Page 45 - Investment Advisor September 2022
P. 45
THE FAST TRACK
By Angie Herbers
5 Workplace Trends Advisory Firm Leaders
Need to Harness Now
These tough employee-management issues are worth addressing today to
keep your business ahead of the pack tomorrow.
ecently, a prospective consult- panied by turbulent markets and,
ing client spent a good 20 min- consequently, falling revenues. And
R utes complaining about what advisory firms typically don’t have
he characterized as his self-centered pricing power to increase the costs
employees. They were demanding infla- of their services to accommodate for
tion adjustments to their salaries, he increasing demands from employees
explained. They also wanted hybrid who want their compensation to be
work arrangements. In short, the firm adjusted for inflation.
leader was complaining about emerg- A related and tricky situation firms are
ing trends in employee management, beginning to confront is when prospec-
and it was clear that he wanted no part tive new hires ask for inflation-adjusted
of them. salaries that are higher than those of
This recent conversation made me existing staff. In some cases, firms are
think deeper about the successful lead- accommodating those requests, feeling
ers I’ve had the privilege of working that their need for talent is so urgent
While the wealth with over the years. One area that sets that the salary concession is worth it.
But many other firms are standing
management industry these leaders apart is their ability to firm and successfully landing new talent
evolve, change and be flexible in their
has historically been employee management approach. by offering something more attractive
slower to adapt than Leaders of these firms recognize chang- in the long run, both for recruiting and
retention: A clear career path.
ing trends and, rather than fight them,
other industries on the seek to harness them to strengthen
employee management their businesses. 2. More Decentralization
While the wealth management indus-
Many industries had begun workplace
front, the COVID-19 try has historically been slower to adapt decentralization prior to COVID-19. But
pandemic has forced it than other industries on the employ- it took the pandemic to get the advisory
firms moving in the same direction.
ee management front, the COVID-19
to catch up. pandemic has forced it to catch up. The wealth management industry’s
Let’s look at the most important trends lag in adopting human capital trends
unfolding right now. isn’t an anomaly; advisor firms’ ten-
dency to run behind was exemplified
1. Wage Inflation by its belated adoption of unrestricted
The most immediate and pressing vacation time. While that trend gained
trend springs from inflation. Rising traction among American businesses in
costs of living have forced firms to 2009 and 2010, it didn’t gain popularity
address the question of whether and within the advisory industry until 2012
how to raise salaries to compensate for or 2013.
increased inflation. The pandemic forced firms that had
Complicating the equation is the lagged in decentralizing their workplac-
fact that inflation has been accom- es to finally implement the ability and
SEPTEMBER 2022 INVESTMENT ADVISOR 41
