Susan Schneider’s Blog

The 90/10 Rule

I know it must seem as though I have some attraction to percentages or rules but I promise you this is not my style. However, this latest “rule” has stuck with me since I heard it a week ago and now it seems to come up in just about every conversation.

This 90/10 rule is about process over people. This might sound a bit shocking coming from somebody who consistently blogs about employee retention and satisfaction. But stick with me as I describe the 90/10 rule. The reality is 90% of business operations is about process and only 10% about the people. Yet most companies have this concept turned the other way around, focusing on the employees 90% of the time and assuming processes are only 10% of the issues.

Let’s assume a real office situation. You have two departments who are struggling to work together. Emotions rise and soon assumptions are made; one team feels the other is passing the buck and the other team feels like others aren’t pulling their weight. At a glance, it may seem as though there are personality conflicts but the challenge I would put to you is, do you have the processes clearly defined? Often the issue isn’t about the people involved. It is more along the fact that without processes, people will interpret the rules as they see fit and this can change depending on the day, the situation or the environment.

Next time you have an issue or situation arise, ask yourself “If the processes were clearly defined, would the outcome have been different?” I am not saying you don’t need to focus on your employees but so often we blur the lines of performance and personality. Without the right process in place, the rules usually end up being chosen and defined by the individuals involved.

Quick Close...Not so much

Things are about to change once again. Just when we thought we had the new mortgage regulations figured out, they are taking another turn. Effective July 30th, the “quick close” mortgage will become a thing of the past….and this could trigger more angst for our relocating employees.

The new mandates will make it especially difficult for someone to close in a 48-hour time period. Beginning next week, the new mandate will require a “waiting period” for everyone set at 7 days and could be longer for anyone who requires a re-disclosure of documents. Re-disclosure could be triggered by a simple $100 change in finance charges or an APR rate adjustment of .125%. While re-disclosing used to be considered the norm, providing new loan docs at the closing table is now considered unacceptable. Here are a couple of the items that trigger a need for re-disclosure:

• The borrower chooses to pay points on a loan for a lower rate after the initial disclosure.
• The borrower chooses to lower their down payment and increase the loan amount.
• The borrower chooses a buy down of their rate.
• The per diem interest changes based on the actual closing date.
• The borrower opts to "float" their rate and locks in close to the closing date, however the rates have risen and their final rate is higher.
• In the past, we have often allowed a borrower to float up until the last few days prior to closing. This will force us to limit the time they are allowed to float to assure a timely closing.
• A new borrower is added to the loan after the initial application.
• The borrower decides to change the type of loan for which they are applying.

This may come as surprise to many who were expecting this change some time in October. All in all, the impact to the relocation industry will probably be minimal but we all have experienced the “renegade” transferee who wants things done at the last minute. If nothing else, we are all now informed of the potential pitfalls.

Do You Have a Best Friend at Work?

It may seem like an odd question. Some might answer it with: “Work is work, not a place for friends.” Perhaps you think you shouldn’t mix business with pleasure, but The Gallup Organization would disagree.

This week we launched our bi-annual employee survey following The Gallup Q-12 questions. One of the questions is “Do you have a best friend at Work?” Our employees often struggle with this, as they believe that best friends are life long companions that share a mass of childhood memories. But let me put some context to this because I think it is in fact really important.

A best friend is defined as someone you know well and regard with affection and trust. I would ask you to think about this in the context of work. I am sure you can think of someone who is your “go-to” person; the one who keeps your moral compass in check, the one who lends an ear when things are difficult, and the one who cares about you not only as a peer but as a person. I believe that it is a company’s obligation to create an environment that allows friendships to develop and grow. We as leaders, as managers, as peers, need to make sure that we nurture this kind of atmosphere. To do this, you will need to throw away the antiquated thinking that friendships create cliques or that employees will become unfocused if they are spending “work hours” for personal time.

If you aren’t sure how your employees or team are feeling, or if you can’t answer this question with a positive yes, then I would challenge you to do something about it. Don’t sit idle waiting for things to change, be part of the change. At first, it may be awkward to bring up a “soft” issue like this to others. Yet I can guarantee you that even at work, people can have “work-life” balance through friendships. This will ultimately lead to higher productivity and a healthier and happier workforce.

Trailing Spouse? Bring your Bread Crumbs

That is if you are looking at qualifying for a mortgage with Fannie Mae and hoping that your spouse’s “to be” income will be considered. Unfortunately, you may find yourself living miles apart for a while or possibly downsizing to that smaller home. As of June 8th, Fannie Mae has changed their guidelines and will only consider income of those who are actually on someone’s payroll.

So how does this affect the relocation industry? In the traditional relocation where the spouse does not typically work, it will have little impact. But, as you consider the new and younger demographics, it may be substantial. Today, two incomes and a sizable home are not uncommon.

I am hearing two schools of thought on this change. Some are quite concerned, and see this as another relocation obstacle for employees to overcome before they can accept a job opportunity. These companies are wondering if they will have to offer more financial assistance to employees in this predicament. Others however, feel that this is just another adjustment to right the ship of lending to people who may find themselves unable to repay their loan.

Unlike Fannie Mae, Freddie Mac has not gone to this extreme…yet. For now, they are electing to tighten the guidelines. I guess, like everything else, I will take a wait and see attitude before I weigh in on my opinion. Sometimes, these issues feel bigger in theory than in practice.

Acronym Addict? There May be a Prize for you.

Is it a sign of laziness? Is it that we tire of repeating the same phrases over and over again? The relocation industry is full of them and I am guilty of resorting to using less letters whenever possible. So, I have decided to make this post a contest. Why not? It’s a holiday weekend…let’s relax.

Here is a list of acronyms. Test your knowledge and if you are one of the first five to send me the answers, I will send you a copy of any of the books listed on the “What I am reading link.” This is also a test of integrity – you can’t Google the answers. Best of luck!

• DOM
• NAR
• CRP
• EOD
• BTW
• ASP
• GBO
• BMA
• KPI
• SLA