7 Outsourcing Mistakes Mortgage Broking Businesses Need to Avoid

Outsourcing Mistakes Mortgage Brokers Should Avoid | People Partners BPO

For many Australian mortgage brokers, outsourcing to the Philippines means being able to meet client and compliance requirements at a manageable cost. And thanks to offshore staffing companies that secure the necessary talent and facilities for their Australian clients, doing so has never been simpler.

Mortgage brokers, however, can achieve varying levels of success from outsourcing depending on how they go about the process. If you want to get the most out of this strategy, one thing you absolutely need to do is avoid committing these outsourcing mistakes.

Not Setting Your Goals

You need a clear picture of what you want to achieve from any endeavour — this is true even with outsourcing. Understanding your goals will enable you to make better business decisions. It’ll also help you identify the best metrics for measuring successes and determining areas for improvement.

Before outsourcing, mortgage brokers need to know what they want to achieve in the short, mid, and long terms. If you can, draw up your goals in a manner that’s Smart, Measurable, Achievable, Relevant, and Time-bound (SMART). Doing so will allow you to focus your efforts and resources better and thereby increase your chances of seeing your objectives through.

Not Standardising Workflow

Many mortgage brokers fail to establish clear standards on how tasks should be handled. This can result in inconsistent outputs and various inefficiencies, even despite support from first-rate offshore talent. Something as simple as tracking paperwork, for instance, can take a lot of time without a standardised process and lead to frustrated clients.

When outsourcing, imagine your outsourced team as a train that is rearing to take you to your desired destination. No matter how primed this train may be, it can only go so far if it is not running on tracks. You need to provide your offshore team with train tracks by way of instructions, rules, and standards so they know where to go and how to meet your expectations.

Choosing a Provider Based on Cost Alone

As saving money is one of their primary goals for outsourcing, many mortgage brokers settle for low-cost offshore staffing partners as well. Unfortunately, this move can result in subpar outcomes and a negative experience for the brokers’ clients, hurting their business overall.

When selecting an offshore staffing provider, you should look beyond the cost to consider inclusions and their full-service offering. Their track record, client testimonials and experience in your industry should also be key determinants in your decision-making process. If they have worked with other mortgage brokers before, then they’ll understand your business’s unique needs and how to answer those requirements.

Forgetting Training and Feedback

Just because your outsourced team members are innovative and fast learners doesn’t mean you should leave them to discover and improve the process completely on their own. Not only will you end up correcting mistakes a lot, leading to inefficiencies, but you might also hurt their morale over time.

It takes time to provide initial training and feedback, but these are necessary investments if you want a well-oiled team that delivers results without constant supervision. Educate them on the process and correct them when they commit errors. Once they’ve fully grasped the workflow, you will be able to confidently assign tasks. You may even be able to trust them to proactively develop new systems that maximise their productivity and improve outcomes for your business.

Outsourcing the Most Complex Work First

It’s tempting to free up your plate by offloading the most complex tasks to your offshore team, but we recommend not doing this. Bear in mind that your team may be professionals, but they may not have the exact experience needed for your expected outcomes.

Instead, assign those tasks that are repetitive, standardised, and low value, but are taking way too much of your time. Not only does this free you up to focus on high-impact work, but it also allows you to gauge your outsourced team’s capabilities at minimal risk to your business.

Not Understanding the Offshore Work Culture

Simply put, the way that Australians and Filipinos work and communicate are not exactly the same. Ignoring the differences can cause conflicts and misunderstandings that can hurt the quality and harmony of your working relationship with your outsourced team. Use these tips to ensure you’re on the same page:

  • Ask your team to repeat your instructions in their own words, because Filipinos aren’t likely to admit they don’t understand something.
  • Do not be content with just knowing your team members’ names. Filipinos value deep relationships, so they appreciate co-workers who show some interest in their hobbies, preferences, and even family life.
  • Ask direct questions because Filipinos tend to be indirect when expressing themselves to others.
  • Be clear about your expectations, goals, and metrics. Filipinos like hitting targets and are often competitive, so putting up a scoreboard can benefit your team’s productivity.
  • Praise team members in public settings but criticise them in private. This is because like other Asians, shame is a big deal for Filipinos.

Not Integrating Your Offshore Team to Your Business

Keeping a divide between your on-site and offshore teams will prevent you from attaining the results you want from outsourcing. Avoid this by ensuring that all the members of both teams know each other’s faces and names, something you can easily do thanks to virtual meetings.

You can also use a company-wide channel to recognise milestones, birthdays, holidays, and other important dates. If your company can afford it, you may even arrange team members to visit other offices occasionally.

Conclusion: What is the Next Step?

Outsourcing can help mortgage brokers become more efficient, save money, and access top-notch talent, especially when it’s done correctly. One way to ensure you avoid common outsourcing mistakes is to partner with a reliable third-party staffing service provider.

PeoplePartners BPO has experience helping Australian mortgage broking companies secure high-performing remote Filipino teams. And with our simple and transparent pricing scheme, your business can reduce labour costs by up to 70%. Contact us today to start streamlining your business and saving money through outsourcing.