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April 30, 2019 at 01:00 PM
The benefits to involving new investment advisors in client meetings are many, including increased leverage of firm owners’ time and client relationship scalability, quality of life improvement, profitability, and enhanced client experience. Yet some common myths can overshadow these benefits. Here are the top five myths of integrating new advisors into client meetings so firm owners can get their new planner(s) started down the right path to success.
Myth #1: It is an inefficient use of time. Reality: A firm owners’ time is very valuable and could be worth anywhere from a few hundred to a few thousand dollars per hour. A new advisor can step in and absorb some of the tasks and responsibilities to free up the owner’s time. Everyone wins this way: The firm owner can better leverage his/her time, the new advisor gains much needed and sought after client relationship skills, and the profession is served due to the transfer of knowledge.
Myth #2: Junior advisors might take some of my clients if they leave. Reality: There are legal strategies to help protect against this such as a non-compete and non-solicitation agreement, but the larger issue of an advisor leaving should be examined.
Generally, new advisors who are challenged, have the opportunity to work with clients, feel like they are compensated reasonably, feel closely aligned with the firm’s philosophies, and are in a positive culture, aren’t looking to leave. Focus on providing these elements, and departing planners will not likely be an issue at all.
Sometimes owners put more thought, time and money into the legal documents versus the new advisor’s position, opportunity for growth, training and culture, which is unfortunate and ironically increases the likelihood those documents will be necessary.
Myth #3: Junior advisors will say something that causes a loss of a client. Reality: There aren’t too many things a new advisor could say to warrant a client leaving the firm, especially if you are in the room with them. Even if they did say something that wasn’t correct or upsetting to a client, you are there to mend it and provide an example so your new advisor doesn’t repeat it. Everyone makes mistakes, and at some point one of your staff members will have a mea culpa moment with a client, which can be a learning experience, perhaps one highlighting the importance of details.
