Surround yourself with talented team members

Regardless of their length of time spent in business, their method of revenue generation or the type of services they offer, advisors generally have too much work to do and too little time.

As we discussed in earlier columns, unusually successful advisors typically put two activities — business development and client relationship management — above all others. Doing this requires they confidently and successfully hand off all other responsibilities to staff or experts who are part of their network.

Time management is why attracting, hiring and retaining talented team members are so important for a financial services practice. Based on this and the profound effect employees have on the overall success of the practice, it is perhaps safe to say that of all the systems and processes needed to run a business, none compare to those needed for managing human capital.

The hiring process typically involves six key steps.

1. Groundwork

Management of a financial services practice requires a variety of skill sets. This is equally true for the sole practitioner operating a one-person office as it is for a larger operation where functions are divided among employees with different experience and credentials. Regardless of the type of practice, the same core functions are required:

• Business development and sales • Client service • Compliance • Marketing • Operations, administration • Portfolio management

Staffing plan The hiring process usually starts with the need to fill a vacant or new position. When positions are vacant, it is usually a good time to assess if the job still helps your organization serve its purpose and achieve its mission. The act of hiring should be rooted in a larger staffing plan that is connected to your organization’s strategic plan.

Policies and procedures Human resource policies help bring new employees into the organization. Up-to-date, clear policies on recruitment and staffing make the hiring process straightforward and less time-consuming. Policies on probation, employee orientation, workplace health and safety, and training and development, to name a few, clarify what management and employees can expect from each other.

2. Job descriptions

These are basic tools used as the basis of most other human resources management practices — from employee selection to training and performance management.

Job analysis Job analysis is the process of systematically collecting information to help you fully understand and describe the duties and responsibilities of a position, along with the knowledge, skills and abilities needed to do the job. Job analysis gives a complete picture of the position — what is actually done and how — and provides the information needed to write job descriptions. Job analysis information can also be used in the evaluation process of assigning value to a job for compensation purposes.

Job design Job design is the process of combining responsibilities and duties to create jobs that enhance organizational effectiveness.

3. Recruitment

Selection criteria Based on the job description, develop criteria that will be used to screen resumé and select the best person for the job. Some points to consider:

• What skills are essential to the position? • How will you ensure the new employee fits the culture of your organization? • Ensure that your criteria are not discriminatory. • Ensure that criteria are specific, measurable and job-related.

Recruitment and timelines Decide how you are going to recruit for the position. If you are filling a senior position, you may want to advertise nationally, whereas for a junior position, you might decide to recruit by word of mouth. Establish a date to begin interviewing.

Recruitment strategies When deciding what method of recruitment to use, think about where your employees currently come from. Assessing where potential applicants usually come from will help you choose the best methods of recruitment for the position.

4. Selection

Selection is the process of screening applicants to ensure the most appropriate candidate is hired. The first step in the selection process is to review the information (resumé, application form) provided by all job applicants to determine which applicants meet the minimum qualifications as stated in the job posting. Those who do not meet the minimum qualifications are not given further consideration. Those job applicants who meet or exceed the minimum job qualifications are then assessed to decide which ones will be short-listed for a job interview.

The financial services industry is a people business and therefore personal chemistry or “fit” within an organization tends to win out over experience and knowledge of the business, simply because all of the technical skills in the world will not compensate for poor relationship skills.

Consequently the list of characteristics or traits advisors tend to look for in their “team players” include:

• Intelligence • Strong work ethic • Self-motivation • Personable • Honest • Like-minded • Trustworthy • Loyal • Ambitious • Entrepreneurial spirit • Positive attitude • The ability to deal well with different people • Ethics • Passion and commitment

The most common method of selection for all positions is an interview followed by a reference check. Other selection techniques used include work samples, written tests, oral presentation and personality or aptitude tests. Once a conditional offer has been made, criminal record and driving record checks are other selection techniques. Written consent is required before requesting records like this.

5. Hiring

Making the offer Call the candidate to make an offer. Inform all other final candidates by phone about the recruitment process outcome.

More Cindy Jenner-Cowan columns:

• Understand process, and thrive • Autopilot not an option

Succession planning:

1. Build your retirement plans 2. Transitioning best practices 3. Knowing what you want 4. What is your practice worth? 5. Reaching qualified buyers 6. Doing your due diligence 7. Bidding and final negotiations 8. Documenting the deal 9. Closing up shop

Paperwork Confirm your offer and the candidate’s acceptance in writing. A written contract is the ounce of prevention that helps to avoid disputes. It spells out your expectations and the obligations you have to each other. A written contract can take many forms — a letter, a proposal or a formal agreement.

6. Orientation for new employees

Orientation is the process of introducing new employees to the organization, its mission, activities, programs and the employee’s new job. An employee handbook is often used in an orientation session.

The purpose of orientation is:

• To make the new employee feel welcome; • To reduce anxiety on the first day; • To socialize the employee to the values, standards and desirable behaviours of the organization; • To help the new employee be successful in his or her job; • To enable the new employee to become productive, quickly; and • To start building the relationship between the new employee and managers.

The contribution of human capital cannot be overlooked by any advisor looking to grow their practice, increase its value and improve its transferability. Regardless of their core functional area, their talents, skills, experience, knowledge and work ethic, key employees in a financial services practice have valuable roles to play in the success of the business. The entire hiring and retention process should be systematized.

Unusually successful advisors manage to capture the most suitable talent. This gives them an advantage in establishing and maintaining strong client relationships and delivering exceptional client service. Consequently, those advisors who step up to the challenge of recruiting, managing and developing their human capital with a systematized approach will be best positioned to accelerate and manage the future growth of their practice.

Cindy Jenner-Cowan is chief operating officer at Worldsource Financial Management. With more than 17 years of experience in the financial services industry, the expert in relationship management and value-added coaching recently developed FRAMEWORKS, a training program for Worldsource advisors, focusing on advisory practice life cycles.