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.

Selling for the Non-Sales Professional

Beverly Flaxington, The Collaborative

Many times advisors don’t like to think of themselves as salespeople. But just think: Client referrals. Strategic alliances. New prospects coming in. Even peers sometimes need to be sold on an idea or a strategy. So advisors are faced with a conundrum – the need to sell is there, but the experience of selling can be a negative one.

The selling process, to those who have not been trained in it, has its own mystique. The scripts, the proper words at the proper time, and the ability to listen past an objection someone is presenting to you in order to find what they really need, are all skills that not many people possess naturally.

Let’s look at five tenets of successful sales that anyone can use to help them – at a minimum – get more comfortable:

  1. Define your goals. You wouldn’t create a financial plan for someone without knowing something about their goals, desired outcomes and current state. Selling is no different. Too many firms simply state “I want to grow,” “Our objective is growth,” or “Our strategy is to increase sales.” Instead, write quantitative and objective sales goals. Know who your ideal client is and target similar prospects, determine reasonable growth in assets and clients, and decide how much time you’ll devote to selling.
  2. Work from a plan. It’s not enough to set your goals; you have to define who, what, when and how in order to implement them effectively. The plan should outline marketing tactics (events, emails, PR, etc.), and the number and types of contacts (direct calls, client referrals). It should also include training or coaching you (and your manager) believe will most benefit you.
  3. Create relationships and deepen them whenever and wherever possible. While advisors talk about the importance of relationships and the depth of relationships they have with strategic alliances and clients, the truth is that there is always room for improvement. Find every opportunity to deepen a relationship by learning more about the person and what they care about, by holding events and providing education they could find useful, and by providing information they can use and share.
  4. Solve their problem in an effective way. When it comes right down to it, selling is not even selling. It’s solving someone’s problem by offering them a product, service or solution that meets their need and takes away their pain, or offers them the pleasure they are seeking. It’s critical to know your market and the problems you solve (Step 1). Focus on listening and questioning, meeting objections, and mirroring their pace and style to communicate most effectively.
  5. Qualify. Make sure they’re “real.” Here’s where many professional salespeople falter. A suspect, prospect or client can look like someone who offers an opportunity for a potential sale. As the hope-to-be seller, you may spend a lot of time providing information, following up with phone calls, keeping the person in your pipeline and assuming there are assets attached that will someday be yours. Check – and re-check – that the prospect meets your “ideal client” standards and ask questions that get at their current “pain.” Don’t waste time on non-serious or indifferent people!

If you think your sales process needs a change, consider one of these areas and choose to focus on it and see if it makes a difference.

Increasing Personal Effectiveness: Tips For Time Management

Beverly Flaxington, The Collaborative

In today’s world, with all of the advancements in technology, it seems advisors have less time in the day, but more to do! The problem is that we operate under the false assumption that if we “only had more time,” we’d be more effective. If advisors had more time, they would probably just fill it with more activities. The key is to look at time management not with the goal of harnessing time, but of becoming more effective at using what’s given to you.

Financial advisors who run their own businesses have a particular challenge – manage the staff, work with clients, watch the markets, find new prospects, figure out the budget, pay the bills and so on. Those who work for larger firms may not need to run the business, but they still have compliance requirements, internal meetings and the like. There are many things that “should” be addressed in any given day. And to-do lists only seem to get longer!

What are some keys to personal management to help advisors become more effective? Let’s look at three of them here:

  1. Take the time to list your goals and priorities. Before your month starts, or your week, or your day, make sure you have taken the time to list the top 3-5 things you simply must accomplish. Once you list them (and make sure you take the time to write them down), list the priorities associated with each one. For example, if increasing client referrals by 15% is a top priority this month, list what you need to do to accomplish this. Don’t leave the steps to chance. Your list could include: Hold an event, send out an email asking for referrals, speak with each client one-to-one, hold a client advisory board meeting, etc. As your tasks accumulate during the day, week and month, be sure that your list always has your top priorities on it also. Do the things that come along, but never at the expense of your priorities. Instead of a general to-do list, have a to-do list in priority order. This can help you to stay focused on the highest-gain things.
  2. Know what you do well and stick to your knitting! Too many times we try to be all things to all people. The truth is that we all have our strong suits in some areas, and our weaknesses in others. Behavioral styles show us that while we may be excellent at data and quality control, for example, we may not be as comfortable trying to close the deal with a prospect. Or, while I might enjoy the camaraderie of being with my team because I am a people person, I may not like filling out the forms for compliance requirements. It’s important to self-identify what you are good at and what you like to do, and then find ways to delegate those things you are not so good at. For those things that are not strengths – or that you simply don’t enjoy – there are many options: Outsource. Identify team members with different strengths than yours and delegate. Determine whether you absolutely have to do the task in the first place.
  3. Be critical of your time wasters. We all have them. There are things you do that you know you shouldn’t. There is the client who doesn’t pay you well but who calls to talk your ear off several times a week. There is the market report you don’t really need to read, but you enjoy perusing. There is the site you find interesting, but that isn’t on your list of priority items. There is your “open-door” policy that employees have started to abuse. It’s important to note during the day where you spend time on things that aren’t contributing to your priorities. Keep a journal. Create an Excel spreadsheet with 15-minute time blocks, and keep track of where your time goes. Review it to find those places when you can steal back some of your own time. Then get rigorous about using your time in the most beneficial ways. You might have to say “no” to things you’d like to do. You might have to make difficult choices in what you focus on. You might have to give up a favorite activity, like reading those market reports. There is time for everything that’s important, but only if you give up those things that really aren’t making a difference to the success of your practice.

Before the next week starts, take the time to think about any or all of these ideas. Can you make a commitment to approach time differently so that your personal and professional productivity rises? Even for the most time-efficient among us, there is always the chance to find new ways to take back your time.

Bet on Success

  People are motivated by a lot of things, but money usually ranks somewhere near the top of the list.  Goals with associated financial incentives or disincentives are more often met than those without; at least that is the thinking behind a new wave of software services and mobile applications.

 New technology is giving life to creative ways to use money to incentivize success.  Take DietBet, for example.  DietBet calls itself a social dieting game.  It “supplies the motivation, support network and game structure[1]” to help users achieve their weight loss goals.  Users can challenge friends, family and co-workers to a 28-day competition to lose weight.  They can wager real money, or just bragging rights.

 Similarly, HealthyWage designs and organizes weight loss challenges and contests in which participants can win money for losing weight.  It offers challenges such as the 10% challenge wherein users who pay a $100 fee and lose 10% of their body weight in six months, win $200. 

 With GymPact, users commit to exercising a specific number of days per week.  They promise to pay at least $5 per day of the agreed-upon total that is missed.  If goals are met, there is a slight monetary reward.

 These health and wellness motivational companies have done what educators have been trying to do for years.  They’ve made something that is generally resisted into a game.  They’ve made a chore fun, and they use a motivator that works for many—money. 

 If it works for diet and exercises, would it work for another chore like budgeting or saving for a life goal?  Stickk.com is currently testing that theory.

 Stickk users can elect to pay a financial penalty if they fall short of their goals.  In the June 15 article,“The New Money Apps”, the Wall Street Journal reported on a Stickk user with the goal of paying down half of her $10,000 credit-card debt.  Any week that she doesn’t meet her desired $180 weekly goal, the system automatically transfers $20 from her account to that of a friend.[2]

 The user profiled in the WSJ isn’t the only one leveraging Stickk’s functionality.  The article goes on to state that 30% of the Stickk’s 150,000 user base elect to pay financial penalties for underperformance on goals. 

 While it may seem outlandish to suggest clients bet on their ability to meet financial goals, it is helpful to know that these tools exist, and plenty of people are using them with success.

 


[2] Anne Tergesen and Joe Light. “The New Money Apps.” The Wall Street Journal June 15, 2012