeing the quantity and calibre of young people coming through. If you look at career opportunities, it’s called ‘banking and finance’, which sounds dull and boring and doesn’t seem to be where the current mindset is in terms of young people and the more modern, trendy-sounding careers they’re pursuing in AI or tech.
We’ve got to start attracting a wider range of candidates at a grassroots level and grow that over time
“For many in the industry, it’s something they fell into rather than chose. It’s not seen as very exciting or sexy.
Industry initiative
Although he acknowledges the increasing number of graduate schemes, academy programmes and apprenticeships now available at individual firms, Richardson wants to see the creation of an accredited scheme that is interchangeable and recognised throughout the industry.
He is part of a new, trailblazer group of industry representatives who are planning to design a unique industry-backed, specialist mortgage apprenticeship scheme to attract and retain young talent. This would expose candidates to different areas of the industry and enable them to progress to degree-level qualifications before choosing a more specific path.
We have many young people who are now brokers, or training to become brokers, after first joining us on a work experience or young learners’ programme
The trailblazer group is aiming to submit a bid for the scheme to the Institute for Apprenticeships & Technical Education.
“This is very much in its infancy, but conversations are happening,” Richardson added.
“The challenge will be getting collaboration from different companies so we can design a broader industry apprenticeship that will provide experience in areas such as broking, underwriting, conveyancing, paraplanning and so on.”
Existing schemes
As Richardson indicates, innovative and successful schemes already exist at some organisations. These include the Brightstar Group, where ‘growing their own’ is high on the agenda.
There are so many areas you can go into and it’s very social as well, with brilliant opportunities for learning, skills and development
The specialist distributor has a variety of partnerships with schools — including extensive work experience, placement and outreach programmes as well as in-house development schemes — all designed to find new talent.
Brightstar’s official structured work experience programme was launched in 2018 and has hosted 39 students, aged 15–20, from 20 schools. Of these, five students have been offered full-time contracts, with a sixth due to join the team in the summer. Two are on a fast-track programme to complete their CeMap qualifications.
The firm has close relationships with two schools and regularly hosts taster days, attends careers fairs and has a young learners’ summer work placement programme, which last year was the best yet.
I had always seen this industry as boring and maths heavy, but as soon as I experienced it I realised it’s not like that at all
Brightstar also works hard to identify and nurture talent within the business and provide development opportunities that will lead people into certain areas, such as broking. This has already resulted in eight case managers becoming qualified brokers, including three women, some young employees and people from diverse cultural and social backgrounds. Several more are currently undergoing CeMap training.
The ‘inspiring young people’ agenda is in the capable hands of Brightstar’s Clare Jupp, a former secondary school headteacher who is passionate about nurturing that diverse workforce for the future. As the group’s director of people development, she’s keen to create as many routes into the industry as possible.
“I feel we have developed a really good people development culture,” she explains. “It hasn’t happened overnight; it’s grown over time with layers added gradually.
There aren’t many industries where you can make a six-figure salary, but there are brokers out there achieving that
“In terms of wanting to inspire youngsters, some of that has come from my passion for education and young people, and how we can bring them on. If you’re trying to recruit through conventional routes, there’s quite a limited pool of candidates, often from a similar demographic, so investing time in our own more diverse future workforce has really helped.
“We now have a huge young learners’ programme and we’re getting so many amazing results out of it. We’re doing as much as we can to inspire young people to choose the mortgage industry.
“Yes, it is an investment in time, but it’s paying off. We have many young people who are now brokers, or training to become brokers, after first joining us on a work experience or young learners’ programme. They might come in as case managers, for example, then once they gain confidence they start on our broker programme.
The challenge will be getting collaboration from different companies so we can design a broader industry apprenticeship
“It’s a long-term gain because somebody might come for work experience and then disappear for a while for A-levels or university, but as long as you keep the momentum going you will always have a pipeline of diverse new talent.”
Jupp adds: “It’s a fantastic industry to be part of. There are so many areas you can go into and it’s very social as well, with brilliant opportunities for learning, skills and development.”
Altered perception
One of the young people on Brightstar’s fast-track broker programme is 21-year-old case manager Laila Perryman.
She joined Sirius Property Finance, part of the Brightstar Group, three years ago after taking part in work experience through the partnership with her former school.
By her own admission, her previous perception of the mortgage industry had been negative. She considered it only after her business and economics teacher had sorted the placement for her.
“I initially came for a week and, because I enjoyed it so much, they invited me back for another two weeks. I went off to do my A-levels and was very lucky that I was invited back to work here afterwards. Before that, I didn’t really have an idea what I wanted to do. I just knew the university route wasn’t for me.
We’re not seeing the quantity and calibre of young people coming through
“I had always seen this industry as boring and maths heavy, but as soon as I experienced it I realised it’s not like that at all.
“I’ll talk to anyone, so I love the customer service side and I get a lot out of helping people and securing mortgage offers; it’s really rewarding. No two days are the same.”
Perryman is looking forward to becoming a broker and growing her own client base. She regularly talks to students at her former school, including as part of the Brightstar Group’s incentives to get more women into finance.
Another company with a successful and extensive training programme is Private Finance, which has its own mortgage adviser academy. Candidates shadow brokers and receive one-to-one mentoring while undertaking their qualifications during a wide-ranging 12- to 18-month programme.
For many in the industry, it’s something they fell into rather than chose. It’s not seen as very exciting or sexy
The latest intake was the biggest yet, with 11 participants, many already establishing themselves as successful brokers.
Private Finance technical director Chris Sykes comments: “The demographic is changing, just in the five years I’ve been in the industry, and I think technology is helping that. There aren’t many industries where you can make a six-figure salary, but there are brokers out there achieving that.”
So, while the trailblazer group works on the long game, it is hoped — if everyone plays their part and takes an active interest in the next generation of advisers, underwriters, case managers, conveyancers and so on — steps will continue in the right direction.
If we can’t attract the calibre of candidates now then we are at risk of losing them altogether
Jupp adds: “I think we all aspire to making the industry more diverse because there’s strength in difference and, if we want an industry that truly reflects the customer base, we can’t keep doing the same things and advertising in the same pools.
“We have to accept that, to make things more diverse, we’ve got to start attracting a wider range of candidates at a grassroots level and grow that over time.
“A good start would be if every business engaged with at least one secondary school. If you’re inventive, you can make it work in terms of the time and resources available.”
This article featured in the June 2023 edition of MS.
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