Finding the Right
BY JANE WOLLMAN RUSOFF
Independent principals have much at stake when making a
new hire; here’s how to find the right match
Ever since the global fi- nancial crisis, risk manage- ment has been an acute and pressing industry concern.
One big risk that’s often overlooked,
however, is the risk of mismatching
financial advisors and firms.
For independent principals, the
consequences can be critical—and
dangerous: Wasting money. Squandering time. Losing clients. Even
losing one’s valuable reputation.
Nowadays, it’s no easy feat to
bring in outstanding, experienced
FAs, a difficulty caused by the aging
advisor population and stiff compe-
tition among independent firms for
an evaporating talent pool.
Assets under management and
production levels, though obviously
crucial, should not be the sole considerations. The right personality fit
with you, your staff, clients and your
firm’s established culture are essential and mustn’t be ignored.
To be sure, hastily adding an ad-
visor only to find that person to be
the wrong fit can damage your prac-
tice. It makes sense, therefore, to
take time to make a perfect match—
“If a firm isn’t recruiting an ad-
visor that ideally aligns with their
practice, they may have short-term
success but long-term retention is-
sues. As business owners, they need
to do a little better job of getting
advisors that are the right fit rath-
er than relying on the traditional
good-ol’-boy handshake and [small
talk]—and then encountering issues
three or six months down the road,”
says Tom Daley, CEO-founder, The
Advisor Center, an online recruiting
service for BDs and FAs.