We are excited to announce that our new whitepaper, Hiring & Retaining Top Talent for Growth, is now available! This whitepaper covers key human capital areas including: designing your org structure; recruiting and hiring; managing and developing your team; and how to compensate your team. Read the Introduction excerpt below and please contact us to request your complimentary electronic copy of the whitepaper.
Research validates what we hear again and again — advisory firms want to grow, but a number of operational challenges stand in their way. Technology, marketing and workflow top the list of factors that limit growth for RIAs. However, according to a recent study of elite advisors, the main factor they expected to limit their growth was not having the right employees in the right roles.
What makes managing human capital rank as one of the most critical and fundamental challenges facing the growing advisory industry today?
For most firms, compensation is their largest expense. It makes perfect sense to spend a proportionate percentage of your time getting that right. You have already invested in your employees, and it takes diligent attention to get the largest return from that investment.
Proper deployment and training of your staff are critical to your firm’s growth and profitability. They are the best way to ensure that principals have sufficient time to focus on activities that add the most value for the firm relative to the high cost of advisor compensation.
Advisory firms cannot effectively address all of the other priorities of running the business — marketing, technology, operations, etc. — until they have the right people with the right skills in the right roles.
Planning for your future
Planning is fundamental to the effective hiring and management of people. The most successful firms know exactly what they want to deliver to clients, how it will be delivered and how that service model will provide profitable growth to the firm. This strategic vision informs everything they do in the realm of human capital, including hiring, managing, developing and compensating staff. By contrast, taking an ad hoc approach to human capital often results in poor hires, client retention risk, high turnover cost and poor morale.
Go for leverage to maximize efficiency and profitability
As it relates to advisory firms, gain leverage by using lower cost or less experienced staff in combination with senior-level advisors to deliver the client experience. The more time that high-paid senior staff can dedicate to high-value activities — giving advice and bringing in new business — the better it is for clients and the firm. Leverage should be a fundamental driver of hiring decisions, training and development programs and the design of compensation structures.
Invest today for future dividends
It takes time, attention, effort and financial resources to ensure your firm is staffed with the right people and that those people are contributing to the success of the firm. There are no shortcuts. Investing in people management — whether you are hiring, training or delegating — is the only way to build the skilled, dependable and loyal staff you need to achieve your growth, profitability and service goals.
Want to read more? Contact us to request your complimentary electronic copy of the whitepaper today!
