Estimated Time to Read: 3 minutes
Take a moment to think about the competitive world of financial advising. What sets apart successful RIAs from those that struggle? Is it the investment strategies they employ? The technology that they use?
While those elements are important, I believe the real differentiator lies in one fundamental truth: people are your biggest asset. In financial services, particularly in an RIA, relationships are everything. Clients come to you not just for financial advice; they come seeking trust, guidance, and a connection. Your teams are on the front lines, nurturing these relationships day-in and day-out and are vital to delivering your client experience.
Top Challenge Facing RIA’s Today
Advisors are starting to recognize this truth, which is evidenced by studies done by industry leaders like Cerulli & Associates, Gallup and Charles Schwab, whom all indicate that a top challenge RIAs face today is Engagement and Retention of Talent!
A study by Gallup revealed that organizations with highly engaged employees see 21% greater profitability. Why is that? Engaged employees are more productive, more creative, and more committed. They bring their best selves to work every day, and that energy translates into exceptional client service. In the context of your business, an engaged team not only meets the expectations of clients but often exceeds them. They proactively identify client needs, offer solutions, and advocate for their clients’ best interests. This level of service doesn’t just create satisfied clients; it creates loyal clients who will advocate for your firm and contribute to its growth.
For growing businesses, solving this challenge makes for having a defined strategy to obtain and retain employees crucial to its success.
Trends Shaping the Future of Talent Management
Hybrid Models –
One of the biggest shifts is the rise of remote and hybrid work models. Post-pandemic, flexible work environments are now the norm, not the exception. More than ever employees seek flexibility. To future-proof your people strategy, it’s important to offer flexible working options, such as work from home opportunities. For example, having digital tools to allow remote teams to stay connected and productive, and importantly, testing and finding the right balance that works for your team, and your business.
Employee Experience –
Today, employee experience is just as important as customer experience. Your rewards and recognition practices can significantly improve retention and engagement within your own business. This is crucial for building a high-performing team. It’s opportunities like creating personalized career development journeys, investing in professional development opportunities for your next generation talent, and matching your incentive compensation opportunities to the behaviors that you want to drive in your business.
Skills based Hiring –
Another key trend is shifting from role-based to skills-based hiring. Instead of focusing solely on qualifications or job titles, organizations are looking at transferable skills. This approach widens the talent pool and ensures that you are hiring for future potential, not just current needs.
Consider using behavioral assessment tools to supplement your interview and hiring decisions to further diversify how you evaluate talent that fits your culture.
Creating a Culture of Engagement
To summarize, futureproofing your HR strategy involves embracing remote work, enhancing employee experience and focusing on skills-based hiring. Consider this: when your team feels valued and empowered, they are more likely to share innovative ideas, challenge the status quo, and to help drive your firm towards new heights. This is not merely a people strategy; it’s a growth strategy.
The stronger your people, the stronger your business becomes. So, as you navigate the complexities of running your business, remember this: your people are your greatest asset. They are the heartbeat of your organization, and their success will directly correlate with your firm’s success. Invest in them, support them, and empower them. By doing so, you’re not just future-proofing your people strategy; you’re future-proofing your business.
Action Steps
Here are steps you can take today to future proof your business!
- Consider a formalized remote work policy – ensure it’s clear, defined, and easily accessible for all employees.
- Assess your rewards/recognition practices today – are they driving the expected behaviors? Are they motivating for employees?
- What professional development benefits do you provide your employees? Are your people using this benefit? What can you enhance?
- Evaluate your recruiting practices – consider the possibility of using a skills-based assessment to hire for skills versus prior experience.
Please reach out to the tru HR team here if you have any questions!