Page 39 - Investment Advisor - September 2023

THe FAST TrACk

By Angie Herbers

Hiring today Is tough. Here’s How to Get It right.

Turnover gives firms the chance to hire replacements with clearer expectations.

y consulting firm learns a lot When days and weeks go by without
about what’s going on in the a candidate stepping forward who fits
Mindustry through prospective the original job description, some firms
clients that reach out to us. Firms often often effectively change the position
come to us because they’re grappling they’re hiring for to accommodate an
with problems and challenges that, in intriguing candidate’s skills. This isn’t
some cases, turn out to be prevalent always the best idea.
throughout the advisory landscape. First, it’s a sort of bait and switch.
Right now, we’re learning that advisor When a candidate thinks they are apply-
turnover is picking up steam, well after ing for one position and midway through
the COVID-19 heyday of what was called the hiring process you present them
the Great Resignation. What’s happening with a different position, it can lead to
in financial advisory firms indicates some- mismatched expectations.
thing like a delayed Great Resignation. For example, if an associate advisor
Even as wages continue to fluctu- applies for what they believe is a lead
When days and weeks go ate throughout the industry, advisory advisor position, only to find their role
is just supporting another advisor, you’ll
firms — in particular those that didn’t
by without a candidate focus on improving their cultures during have an unhappy employee on your hands.
stepping forward the COVID pandemic and/or are regress- What’s more, the peripheral hire
who fits the original ing to pre-2020 cultures — are losing will take more of your budget than you
advisors. While losing advisors is tough,
originally planned for — because if you
job description, some it’s also an opportunity to replace those end up hiring two new staff members,
firms often effectively vacant positions with roles for which your you’ll expand your payroll more than
you’d planned for. Big firms might have
firm has better and clearer expectations.
change the position As a result, now is a great time for the ability to hire opportunistically and
they’re hiring for advisory firms to enhance their hiring shoulder the extra costs, but small and
to accommodate an processes. While there’s no one-size- midsize firms don’t have that luxury.
Be patient, know exactly what role
fits-all hiring method, there are several
intriguing candidate’s areas where advisory firms continually you’re hiring for and stick to your
skills. This isn’t always make mistakes. intended hiring strategy.
Here are five areas to watch out for
2. Be honest about advisor capacity.
the best idea. when hiring your next batch of advisors. Based on their service model, some
1. Know the job you’re hiring for firms have determined that each of their
and stick to it. It’s not uncommon for financial advisors should only work with
a firm to post a job description for, say, a maximum of, say, 40 clients. Other
a lead advisor — an individual who can firms, with a different service model,
work with clients without supervision might put the number at 200 clients.
— and hear back from non-matching, Heavy turnover doesn’t necessar-
but nonetheless interesting, candidates. ily come from the variance in capacity
These respondents might not exactly assumptions; it comes when firms aren’t
be lead advisor material, but they might clear with their advisor candidates
be more suited for business develop- about capacity expectations.
ment, for example, or closer in skill level To better retain talent, firms should
to an associate advisor who aspires to be upfront about the number of clients
work with clients on their own someday. their advisors or teams can effectively

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