Teach Employees Why and not just How
Below is a MRR and PLR article in category Business -> subcategory Management.
Teach Employees "Why" and Not Just "How"
Summary
Errors can happen despite the best efforts of employees, often leading to issues for both customers and the company. Effective training programs, emphasizing the "why" behind tasks, can make a significant difference. Investing in structured training with dedicated resources is essential.
Article
Managing escrow administration in mortgage companies is complex. Daily, escrow departments handle vast amounts of tax bills, hazard and flood insurance premiums, and other payments. They disburse millions from escrow accounts to various entities, including tax offices and insurance companies. Monthly, escrow accounts are analyzed, resulting in mortgage payment adjustments that trigger numerous customer inquiries.
Ensuring timely payment of real estate taxes, maintaining adequate insurance coverage, and managing PMI and MIP premiums are central to escrow administration. A critical task is conducting escrow analyses, requiring staff who are well-trained and knowledgeable about every facet of escrow servicing.
Apart from handling taxes and insurances, the escrow department also manages loss drafts, PMI cancellations, lender-placed insurance, and customer inquiries. When a property, previously outside a Special Flood Hazard Area (SFHA), is categorized within it, customers are notified to obtain flood insurance. If they fail to do so, insurance is placed on the property by the lender, often causing disputes and complaints.
Complicating matters, these responsibilities must comply with state and federal laws. Recent times have seen significant impacts due to changes like HUD’s Final Rule for escrow analysis, the Homeowners Protection Act, and updated requirements from Fannie Mae and Freddie Mac for PMI cancellations, among others.
Despite challenges, most escrow departments excel thanks to their skilled and dedicated staff. However, errors can still occur, affecting both customers and the company.
A robust employee training program is crucial for enhancing escrow department performance. New hires need thorough training, and even seasoned employees benefit from refresher courses to reinforce their skills. A well-trained workforce not only delivers high-quality work but also experiences increased job satisfaction, which in turn reduces turnover.
In many companies, employees are trained solely for their specific roles, lacking a comprehensive understanding of how their function contributes to the entire process. For instance, an employee handling escrow disbursements may not realize the broader impact of a processing error on customers. While new employees often learn the "how," knowing the "why" ?" the significance and consequences of their work ?" is equally important.
With detailed background information and a better grasp of escrow servicing components, employees can perform their tasks more effectively, boosting the overall success of the department.
Ongoing training is necessary across all business sectors. While department managers and supervisors are valuable trainers due to their familiarity with company policies, the demands of their roles might limit their ability to consistently provide training. Therefore, structured training programs with dedicated resources are essential. Investing in training is one of the most beneficial moves a company can make.
Emphasize teaching employees not just the "how," but also the "why."
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