Recruiting is a mating ritual, which means that there is an understood set of rules. Etiquette violations signal trouble ahead for any potential relationships.
Advisors seeking new home bases should take note of the following red flags:
‘No Problem’ syndrome
Advisors need to be wary of any overly solicitous branch manager who answer “no problem” to every request. Firms have strengths and weaknesses and advisors need to understand each fully. By pretending to be a super-hero who can deliver anything, a hiring authority does a disservice to the prospective employee.
Aversion to Due Diligence
Changing firms is a big deal; advisors naturally need in-depth information about a prospective firm before signing on. When serious about a new firm, advisors naturally would seek opportunities to meet with product specialists, home office personnel and other advisors to discuss how the firms operate on a day-to-day basis and to kick the tires on the firm’s product platform.
If branch managers are impatient with careful investigations, don’t back down. Make it clear that due diligence is important to you and to your clients.
Who can really approve the deal you want? Branch managers typically need to have a proposed deal approved by regional and sometimes national sales managers. Deals must fit into the firm’s format.
It’s critical to distinguish between the deal that a branch manager hopes to be able to deliver and what has actually been approved by the firm. Sometimes branch managers claim that that they can offer deals that they may not be able to get approved.