Looking Out for Number Two

Invite an employee to attend a conference or convention. Whether offered by your broker/dealer, custodian, an industry association, or a wholesaler, these can be valued options.

Invite an employee to teach new information to you and/or to other staff. Whether it is about customer service, investment philosophy, office efficiency, or technology, teaching is a tremendous learning tool. A book report or an article review can be equally stimulating.

Mentor. Never underestimate the importance the employee places on spending time with you and hearing directly how you make decisions or why you take certain approaches. It's formally referred to as "referent power" in the organizational behavior world, and it refers to the opportunity the employee has to hang out with someone he or she respects. Your knowledge/power rubs off.

Seize the opportunity. In corporate America, you likely need to go through a committee, structure, or bureaucracy of some type to change an employee's title. But in a small organization, the sky's the limit. So "Creator of First Impression" can be a mainstream title for a receptionist in a small organization, but it would take time and documentation to get such a creative title through the system in a larger organization.

Champion online training, which is increasingly available in a wide variety of topics, from Microsoft tutorials to academic degrees. Online courses are growing resources for life-long learning. Someone recently told me that 50% of what a student learns in college is obsolete by the time he graduates. Thank heavens academic institutions increasingly emphasize how to go get the information you need when you need it.

Provide tuition reimbursement. This benefit helps formalize training, especially for those seeking an academic degree. Be clear on the amount, the type of course work, and the completion requirement for subsidization.

Get Ahead of the Curve

In 2004, more than 99% of firms in the United States were considered small businesses, employing 500 people or less. The U.S. Census Bureau reported in 2006 that more than 1.86 million jobs in small firms were added to our economy while 181,000 jobs were eliminated from large firms. With more than half of our workforce in small firms, and that number growing, small business is a backbone of America. Employees entering the workforce need to think about what they are after and where and what type of culture they will best fit into that will give them the support they seek.

Corporate America offers traditional advancement, the prestige of being associated with a brand name that everyone has heard of, and certain accoutrements (e.g., structure, the corner office, furniture, titles, etc.). The five-person office lends itself to an informality less common in corporate America–whether it be the dress code, flexibility, unique and unusual perks, or tight interpersonal relationships.

Career development will be increasingly important in the future, as the 80 million baby boomers look to replace themselves with the 50 million Gen-Xers. Consider, too, that one of the main challenges for the principals of advisory firms over the next few years will be to find replacements for themselves just as the wave of retiring boomers sharply increases demand for advisory services. It's smart for small business owners like you to care deeply about this issue, as the cost of turnover is three to five times salary.

As I seek to influence my two grown children, I will encourage them to look at everything–the pros and cons of the more formal approaches to career support in corporate America and those of the more entrepreneurial organization. No doubt, they will educate me.

And while we are at it, let's remember that we all need to reinvent ourselves. Career development is a life-long journey, for everyone.

Joni Youngwirth is the managing principal of practice management at Commonwealth Financial Network in Waltham, Massachusetts. She can be reached at [email protected].