Photo by Kylie Haulk on Unsplash
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
Why would anyone leave a job at a Silicon Valley technology firm? The salary is great and the perks, which can include catered meals, generous paid leave, free laundry, entertainment and even an annual vacation stipend, are tough to resist.
Yet it’s not enough to retain key employees. According to a study from LinkedIn, the average employee retention at the 15 largest Bay area tech companies ranged from 1.8 to 7.8 years.
Why should you care?
Forbes recently published an article entitled: 16 Challenges Financial Advisors and Firms Will be Facing in 2022. What was first on the list? Employee retention.
The article noted a shortage of advisors and the importance of retaining “great people”.
It said, “being competitive with salaries, providing flexibility in the workplace with a work-life balance, providing stock and profit sharing, and giving employees the environment they desire,” were the keys to retaining them.
That’s not enough.
Start with a plan
If you are running an advisory firm, you need to listen to this podcast where my friend, Cameron Passmore, was interviewed by Mark Sutcliffe (who is a remarkably skilled interviewer).
Cameron is the majority owner of PWL Capital, a $3+ billion advisory firm based in Ottawa, Canada.
There are many things about this interview that struck me, but what stood out most was the “100-year plan” Cameron has for his firm. He explained why taking care of his employees and planning for their future is more important than landing the next big client.
His employees know PWL will not be purchased by private equity (or anyone else). Cameron’s vision for his firm is much bigger than himself. He regards his role as transitory. According to him, he is a “steward” of the business, whose primary role is planning the transition to the next generation of advisors.
Cameron’s other observations were also noteworthy. He said that most of us don’t have clearly defined goals, other than to increase our wealth. In his experience, clients who have “x” in assets want “2x”. Those with “2x” want “3x.” It’s never enough.
A business mentor once told me the ultimate challenge for entrepreneurs was building a business bigger than the founder.
Cameron has done this.
Have you?
A more expansive view
Cameron’s views were validated by a recent conversation I had with the CEO of a manufacturing firm. He had solved an issue previously plaguing his company: excessive employee turnover.
I asked him how he did it.
He made it his mission to create an environment where “no one would even think of leaving.” When I pressed for specifics, here’s what he told me.
Four-day work week
He reorganized assignments so everyone could work four ten-hour days instead of the traditional five-day work week. He said the impact was “transformational.”
One employee with young children told him he and his wife were able to enjoy a quiet breakfast together for the first time in years, while his children were in school.
Another said he and his girlfriend planned a special day each week, where they went for long hikes in places with no Internet connection and “just unwound.”
While he couldn’t conclusively attribute it to the four-day work week, revenue and profits have increased.
Radical transparency
More AUM. Better Relationships.
Guaranteed
My micro-learning course will increase your AUM and deepen your relationships.
If not, I’ll give you a 100% refund of the $29.95 cost.
Volume discounts are available.
He started to share daily sales and monthly profit numbers with his staff. He explained how an increase in profits would impact their compensation.
Almost immediately, he was inundated with suggestions for how to achieve those goals. He said, “suddenly they all felt they had skin in the game.” He implemented many of their suggestions.
Change in management style
He changed his management style from being the person with all the answers to the one who asked a lot of questions and listened carefully to the responses.
When employees came to him with a problem, his answer was: “I don’t know. How would you handle it?” They almost always figure it out themselves.
While he’s still “a work in progress,” turnover has been radically reduced. He says he won’t stop until “it’s at zero.”
Dan trains executives and employees in the lessons based on the research on his latest book, Ask: How to Relate to Anyone. His online course, Ask: Increase Your Sales. Deepen Your Relationships, is currently available.
Read more articles by Dan Solin
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
