3. When do you want versus need the position filled? It’s a good idea to establish two target dates: one for when you want the new advisor and one for when you need the new advisor in place. Often, you want a new advisor much faster than you will realistically be able to find him or her.
4. Why would an advisor want to join your firm? There are more advisors currently recruiting than there are advisors who want to be recruited. Think through what your firm has to offer and put it in writing. For example, if your firm sponsors a quarterly creative marketing event with documented results of prospect attendance and the ability to turn prospects into clients, that’s a key selling point.
What it comes down to is explaining the benefits of your firm. Many advisors use a “pitch book” to give prospective advisors a professional, polished look at who the firm is and what it offers.
5. What is your compensation package? Use history and benchmark data to be clear on the comprehensive compensation and benefits package you offer. You need to have some flexibility, but be sure your compensation plan is grounded in your firm’s strategy. Paying someone based on what he or she generates or through salary are both acceptable approaches, but they attract different types of candidates.
Be Realistic
Many advisors have unrealistic expectations about finding an advisor to join their firms. Usually, they think it will be easier and faster than it actually is. Here are a few best practices to keep in mind as you start the recruitment process:
• The better the deal, the shorter the time it takes to find candidates. Many advisors start with a goal of finding a “steal”—that one advisor who wants to join the firm at a cost below market value. Think twice! It’s actually more efficient to start with benchmark data and price the position fairly.
• The more qualified the candidates, the better. Some firms become desperate for any advisor to join the firm. Consequently, they don’t define what a good fit is and are more likely than not to end up with the wrong person in the role. Going through the effort to define selection criteria before beginning the recruiting process allows you to attract and select a better fit, which promotes longevity.
• Although next-gen advisors are also hard to find, they are easier to recruit than tenured advisors with a book of business. Keep in mind, though, that it will take a longer period to get inexperienced advisors up to speed, and once they are trained they may move on.
Final Thoughts
When you stick to an established recruiting process, you can help ensure that your recruiting activity doesn’t stall with the first candidate you find.
Be sure that you have documented the job description, compensation package and marketing “pitch” that positions your firm to candidates. Conduct interviews with predetermined questions to help level the playing field. Also, an interview team can offer a more balanced assessment of what a candidate brings to the firm than a single individual would. Remember to check references. Too many people assume references yield little truthful information, but references can share volumes based on what they don’t say. Take advantage of behavioral style assessment instruments, such as the Predictive Index, DiSC, and Kolbe surveys. Different tests measure different things, but validated, reliable instruments provide an objective data set that can be useful in the decision-making process. Finally, remember you need to manage the performance of advisors. Setting quarterly goals and providing feedback helps ensure that a newly recruited advisor starts off on the right foot.
Advisor recruitment is a long-term commitment requiring focused effort, not dabbling. Being clear on the commitment and activity required can help you stay on course and attract the right kinds of candidates to your firm.