The Strategic Implementer - Blog

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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7995 Hits

You Never Get a Second Chance to Make a First Impression.

You Never Get a Second Chance to Make a First Impression.

So many times, I see advisors work so hard to get a get referral. They get one and low and behold, the referral becomes a client. So what happens now?

The advisor is now on to the next conquest because that's what we've told you. Don't break stride, keep your momentum going. But the problem here is that you have this brand new client, a bird in the hand so to speak and you are not spending anytime on the front end with them, welcoming them, walking them through the transfer process, writing them a handwritten thank you note and including a small gift as a thank you.

No where in your relationships with your clients do you have a better opportunity to establish how the relationship will progress than in those first few months. Make sure you have a process for someone in your office to follow. I would suggest it include the following items:

  1. Write a handwritten thank you note thanking them for becoming a client (should come from you).

  2. BEFORE the transfer process begins, send them a letter letting them know how it work. For example, remind folks who have checks on their investment accounts to stop writing checks and give them an idea of when their money will become available again and when they'll receive checks from the new custodian. Let them know if there are any complicated NON-ACAT items that will come slowly. Reassure them that you are watching this every day and will notify them immediately if there are any issues.

  3. Have someone from your office contact them at LEAST once a week to engage them in conversation and ask them if they have any questions.

I recommend 10 touches in the first 90 days with 6 of those being in the first 60 days.

 What's going to happen here? First and foremost, you have a happy and well-served client. Secondly, they are going to be so ecstatic with your service, they will be chomping at the bit to tell their friends. Thirdly, they are now conditioned to refer folks to you.

 Give it a try and see what happens. You will be establishing a firm foundation for your client relationships!

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2154 Hits

No matter how hard vou wish it...thev won't come flying in vour window...

No matter how hard vou wish it...thev won't come flying in vour window...

Qualified prospects...they're out there in numbers greater than we've ever seen! But one thing has not changed...no matter how hard you wish it, they will not come flying in your window and land in your lap. You still have to do the work.Now, when I say work, I mean having a well-thought out plan of reaching your ideal clients. This might include:

1. Identifying the clients you want to duplicate. You know, I've said it before but I'll say it again. People have an innate desire to help others if they can. Your clients want to help you...it gives them a good feeling to match you up with their friends and have the relationship be successful. One word of caution here. Make sure you have educated your clients as to your referral process so they know what their friends and family can expect from you when being contacted.

2. Talk to your Center's of Influence. Again, as I've said before, these folks are just as befuddled as your clients. Break down all the rhetoric for them so they can break it down for their clients. They'll appreciate the simplicity you are trying to bring to their lives and know their clients will appreciate it as well!

3. Write, write, write...the media is hungry for information right now. Be a resource for your local paper. Again, it all comes down to keeping it simple. However, don't expect them to come to you. They will value and treasure you if you send them well thought out and written pieces that are ready to go. If you see some big news that day, be the first to call the business editor and find out what you can do to help them communicate it. Do they want to interview you?

You get the idea. It really doesn't have to be hard. It just has to be a priority, well thought out and consistent. This is how you keep your pipeline flowing.

A parting thought.. .if you don't have time to do these things, ask yourself why? If it's because you are spending the bulk of your day in your back office, this is a recipe for disaster. No matter how hard you work, this will NEVER change until you decide to change it by hiring a coach to help you figure out what you can delegate and to whom.

What are you waiting for?

Take care and let me know your thoughts. Ginny

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2194 Hits