“Coach’s Forum” is a place in which you can ask your questions, tell your stories or give your opinions on any aspect of practice management. For each column, George selects the most interesting and relevant comments from readers and offers his advice. Our objective is to build a community of people with a common interest in making their financial advisory practices as effective as possible.  



> Help Wanted

Advisor:  I have finally reached the point at which I am going to hire an assistant. I went through this process a year or so ago, and the person didn’t work out at all and I had to let the new hire go within a couple of months. Having been “burned” once, I know some of the things I did wrong, such as hiring the first person I interviewed who seemed to have the qualifications, but that has only served to make me more wary of the whole exercise. This is a big step for me to admit that I messed up, so I want to be sure I do it right this time. Any advice beyond the obvious?

 Coach says:   First of all, congratulations on reaching this stage in the development of your business (again) and, despite your previous experience, still having the courage to make the decision to bring another person on board to share the workload. It is one of the most agonizing dilemmas in an advisor’s career: should I take money directly out of my not-yet-too-great revenue to hire someone to take on some of the things I have been doing, in the hope that the time I gain as a result will more than compensate?

From my experience, however, this can be one of those inflection points in the evolution of your business that can really start to propel your growth — if you do it right.

And here’s the good news: you aren’t the only one who has had an unsatisfactory encounter with the perils of hiring their first support person. Lots of advisors get it wrong the first time and end up disappointed, to the point that they revert to their old ways of working alone and their business continues to be stalled by the limitations of the time and energy they can bring to it.

Eventually, as you have, they come to the inevitable conclusion once again that their business growth will suffer unless they can hire the right people to help. So, they get back to admitting they have to do it -— but do it right the second or even the third time.

I guess what surprises me somewhat is how long and hard advi-sors will torture themselves over the decision to add staff, compared with how quickly they want to get through the process. The predictable result is that advisors often rush the hiring decision and so are disappointed by the outcome.

In many practices, much more time and money is devoted to choosing something like a computer than to the hiring process. Something about the wide ranges of prices and options in computers seems to make your decision-making seem incredibly important.

But you will make no more crucial expenditure than the time and money you spend recruiting the right people. If the growth of your business depends on innovation, and it’s your people who are its source, the hiring of new staff is about the most critical “purchase” you can make.

You asked for advice “beyond the obvious,” so here are a few of the things I’d recommend paying extra attention to in choosing the right player to add to your team:

>  @page_break@Write A Role Description.  

Note that I used the word “role” rather than “job.” That’s because, in my view, a job description simply outlines the tasks your new hire will be expected to perform. A role description, on the other hand, should invoke an understanding of the importance of the position and convey some idea of the quality of performance expected.

So, instead of looking for a “receptionist” to answer the telephone and greet clients, look for a “manager of first impressions.” Your role description needs to be narrow enough that not just anyone can apply, yet broad enough that you will have multiple candidates from whom to choose.

Match the level of talent and expertise required to the tasks you will want that person to do. Think not only about the experience and technical ability required but also the temperament. For example, if the position calls for the person to negotiate periodically with head office, you’ll want him or her to have the social skills to do that on your behalf.

>  Listen.   Interviewing prospective employees is part science and part art — both of which can be learned. Encourage candidates to talk freely rather than just answer questions. Give them examples of situations they are likely to encounter and have them role-play how they would handle them. One of the most common mistakes employers make during interviews is talking too much. Of course, it’s human nature to talk about ourselves and our businesses. But the point of the interview is for the potential employee to sell you on him or her; not for you to sell the potential employee on the opportunity to work with you. You may lack confidence in your ability to ask the right questions or to avoid questions that could get you into trouble, such as “Are you planning a family soon?” If so, consider having someone coach you through the process or even hire someone to handle it for you.

>  Background Checks.   In many hiring situations, most of what you’ll initially know about the candidate sitting across from you is what he or she tells you. As a business owner, that’s not enough. Background checks are crucial, particularly for a financial services firm. You’ll want to be extra diligent and carry out credit and criminal convictions checks as well as the traditional references checks. Make sure you’re up front with the candidates that these safeguards are required as a matter of course, and ask if there is anything you might find that they want you to know about in advance. Look through candidates’ resumés carefully. If there are any gaps in employment, ask for an explanation.

>  Create A Team Handbook.   There is a tendency among small employers to think we don’t need to be very formal with respect to corporate policies. It is worth the time, however, to create a simple information packet or handbook that spells out basic policies, such as hours, vacation, benefits, salary review frequency and the like. It doesn’t have to be a 50-page document; just something that sets what the employee can reasonably expect as part of your team. Small employers often want to provide a “kinder, gentler” culture, with abundant vacation and personal days, but that can really cost you in the long run. Even costlier is being generous with Employee No. 1, then recognizing the costs and being less generous with Employee No. 2. With a team handbook, you have an opportunity to determine the policies that apply objectively to all employees. Employees can help launch your business to new heights if you select them well — or they can torpedo it if you don’t. The alternative is to stay where you are. (For more on hiring, see story on page B14.)

>  Creative Seminar Venues   Advisor:   I am planning to conduct a number of seminars for current and prospective clients over the next few months and want to hold them somewhere other than in the traditional hotel conference room. What venue ideas have you seen that you liked?  Coach says:   Having participated in hundreds of seminars, I certainly agree that it takes something away from your event if it is just one of a series of meetings taking place down a long hallway of a hotel’s convention wing — particularly if sound carries easily from room to room and the one next to you is hosting tryouts for square-dance callers. Here are some venues I’ve enjoyed:
> art gallery or museum;
> performing arts centre;
> movie theatre;
> golf, tennis or lawn-bowling club;
> stock exchange;
> hall of fame;
> church;
> service club;
> university or college classroom; and, one of my favourites
> on a large sailboat.

  IE  George Hartman is president and CEO of Market Logics Inc. and a senior coach and facilitator with the Covenant Group. His latest book, Blunder, Wonder, Thunder: Powering Your Practice to New Heights (www.marketlogics.ca) was published in January. Send questions, comments and opinions on any aspect of practice management to george@marketlogics.ca.