Happy New Year from New Planner Recruiting! I had my fill of holiday feasting and the new bigger belt to prove it. I don’t know about you, but I don’t want to see another turkey or pumpkin pie for at least a year. Now that all the holiday stuff is packed up, we are looking forward to a great 2011. We hope you are as well.
If you haven’t seen it already, the 2010-2011 FPA salary survey* cited nearly 50% of participating firms will be hiring new staff in 2011. Since the survey was administered before the tax rate extension legislation, it is possible that even more firms will be looking to hire in 2011, especially if the market continues its upward trend. The dearth of hiring over the last few years has naturally increased supply as more top tier candidates are available due to being displaced or simply entering the industry during that period. This makes finding the right fit even more challenging, but does give financial planning firm owners a great opportunity because they currently have the upper-hand in hiring.
Hiring struggles in small businesses have been well documented and some recently released research from Leadership IQ** doesn’t paint a much rosier picture. In fact, it highlights the fact that 46% of new hires fail within 18 months. This is not a promising figure on the surface, but does require further analysis. The top five reasons new hires did not work out were: lacking the ability to be coached, ability to understand ones’ as well as others’ emotions, motivation to achieve full potential, temperament and technical competence. All of these items should/can be identified in a thorough recruiting process. My experience is that most firm owners tend to place too much emphasis on technical competence because it is what they know and is easier to measure. According to the research, this only accounts for 11% of failures. When reviewing candidates, firm owners tend to get caught up in the common mindset of, “if they are technical, then I can teach them everything else.” Instead of thinking, “if they have motivation, emotional intelligence, appropriate temperament and can be coached, I can teach them the technical aspect.” Interpersonal skills are a better predictor of the new hires impending success or failure. This research should increase owners’ awareness to the softer side of analyzing a candidate. Focusing on a candidate’s interpersonal skills during the interview and recruitment process will save time and headache later. This kind of focus on the individual and interpersonal skills is a core part of the candidate evaluation process we go through at New Planner Recruiting. If any of your clients need assistance with this, I hope you will consider referring them to us to help.