Growing a Financial Advisory firm requires a systematic approach to talent management. A comprehensive Employee Value Proposition (EVP) centering on four pivotal factors: Material Offerings, Opportunity to Develop and Grow, Connection and Community, and Meaning and Purpose is critical. These elements, essential in attracting and retaining the top talent necessary for your firm’s growth, are explained in depth in a Harvard Business Review article entitled “Rethink Your Employee Value Proposition” . For our purposes we can summarize as follows.
Material Offerings
How do your employees perceive their physical workplace, the equipment they use, their schedule flexibility, benefits and compensation. Do your employees feel that the environment and tools provided enable them to perform their tasks efficiently and comfortably and are they fairly compensated for their work?
Opportunities to Develop and Grow
Growth and development opportunities within your organization are paramount. This encompasses investing in your team’s development through ongoing training, job sharing, and clear pathways for promotion. Employees should feel that their career trajectory within your firm is both valued and nurtured, aligning with their personal growth goals.
Connection and Community
The sense of connection and community within your firm can significantly influence team dynamics and performance. Employees should feel that they are a vital part of something larger than themselves, with a clear sense of accountability among team members. This fosters a robust sense of belonging and contribution, making each team member feel valued and heard.
Meaning and Purpose
Understanding and aligning with the organization’s reason for existence is crucial for employee engagement. Employees are increasingly looking for roles that not only provide financial stability but also a sense of purpose and the opportunity to contribute positively to society. For that reason, communicating your firm’s mission and the broader impact of their work on the community and society at large is essential.
Action Items for Employers
To craft an effective EVP as part of a systematic talent management plan, consider the following action points:
- Evaluate your workspace. Ensure that your office environment is conducive to productivity and that your team has the necessary tools and technology at their disposal. Solicit employee feedback about employee workplace and tools to identify any potential enhancement which help them to be more efficient. Do this more than once per year given the dynamic nature of our industry. New products and strategies may drive needs that if left for an annual review could create frustration and inefficiencies. Semi-annual or quarterly is best here.
- Comprehensive benefits. Assess the range and relevance of your employee benefits. Ensure that your benefits package is competitive and aligns with your team’s needs and expectations. Be wary of relying too heavily on comparisons to your competitors’ benefit packages. The benefits you are paying so dearly for may not be well utilized because each workforce has unique needs. Review benefits annually.
- Career development and training. Clearly define career paths within your organization and invest in continuous learning and development opportunities for your team. Documenting career paths ensures the employee understands not only what the plan is, but how long it may take. Enacting processes for new products and strategies which includes training empowers your team with the knowledge needed to do their jobs. Offering on demand resources for employees to continuously expand their expertise and grow professionally signals your commitment to their development and makes them feel valued.
- Promote your organization’s mission and values. Put in writing your firm’s mission and value statement and share it with your entire team. Leadership should regularly communicate how strategic and tactical decisions are driven by your firm’s mission and value statements. Doing so you will encourage autonomous decision making in alignment with your organization’s values. Encouraging all employees (not only leadership) to recognize examples of how team members contribute to firm success fosters a sense of contribution to a greater cause, teamwork and accountability. Doing this regularly has a meaningful impact on your team’s culture. It takes “I just do my job” to “I do my job because its important and impactful”. You cannot do this often enough.
- Foster open communication. Implement a feedback process that encourages employees to share their ideas and concerns and ensure there is a follow-up mechanism in place. That being said, your team members are an incredible resource of actionable information from a different (and useful) perspective than leadership. If you want team members to buy in to your firm’s success, making them feel heard gives them the feeling they have skin in the game. Encourage feedback from your team, doing so demonstrates your firm’s commitment to improvement.
Implementation should include several methods. A well written employee handbook, regular “state of the office” type meetings, periodic employee reviews and employee committees are all effective tools in maintaining your EVP. The key is consistency and sustainability. Like regular exercise the more you stick to it, the more benefit you will realize.
In conclusion, by systematically addressing talent management using these five action steps, financial advisory firms can cultivate a talent pipeline ready to meet the increasing demands of growth. Growth brings new challenges for managers. As your firm expands its client base and assets under management, your workforce will grow in tandem, equipped to handle the challenges ahead. More importantly, your team members will become ambassadors of your firm’s mission and values, spreading your good word to the community. To learn more about our unique tools to help you build a high performing team visit our homepage.
The Employee Training And Development Partner For Independent Financial Advisory Firms
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