Like most in the mortgage industry, Middletown-based Advanced Financial Services (AFS) didn’t have the best of years in 2008. Earnings were 50 percent off the highs of 2005 and 2006.
Yet despite the ebb in its performance and the ongoing turmoil in the industry, AFS continued its streak of being on Providence Business News’ 2009 list of Best Places to Work in Rhode Island – the fourth year in a row it has been included.
The honor was made that much more sweet because the company was battling those outside economic forces that can conspire to kill employee morale.
“It’s easy to shower your employees [with fringe benefits] in the good times,” says Kurt D. Noyce, Advanced Financial Services president. “We’re more proud of this year’s recognition than the other years.”
Noyce credits AFS’ continued strong showing on the Best Places to Work list to the company’s “open-book culture” in which the financial status of the privately held company is shared with its 350 employees.
“We share as much as we know,” Noyce says.
And despite dark times in the financial-services industry, Noyce says the company hasn’t deviated from the core values that founder and CEO Dennis Hardiman laid out when he established AFS in the 1980s: “Be generous and charitable,” Noyce says. “His imprint is on our organization in a very deep way.”
It’s paid off. AFS, which occupies 60,000 square feet of office space in two buildings in Middletown, now conducts lending activities in 46 states. In the last year, the company added to its employee headcount by another 60 positions. Noyce says the company is on pace to eclipse last year’s earnings – which were the fourth highest in the history of the company – by next month.
Despite the influx of new employees, Noyce said it’s not hard to get people to buy into the company culture, particularly in this sagging job market.
Barnes was on the job just a few days when he attended his first monthly meeting for the entire company, in which employees are rewarded for strong sales performance. He couldn’t believe that the gathering was generously catered.
He has also taken advantage of the AFS fitness program in which the company pays 50 percent of the monthly dues to nearby health clubs and organizes exercise sessions at the company headquarters, too.
Despite the unscrupulous reputation that some in the mortgage industry earned by writing subprime loans borrowers could not afford, Barnes said AFS emphasizes originating home loans only if they benefit the company and the customer.
“This is a very ethical company,” Barnes says. “It’s changed my life.”
Others AFS employees must feel the same way. Voluntary turnover has declined from 46 percent in 2000 to 9.45 percent in 2008.
New workers receive about 40 hours of orientation, and then will shadow a mentor and participate in other training sessions throughout the course of their first year. Even seasoned employees can expect an average of 90 hours of training and job development annually.
And there are the incentives. Sales staff members are paid a monthly commission based on the revenue they generate after reaching a minimum threshold, and loan officers are paid quarterly bonuses to reward consistently strong performances.
In addition, AFS annually distributes cash bonuses and stock to employees who have been on the job for more than a year. The distribution is based on the company’s financial budget and projections.
Every employee is given computer access to corporate profit and loss statements and internal performance and financial documents.
Noyce also invites six randomly selected employees to breakfast once a week, where they’re encouraged to ask questions and offer comments and criticisms. The meeting is transcribed in question-and-answer form and distributed throughout the company.
AFS continues to offer a generous health insurance plan with relatively low copayments. There’s a wellness program, paying for all annual exams, and participating employees pay 20 percent of the monthly premiums.
To help employees save tax dollars, AFS offers a flexible spending account plan in which employees can contribute up to $3,000 a year for medical expenses and up to $5,000 for dependents.
For employees with children, AFS has two on-site playrooms that allow workers to bring children to work on snow days or vacation days.
AFS has made volunteerism a priority. Through a program called AFS Cares, the company allows its employees to take a paid leave of up to 100 hours a year – in addition to regular paid time off — for volunteering. On top of that, the company makes a donation to the charity for which an employee volunteers, equal to $10 a volunteered hour.
Moveover, AFS has a Matching Gifts Program, matching employees’ charitable donations at 100 percent, up to $2,500. And there’s the annual community outreach event when the entire company shuts down operations to volunteer for a local nonprofit.
“This company,” gushes Barnes, “is one of the fairest I’ve ever worked for.” •
