In the last post in our Coaches Corner series of blogs, we discussed the advantages of hiring an associate wealth advisor and how to go about molding the description of your position in order to find the perfect candidate. When looking for this ideal candidate, you must consider what role you want the person to fill and also what kind of personality would be best for that role.
After you’ve answered those questions and crafted a job description, it’s time to develop the next major piece of this puzzle: structuring a compensation plan. The first thing to do is think carefully through the compensation structure of your new position and ask yourself, “Would this attract the kind of high-caliber candidates I am looking for?”
Take a hard, honest look at what you have to offer. To find and attract the best talent and ensure your new hire fills the role you envision, you must appropriately incentivize the new employee. This may sound simple in theory, but the truth is that a compensation discussion entails much more than “How much do I plan on paying this person?”
Incentivizing a new employee is the foundation for establishing their behavior and their actions going forward. For instance, if you want this new person to focus part of each week on internal functions, such as financial planning or investment research, it may be good to provide some base salary for the time dedicated to those activities. Additionally, if this person is expected to provide outstanding client service to the clients you assign to them, you should consider paying the advisor a portion, or a split, of the revenue generated by the assigned households.
Finally, if you expect the new advisor to personally bring in new clients, you may consider allocating the same percentage of generated revenue for those clients versus the clients you assign internally.
All of these scenarios outline a plan that not only determines how the advisor spends their time, but also sets clear expectations on the overall role they play in your firm.
Is Your New Hire Bringing Along Clients?