The deep end of the talent pool

The competition for quality people in the financial services profession has prob­ably never been tougher than it is right now. There is only a limited talent pool available and as more principals begin to fully appreciate the value key employees can add, the demand (especially for the very best people) has become intense.

The ability to attract and retain quality people in an advisory practice is now a crucial factor for sustained success.

To be able to compete for the best available tal­ent, practices need to consider a number of differ­ent elements – on the financial side, a competitive salary alone is no longer enough. Flexible remu­neration packages and structures are now highly sought after and younger, more entrepreneurial candidates will be interested in innovative incentive plans and the potential to acquire an ownership stake in the practice through longer-term equity share programs.

Increasingly, the “feel” of the business is also becoming a key factor when candidates are determining employers of choice. The office location and presentation, mix of team members, internal culture, the make-up of the client base and the flexibility to stagger working hours or work remotely are all now important considerations.

Practices also need to demonstrate a strong commitment to their people and have an effective performance management process in place. The following extract from the recently released Business Health Future Ready III* white­paper shows that while Australian practices are improving in this area, there is still some way to go.

At a high level, the core of any robust performance management system is based around three central elements:

1. Position descriptions – what is my job?

2. Performance objectives – how will my performance be measured?

3. Staff appraisals – how am I going?

Without a strong (and agreed) under­standing of each of these elements, principals run the very real risk of undermining the significant investment of time, effort and money they are making in their people (and yes, your people are an investment, not a cost to your business).

And don’t assume that each member of your team (no matter how long they may have been with you) has the same picture in their head as you have – the best place to start is often with your people themselves. Ask them to write down their role and key performance measures as they see them. You may be quite surprised!

In short, to fully leverage your investment, the message is simple – get good people, give them the leadership and tools they need and then provide them with enough space to do what you employed them to do!

As the table below shows, those business owners that have done this are now enjoying a significant return on their investment.