Page 36 - Investment Advisor February/March 2023

do something that they’re not trained specific rules around investing or retire- dates is a lack of clarity about the
to do — and often not interested in ment distributions. In the process they compensation path they can expect
doing — is setting them up to fail. And discount all the knowledge and ability over the years. While candidates are
they know it. the younger advisor does have, opting to told what their starting compensation
Sales jobs and financial advisor jobs focus instead on what they don’t know. will be, they usually aren’t informed
involve different sets of skills. Financial Expecting advisors to be fully formed about how their compensation will
advice professionals early in their career right at the start of their careers is evolve as they take on more responsi-
need to know they’ll be treated as finan- unrealistic. It reflects a certain amnesia bility and become more important to
cial advice professionals and not subject- about how long it took the firm leader the business.
ed to continual demands that they deliver to become the well-rounded expert they It’s this all-too-common informa-
up their family and friends as clients. are. And it also signals that you yourself tion void that leaves employees in the
Furthermore, leaders’ insistence on now know everything, which is not an position of asking how and when their
hiring advisors who share their compensation will be increased.
enthusiasm for selling doesn’t New hires want firms that Often, firms don’t have a clear-
make sense. Why seek to hire ly defined plan. The firms that
someone who is a carbon copy will help them fill in their have clear compensation paths
of yourself and your skills? If are the same ones that provide
you’re really good at business knowledge and ability clearly defined career tracks.
development, why not hire ser- gaps and support them in But too many do not.
vice advisors for current clients A final reason that good
so that you can focus on gener- developing their careers. candidates pass on working
ating new business for the firm? for firms is that they perceive
There’s also the route of It’s usually more important a lack of culture and a lack of
training a new advisor to bring community. People want to feel
in new clients. But it makes lit- to them than their current good coming to work every day.
tle sense from a business per- They want to belong to a com-
spective to invest time training compensation level. munity where they have the abil-
someone else to do what you ity to grow, not just financially
have already mastered. attractive model for young talent: Who but also intellectually and emotionally.
wants to work with a know-it-all? Culture and community are what ele-
THE RIGHT EXPECTATIONS But it also communicates something vate a firm beyond a punch-the-clock
Just as firm leaders expect new advi- harsh about the organization’s culture. organization. These organizations trust
sors to sell because that’s what they New hires want firms that will help employees to manage their time effec-
themselves have had to do, many expect them fill in their knowledge and ability tively. They don’t want employees who
new advisors to be as knowledgeable gaps and support them in developing put in their eight or nine hours and leave
about planning and investing as they their careers. It’s usually more impor- for the day. They want dedicated profes-
are. But of course, it’s exceedingly dif- tant to them than their current compen- sionals, and they usually get them.
ficult to be an expert in everything from sation level. If your firm is struggling to find
investments to insurance to education Too many firms signal that new hires and hire the right people, it’s easy to
planning to retirement planning at the are essentially expected to be self-suf- blame competition from other firms
outset of one’s career. Expertise takes ficient. What they want instead is com- or a talent shortage. But looking
time to develop. munity, mentorship, support and the inward can be the start of more con-
Many firm leaders have been in the prospect of growth. structive outcomes, especially when
industry for multiple decades, and have Don’t limit your pool of candidates by you honestly evaluate whether your
become strong generalists. But I’ve looking for perfection. Focus on hiring firm is offering what candidates most
frequently heard such advisors voice people with core skills that your firm want. And what they want goes far
frustration that their newer colleagues really needs, and then developing and beyond a paycheck.
don’t know everything that they them- training on additional skills.
selves know. Angie Herbers is chief executive and senior
Time and time again, more experi- COMPENSATION, CULTURE & consultant at Herbers & Co., an independent
enced advisors will get angry because COMMUNITY management strategy consultancy for finan- Adobe Stock
their new employee isn’t familiar with Another turnoff for advisor candi- cial advisory firms.

34 INVESTMENT ADVISOR FEBRUARY/MARCH 2023 | ThinkAdvisor.com