Slideshow 4 Recruiting Tips

  • September 20 2013, 5:34pm EDT
5 Images Total

4 Recruiting Tips

by Kayan Lim

If you are a bank program manager looking to recruit financial advisors then you already know that this is no easy task. While there may be no shortage of people to fill the position, there is the growing concern that it is getting more and more difficult to find talented individuals – and that is where the real recruiting problem lies. As Paul Werlin writes: While there is some proactive searching happening, many banks still rely on the ‘prayer-method’. That is, hoping someone good will walk in and see the value of their program.

Here are 4 tips to ensure you don’t fall victim to the prayer-method.

Read the full story here.

Images: Thinkstock

1. Recognize Talent and Drive

What’s especially puzzling is that banks are ignoring a potential advantage they have when it comes time to staff up: the ability to develop and promote from the platform, Werlin writes.

Sometimes the best things are right in front of your nose. Firms are often so invested in recruiting from the outside that they fail to recognize budding talent from within. Focus on identifying in-house talent and drive. Promoting from your existing pool of talents could be a big plus.

Content Continues Below

2. Focus on Training and Retaining

Although some banks have recognized the benefit of cultivating talent from within, many still choose the short-term fix. That is to say, they would rather hire an experienced FA from the outside than spend time and money training and developing the next generation of FAs. While this is indeed an easier, and perhaps less costly alternative, it is important to look at recruiting as something for the long-term.

Given the competition, the demographics and the shrinking supply, focusing only on experienced FAs and not investing in developing [your] own talent is a losing proposition, Werlin says.

The ultimate goal should not just be to develop a solid group of FAs from your existing crop, but also to make sure that they will be there for years to come.

3. Have a Solid Plan

When it comes to recruiting, time and money only form part of the equation. What some banks and TPMs fail to realize is that it is equally as important to have over-arching and well-defined plans.

A solid plan will have defined recruiting goals, objectives and detailed tactics; from targeting specific competitors to their footprints to the level of experience and assets –under-management that best fits with their existing program and culture, says Werlin.

4. Be Willing to Invest Money in Recruiting

It's amazing to me that everyone agrees that their FAs are their most important asset, but aren't willing to spend the time or money to make sure they have the best team possible, Werlin writes.

While this one may be the most obvious tip, many banks are unwilling to invest the necessary funds for recruiting. Whether you are posting on job boards, using outside recruiters, giving out in-house bounties for referrals or have to pay for relocation expenses for the best candidates – the fact of the matter still remains, it costs money.

As a rule of thumb, a bank should be spending in the vicinity of 10% - 15% of net annually on recruiting, says Werlin.

Although this might seem like a lot, the payoffs of having a solid team of FAs will far outweigh the costs.