The global economy is back on track, and it’s time for investment management firms to consider their hiring strategies.
The U.S. economy added 200,000 net new jobs in January, and the Bureau of Labor Statistics reported job growth for personal financial advisors will increase 15% from 2016-2026.
With the labor market tightening, finding people with the mix of skills investment advisors need is getting progressively harder, but there are strategies firms can take to attract the top applicants.
RIA Hiring Best Practices
One option is to pay more (appealing proposition, right?). Attracting both those promising new recruits and seasoned operations professionals with the right skillsets will, to an inevitable degree, come down to money.
Job seekers can easily check Glassdoor or Salary.com to compare advisory firms’ compensation packages. It’s also good for hiring managers to see what competitor RIAs off their employees, so your firm can position its salary and benefit offers accordingly.
Broaden your hiring net
Successful advertising is about getting the right message on the right eyeballs, so you need to pinpoint your target audience and identify the places they can be found. That can be trade publications, employment agencies, online job postings (ZipRecruiter can help a lot), news outlets, social media sites, etc.
Comprehensive, ongoing training programs will help create a bench of talent capable of carrying out those all-important operational functions (assuming you can hold on to your employees). As positions arise, you will then be able to find and promote people with the right attributes internally.
And with the industry and its associated demands evolving rapidly, it’s vital your staff have up-to-date skills, knowledge and experience. This is less risky than hiring from outside as you’ve already seen their work product.
If you can’t train and promote from within, you can always steal. Poaching skilled staff from rival organizations is commonplace across the industry. Of course, you’ll have to offer an attractive pay and
benefits package to lure them to move.
Advisory Firms Must Plan for the Future
Ultimately, you need to determine what makes a good hire. The industry is changing. New regulations, globalizing markets, intensifying client demands, technology innovations, outsourcing – all are affecting operations roles, and the capabilities your staff need. Increasingly, a mix of financial and technology skills – with a little bit of regulatory literacy – are essential.
Finding the right people with these kinds of abilities, paying them a market wage, and providing ongoing training requires a serious investment. The kind of top-notch operations team required to compete in today’s marketplace simply cannot be maintained on a bare-bones budget.
Meeting this challenge will not be easy, but it is vital to your firm’s success.
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