The Talent Shortage is VERY Real

b2ap3_thumbnail_TALENT-NEEDED.jpgAre you looking to add great talent to your team? Well, if you will need someone in the next six months, the time to start your search is NOW!

Finding great talent is becoming more and more difficult because there are fewer great candidates available. The average age of advisors is over 50 and 41% of advisers are 55 or older according to Cerulli research. The average time for a firm to hire an advisor has nearly doubled from 2009 to 2017 according to a study by DHI Hiring. There are also fewer and fewer college graduates that pursue financial planning degrees, as well as fewer opportunities in college – notably the closure of the CFP program at LSU here in Baton Rouge.

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10 Years, 10 Truths - Number 1 OR Why the Right Human Capital is the KEY to Your Success

In November of 2015, I reached my 10th anniversary as the owner and founder of The Strategic Implementer, a consulting and coaching firm working with financial advisors and investment managers. As I look back, I realize there are some themes, or “truths” if you will that are “absolutes” to having a successful practice, happy staff and the quality of life you want. Over the course of the next six months or so, I will expound on each of these topics:


1. The right human capital is the #1 key to your success
2. ALL firms need a strategic plan just as your clients need a financial plan
3. You must work ON your firm or you just have a job
4. You must “build your franchise”
5. You must have staff meetings every week – open communication in your firm is key
6. You must empower individuals to do their jobs
7. Having deep, meaningful relationships with your clients will keep them clients forever
8. When it comes to marketing, clients will NOT come flying in the windows
9. Spend money on technology and then spend money on an expert to help you integrate it - TAKE THE TRAINING - this is not "plug and play" software
10. Don’t wait until you are ready to retire to start thinking about succession

Truth #1: The RIGHT human capital is the #1 key to your success

I begin with human capital because it truly is the lifeblood of every firm. It is the number one key to your firm’s success or failure though many advisors want to skimp in this area. For example, I cannot remember how many times I have heard advisors not wanting to pay their Director of First Impressions a good wage because they are “just a receptionist.” This person is responsible for being the first experience with every person who comes in contact with your firm. Is this really where you want to save money? You need to recognize the importance of every position in your firm and pay accordingly. Pay just a little above what the market will bear so they aren’t stolen or get tempted to leave for money.

Maximizing your investment in human capital is all about getting the right people on the ship and making sure that the people are in the right seats. You don’t want to have a navigator who should really be swabbing the deck, and vice versa. Whenever we begin working with a new firm, we always assess everyone in the firm to find out what each person’s strengths are and in what seat they should be sitting. This is true for any new employee that we help our clients hire as well. This takes time and sometimes results in having to turn down otherwise good candidates because they are not suited for the position your firm needs at that time.. I whole-heartedly believe in the maxim “slow to hire, quick to fire.” If one of your employees is not suited to sail the high seas, they have to get off the ship immediately.

I advise every one of my clients to put compensation incentive plans in place for their employees because most people like to know that if the firm is doing well, they will be rewarded for their contribution. On the flip side of this, if the firm is not doing well or the employee is not contributing enough, it will affect their bottom line. This gives them skin in the game. This also means that employees must be given regular performance reviews. Your people need feedback from you or they will not know if they are meeting or exceeding your expectations. They are not mind readers. Also, I have never heard of an employee who didn’t want to receive positive feedback on the things that they are doing exceptionally well.

Finally, you have to remember that we are in a service industry and you should direct as much of your employee efforts and time to the “client WOW experience” as possible. If there are tasks that do not have any effect on the clients’ experience, outsource them. This can include client paperwork, compliance, mailings, etc. etc. You want to give your clients the best experience you can, and those tasks need to be handled with ultimate care. However, there are outsource people that can do pretty much every aspect of your business. If the great people that you have hired and cultivated over time are spending large amounts of time on things that have no effect on the clients’ WOW experience, I see that time as poorly spent. Your team should be spending most of their time providing stellar service to your clients. Period.

The success or failure of a firm is directly linked to the firm’s human capital. It is your job to make sure that ship sails smoothly and efficiently.

As the year progresses, I will be going over the topics I mentioned earlier, and I hope you will continue in my series of Ten Years, Ten Truths.

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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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