“Taking Stock” Interview with Bloomberg

Wilson_HeadshotThomas K.R. Wilson, CFA, Managing Director, Wealth Advisory & Senior Investment Manager

Tom joined Bloomberg’s “Taking Stock” with Kathleen Hays and Pimm Fox. They discussed the impact of the upcoming election on markets, fixed income investment options, and the strength of consumers. Listen below:

Wilson_Bloomberg

Search and Selection: Finding the Right Hire for Your Firm

Bev FlaxingtonBev Flaxington, The Collaborative

It is often said that this isn’t a numbers business, it is a people business. Understanding the criticality of the human factor, it is interesting how often an advisory firm will simply hire to fill a role instead of putting the time and energy into search and selection to determine the right candidate, for the right role, in the right culture.

Success in a job comes from a number of factors. Let’s touch on a few and then talk about one in more detail, that of search and selection:

  • Behavioral fit – is the employee’s natural style right for the role? If he or she is a deeply analytical person, but the job calls for constant people interaction, will she or he be able to modify for success?
  • Cultural fit – are the values of the company in line with the employee’s values? Does the employee show a willingness to understand and uphold the company’s values?
  • Clarity of job expectations – does the employee know exactly what is expected of them? Has the employer clearly identified what success looks like for this role?
  • Compensation and motivators – are the right ones built in for this person, in this job?

In addition to these factors, advisors must consider where they find candidates (search) and how they determine who they will hire (selection). When looking for a new job, oftentimes people will focus on networking. However, in hiring for a new role networking may not be the best approach. In many cases, a person may get referred to the advisory firm and because they came from someone the advisor knows and trusts, they are assumed to be a good fit. An advisor may not go through as rigorous of a screening process in that case.

When searching for a candidate, ensure that you are pursuing all available avenues to locate candidates. In addition to the traditional posting options, be sure to include posting to groups such as the CFA Institute, or the FPA, or other financially oriented organizations. LinkedIn is growing in popularity and can be an excellent place to find candidates. Interview a minimum of three people for a role just to get an idea of different people.

Finding the Right Hire

Before you begin the interview process, establish how you will select the person. Who will be involved in interviewing? How much weight will each person have? Will you have an organized list of questions for each person to ask, or a matrix to assess feedback? What will be the feedback loop and how will people follow up on their thoughts? You want to establish final criteria for making the decision. In many cases a firm has a set of requirements but makes an exception based on “liking” a candidate. This might be okay, if all other criteria are met. Define this in advance.

Be sure to ask behavioral questions. Don’t just take a person’s “track record” for granted – ask how they found clients, what they did to work with them, how they go about generating referrals, how they work with COIs, etc. Pick those things most relevant to your firm and be sure to dig, dig, dig in your questioning until you really understand the background.

Lastly, be sure to check references. Don’t just do a cursory check-in with the three or four people that were listed on the person’s resume. Instead, try to do some digging on your own and find others to speak to. If the person is on LinkedIn or has relationships at prior firms, see if you are able to use your connections to learn a bit about the person outside of the given references.

It can sound like a great deal of work to find the right person, but the truth is that making a bad hire is costly for any firm.