If you are seeking to hire new talent for your firm, chances are you are not the only one.
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 you can 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 mid $50’s to mid $60'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.
- It is worth noting that a large asset manager with HQ's in Charlotte, Philadelphia and Phoenix is offering CFP students with no experience a base salary of $65k+.
- We also have several firms we are recruiting for right now for new college grad positions in higher cost of living areas (San Francisco, New York, Washington DC, etc.) that are starting new college grads at $70k.
- 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 and Gen Z!). 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.
Feel free to contact us at firstname.lastname@example.org if you have any questions and/or would like to hear more about how we have helped financial planning firms hire the right talent for the last 14 years to build and strengthen teams that allow them to grow much faster than their peers.