Five Ways To Improve Your Remote Communication Skills

Remote work and the cornucopia of different technologies used to facilitate it mean that how we communicate with our coworkers has changed drastically. Balancing different platforms like video conferences, email, text chat, and social media platforms like LinkedIn can be a challenge, and your communication skills need to evolve with new and emerging technology.

Even if you aren’t seeing your coworkers on a daily basis, and even if your networking and sales conversations take place over a screen, you can still be personable and charismatic. Evolve your remote communication skills by embracing these five philosophies.

Know how the tech works

There are a lot of tools used to facilitate online communication, and they all serve different purposes. Knowing how and when to use these tools is the foundation for remote dialogue.

The specific platform you’ll use for different forms of communication will vary between companies. For video conferencing, you might use Zoom, Microsoft Teams, Discord, or Meetings, and each program has different intricacies. Once you know what your team uses, do your best to master it. It’s hard to be an effective communicator if you aren’t using the tech properly.

Once you’ve mastered the tech, learn the best uses for each form. Different tools have different purposes, and you’ll want to use the right tool for the job, writes Jacky Xu. Have a simple question you need answered quickly? You’ll have to decide whether to use a text, an email, or a messaging program like Slack.

“For example, an instant messaging platform (like Slack) is best for short messages that need a fairly immediate response. Email is usually better for longer messages or something with multiple attachments, and for when you can wait on an answer.” –Greg Kratz

Be clear

In an in-person conversation, if you felt you weren’t clear with your intent, it’s easy to follow up with a quick explanation or pop back into someone’s office to clarify. You can look into your coworker’s eyes and see potential confusion. That isn’t so in remote communication, and you may not realize your request was ambiguous.

Quality writing is one of the top traits employers seek in remote employees, according to Goncalo Silva of Doist. The ability to eliminate redundancies and fluff and get to the heart of a matter is the key to making your writing clear. The easier it is for the recipient of your message to understand what you need, the more effectively they can assist.

Hannah Morgan reiterates to keep your messages brief, especially when communicating with someone new. People tend to skim long bodies of text (something we blog writers must constantly be aware of!), so the more you meander, the less likely you’ll get a response.

“Get straight to the point, and don’t dance around the reason for your contact. It’s best to be direct.” -Hannah Morgan

Be prompt

It’s difficult to ignore someone talking to you face-to-face, and if you’re in an office, it’s easy for a person to pop in and remind you when they need something. With remote communication, it’s much easier to forget to respond. How many times have you ever mentally responded to a text without actually texting back? Or have you meant to respond to an email and suddenly hours have passed?

It’s not only good etiquette to respond in a timely matter but it’s the expectation to keep the operation running smoothly, says Kelsey Arrington. By promptly following up with your team, you’ll build a greater culture of responsibility and reliability. Open communication is what allows remote communication to flourish.

Be available

On the subject of open communication, making yourself available is another important step. Remote work offers more autonomy than working in an office, which is a massive boon, but you can’t cut yourself off entirely. Jacky Xu suggests regularly scheduling check-ins with your team as a way to keep everyone on the same page. This provides an opportunity to share ideas without directly intruding on anyone’s time.

Kelsey Arrington adds to always participate in meetings and to turn your video on during conference calls. This will remind your coworkers you’re still there and actively engaged in work. Your ideas won’t fall on deaf ears and you’ll be viewed as part of the team. Being on video might mean your pajamas will face scrutiny, but you’ll provide the often lost body language communication thrives on.

Mind your body language

Even with video calls, body language is crucial and can shape the nature of your conversations. Watch your body posture, make eye contact with others (not your webcam), avoid looking at your phone, and don’t be afraid to dress up for a meeting as if it were in person. Treating a remote meeting like an in-person one will keep you engaged, and your professionalism will be appreciated.

“Posture not only shapes the way we feel, it also shapes the way we think about ourselves–from our self-descriptions to the certain and comfort with which we hold them. And those self-concepts can either facilitate or hinder our ability to connect with others, to perform our jobs, and, more simply, to be present.” –Carol Kinsey Goman

Wrap up

Remote work models are the norm, and even a significant percentage of networking occurs online. Knowing how to adapt your communication skills to the current landscape is a must for career success. Know how to use every tool at your disposal, and know when to use them. Be clear, prompt, and available, and you’ll gain a reputation as a reliable team member. Go the extra mile and be a professional in video chats, and you’ll feel a stronger sense of connection with your team.

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Making Remote Workplace Friends

The rise in remote work brought a lot of convenience for workers, but one of the few downsides is the lack of social connections. While an open office could be a distraction, the ability to talk with coworkers and partake in “water cooler” chat was a perk of going to work.

Those relationships are much harder to form in remote positions, especially if you never meet your coworkers in person. Having a friend at work is good for both your personal morale and for the company itself. Business News Daily cited a 2021 Workplace Friendship & Happiness survey that found the following:

“57% of people say having a best friend in the workplace makes work more enjoyable, 22% feel more productive with friends, and 21% say friendship makes them more creative.”

Just because you’re not working in the same office doesn’t mean you can’t find a work BFF, however. Online communities are common on message boards, in video games, and in fantasy sports. You can form meaningful work friendships, too. It may take a little extra effort, but if you follow these tips, you can make workplace friends with ease!

Why are virtual relationships more difficult?

Harvard Business Review found that many workers view the virtual connection as a barrier to forming real friendships. When you aren’t spending time directly interacting with someone, you may miss out on visual clues that are often vital in interpersonal relationships. The researchers at HBR state that coworkers need to build cadence with one another, essentially a good back-and-forth based on being able to predict behavior. You can build that cadence virtually, it just takes a little more time and effort than it would in person.

See what the company can do

Hopefully, your organization has adapted to the remote atmosphere and can provide a welcoming remote onboarding. A good onboarding not only gives you valuable insight into the company’s culture but can fill you in on any virtual events. Your company or department may do virtual get-togethers, or maybe even after-work virtual happy hours.

Employers Advantage believes a savvy workplace can take even more steps to provide an atmosphere conducive to friendship. Employers can arrange all sorts of remote gatherings without the bosses being present to provide a safe space for employees to bond and discuss without an authority figure nearby. If your workplace uses Microsoft Teams or Slack, employers can create channels for similar interests, like sports talk or running.

Find a buddy

If you’re in luck, your company may provide you with a work buddy. If not, don’t be afraid to ask for one. If you’re new to the company, having an experienced coworker that isn’t your direct supervisor can be a great way to learn the ins and outs of the organization, and they could become your first friend.

Career coach Octavia Goredema suggests looking through your employee handbook or company website to find resource groups, mentorship programs, or volunteer opportunities. She also thinks one of the best options is to ask for other recent hires as a buddy.

“Someone who is just a few months ahead of you has a perspective that will be so helpful,” –Octavia Goredema

Take initiative

Maybe you don’t work for a large company with a lot of resources dedicated to these types of group activities. That’s okay! You can still make friends. You’ll just need to take initiative.

Ask your supervisor if there are people they think would be good connections for you. Go out of your way to strike up conversations. When you’re finishing a meeting or discussion, ask personal questions or try to learn about shared interests. It may be awkward at first, especially without physical interaction, but these same principles apply to in-person conversations as well. Someone needs to be the first one to dig a bit deeper, it may as well be you.

If you need initial ice breakers, Employers Advantage suggests asking a coworker simple questions rather than a supervisor. For example, asking about dress code expectations. These innocent questions allow you to build a dialogue, and the person being asked feels valued. This can lead to other informal chatting down the road.

The Muse suggests if your team doesn’t have planned virtual activities or communication channels to be the one to plan them. These virtual events can be one-on-one or with a larger group and don’t need a specific purpose other than general chitchat and a place to set work aside for a moment. These conversations will not only allow you to get to know your coworkers but can increase team morale.

Finally, Psychology Today believes being open to sharing more of yourself and offering praise will go a long way. If you’re willing to share, others will feel more comfortable sharing, and sharing and offering praise will make them feel more human. The smallest bits of effort can make a fellow employee feel more appreciated.

Wrap up

Just because you don’t work in the same building doesn’t mean you can’t find a work bestie to chat with, support, and help each other get through the day. Many companies offer resources to help you form relationships, and you may even find a dedicated work buddy. But you always have the power to take initiative and create a space for friendships to blossom. Even the smallest bits of effort will be noticed.

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Why Don’t Workers Want To Return To The Office?

One of the few bright spots of the pandemic was the switch to remote work as a norm, at least in the eyes of employees. Before the world started to open back up, remote and hybrid work models allowed companies to stay afloat. While we aren’t out of the woods yet, more of the world is opening up, and many companies are eager to return to the office for business as usual.

Many employees don’t share that view, data finds. Remote work comes with many perks and benefits you can’t find in an office, and few want to return to the old ways of business.

This coincides with the Great Resignation/Great Reshuffling, as employees are fleeing from jobs that don’t align with their needs and values. Employees have more power than ever before, and there’s a shortage of qualified workers. If you’re looking to attract top-tier talent to your organization, you’ll need to keep up with the times. It’s clear—workers don’t want to return to the office. With help from the experts, we examine why.

Data supports it

This isn’t hyperbole; workers are resistant to returning to the old ways of business. A Bloomberg survey in May 2021 found that 39% of workers would consider quitting if employers weren’t flexible regarding remote work. The number was even higher among millennials and Gen Z, at 49 percent. Keep in mind that millennials are the largest group in the US workforce, making up over a third of the working population.

A Future Forum Pulse survey of global IT workers found that 75% of workers want flexibility in where they work, and 93% want flexibility in when they work. Meanwhile, a recent Pew survey discovered 60% of workers that could do their job remotely would prefer to work from home either all or most of the time. That number was up 6% since 2020.

Something to keep in mind: not every job can be done remotely, and remote work is a scale, with hybrid models existing.

Commuting is a pain

We know employees don’t want to return, but why not? One of the largest reasons is also the simplest: giving up the commute and working from the comfort of home. Even the best offices with great company culture can’t compete with not having to commute every day. The most recent US Census found that the average American spends just under 28 minutes each way during their daily commute. Presumably, these Americans also go home, meaning almost an hour a day is dedicated just to traveling to and from work.

That’s a lot of time in transit that could be spent on other endeavors, so it’s hard not to empathize with employees. But there is another aspect many employers don’t realize: environmental concerns. Forbes contributor Mike Swigunski noted that many big businesses have committed to becoming carbon neutral but haven’t offered employees any way to be part of that goal. Decreasing the time spent commuting is a considerable boon to the environment.

Efficiency

Working from home does have its own distractions, but so does working in an office. Coworkers will always chat, conversations will be more frequent knowing a person is readily available, and so much time gets wasted in inefficient meetings. Without being bogged down in the day-to-day of office life, workers are able to be more productive remotely. In fact, Apollo Technical highlighted multiple studies confirming this trend.

 

“Several studies over the past few months show productivity while working remotely from home is better than working in an office setting. On average, those who work from home spend 10 minutes less a day being unproductive, work one more day a week, and are 47% more productive.” –Owl Labs

Output should be the key factor employers care about, and there is tangible data showing employees are able to not only meet but exceed expectations while working remotely. Based on this, savvy employers will find remote employees to be a positive.

Technology makes it easy

In a previous age, even fifteen years ago, a nation working remotely would be almost inconceivable. But our technology makes it a reality, and the ease of access is a huge appeal.

Many organizations fear that without in-person interactions or regular meetings, communication breaks down and corporate culture suffers. But this isn’t the case. Zoom and its competitors allow teams to regularly meet as often as necessary. And meeting time isn’t always used wisely anyway. Having employees commute to the office for small matters actually does more harm than good, as highlighted by Bloomberg.

Meanwhile, a well-made online onboarding process can make your new hires feel at home, and the dedication to remote work models can be viewed as a perk of a positive culture. Work-life balance is one of the most desirable cultural tenets, after all.

Mental health

Speaking of work-life balance, remote styles have proven to be a boon to the mental health of many workers. The pandemic created feelings of fear, uncertainty, isolation, and anxiety across the globe, and the virus isn’t gone yet. Anxiety among younger workers has increased exponentially during the pandemic. Many became accustomed to the comfort of working from home, away from crowds and constant eyes, and a return to the old ways can be triggering.

“People can just come up and start talking, or see what you’re doing on your computer. There’s no door to close so that you can have a moment to yourself,” Alexis, one of many young workers with social anxiety identified by BBC’s Kate Bishop, revealed.

Many workers even view the demand to return to the office as a control technique and that the return could be a way for managers that feel they’ve lost power to regain control.

“They feel like we’re not working if they can’t see us. It’s a boomer power-play.” –Portia Twidt

What can employers do?

In order to succeed in keeping talented workers around, employers need to adapt. If working remotely is a possibility in your industry, potential candidates will want to work remotely. Your competition is going to adapt, and you must too. You may feel like you’re giving up a lot, but working with your team will create happier, more loyal workers, and your organization can benefit from perks like lower office expenses, too.

Harvard Business Review discusses finding a hybrid model that works best for you. Employees don’t have to be 100% remote if it doesn’t fit your organization. Maximize the days employees are expected to come into the office by filling that time with productive meetings, training, and events.

Wrap up

The science shows that remote work is here to stay, and employees want it. The multiple benefits of working from home add up to a very appealing model that even the best offices can’t match. If you want to attract and maintain valuable employees, your organization needs to accept that forcing a return to the office can be costly. Discover the perks of a remote workforce and find a hybrid model that works best for both parties. Otherwise, you may find your organization falling behind.

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Top Trends in the Technology Sector

IT companies and employers who rely heavily on technology know better than anyone the repeat cycle of learning, unlearning, and relearning. As the most rapidly evolving industry with many changes arriving faster than your progress of the previous shift, the challenges many American corporations saw come with COVID-19 were nothing tech professionals couldn’t handle. However, the new standard of virtual-first companies that aim to stay people-centric begs to question what that may look like for the tech industry’s future.

“CEOs know they must accelerate the adoption of digital business and are seeking more direct digital routes to connect with their customers, but with an eye on future economic risks, they also want to be efficient and protect margins and cash flow.” –David Groombridge, VP Analyst, Gartner.

From the continued developments in Automation, Edge Computing, AI & ML, Cybersecurity, Robotics, etc., to the rapidly increasing hiring needs and remote work shift, we have compiled the ultimate guide to the latest IT industry trends and statistics for 2022.

*Research & statistics are courtesy of the industry professionals at Forbes, Simplilearn, Gartner, LinchPin SEO & more!

These Technology Trends Continue To Surge

1. Artificial Intelligence (AI) and Machine Learning (ML)

While AI & ML are far from new, many industries are looking for new ways to grow their resources further to implement these revolutionary technologies. Highly regarded for its excellence in navigation apps and image and speech recognition, AI has made groundbreaking steps in providing critical insights into predicting demand and monitoring resource functions. Machine Learning generates enormous demand for skilled employees across all industries as a subset of Artificial Intelligence. Experts predict the AI market will grow to $190 billion by 2025 (MarketsandMarkets).

Breakdown: Artificial Intelligence (AI) is software designed to simulate human thinking. Machine Learning (ML) is a subset of AI that starts without knowledge and becomes intelligent (Red Marker). Automation is a type of software that follows pre-programmed rules to carry out repetitive tasks without human intervention.

  • In addition to the rise of machine vision technology, low-code and no-code development platforms continue to emerge, allowing more users not to be limited by their coding capabilities.
  • AI engineering’s direct focus on developing ML algorithms to learn, analyze, and predict will help streamline AI delivery.
  • Autonomic systems which learn in real-time from their environments and construct new behavior will advance the capabilities in supporting regulations and situations yet to be seen.
  • Generate AI will compile data to create new, unseen content, helping accelerate research and Development cycles in medicine.

As an AI-centric version of DevOps, AIOps is intently focused on leveraging large data from various IT tools and devices to automatically read and react while still providing historical analytics (BMC).

Along with Automation, AI & ML are expected to generate a 9% increase in new US jobs by 2025 (Forrester), ranging in programming, testing, development, and more. The industry also boasts one of today’s highest salary ranges. Enabling companies of all styles to improve efficiency and reach their goals quickly, continued advancements in automation are well on the horizon.

Hyperautomation

Hyperautomation is a business-driven approach to rapidly identifying and automating as many processes as possible. It is designed to help enhance remote operation and dependability and streamline business procedures.

Autonomic Systems

Autonomic Systems are self-managed physical or software systems that learn from their environments and dynamically modify their algorithms in real-time to optimize their behavior in complex ecosystems. These systems create an agile set of technology capabilities that can support new requirements and situations, maximize performance and defend against attacks (Gartner).

There are many promising developments of AI in healthcare, such as PathAI, dedicated to providing hospitals and patients with accurate diagnoses through deep learning algorithms. ML is also used to speed up drug development by predicting symptoms and infections of patients. Our recent industry guide covering Medical Devices touched on the connection between various technology trends and the healthcare industry.

2. Cloud Computing | Edge Computing

As more companies migrate to cloud solutions, edge computing has emerged as a high-rising technology trend. A cloud is an IT environment that abstracts, pools, and shares IT resources across a network. An edge typically involves large volumes of data being handled at the edge of the network to optimize processing further. While edge computing is used to process time-sensitive data, cloud computing is utilized to process data that is not time-driven. Thus, edge computing accommodates for the shortcomings of cloud computing, IoT being one of the greatest beneficiaries.

• Clouds are places where data can be stored, or applications can run. They are software-defined environments created by data centers or server farms.
• Edges are also places where data is collected. They are physical environments made up of hardware outside a data center.
• Cloud computing is the act of running workloads in a cloud.
• Edge computing is the act of running workloads on edge devices.
(RedHat)

More industries are designating a place for digital information and resources and prioritizing safety in the process. Driven by major companies AWS, Google Cloud Platform, and Microsoft Azure, cloud computing allows companies to improve work efficiencies in the digital space. According to Forrester Research, the global cloud computing market will reach $482 billion this year. By the end of the year, the global edge computing market is expected to reach $6.72 billion, establishing a wide variety of jobs.

“Though many companies are adopting edge computing and are predicting the end of cloud computing, Bernard Golden points out that this is not substantiated because there is currently no analytical framework to prove it. Edge computing is not the only solution for the challenges faced by IT vendors and organizations and does not handle all applications across every environment, thus, cloud computing will still remain a crucial part of an organization’s IT infrastructure.” – Simplilearn

Another rising form of computing technology, Quantum Computing, is identified as a top emerging trend thanks to its ability to analyze and act on data quickly. QC has made tremendous strides in healthcare through the development of vaccines and in finance and banking through trading and fraud protection. The capabilities that lie within Quantum Computing are marked by experts to be the greatest in computing innovation. By 2029, the quantum computing market is projected to surpass $2.4 billion (Simplilearn).

3. Cybersecurity

While cybersecurity itself is a more routine practice, new threats are constantly arriving, thus demanding that security technologies keep evolving. First seeing a spike in cyber-attacks as a product of the remote work shift, more industries and organizations gathered a better understanding of the threats that accompany their technological developments. From hackers illegally accessing data and finding new ways to invade networks, the importance of investing in cybersecurity is immensely evident. Gartner predicts by 2025, “60% of organizations will use cybersecurity risk as a primary determinant in conducting third-party transactions and business engagements.” Experts forecast the global security market will grow from $217 billion today to $345 billion by 2026.

Cybersecurity has become immensely relied upon to quickly “verify identity content and policy adherence across cloud and noncloudy environments” (Gartner). Cybersecurity mesh also plays a tremendous role in modernizing organizations’ security architecture by enabling greater scalability, flexibility, and reliable cybersecurity control. “The security mesh enables core distributed policy enforcement and provides convenient composable tools that can be plugged anywhere into the mesh” (10xDS).

Courtesy of Gartner’s IT Contributor Kasey Panetta, check out these Eight Predictions For Cybersecurity in 2022 and Beyond.

4. Robotics

Similar to Artificial Intelligence and Machine Learning, the operations of Robotics aim to execute tasks typically performed by humans. Robotics Process Automation (RPA) is another technology automating jobs. RPA enlists software to automate repetitive tasks performed by humans, such as interpreting applications, processing transactions, reading data, and replying to emails (Simplilearn). As is the case with AI & ML, RPA will create many more jobs than it is replacing. By 2030, Experts predict the global robotics market could climb to $260 billion by 2030 (BCG).

Whether by taking the form of a human (physical) or a robotic application (virtual), the functionality of robots made a tremendous leap in 2022. The increased use of robotics in healthcare signifies the high demand for Robotics Engineers. Physical robotics highlight advancements in medical equipment, while virtual bots typically exist in software to automate customer service and sales tasks, overlapping with AI (LearnToCodeWithMe). Chatbots have also made significant improvements in the basic functions of customer service and their ability to resolve certain queries.

Courtesy of Automate.org, check out these Seven Trends and Predictions For Robotics in 2022.

Remote Work Shift –

The remote and hybrid work model is not going anywhere anytime soon. With the high productivity many US employers are experiencing, combined with the preferences of their employees, many organizations’ back-to-office plans have fallen by the wayside. PEW Research reports that 60% of US workers say their jobs can be done from home, while GoodHire found that 85% of US workers prefer job listings with remote work options.

TRUST Goes Both Ways – Employees seek to gain as much freedom and flexibility as possible. For employers wanting to stand out to top performers and highly coveted job-seekers, there is immense pressure to give in to these desires when plausible. In addition to technology growth, companies must prepare to invest in new health benefits, communication strategies, and overall holistic wellness to boost employee performance and retention.

Remote Work is best geared toward the IT & Software industry.

While technology is constantly evolving and improving, the rise of remote work forced technology to improve in new, specific ways, accelerating the global need for technology. As a result, remote-friendly SaaS services, such as Trello and Asana, have taken center stage (Fast Company). One key example of this is the need for enhanced software and hardware connectivity. As hardware struggles to manage high longevity in technology, the decentralization of large office spaces puts added pressure on the countless individual workspaces that need stable connectivity.

Now that AI is more of a mainstream concept, many employers are seeking specific AI expertise in 2022, such as natural language processing (NLP) and automated speech recognition (ASR). Furthermore, 70% of C-level executives prefer that their non-technical employees have some automation and AI skills (LearnToCodeWithMe).

Today’s workforce continues to ask the big question: Are the latest tech advancements causing humans to lose their jobs to robots and computers? Technically, yes, but this shift has created far more opportunities in tech! Machines are not replacing humans; as ITOps teams develop new skills, new roles will materialize. While the World Economic Forum expects 85 million jobs to be replaced by machines with AI by 2025, the same report expects 97 million new jobs to be created by 2025. With the developments in Edge Computing, Software Engineers predictably be the greatest beneficiaries, followed by Cloud Reliability Engineers, Cloud Infrastructure Engineers, Cloud Architects, Security Architects, and DevOps Cloud Engineers (Simplilearn).

Across all industries, the sharp rise of remote work was the source of over 20% of cyber-attacks over the past two years. As a result, cybersecurity quickly became one of the most in-demand jobs and prioritized tech skills in 2022. Hired.com reports that the demand for Security Engineers has increased by 132%. In fact, the number of jobs available in cybersecurity is growing 3x faster than any other tech-related job.

Job-Seekers: Do you have a growing interest in getting involved in tech? The tech industry is desperate for workers in general, leading to many job opportunities opening up to job-seekers with little-to-no industry experience. There are many varying avenues you can push toward!

Statistics, Facts & Growth Projections via Learn To Code With Me:

AI & ML:

Cloud Computing | Edge Computing | Quantum Computing:

Cybersecurity:

Robotics: 

  • LinkedIn reports that with the rise of both virtual and physical bots, the robotics industry has seen a 40% annual growth.
  • It’s estimated that the US will need 12,500 robotics engineers over the next ten years.
  • In 2021, Life Sciences and Pharmaceutical Robotics orders had a 69% growth (RoboDK).
  • The global market size of robots in healthcare will be worth $3.28 billion by 2025.

Learning About NexGoal

Want NexGoal to help you access the often-closed community of passive candidates and start sourcing top-performing employees for your organization? Filling positions in Engineering, Management, Sales, Customer Support, etc. across clients within SaaS, IT Consulting, IT Operations (and more), we are confident in our ability to connect you to proven talent. Contact our CEO, Kevin Dahl, at kevindahl@nexgoal.com to start putting this plan into action.

*Reference this article, and we will promote your job openings on LinkedIn and/or Indeed for free!

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Assessing The Mortgage Industry: Top Trends & Statistics

Is the U.S. housing market overheating? Within the stability of low mortgage rates and high buyer contention, the housing market continues to be highly competitive. While it is a great time to be in the market for a loan, borrowers don’t quite have their’ pick of the litter’ like in times past. Home prices continue to rise, as does the volume of offers placed on each listing. 

“Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices.” – Joel Kan, MBA Economist.

After assessing various expert opinions, knowledge, and studies, we have constructed the ultimate guide to the latest Mortgage industry trends and statistics entering 2022. Courtesy of the industry professionals with The Mortgage Banker’s Association, Fannie Mae, Forbes, Wall Street Journal, Bankrate, The Motley Fool, TIME Magazine, & more!

Mortgage Rates Staying Low

While banks and lenders compete for consumers, the lingering of favorable rates comes much to the delight of borrowers. Mortgage rates have hovered around 3% throughout 2021, and experts predict that trend to continue. While many foresee a gradual incline, the experts in Real Estate at the likes of Bankrate and Next Advisor are still forecasting rates below 3.5% through 2022.

Why are mortgage rates remaining low? Mortgage rates are also influenced by consumer demand for home loans and the lenders’ willingness and ability to adhere to the numbers. According to the Mortgage Banker’s Association & Fannie Mae, the total volume of loan originations (purchase and refinance) in 2021 is on pace for a $250 million decline (10%) from 2020. The current year is on pace to see an 11% increase in purchase mortgage originations at $1.8 trillion, but a 14% decrease in refinance originations at 2.2 trillion. With loans able to derive from any location, banks and lenders are making their best effort to beat out the competition’s low rates and hold on to their newly hired employees. 

Inventory Causing High Buyer Competition

Realtors across the country have reported seeing multiple offers come in on nearly every listing, and they expect that trend to continue through the Spring as well. According to the National Association of Realtors (NAR), the U.S. housing market is short 3 million homes, and supply will likely remain tight for the next few years. As a result, we are experiencing the most significant annual growth in home value in over 30 years, including a 14.6% price increase from April 2020 to April 2021. Chief Economist with CoreLogic, Frank Nothaft, details how the low rates “have led to really eye-popping house price gains, and I expect that to continue.”

Why is the current housing supply unable to keep up with demand? In addition to the low mortgage rates that have new buyers emerging from every location, construction of new homes was also severely slowed by COVID-19 and has yet to get back on track. The NJ Lenders Corporation also reports that many homeowners who are removed from the big-city lifestyle are reluctant to sell their homes with the ease and comfortability they’ve found in working remotely. Homeowners are much more likely to explore refinancing to cut their monthly payments, focus on new home projects, and build more equity in their homes. Furthermore, these homeowners are well aware that choosing to reap the benefits of the seller-friendly market means they will become a part of the crowded homebuyer market.

via National Mortgage News             
(via National Mortgage News)                                                             (via Affinity Realty Group)

With sellers earning top-dollar for their listed properties, buyers need to be exceptionally savvy in hopes of striking a deal. More desirable homes, such as those not requiring renovations, encompassing ample living space and coveted amenities, are often swept off the market in 1-2 days. The mortgage reporting team at Bankrate implore consumers to enlist the support of a knowledgeable realtor to steer them through the competition. Buyers and sellers have a unique opportunity in the current market, but each must stay aggressive and calculated in their approach to capitalize. 

NOTE: This past June marked the first time since 2020 that the volume of existing-home sales rose as more houses hit on the market. (Courtesy of The Balance)

A Spike in Job Openings

Despite many lenders and banks reporting a decline in the volume of loan originations, hiring is seeing a dramatic increase as the economy heals. Courtesy of the National Mortgage News: “Users of the company’s compensation system found year-over-year processor headcounts in the first quarter were up 58% from a year ago. The number of registered loan officers increased by 32%.” The search consultants at Hunter Hollis confirm this growth and anticipate high demand in the real estate, mortgage, and title industry among those seeking a career change. With interest rates expected to remain low, many organizations are experiencing various career professionals who want to get in on the action.

What The Remote Work Shift Means in Mortgage/Real Estate

Regarding Potential Buyers

COVID-19 has forced employees from all lines of work into temporary or permanent remote working environments. With the ability to operate from a home office for the foreseeable future, homebuyers have reevaluated their priorities and created new arrangements for their futures. They have more freedom than ever before when choosing where and how they want to live. What does this look like in real life? Forget the perk of dodging NYC, Chicago, LA, or other big-city rush hours; employees can ditch their current home’s upscale, costly lifestyle for a more reasonable and desirable one. Whether it is to move closer to family or find peace and safety in a rural or suburban area, people across the country are taking advantage of the opportunity. In fact, a recent study from H.R. Executive revealed that 58% of workers would “absolutely” look for a new job if they were not allowed to continue working remotely. 

Regarding Your Employees & Talent Recruitment

Talent demand is high within the mortgage and title industry, and despite the plethora of job seekers, employers are admittingly finding it hard to fill their open positions with highly skilled personnel. Employers’ ability to adapt to the times plays a significant role in keeping up with competitors and constructing a healthy recruitment marketing model. Being locked down to one location due to a job is a thing of the past. Many employers have opened their opportunities to fully remote and semi-remote positions to adhere to national guidelines and reach a higher quality of talent recruitment.

Tech Trends via The MPA

The Rise of Tech-Savvy Home Buyers: “Where some companies were reluctant to invest in tech advancements prior to the COVID-19 outbreak, most lenders now recognize the need to offer online mortgage solutions.” – Allison Leung, Maxwell Financial 

Driven by customers’ developing expectations in “speed, seamlessness, convenience, personalization, and transparency,” here are a few of the MPA’s revealed tech trends that experts presume will shape the future of the mortgage industry:

  1. Adopting API To Improve Efficiency

Mortgage lenders are taking part in the transcendence of application programming interfaces (API) to streamline business processes. From workflow automation, data accuracy assurance, and facilitated compliance, employers are making a pivotal effort to stay up to date with the latest technology trends. Leung states: “A lack of efficiency in back-office operations not only affects loan processing speeds and loan officer morale, it also has an impact on the saleability of loan products overall.”

  1. Improving Self-Service & Omni-Channel Capabilities

The digital home-buying experience is here to stay. Allowing consumers to engage with you through their preferred method of communication will open up your lead attraction capabilities. I.T. tech consulting firm, Infosys, believes that if lenders can provide “online calculators, scenario analysis tools, and open mobile communication channels,” they will see lead conversation improve. 

“For many, working with lenders that offer an online experience that allows them to get quickly pre-approved, lock in their rate and upload required mortgage documentation is a welcomed departure from the traditional mortgage process.” – Glenn Brunker, Ally Home.

  1. Increased Machine Learning (ML) & Artificial Intelligence (A.I.)

Infosys suggest that the adoption of ML & A.I. can increase speed and efficiency within the document-intensive process for lenders. Key examples include paperwork organization and analysis and borrowers’ salary and credit history assessment. Completing preliminary mortgage advising tasks and offering product recommendations through the use of an A.I. chatbot will remove tedious, repetitive tasks from your desk.

Homebuyers Statistics: (Pulled Directly From Mortgage Calculator)

  • First-Time Buyers– The number of first-time buyers entering the housing market fell to its lowest percentage since 1981.
  • Median Age and Income of First-Time Buyers– The average age of first-time homebuyers in the United States stands at 31, showing little to no change over the last few years. Their average annual income was approximately $68,300. The median cost of homes purchased by first-time buyers is $169,000.
  • Median age and Income of Repeat Buyers– The average age and income of repeat buyers remain relatively stable, with a median age of 53 and an income of approximately $95,000 per year. The average cost of a home purchased by a repeat buyer is $240,000.
  • Household Composition of Homebuyers– The statistical make-up of home buyers has remained unchanged over the last few years, with 65% being married couples, 16% single women, 9% single men, and 8% unmarried couples.
  • Financing Profiles– 88% of all buyers financed their purchase, with younger buyers more likely to rely on financing than consumers aged 64 or older. 93% of first-time buyers opted for a fixed-rate mortgage, with 35% financing their purchase with an FHA-backed mortgage. The average down payment for first-time buyers was 6% of the total cost of their home, while the average down payment for repeat buyers was 13%.
  • Housing Profiles– 79% of buyers purchased a detached single-family home, while 16% bought a townhouse or condo. The average home purchased had three bedrooms and two baths.
  • Average Time Between Moves– The average time a family is expected to stay in their home is approximately 13 years.

Final Thoughts

In a recent writeup for NextAdvisor, Finance Journalist Jason Stauffer surveyed what mortgage experts project for the coming months/years. Surmised from industry specialists Lindsey Piegza with Stifel Financial; Tian Liu with Enact Mortgage Insurance; Jon Bodan with Perpetual Financial Group; Erin Sykes with NestSeekers International; and Robert Frick with Navy Federal Credit Union, the most commonly relayed messages held true to these three common themes: 

  1. A slight, gradual increase in mortgage rates, but remaining below 5% for the foreseeable future.
  2. Demand has overwhelmed supply, and the low housing inventory remains the greatest concern for lenders and homebuyers.
  3. Lenders are pursuing borrowers. While potential homebuyers are experiencing decreased odds at landing their future home, lending professionals and real estate agents are enduring increased workloads.

Learning About NexGoal

Want NexGoal to help you access the often-closed community of passive candidates and start sourcing top-performing employees for your organization? We have tracked great success within the mortgage and title industry and would love to introduce you to talent we believe in! Contact our CEO, Kevin Dahl, at kevindahl@nexgoal.com to start putting your plan into action.

*Reference this article, and we will promote your job openings on LinkedIn and/or Indeed for free!

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