More than ever, advisors need great people who can deliver and support a great client experience. In fact, it may be the single biggest reason for your success in increasing revenue, gaining new assets and achieving a work-life balance.
In nearly 20 years of working with advisors, it has been my experience that the advisors who view human capital as an investment rather than a cost tend to experience more success and grow their business at a faster rate.
Get a Good ROI on Your Human Capital Investment
So how can you get a successful return on your human capital investment? By ensuring each member of your staff is actively contributing to one or more of these three goals:
- Improve Client Service and enhance the client experience.
- Increase Efficiency of the entire practice.
- Free Up Time to focus on activities that either grow the business or provide more work-life balance
Whenever you add a new team member, clearly communicate this person’s specific responsibilities and how these duties will help you achieve your firm’s goals. Not only will your team understand what is expected of them, they will take greater pride in their work knowing everything they do contributes to the big picture.
Once you have your team in place, compensate them based on your expected output—better service, a more efficient office and more time for what you need to do. Connect compensation, specifically a bonus structure, to invoke more of the performance you want from employees.
One Minus Five Equals Success
Advisors often ask me how to implement a meaningful bonus program. It’s not enough to just show up every day, do your job and be likable. At Peak Advisor Alliance we espouse to a pay-for-performance model that rewards and recognizes team members based on the the areas they can control and that directly contribute to the three main goals.
Meet with your team and explain your new plan to put them in control of their bonuses. Brainstorm together examples of activities they can perform that directly correlate to the goals. Then assign a dollar amount to each of those activities and pay out the bonuses based on achievement of the activities. You can also take another tack: tell your team that anyone who efficiently takes five tasks off your plate will receive a bonus worth a certain dollar amount.
Implementing a quantifiable, goal-based bonus structure helps you achieve your goals and also inspires team members to come up with more of their own ideas to reach these goals, such as implementing extra client contact, automating your personal birthday messages to clients or updating the office systems. As an advisor, don’t you think it’d be worth a bonus if a team member took five tasks off your plate? You’ll be happy to have more time, the team will be happy to earn more money and your business will continue to improve and grow at a faster rate.
If you have a competent team you can count on to be responsible for all of the service, operational and administrative functions, you will be free to focus on strategic thinking, money management, financial planning and prospecting.
You may even be able to create some more free time in your personal life or time to pursue your passions, if that is what you wish. There is no limit to what a good team