Estimated Time to Read: 3 minutes
A Talent Strategy is a comprehensive plan that outlines how an Advisory Firm will attract, develop, and retain the best employees to achieve its business goals. A robust talent strategy encompasses various elements, transforming human capital management from a mere administrative function into a core business strategy.
While most agree that it is important, we often find advisory firms only think about it when they need it. That needs to change. It is time to be proactive, rather than reactive.
According to Schwab’s 2024 Benchmarking study, approximately 75% of an RIA’s annual expenses go towards staffing and compensation. Even if your firm is closer to 60%, wouldn’t it be prudent to have a plan in place to manage >60% of your expenses?
The answer is yes. Which is why this will be the first of a series of blog posts dedicated to the many elements that make up a comprehensive Talent Strategy. Today, our focus is on The Interview. The Interview is an area we oftentimes see advisors find challenging. What do you ask and how do you evaluate candidates to determine the best fit for your firm?
Here are our best practices for interviewing candidates, providing a selection of impactful questions and valuable tips for your next hire.
Before getting started, it is important to establish a diverse interview team that represents different roles, experiences, and backgrounds in your organization. This provides a comprehensive assessment of candidates' potential and showcases the firm's diversity and skill sets to your prospective employee.
Once the team is in place, it is important to develop an objective and standardized evaluation process to ensure consistent feedback and objective assessments. A “New Candidate Evaluation Form” typically includes a list of skill areas relevant to the position, such as interpersonal skills, decision-making, motivation, teamwork, experience/job knowledge and emotional intelligence. Interviewers rate the candidate on each skill area using a standardized scale (e.g., poor, fair, moderate, strong, not applicable). The form should also include space for additional notes and an overall evaluation.
Here is a sample evaluation form that you can reference and use! Applicant Evaluation Form (Click Here).
Unconscious bias can impact hiring decisions. It is important to raise awareness of this issue within your firm and implement strategies to mitigate its effects. An Evaluation Form is one great way to do that.
Once you have the team in place, along with an evaluation process, it is time to develop your list of questions.
“Screening Questions” are used at the beginning of the hiring process to determine if a candidate meets the basic qualifications for the position. These questions are typically asked during a brief phone interview after a candidate has submitted their resume and cover letter. Adding this step can save time and resources by eliminating unqualified candidates before the in-person interview stage. It's crucial to ask all candidates the same questions to ensure a fair and consistent evaluation process.
Here are a few examples:
In addition to these general questions, you can also ask screening questions specific to the role you are hiring for. For instance, if you are looking for someone with strong customer service skills, you might ask them to describe a time when they went above and beyond to help a customer.
After the screening process, it is time for a deeper dive into the candidate's qualifications and fit within the company culture.
Focus on past performance, cultural fit, and potential for future success. Here are some insightful questions to consider:
Source: Schwab Recruiting Handbook, Heartland HR & Payroll