How Advisors Can Profit From the Talent Shortage

Not only does that pedigree give you a leg up on job applicants without experience, you also have a much better idea of what you want — and don't want — in a new job.

So take some time, and consider what you've learned, what you'd like to do differently next time around and what you need in a job to be challenged, motivated and happy.

• Start actively posting your resume on both industry and non-industry job sites. Thanks to the Internet, it's easier to look for a new job today than any time in history. Within the advisory industry, there are association sites, and broker-dealer and custodian sites. However, in my experience the general job sites — Career Builder, Indeed, Craigslist, Monster, Yahoo and LinkedIn — are producing the best results in job placements.

• Start doing interviews. In today's advisory job market you should start getting a lot of interviews pretty quickly. If you're not, there is something wrong with your resume.

• Fix your resume. Here's how we recommend that you put yourself in the best possible light:

1. Find a professional to write it for you. I've found that most people have a very hard time writing about themselves. Resumes are designed to take all your best strengths and highlight them in one page.
2. Use numbers when they are to your advantage. People respond to numbers since they are easy to understand. Years on the job, and numbers of clients, cases, portfolios or financial plans you've worked on — all are concrete reasons that the reader should be impressed.
3. Have a good photo. This is easy, but first impressions are also important. Have a pro do it — this is not the place for an iPhone photo — and dress appropriately: It couldn't hurt to check out some other resume photos to see what people are wearing and what you think would look best on you.
4. Don't hesitate to recount your experiences in detail. People may recognize your job description or title, but that doesn't mean they really understand what you did in a prior job. So tell them: not in painful detail, but clearly enough that they understand the depth of your experience. This is especially important when it comes to client contact. You may not have been a lead advisor, but if you sat in client meetings or talked with clients about their financial plans or portfolios or helped solve their problems, it will help prospective employers better understand your people and communication skills and experience.

• Once you've fixed your resume, don't be afraid to use visual aids in the interview. Don't be shy about including documents, brochures, reports, articles, etc., that showcase your accomplishments. It's one thing for people to read about the things you've done; it's quite another to actually see them.

• Negotiate compensation. Once you get a solid job offer, or three, it's time to tell your employer so they are given the opportunity to match the offers. We're seeing ridiculous comp packaging these days. For instance, industry recruiters won't even work in the San Francisco Bay area: The pay is just too high in that market. Associate advisor jobs are paying upwards of $95,000 a year, comp and benefits — with no experience! (The nationwide average is about $60,000.)

If You're an Advisor Employer …

The talent shortage in the advisory world is very real. While employees will benefit from it, employers should be very concerned. But there are steps you can take, too. For one thing, most employees don't want to change jobs. And those who do usually give their employers plenty of opportunities to change their minds about leaving.

We find that the key to keeping and attracting employees is simple: Make a pitchbook. A pitchbook is simply an expression of your culture and your values. It outlines what you are as a company and what you stand for. The pitchbook should include four parts:

1. Define your culture. Create and illustrate a culture that makes employees feel part of something important and lets them know their contributions are important to the firm's mission and success. Show them that you take their job seriously by outlining their training process, their career track and the tools you'll provide so they can do a good job.

2. Define your client service models. Employees today want to know how you want the client service delivered. In our white paper, "X-Cell: The New Frontier of Client Service," we outline a process for doing this. Not only will this help you attract people to your organization, but it will also help you solve a growing profitability problem.

3. Define your incentive structure. Over seven years ago, we conducted an industrywide survey that illustrated why revenue-based bonuses are the most effective way to get your financial advisors motivated to contribute to the bottom line. Your pitchbook should illustrate how the combination of a base salary and incentive program works in your firm. Financial advisory firm employees are going to negotiate for the best prices, and we recommend they do. But when you have a pre-set incentive program that outlines exactly how an employee grows in your firm, and if it is created properly, the negotiation of compensation can nearly be eliminated while shielding your firm from out-of-control rising comp rates.

Additionally, it will protect your firm from financial advisory employees who are just working for the money.

4. Illustrate your benefits package. There is no reason any advisory firm should not have a top-notch benefits package. There are professional employer organizations (PEOs) all over the country that provide these packages to advisory firms for little cost, compared to what you lose if you don't have them.

In short, create a firm that makes people want to be a part of it. It's really not that hard to do, if you put more effort into making it happen.

At this time in the industry, firm owners really don't have a choice. And don't forget to sponsor a financial planning student or two to restore some sanity into the advisory job market.

— Check out You're the Owner, So Own Up on ThinkAdvisor.