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Practice Management > Compensation and Fees

Coming Together to Solve the Compensation Issue

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Hi, and welcome to The Fast Track, a weekly posting of my thoughts and rantings on issues related to how established advisors can grow their practices, and how the next generation of financial planners can help them do it. We’ll talk about everything from how to position your practice for maximum–yet controlled–growth, to attracting and retaining the right professionals to implement your strategy, to understanding where firm owners are coming from, and how to givr them what they need, even when they don’t ask for it. And anything else that happens to pique my interest–or yours–at the time.

My goal is for the Fast Track to become a place where advisors of all generations can come together, to share their dreams of building the financial planning practices of the future; and the roadblocks and frustrations they meet along the way. I won’t be shy about throwing my two cents in, but I suspect the most valuable postings will come from you–from advisors young and those not so young–who have found workable solutions to the challenges faced by independent practices today: How to build an enduring firm; how to find the right people; how to create an environment where talented young professionals can reach their potential and beyond; how to bridge the communication gap between the planner generations; the right and wrong ways to grow your practice; how to know if you need more staff. That’s just a small start to where we can go.

So, thanks for logging on, and I hope you’ll be back to offer regular contributions, thoughts, comments, suggestions, and even criticisms (if you absolutely must). I’m looking forward to helping the independent advisory community take a leap forward with a boost from the next generation, and I think with your help, we can start that process right here in The Fast Track blog. With that being said, I am looking back to you to help me get this started.

One of the biggest issues I am hearing about is raising compensation packages for employees. Over the last three years, starting compensation rates for planning talent have grown nearly 25% and continue to rise. We know this is somewhat due to the large demand for talent in growing firms, but it’s also because of the significant growth of planning firms. I would like to know the biggest challenges, questions–and opportunities–you face today in regards to compensating your talent.