Hiring season is here and could be one of the most intense recruiting periods the profession has faced as firms gear up due to the market uncertainty ahead. With so many firms going after the same (limited) talent pool, the most attractive candidates likely will receive multiple offers.
Here are do’s and don’ts on how you can emerge as the frontrunner with a potential hire without giving away the farm:
• Do: Make candidates a solid first offer. Currently, for a candidate coming out of a CFP Board-registered program with no experience, seeking an entry-level financial planner position, this equates to a base salary from $46,000 to $65,000, bonus/incentive compensation equal to between 10%-20% of the base salary amount, health insurance, and a retirement plan with an employer contribution and/or match. Realize these can adjust up or down, depending on firm size, location, candidate skill set, etc., but are generally what the firms we represent have needed to offer to remain competitive for top talent. Candidates with a few years of experience and no CFP certification can go as high as $85,000 with experienced CFP-certified candidates getting more.
• Don’t: Focus solely on base and bonus compensation (instead, highlight the total estimated annual compensation figure). It is important for potential hires to visualize the firm’s total outlay for their compensation and benefits to understand the firm’s investment in them, versus only what will be deposited into their bank account every two weeks.
• Do: Inform new hires that you had other finalists, but in the end, they won out. This can reinforce crucial impressions a candidate may already have of you and your firm, such as candor, professionalism, and ethics (all of which lay the foundation for intense loyalty). Furthermore, it gives candidates a shot of confidence that you believe in them.