DEFINITION of Brokerage Supervisor
Brokerage supervisor is someone who manages brokers at a stock brokerage firm, mortgage brokerage firm, real estate agency, insurance company, shipping company, or other firm that uses brokers to do business. The brokerage supervisor also has the critical role of maintaining company service standards, workplace ethics and workflow processes. Typically, a supervisor will possess the same licenses as the brokers under him or her, but it is not necessarily the case when the supervisor does not perform any sales function.
BREAKING DOWN Brokerage Supervisor
A good brokerage supervisor should have attention to detail, solid mathematical skills, an accounting background, leadership ability, strong customer service skills and previous experience with commission sales. The supervisor must make sure that the team of brokers is in compliance at all times with respect to regulations and internal company policies. A sales job that is commission-heavy for pay has the potential of leading unethical individuals astray when it comes to interacting with customers. This is the reason that, in the finance and insurance industry especially, brokerage supervisors who fail to properly supervise their brokers (such as by conducting formal annual audits) and who fail to establish and/or enforce company's policies are subject to enforcement action by federal and state regulatory agencies if a broker engages in fraud. Such enforcement actions may include fines and being barred from holding a supervisor position.
A brokerage supervisor is also responsible for continuous on-the-job training for the brokers, intervening in issues involving his or her team, resolving customer disputes, and creating and implementing policies and procedures that can help enhance work efficiency. The supervisor may be directly responsible for determining sales bonuses if there is not already a pre-set formula. A supervisor generally works on a straight salary (i.e., no commission), but could be eligible for sales-driven bonuses if his or her team performs well.