5 Tough Questions Prospective Hires Ask in Interviews

Best Practices January 27, 2022 at 11:12 AM Share & Print

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Job seekers aren’t the only ones who make mistakes in interviews. Firm owners are prone to blunders as well. Here are the most common questions hiring firms are flubbing in interviews, causing new recruits to rethink their interest and remove themselves from consideration. Be prepared to answer these questions.

Caleb Brown is co-founder and CEO of New Planner Recruiting. His podcast is at newplannerrecruiting.com/category/podcast.

Caleb Brown

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1. What is your plan for growth?

Don’t: Don’t say you don’t have one, but firms have said it, in some cases when they are growing! Also, don’t say you aren’t growing — unless it is the truth. Just realize you will not be able to attract the A players you likely are seeking. Few upwardly mobile young candidates want to join a no- or slow-growth organization, so if this is you, look at outsourcing to a third-party vendor instead of an internal hire.

Do: Provide the last few years' growth rates and what you expect going forward, plus what specific actions you are taking in terms of adding clients and staff to get there. Then lay out your vision for the organization. If it doesn’t jibe with them, move on — because someone who doesn’t buy into your vision isn’t going to be a good long-term fit anyways.

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2. How can you help me accomplish my goals?

Don’t: Don’t regurgitate the laundry list of items found on the job description that is focused only on what you need done in the short term because of certain bottlenecks you might be experiencing.

Do: When describing your vision and the projected growth, it might be helpful to create a roadmap (could be the career track stages) to show the interviewee how you will get them to where they want to be (income, lifestyle, net worth, career level, etc.), and overlay the two.

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3. How is your incentive compensation plan structured?

Don’t: Don’t say: "We don’t have one!" Team members at all levels need to know if they deliver above and beyond they will be rewarded for it. Also, avoid saying “it is a work in progress” or “we are making changes to it.” Many candidates have told us over the years they felt they had been baited and switched.

Do: Provide them with the mechanics. For example, bonus potential is 10%-20% of base compensation, and over the last three years the average bonus has been 16%. This gives recruits a reasonable expectation of what they realistically might earn.

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4. What are the expectations for performance and promotions?

Don’t: Don’t focus solely on timelines and tenure (e.g. You have to be here three years before you can talk to clients). Instead, focus on productivity and results.

Do: Say something like: "It usually takes about 24-36 months for people to become comfortable in the associate planner role." Understand that the scariest thing an employee can think is “I’ve hit my ceiling.” Provide the team member with expectations at various intervals after being hired. And frame it as you expect them to be able to achieve these goals after a certain time, and if achieved, explain the new compensation level/structure, position in the organization chart, and title, if necessary.

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5. What does it take for me to eventually earn ownership in this organization?

Don’t: Don’t be taken aback or offended. This is how A players think, and is a reason why talented individuals are leaving other channels within the industry to join RIAs or launch their own.

Do: Understand that equity ownership is still a differentiator, but is becoming more of a table stake. This should be part of the career track and/or list of expectations you go over in the initial onboarding process or during your formal reviews, at least for those candidates who really do grow and contribute to the growth of the firm in the long run.

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