Stress, regulations and Covid are causing more and more brokers to call it a day, according to one industry expert.
John Maxwell, founder of Cocalex Consulting, told Australian Broker that he was seeing increasing numbers of brokers questioning the worth of their efforts in the pandemic-afflicted, post-royal commission industry.
Trail book buyers have said that brokers are leaving at an above average rate, and consultancy firms like Cocalex have now been created to to help brokers to cope with the day to day stress of the job and assist with marketing and content production in a bid to make more stay.
“I’ve spoken to a lot of brokers and there’s been an increasing trend of them being disgruntled and feeling the pressure,” said Maxwell.: At the same time, they’re like ducks under water or spinning plates.”
“A lot of brokers have been communicating that they’re bogged down with compliance, bogged down with lenders’ turnaround times, and Covid has compounded that.”
“My recent senior role was at a fintech, and I was working closely with brokers. I realised early on that it wasn’t about leads, it was about supporting brokers, and every week I was speaking to two or three brokers - top senior brokers - who were saying ‘I’m just done with this’.”
“One female broker that I spoke with, a prominent broker, telling me that it was just too much. She had too much to manage with clients and compliance and she was said ‘I’m just done with this, I’m fed up with all the pressures and stresses, I don’t need this’.”
One of the key issues is also natural wastage: brokers who joined the industry in the 1990s are now looking to call it a day due to age, as well as the increased level of tech skills and regulatory compliance that is now required.
“I’m seeing that there’s a lot in the background when you add it all together,” said Maxwell. “People are getting disillusioned in their purpose and direction, and getting a little lost. I’ve found that reaching out and supporting brokers can bring a it of clarity.”
“I did a survey recently and one of the things that brokers said that they had been looking for was accountability: they need to get out of their own head and find someone who can help and guide them forward.”
