Performance vs. Tenure: A Lesson in Employee Evaluation

Even though it is the responsibility of the team member to take the initiative to complete these items, it is helpful for firms to affirm how they will support their staff development.

For instance, the career development plan might include steps the firm will take to help new planners achieve the role of lead financial planner, such as:

• Immediately sit in and take notes in client meetings.

• Listen to lead and senior planner phone meetings and pre- and post-meeting strategy sessions.

• Observe planners' written correspondence to clients.

• Debrief a senior planner on your section of presentation agenda at least 48 hours prior to client meeting.

• Observe 4-5 full financial plans, then begin completing them on your own.

• Approve your education allowance for any type of technical or client communication training within your specified amount.

Clearly laying out expectations is the key to reducing frustration, while providing an actionable plan for team members to track their progress. The more objective the measures are, the better chance team members have of staying on track.

However, expectations cannot just be templated. Career plans will vary from employee to employee. Just because Employee A has performed the same role longer than Employee B does not mean that Employee A possesses more talent or knowledge.

A firm is not leveraging its true talent pool if it is promoting based on tenure and not merit.

If you have hired a "rock star," they are going to exceed the goals you have laid out for them. Not acknowledging skill is the fastest way to drive talent out of your firm … or worse, directly into the hands of your competition.

— Read These Millennial Advisors Are Killing It With Younger Clients on ThinkAdvisor.