Of all the practices and procedures RIAs must establish, the management of human capital may be one of the most important because it affects the overall success of the firm. The Pershing Advisor Solutions unit of The Bank of New York and HNW, Inc., recently released a report–A View From the Top: Best Practices in Leveraging Human Capital–that identified and examined best practices for attracting, hiring, and retaining employees. The report says high-revenue firms–those with annual gross revenues of $1 million or more–are consistently outpacing their low-revenue (less than $1 million in revenues) counterparts in numerous areas of human resources.
High-revenue firms place a greater value on all recruiting tools, the report found, as hiring qualified pros is critical for large and growing practices. The data shows a much greater percentage of short-tenure employees (less than three years) employed at low-revenue firms than at high-revenue firms (25% vs. 11%).