Should you hire an assistant?

Usually, the cost of an assistant is one of the main reasons why some advisors postpone taking this important step. These advisors generally prefer to wait until their practice grows to the point at which they are having difficulty managing their client demands before hiring staff. The cost of paying a salary is usually what holds advisors back.

“It’s a catch-22 dilemma,” says Heather Holjevac, an advisor with TriDelta Financial Partners in Oakville, Ont. Advisors generally want to maximize their cash flow, especially when starting out, and thus choose not to hire an assistant.

However, she adds, “If you want to be successful, it is necessary to have an assistant. The sooner you [hire one], the better.”

She recommends including an assistant in your business plan and your budget.

Although it is important to recognize the cost, you also should consider the rewards of having an assistant. A capable assistant in a well-organized practice will usually prove profitable, Richards says, but don’t expect those rewards to come immediately.

“You have to think long-term,” says George Hartman, managing partner of Elite Advisors Canada Inc. in Toronto. “Just like most investments, you are not going to profit immediately.”

Most advisors who work on their own do not see the value of hiring an assistant – an omission many regret later.

“In 90% of cases,” Hartman says, “six months after hiring their first assistant, advisors normally ask, ‘Why didn’t I do it earlier?'”

Richards found a similar consensus among a group of advisors he worked with recently: “If they had to start all over again, they would hire more qualified staff, including an assistant, right from the start.”

Assistants can be classified into two broad categories: those who primarily perform administrative tasks, such as making client calls, scheduling appointments, handling inquiries and maintaining client files; and those who are licensed and capable of taking orders, executing trades, dealing with compliance issues and conducting client interviews.

The type of assistant you hire depends on the role you want your assistant to play, Hartman says. Specific duties should be outlined in the job description and might include tasks you are not good at doing or simply don’t like to do.

“It comes down to the law of comparative advantage,” Hartman says. “It is more productive to use your time to perform higher-value tasks and pass on lower-value tasks to your assistant.”

Your role, Holjevac says, is to “focus on building relationships and bringing in more business.”

Richards notes that there is a trend toward using assistants who are registered. “More and more assistants are licensed,” he says, “and become the primary contact with clients.”

You may choose to deal only with the top 25% of your client list on a regular basis, Richards adds, leaving your assistant to serve the remaining clients.

Some advisors, Holjevac says, may prefer to maintain relationships with all clients, large and small.

In any case, it is necessary to structure the roles and responsibilities of both you and your assistant to achieve the most efficient use of the advisor’s time.

Ideally, an assistant is supposed to free up your time to allow you to do what you do best in practising your trade, Richards says. Your assistant also can allow you to provide a higher quality of service, help you avoid mistakes and improve the efficiency of your practice.

Advisors often underestimate the importance of an assistant until the need for one arises.

“Imagine you are working alone and have to go away on vacation,” Holjevac says. “Who will take care of your clients while you’re away?”

Further, an assistant can help you to become more productive. For example, Holjevac says, it can take up to a month to set up a new client; you can waste a lot of time dealing with paperwork and compliance issues. These are tasks an assistant could handle.

“Advisors who work alone, without the support of an assistant,” Richards says, “are like dentists who work without support. And this doesn’t happen anymore.”

Having an assistant also makes you appear to be more successful, which can add to your credibility, says Holjevac. Further, she adds: “Clients have a live voice to speak to when you’re not available.”

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