Should I Stay or Should I go?

On a lighter note today! I will skip the mortgage talk to inform you of something that will afect the way you are approved for a loan or not, or the way a UW will look at you or the company.

Did you know that replacing an employee could cost you up to three times that
employee's annual salary? That's right. Recent studies cite productivity, recruitment,
and training costs associated with hiring new employees as major contributors to this
surprisingly expensive statistic. More importantly, employees take knowledge,
experience, and contacts with them to their next company, often a direct competitor,
as most people tend to stay in the same or similar field.
And while many companies are implementing retention programs to recognize and
limit the cost of employee turnover, research reveals that few companies truly
understand why employees leave in the first place. According to Leigh Branham,
author of The Seven Hidden Reasons Employees Leave, 90% are directly linked, not
simply to money issues, but to issues involving their job, manager, culture, or work
environment.
The following are a few of the top reasons why people quit their jobs, according to research from the Harvard Business
Review, HR Magazine, and other recent studies. Use it as a guide to recognize signs of unhappy employees and to cut
down on the major expense associated with employee turnover:

1) Stress: Departing employees reported that stress from overwork or a work-life imbalance is a big reason for calling it
quits. They might smile through it all, but if employees are consistently working late, working through lunch or on
weekends, you may have a stressed out employee on your hands. Combine this with a personal crisis at home, and the
pressure can be overwhelming.
2) Unrecognized: Many employees quit their jobs because they perceive, whether it's real or not, that their work is
unappreciated. Causes include being paid the same as or less than poor performers or new employees with less
experience; hiring or promoting outsiders instead of from within the company; and even an inkling of favoritism could
create tensions that drive some employees to quit.
3) Money: Many employees don't just quit, they move on to what they perceive as a better opportunity . which may or
may not be true. Either way, you can lose great employees who do not see advancement opportunities within your
company. By knowing your employees' career goals, you may find that the best path for long-term growth is in another
area of your company.
4) Motivation: People don't quit jobs, right? They quit managers. You've heard it before. Well, it turns out that it's actually
true. According to studies, employees seek feedback, not just criticism. They want coaching and direction, assistance and
communication. When they don't get it, they leave. Think about it this way: Have you ever sat down with an employee and
asked what motivates him or her? Do you know why they come to work every day? These are much easier questions to
ask than, .Why are you quitting?.
5) Company Culture: Former employees often describe their previous job as a .bad fit,. a code word for a number of
problems that are often difficult to recognize until it's too late.

Studies suggest that by establishing clear job descriptions
and utilizing personality assessment tools (such as DiSC® profiling), you can better match an employee's specific skills
and talents to his or her job. If you'd like more information about DiSC® profiling or would like to discuss more about this
fascinating topic, give me a call. I'm always looking for ways we can improve our businesses together and be more Productive!

Historic Fed Move Cuts Both Ways for Borrowers
Hot on the heels of its surprise inter−session rate cut of 75 basis points last week, the Federal Reserve cut key interest
rates again, the fifth straight cut since September 2007. In its statement last week, the Fed said it had decided to cut the
federal funds rate "in view of a weakening of the economic outlook and increasing downside risks to growth." In other words,
economic data suggests the US is on the brink of recession, and the Fed is acting accordingly.
Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit
(HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction on their next
statement.
What does this mean for long−term rates?
Long−term mortgage rates, the lowest we've experienced in years, could actually increase after today's cut, based on
historical performance and recent trends.
So if you're waiting for long−term rates to fall further, don't count on it. Your best chance to lock in the lowest rates since
2005 is now. Getting your application in process now will allow you to capture a great rate before it's too late.
What REALLY moves mortgage rates?
Fixed−rate mortgage rates aren't directly tied to Fed interest rate moves. Instead, they tend to follow in the direction of other
long−term government bond yields, such as the 10−year Treasury, which historically moves in accordance with the
economic outlook and in advance of Fed actions. The performance of Mortgage Backed Securities, issued by Fannie Mae
and Freddie Mac, is what really determines long−term mortgage rates.
How does the economic stimulus package fit into the picture?
The economic stimulus package from Congress and the White House could be a double−edged sword for borrowers.
Combined with recent Fed actions, the package could create inflation and bring about higher long−term interest rates.
On the positive side, conforming loan limits are likely to be raised from the current $417,000 to upwards of $625,000. This
means great potential savings for purchase and refinance candidates who live in 20 high−cost areas across the country.
What should you do next?
If you're unsure how the rate−cut or the proposed legislation affects your mortgage, don't worry, you're not alone. There's no
one−size−fits−all answer. Give us a call right away. We'll review your mortgage and see what, if anything, can or should be
done to make the most of your individual financial goals and needs.