Managing client relationships is challenging enough without the added demands of compliance, technology, human capital, and managing to profitability.
Still, the subject of diversity and inclusion (D&I) needs to be addressed.
Women account for more than 50% of the U.S. population. According to Accenture, women are almost three times as likely to be on the fast track to leadership in an organization that has at least one female senior leader compared to those firms with all-male leadership. In less than 20 years, the U.S. will be made up of 50%-plus racial and ethnic minorities. A similar logic applies.
A human capital strategy that consciously recruits and promotes women and minorities brings fresh energy, great ideas, and access to the advisory community. There is no catchall method for recruitment; as with any business strategy, leaders start the process with questions.
Identifying candidates Over 100 colleges and universities around the country offer CFP Board registered degree programs. Some offer discrete certificate programs in financial planning. In addition to traditional programs, certain groups provide training, networking, and opportunities for personal growth, aimed at people of color working in finance.
Compensation Philosophy Every advisory firm needs a coherent compensation policy aligned with expectations, roles, and the marketplace. One compensation practice that often stifles a firm’s ability to recruit candidates is commission-based plans.
As the business evolves from professional sellers to professional buyers, most firms find that commission-based compensation does not encourage the behavior they seek. A change from variable to fixed compensation means that foremost is the value an employee delivers beyond bringing in new clients.
Inclusion Diversity you can count. Inclusion you can feel. And if you don’t feel it, it doesn’t count. That is why retention is key. Staff turnover is inevitable, but engaging with employees early and often will likely keep them committed to your business.
For more information, please read:
Diversity Is More Than a Fad | ThinkAdvisor