Several steps can be taken to better prepare the next generation, the report explained. In addition to reviewing the compensation plan and providing coaching, RIAs should ensure that team members are receiving formal performance feedback, at least quarterly; should share clearly articulated career paths for the team members, and should provide clear and transparent information about future transition plans.
The report adds, “If you can’t work on all of these, pick one area and start there. Your employees truly depend on your firm’s focus on human capital planning.” By doing these things, “you will foster your team to reach new heights and your RIA to achieve a new level of success. As an unintended consequence, you will likely find that providing greater care to your employees ultimately enables you to provide even better service to your clients.”