Current Unemployment Rate Making Hiring A Players More Difficult

REMINDER IMAGECurrent Unemployment Rate is Extending the Amount of Time Needed to Hire A Players for Financial Advisory Firms.

The unemployment rate is currently hovering around 4% and hiring A Players is taking longer than ever. IF you are going to need an Advisor, a CSA or an Admin in the next 6 months, you must start looking now. We are only taking on a few more hires at this time.

Give us a call at 225.751.8009 OR follow this link to get on our calendar for a complimentary intro call.

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When It's Time to Replace a Legacy Employee

One of the most difficult decisions a business owner has to make at some point is when to terminate a “legacy” employee.  Many of the firms we have encountered have employees that have been with the firm since its infancy and have helped the firm get to where it is today.  For many reasons, some employees can go from being a productive member of the team to barely able to keep up or disengaged.  This can happen quickly, but it is much more common for the transition to happen over a number of months or years.  It frequently happens when the firm goes from being a one or two person office to a much bigger entity.  When this happens, the owner of the firm is faced with the difficult decision of what to do with an employee who is no longer stacking up. 

The first thing that should be done is to have an honest conversation with the employee and provide them with an improvement plan to get back on track.  Many times this will come as a surprise to the person and they will correct their behavior.  Sometimes, we are not so lucky.  When you are faced with an employee who does not meet the improvement metrics set for them, another option is to move them to another position that might be better suited to them.  This may include some short-term pain of retraining the employee, but it is better to have someone you know and trust on your team in a new role in which they can succeed rather than starting from scratch with a new person.  We have worked with several firms that have moved people around within the organization and have found a more natural and productive fit for all their employees.  However, a word of caution - do NOT give in to the temptation of creating a position for them.  This will lead to resentment by the other staff members and ultimately, you, as the business owner as well.  If there is an open position for which they are more qualified, then it makes sense.  If not, then don’t do it. 

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Changes In Employment Laws Make Hiring Even Trickier

Happy New Year!  So, now that the holidays are over, you may be thinking about bringing on new team members to your firm or changing out some not-so-A players.  What I want to talk about today is interviewing…what you can ask and what you cannot ask.  There were some changes to some State laws in 2018 with respect to this very subject.

There are many guides available on the internet and in books that give sample questions to ask in an interview of a potential new employee.  They can vary widely from “What’s your biggest weakness?” to “If I were to ask you to empty the dishwasher right now, would you do it?”  There is usually some armchair psychology going on in deciding which questions to ask and why, but in this post, I am going to focus on questions that may seem innocuous that could potentially get you in some hot water. 

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10 Years, 10 Truths - Number 6 OR You Must Empower Your Employees to do Their Jobs!s

Empowering employees to do their jobs is one of the quickest and most drastic ways you can change your firm. It is also one of the most difficult things for some owners to do because it means ending the cycle of micromanagement.

Micromanagement kills productivity and the morale of your employees. If you feel that you have to micromanage an employee, you either have trust or control issues. Trusting an employee boils down to the belief that the employee can complete their job accurately and efficiently without your intervention. If you do not trust that an employee can do this, you must either learn to trust through effective management-style communication with the employee or you must find another employee.

If the issue is control – whether it is over the business as a whole or over single employees – you must learn to let go or accept the fact that the growth of your firm is going to be significantly impacted. If you cannot avoid micromanaging because you want to be able to control every aspect of the work leaving your office, you would be better suited to getting rid of all of your employees and running a one-person business.

Empowering employees to do their jobs helps the managers free up more time to be productive and increases employee morale by giving the employees more of a sense of responsibility in their work. As employees are trusted to complete their job accurately and efficiently, they feel more responsibility for their own work-product and there is more buy-in from the employee in the operations of the firm. You can double down on this buy-in by including all of your team members in strategy discussions and encouraging them to participate in growing the business in any way they can. Once good employees feel trusted and that their input is valued, they will invariably feel less like a commodity in a business, and more like a valuable member of a team that is all headed in the same direction. This comradery usually lights a fire under people to help them better their work and attitude, but keep in mind this might not extend to a personal friendship. You sign their paycheck so don’t be surprised if they don’t interact with you the way they might with other members of the staff – and don’t take it personally.

Give us a call to see how we can help you achieve Direction, Implementation & Momentum!

 

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The Importance of Having a Hiring Process

We’ve all heard the adage that we need to create the franchise that is our business so that you have repeatable results and repeating success. As with most things in your business, it is important to have a repeatable process for hiring new employees. Without a repeatable process, you leave the hiring of new employees up to chance and risk of 1) not finding the types of candidates you need your firm, and 2) hiring the wrong people. Both are expensive and time-consuming.

How to Find Great Employees
The most important rule to remember when posting job ads is to post to the places where the best candidates are looking. This is easier said than done, but it is not a useless exercise. It is important to cast a broad net if you are looking for administrative staff that –could have experience in a different industry. If you are looking for a more senior employee such as an operations manager or junior financial planner, it is important to keep in mind that these people may be looking for a new position through some of the larger job board websites as well as more specialized sites like their local FPA chapter or the CFP Board site. LinkedIn can also be a very useful tool for hiring/headhunting.

Interview Process
Once you get a candidate that you are interested in, the first step should always be a phone interview. You can learn a lot about a person over a phone call without having to go through the trouble of setting a meeting in person. You can weed out many of the applicants through a 15 to 20 minute phone call. Not only can you get information that is not on the candidate’s resume, you can get a sense for his or her phone etiquette and ability to think on their feet. In our process, if the candidate survives the phone interview, we send them a career history form, which gives us more information about their previous jobs, what they liked about them and why, and what they want to do in their career in the future. Only then is an in-person interview set up.

The questions you should ask both in a phone and in-person interview should be scripted, and you should be asking the same questions to each candidate. This is part of creating a successful hiring process. The questions should be tailored to the position for which you are hiring and should also take into account the culture of the company. This is not to say that every interview should have every word scripted. The interviewer will need to ask relevant follow-up questions to the answers provided by the candidate. This may not come naturally to everyone, and it is not uncommon for an interviewer to later think of several follow up questions he or she should have asked during the interview. It is perfectly acceptable to pose those follow up questions in an email to the candidate, but also be sure to add these follow up questions to your template so you do not miss them again. Two good resources for substantive questions are Paul Falcone’s 96 Great Interview Questions to Ask Before You Hire and Bradford Smart’s Topgrading. Both provide in depth analysis as to what questions to ask, and what you should be looking for in the answers.

Skills Testing
Skills and strengths testing is an important part of the interview process because you can only gain so much information from a person from talking to them. We use Caliper Assessments as part of our interviewing process because it is a good combination of personality, intelligence, and professional testing. It gives us a good idea of how the candidate will interact with other staff members, and the type of work they are suited to excel in. It is important to remember that no test is perfect and should be analyzed based on the totality of information you know about the person and the position you are considering the candidate for. However, if a candidate tests poorly, don’t be hesitant to move to other candidates just because you liked that candidate in his or her interviews.

Often, specific testing is needed for candidates that will have very specific job duties. For example, an administrative support candidate may need to be tested in his or her proficiency in MS Office. A financial planner candidate may need to provide a sample financial plan or can be tested on planning knowledge based on a hypothetical set of facts.

Onboarding Documents
Once you decide to hire someone, you will need to have uniform onboarding documents that lay out the duties the new employee will be responsible for, along with the compensation structure for the position. You want to set the expectations with the new employee for his or her position and for the firm in general.

The current job market favors the employee with low unemployment and a shortage of top talent. If your business will need a new team member in the next 6-9 months and you need help with any part of this process, please contact us now to discuss what we can do for you.

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The Importance of Hiring Good Employees

Many employers wait until they need a new person before they start posting job ads and looking for the new employee. This will often lead to the knee-jerk reaction of “we just need to get a body in here.” Just a body is almost never what businesses need unless they are in the movie business and they are looking for extras. Though employers may need help immediately, it is far more expensive and time consuming to hire the wrong person than it is to wait for the right person. A new employee that is smart, fits with the culture of the firm, and works hard can bring the level of work product and morale up in the office, even if that person is at the bottom of the organizational structure.

Any new hire is going to be a significant investment of time and money. Even if the new employee has worked in the same industry, there is always a learning curve when going to work in a new business. No two businesses operate in exactly the same way and it will take the new employee time to get up speed on how your specific business works. There will be a significant amount of time invested in training the new person, and there will also be time and energy spent by everyone on the team to make the new employee feel welcome in their new environment. To the same point, the investment of money by the firm is not limited to just the salary paid. We also have to consider the cost of the decrease in productivity of current employees who are responsible for training the new person. 

Even when the job description for a new person is acutely tailored, good employees always find a way of branching out and taking on tasks that were never in their job description. This will give leverage to other employees to focus on higher level tasks. Whether you are looking for a Senior Financial Planner or a Director of First Impressions, when a new employee can take on additional tasks, the leverage to work on the business instead of in the business and tackle more strategic goals always flows upstream.

Employment Numbers Are Not on Your Side

According the US Department of Labor, the national unemployment rate was 5.1% in September 2015, the lowest it has been since April 2008, and it has been steadily falling since 2010. (http://www.tradingeconomics.com/united-states/unemployment-rate) Though it has slowed somewhat, earlier in 2015, there were more new jobs created in the US than in any other time since the Department of Labor started tracking this number in 2000. Lots of job openings and very few people looking for jobs mean that good employees are scarce. In an employee’s market, finding and keeping good employees will necessarily be more difficult.

Because there are so many job openings and firms looking, qualified candidates who would fit into different firm cultures are not staying unemployed for long, and they often receive multiple offers quickly after they start interviewing. While some candidates are just looking to get the most amount of money in a new position, creating a bidding war among several potential employers, it is far more common for a candidate to look for a specific salary range, and then look for the firm culture that they feel the strongest connection to. It is truly a scenario where the potential employee is interviewing the members of the firm to see if he or she wants to work with those people every day. Also, because of the changing landscape of mandatory health insurance and increasing education of sound retirement planning, employees are requesting more benefits from employers in addition to the base salary offers. Competitive firms are offering a full gambit of benefits because they know this will attract the best candidates. Make no mistake – good employees not only want to be paid well, they want a benefit package that is just as competitive.

Difficulties in Hiring

Depending on the market, we are finding there are either a large number of unqualified applicants to our job postings, or virtually no applicants at all. In the former scenario, it feels like we are trying to find a needle in a haystack and in the latter, it is like doing a rain dance in the desert. Because of this, it is taking longer to find qualified candidates, and even longer to find qualified candidates who fit well with firm cultures. It makes sense that there would be large numbers of unqualified candidates in larger markets because in today’s landscape, businesses are hanging tightly on to their good employees and only letting go of their worst people.

Planning Ahead

Kneejerk hiring can be detrimental to your firm because of the money and time that is wasted, but also from a morale standpoint. A firm’s culture will quickly deteriorate if the employees see any position in the firm as a revolving door. If employees are not invested in building relationships with coworkers because they suspect some of them may be gone in six months, the firm can never run as a well oiled machine. The only way to combat this is to plan ahead – look at where your firm will be in 12 to 24 months and think about where area of the business will be overloaded if you hit your growth projections. If you see some area of your business reaching capacity in the next 6 to 12 months, you need to start looking for your next hire today.

If you are ready to start looking for your next hire, feel free to schedule a call with us to discuss further.

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Office Clutter... time to take it seriously

Office Clutter... time to take it seriously

Okay, I will admit we all have different work styles. I myself, prefer order. A place for everything and everything in its place. I like lists - lists of things to do - lists of things I want do. A way to keep order and compensate for my horrible short term memory. 

Still, I occasionally go into client's offices and what I see is nothing short of a natural disaster. It looks like a funnel cloud ransacked the place. Piles of papers, files, post it notes, magazines, books...you get the picture. And enviably, they tell me, "but I work best in chaos" and to that, I say.. .what a crock!

Nobody works well in that kind of situation and let me tell you what I believe the biggest reason for this is (in my opinion)...it's overwhelming, it's depressing, it's a big reason that so many people become "frozen" by their daily work and can't make any progress. Additionally, when you keep files and loads of paper in your office, you reduce the efficiencies in your office by slowing down retrieval and access by your staff or yourself to documents you need. They are not where they should be and subsequently, this slows down the flow of work, sometimes to a crawl as you and/or your staff take precious time to search for what they need,  many times that being one piece of paper.

Here is a link to a book on that for $9.95 will  walk you through decluttering your office space (and along the way address your excuses for  not doing so and the rewards of completing this task). It might not sound important but it is! It can, in extreme cases, have a large impact on how  much you and your staff get work accomplished and feel about your workspace and in very extreme cases, cause a compliance nightmare or something to be dropped or poorly handled for a client.

Now get moving!

Call me or visit my site, if I can assist. Ginny

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