If you are seeking to hire new talent for your firm, chances are you are not the only one. FA Insight's 2013 People and Pay study revealed a majority of firms were looking to increase their headcount by at least one new employee.
Yet, when so many firms are looking to hire at once, it means other firms are going after the same (limited) talent pool, and that the most attractive candidates will likely have several offers to choose from.
This month's post reveals how can you emerge as the frontrunner in a competitive situation with a potential hire without giving the farm away!
- Do: Make candidates a solid offer. Currently, for a candidate coming out of a CFP Board-registered program with no experience, seeking an entry-level financial planner position, this equates to a base salary in the low $40's to low $50's, bonus/incentive compensation equal to ~10-20% of the base salary amount, health insurance, and a retirement plan with an employer contribution and/or match. Realize these can adjust up or down, depending on the size of the firm, geographic location, skill set of the candidate, etc., but are generally what the firms we represent have needed to offer to remain competitive for top talent.
- Don't: Focus solely on base and bonus compensation (instead, highlight the total estimated annual compensation figure). It is important for potential hires to visualize the firm's total outlay for their compensation and benefits to understand the firm’s investment in them, versus only what will be deposited into their bank account every two weeks. You might already have a good template for this anyway because you are probably collecting it from your corporate executive clients for their annual reviews.
- Do: Inform new employees that you also had other finalists, but in the end, they won out! This can reinforce crucial impressions a candidate may already have of you and your firm, such as candor, professionalism, and ethics (all of which lay the foundation for intense loyalty). Furthermore, it gives candidates a shot of confidence that you believe in them, and it provides an important perspective of the appreciation and respect for you and the risk you are taking on them and their career.
- Don't: Lead candidates on and be vague about your hiring plans and when a decision will be made. Also, don't forget to make sure they know that you really want them and are excited about them potentially joining your organization. Remember, everyone likes to win from time to time and feel pursued (this is not unique to just Millennials!). On the other hand, if you are not fully jazzed about their candidacy, don't make an offer.
Follow these guidelines, and you can increase your chances of landing that great hire (and retaining them!) without getting in a bidding war. Finally, and most importantly, if you do find yourself interested in a candidate(s) who has/have multiple offers, remember that you have a great story to tell and a fabulous career growth opportunity, and if they cannot see that, it is probably not a fit anyway.
- Caleb and Michael were named as two of 25 most influential people in and around the financial planning profession http://bit.ly/IATOP25
- Caleb is speaking at the FPA of Georgia Symposium on May 15th http://bit.ly/FPAofGASymposium
- Michael is speaking at the FPA of Dallas/Ft. Worth Symposium May 14th http://bit.ly/FPADFWSymposium
- Caleb is speaking at FPA Orange County on Wednesday May 21st, FPA of Los Angeles May 22nd, FPA of Central California on May 23rd, and the FPA NorCal Conference on May 28th.
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