Nerd's Eye View Articles On Practice Management For Advisors

6 Ways To Delegate To Get Faster ROI From Your New Associate Advisor

October 13, 2025 07:03 am 0 Comments CATEGORY: Practice Management

Many advisory firm owners face a dilemma as they reach capacity: they know they need help with planning work and would like to hire an associate advisor, but they may be uncertain about what, exactly, to delegate. Since associate advisors rarely prospect or manage their own clients today, it can feel challenging for firm owners to envision what the associate would do full time that would provide a real return on investment. Without a clear delegation strategy, though, both the lead advisor and the associate both risk running into frustrations, inefficiencies, and missed opportunities for growth.

In this article, senior financial planning nerd Sydney Squires explores how small firms can accelerate ROI on associate advisors. The key is to delegate in ways that reduce the senior advisor's time spent per client. Doing so frees the lead advisor to focus on business development, deepen relationships with complex clients, or simply avoid burnout. Kitces Research finds that solo advisors typically spend about 20 hours per first-year client, but with support staff, that time can drop by 25%. Even if an associate takes longer to complete a task, the time saved for the lead advisor still translates to a net gain – especially when reinvested in higher-value activities. A partial delegation approach – where the associate owns tasks within clear review guardrails – helps manage risk while steadily building confidence and capability.

To facilitate this ramp-up, five functional areas stand out as ripe for early delegation: client onboarding, meeting preparation and recurring plan updates, post-meeting follow-up, incoming client requests, and firm-specific “advisor odds and ends”. Onboarding tasks like data entry, identifying insurance or planning gaps, and building preliminary recommendations help associates learn the firm's process while contributing meaningfully. Meeting prep and recurring plan maintenance tasks create repeatable opportunities to train on client strategy and support the advisor's client-facing time. Follow-up work – such as reviewing AI-generated notes, assigning action items, and drafting communications – further embeds the associate into the service model. Handling incoming client requests and CRM updates allows them to build judgment around common client needs, while owning certain 'miscellaneous' advisor tasks (like reviewing estate documents or tracking planning deadlines) frees up the lead advisor to focus on more strategic work.

Successful delegation, however, requires intentional structure. A phased model – progressing from observation, to guided work, to synchronous rev,ew, and eventually to asynchronous or conditional reviews – ensures that associates progress systematically, while the lead advisor retains appropriate oversight. When paired with clear benchmarks, this model supports learning and accountability, prevents premature autonomy, and keeps work consistently moving off the senior advisor's plate – all while building a confident, competent future advisor who is better prepared for advancement.

Ultimately, early-stage associate advisors don't need to be fully self-sufficient to generate ROI – they simply need opportunities to do meaningful work in a supervised, structured way. When lead advisors approach delegation as a tool to expand capacity – not as a demand for perfect execution – firms can begin seeing returns within months, not years. With a deliberate onboarding path and well-defined responsibilities, associate advisors can become an investment in sustainable firm growth!

The 4 Key Drivers Of Advisor Productivity: How The ‘Right’ Team Unlocks New Growth

September 29, 2025 07:03 am 0 Comments CATEGORY: Practice Management, Research

Most advisors actively seek to become more productive – that is, to generate more revenue for every person on their team, even when that 'team' is just a solo advisor in business for themselves. For many, improving productivity is often equated with working longer hours, adopting better technology, or earning another advanced designation. However, according to the latest Kitces Research report on Advisor Productivity, none of these rank among the four key drivers of advisor productivity identified in the research. In this article, Kitces Director of Advisor Research Mark Tenenbaum outlines these four drivers – implementing the right team structure, client affluence, optimizing face time with clients, and pricing confidence – and explains the significance of each for success.

Notably, these four drivers are not equally important. The single most critical driver of advisor productivity is implementing the right team structure. This starts with simply having a team at all – evident in the fact that the median unsupported solo advisor generates 64% less revenue than solo advisors with support. The most successful configuration is the three-person 'Triangle Team', consisting of a Senior Advisor supported by an Associate Advisor and a Client Service Associate (CSA). Triangle Teams generate the highest revenue per advisor and per employee, providing Senior Advisors with the leverage to grow while avoiding the inefficiencies common in larger teams.

Implementing the right team structure – having a team and ensuring the right mix of roles – is the most important driver because it is the foundation that enables success across the other three key drivers. This can be seen with the second driver – client affluence – when considering how higher-net-worth clients typically have more complex financial needs – such as estate planning and charitable giving structures – and the willingness and financial resources to hire advisors capable of managing that complexity. However, as client affluence increases, advisors struggle to scale their services alone; multi-member teams become essential for delivering the depth of service these clients expect.

A similar dynamic is also present for the third driver – optimizing client face time. Top-performing advisors spend about 24% of their time in client meetings, compared to just 17% for their typical peers. The importance of client meetings in driving productivity is unsurprising, as this is where prospects become clients, existing clients reveal new needs (such as navigating a divorce or managing an inheritance), ongoing interaction reinforces the client's sense of being valued, and referrals often arise through conversations like, "I have a friend who's anxious about retirement—can I tell her to reach out to you?" Support staff free advisors to spend more time with clients and focus on client engagement without compromising quality or risking burnout.

The fourth driver is pricing confidence – the ability to set and enforce appropriate fees and minimums. Firms that implement AUM minimums or confidently charge fees aligned with their value consistently outperform those that don't. While this may seem separate from team support, it ultimately ties back to it: Pricing confidence depends on delivering a premium service promise. This involves not only offering comprehensive financial planning but doing so with consistency, thoroughness, and responsiveness – all of which depend on a well-coordinated team.

Ultimately, the key point is that while technology, credentials, and individual effort will always contribute to a successful advisory practice, the most important factor is deliberately structuring teams so advisors can focus their energy where it matters most – serving clients, deepening relationships, and driving the firm forward. Put simply, the most productive firms are those that build the right teams so their advisors can truly focus on being advisors!

9 Rights (And Wrongs) In the First 9 Years Of Building An RIA

September 22, 2025 07:04 am 0 Comments CATEGORY: Practice Management

For many financial advisors, the journey of building a firm from scratch is a blend of idealism, grit, and inevitable growing pains. The early years in particular are fraught with challenges that make survival difficult. However, for those who persist, the reward can be a firm – and a team – that reflects the founder's values and supports their lifestyle.

In this article, Shawn Tydlaska, founder of Ballast Point Financial Planning, candidly shares the wins and lessons from his first nine years of entrepreneurship. He offers a grounded, honest account of building a multi-advisor firm from scratch – without a client base, personal brand, or local network – while navigating the complex realities of leadership, growth, starting a family, and self-worth. Now he leads a $130 million AUM firm serving over 130 households and reflects on both the strategic decisions that fueled his firm's growth and the missteps that tested his leadership and mental health along the way.

One of the most pivotal decisions was simply starting. Unable to find a salaried role aligned with his desire to serve younger clients, Shawn embraced an "accidental entrepreneur" path, launching his firm in 2016 after a marketing internship at Personal Capital. With modest personal overhead and strong intrinsic motivation, he minimized his overhead, meeting clients in coffee shops and libraries. And with few tech solutions designed for his clientele at the time, he built custom Excel templates for spending plans, equity compensation, and cash flow – tools that met the real-world planning needs of younger clients better than traditional retirement-centric software.

As the firm grew, so did the challenges of scaling a team. Shawn recounts the struggles of 'right-sizing' staffing to revenue, as well as the need for infrastructure to support people once they are hired. Career tracks, sabbatical policies, HR calendars, and feedback loops became essential to guiding the team and building a team culture – and so did learning how to transfer client relationships to developing advisors.

Alongside the professional journey came personal highs and lows: defining success on his own terms, adjusting to fatherhood, and working to balance health, family demands, and ambition in a shifting world. Through therapy, self-reflection, and personal growth, Shawn found greater clarity about what matters most to him.

Ultimately, the journey highlights the importance of aligning vision, values, and structure over time. Despite earlier ambitions focused on 'going big', his current definition of success emphasizes sustainability: building a firm that supports his team, nurtures his family, and creates space for meaningful work – without losing himself in the process. Looking ahead, part of his vision includes building on his work as co-founder of the BLX Internship Program, which provides internship opportunities for underrepresented groups in financial planning, and expands into creating infrastructure to address the broader industry challenges around accessibility and advisor development to offer opportunities to more aspiring planners!

Associate Advisors, 9 Ways To Stand Out In Your First 90 Days

September 15, 2025 07:02 am 0 Comments CATEGORY: Practice Management

Starting a new role as an associate advisor can be exciting – and nerve-racking. The onboarding period, which typically lasts between 90 days and six months, represents a critical window for associate advisors to demonstrate their value to the firm. There's a lot to learn in those early days, and even with a structured onboarding process, new advisors still carry much of the responsibility for absorbing procedures, taking initiative, and finding ways to contribute – often while they're still learning the ropes!

In this article, Senior Financial Planning Nerd Sydney Squires details how associate advisors can develop the required skills and make a strong impression during their onboarding period.

During onboarding, advisors are typically evaluated in two broad areas. The first is technical competence: the ability to learn the skills required for the role. This involves learning through shadowing and observation, following workflows and processes, and increasing responsibility with hands-on execution. The second is cultural fit. While more subjective, this part of the manager's evaluation is just as important – and often shaped by the associate advisor's communication style and interpersonal skills.

Thankfully, there are many strategies for associate advisors to set themselves up for success. For example, preparing for meetings by reviewing a client's background in advance, showing up on time, and proactively building relationships with colleagues, especially those in complementary roles, all go a long way in gaining context and building early trust within the advisory firm. Asking thoughtful questions to delve into client meeting strategies can help advisors transform their passive observation into a deeper understanding of the firm's client communication style. And since new advisors often bring fresh eyes to established systems, identifying inefficiencies and opportunities for improvement in processes can provide surprising value.

When roadblocks arise, proactively attempting to solve problems before asking for help is another subtle but powerful way to demonstrate initiative and learning. And when their managers are overwhelmed, offering to take on one of their smaller pain points can make a difference not only in helping the advisor learn but also in alleviating their manager's load – further demonstrating their value to the firm.

Ultimately, the key point is that mindset makes a tremendous difference during the onboarding period. Advisors who embrace curiosity, flexibility, and growth are more likely to find the transition more manageable – and more rewarding. The first 90 days are not about perfection but about steady, visible progress. And by focusing on showing up reliably, engaging thoughtfully, and easing their manager's load, new advisors can lay a strong foundation for long-term success!

The 3 Concerns Keeping $25M+ Families Up at Night

August 18, 2025 07:01 am 0 Comments CATEGORY: Practice Management

Nerds Eye View Ep The Three Concerns Keeping M Families Up at Night

Many advisors focus on attracting and serving high net worth individuals and families, and with only a limited number of such clients to go around, this can be a competitive space. The higher net worth that a family has, the more that an advisory firm has to stand out in order to gain them as clients. However, advisors who can speak directly to the concerns of this client niche can give themselves a unique – and differentiating – advantage to best serve this segment of the population!

In this 'hybrid' video-based article, Michael Kitces and John Bowen, CEO and founder of CEG Worldwide and CEG Insights (formerly Spectrem Group), dive into CEG's extensive data on what ultra-high net worth (UHNW) families are really worried about and how advisors can serve this group more effectively.

The first major concern is macroeconomic risk. Nearly 80% of UHNW families worry about inflation, market volatility, and geopolitical instability. While they recognize that no advisor can control these forces themselves, most families expect proactive strategies, clear communication, and coordinated access to top-tier specialists who can help them navigate economic uncertainty. Many families seek bespoke guidance at a high level of service on topics such as alternative investments, charitable planning, and estate planning. At the same time, expectations for investment returns have moderated, with many clients content with ‘just’ 6%-8% returns on investment if their portfolio comes with strong principal protection. For advisors, the new challenge lies in clearly aligning their investment philosophy with a client’s concerns: Perhaps by maintaining a consistent strategic allocation or by making tactical adjustments, but in either case showing an awareness of what’s going on in the world and an understanding of how to manage to the current reality.

The second concern for these families centers on security and legacy. Beyond market risk, UHNW families fear threats such as litigation, divorce, and cyberattacks. Multi-generational wealth transfer raises the additional challenge of "will my heirs squander it?": More than three-quarters of UHNW families worry about wasteful heirs and want advisors to engage their children and grandchildren early to prepare them for stewardship responsibilities. At times, this may even extend to creating governance structures (sometimes formalized as family constitutions) that define decision-making and preserve values. Cybersecurity has also emerged as a priority, with many willing to pay for specialized protection, which gives advisors who can connect clients with the right services the opportunity to provide peace of mind without necessarily being cybersecurity experts themselves.

The third concern is quality of life and significance. Many in this wealth bracket are older and acutely aware that without health, wealth is less meaningful. They want access to concierge health and longevity services, along with strategies to ensure that their wealth supports a purposeful, multi-generational legacy. Advisors in this space must think less like "family CFOs" and more like general managers, orchestrating vetted specialists across legal, tax, investment, insurance, philanthropy, and wellness. Importantly, these teams don’t need to be built in-house; clients simply want a coordinated, high-caliber network that works seamlessly on their behalf.

For advisors, moving into the UHNW segment is not a matter of scaling up existing mass-affluent practices or building out more and more in-house services. Instead, it requires fewer but deeper client relationships and robust external partnerships to connect clients with a vetted team of experts to meet their needs. Serving UHNW also demands a proactive, holistic approach that addresses not just financial needs, but also family dynamics, personal security, and quality of life.

Ultimately, the reward of serving UHNW clients is both financial and professional – commanding higher fees for delivering truly differentiated value in a space where 60% of successful entrepreneurs are open to changing advisors within the next two years. Advisors willing to embrace this shift can position themselves as indispensable partners in protecting fortunes, guiding families, and helping clients live lives of lasting significance!

Find Your ‘Cyborg Advisor’ Sweet Spot: Blend AI Into Your Firm By Understanding How Clients Make Financial Decisions

August 13, 2025 07:01 am 0 Comments CATEGORY: Practice Management, Technology & Advisor FinTech

Financial advice and technology have grown alongside each other – as technology has evolved and expanded, so too have advisory firm services. And as trading, portfolio rebalancing, and financial plan construction have become more efficient, advisors have increasingly focused on holistic advice, financial psychology, and behavioral coaching to complement their technical expertise. Now, with the rapid growth of AI across the financial services industry, questions about whether technology might one day replace human advisors are taking on renewed importance.

In this article, Derek Tharp, Lead Researcher at Kitces.com and Associate Professor of Finance at the University of Southern Maine, explores how advisors can use AI as a tool to augment – not replace – their advice and client relationships. While AI excels at tasks like prediction and computation, it struggles to understand human values, especially since people often don't have a clear or consistent understanding of their own. A client's reluctance to invest in equities or delay Social Security, for instance, may stem from deep-seated beliefs, personal preferences, or a mix of both. And as advisors know, financial advice often goes beyond identifying the 'correct' or 'most optimal' answer – it's also about connection, reassurance, and helping clients uncover their true priorities. While AI can mimic language patterns and simulate empathy, it lacks the lived human perspective necessary for genuine emotional resonance – which can limit the trust clients are willing to place in it, especially when navigating sensitive or complex life decisions.

That said, AI brings real strengths – particularly in data analysis, operational consistency, and computational efficiency. Tools powered by Large Language Models (LLMs) can summarize meeting notes, automate routine communications, and eventually synthesize insights across disparate systems. Advisors adopting these tools will need to ensure that the AI's output is current and that the technology integrates well with their workflows. But when used thoughtfully, AI can help advisors be more present, especially in client meetings!

This emerging hybrid model of the 'cyborg advisor' blends the technical precision of machines with the emotional intelligence and nuanced judgment of human professionals. Looking ahead, AI integration may center around CRMs, financial planning software, document management systems, or middleware AI assistants. Each approach has advantages and tradeoffs. Financial planning software may be particularly well-positioned to become the central hub, with its ability to generate accurate projections and precisely modeled planning scenarios. But CRMs, with their centralized data and integration potential, also have a strong case – especially if they expand their planning functionality. Whatever the tool, these systems can help advisors work smarter, provide more value to clients, and enhance the planning process – all without compromising the integrity of human judgment.

Ultimately, financial planning is rooted in trust, empathy, and the ability to navigate personal values – with a foundation of technical knowledge. As advice continues to evolve, advisors can combine their human strengths with the efficiency of AI to create better client outcomes. Those who embrace this hybrid approach – using AI to enhance, rather than replace, their capabilities – will be well-positioned to thrive in the changing landscape of financial advice!

How 3-Member “Triangle Teams” Maximize Per-Advisor and Per-Employee Revenue (Latest From Kitces Research)

August 11, 2025 07:01 am 0 Comments CATEGORY: Practice Management, Research

The smallest advisory firms – especially those run by unsupported solo advisors – often find that early success brings growing operational demands that strain their time, energy, and wellbeing. Yet after adding team members to grow their firms, many advisors discover that their capacity challenges are replaced by new inefficiencies stemming from the need to coordinate across multiple people, leaving them without the calendar control they had hoped to gain.

In this article, Mark Tenenbaum, Kitces.com's Director of Advisor Research, explores findings from the latest Kitces Research study on advisor productivity, "How Financial Planners Actually Do Financial Planning". The research highlights that the three-member "Triangle Team" – consisting of one lead advisor and two support staff, typically a Client Service Associate and an Associate Advisor – tends to be the most effective team structure for maximizing productivity. The typical Triangle Teams produce an impressive $1.2 million in average revenue per advisor and $412,000 per employee, outperforming all other team configurations, which adds Service Advisors but results in lower productivity per advisor and per employee.

The success of Triangle Teams lies in their ability to balance what Kitces Research describes as the "leverage-coordination trade-off". Smaller teams consisting of one or two members inherently avoid the coordination challenges that increase with team size, but they often lack the staffing leverage needed to free up the Senior Advisor to focus on business development. By contrast, larger teams provide advisors with this leverage, but their additional seats often fail to translate into productivity gains because they introduce two key inefficiencies relating to coordinating across too many members: the "Management Tax" and the "Shared-Clients Tax".

These two inefficiencies take shape in distinct but compounding ways. The Management Tax occurs when Senior Advisors must spend more time onboarding, training, and managing staff – time that doesn't scale with team size. The Shared-Clients Tax arises when multiple lead advisors serve the same clients, requiring additional meetings, handoffs, and coordination that detract from client-facing work. Triangle Teams strike the optimal balance: Two support staff provide enough leverage to offload lower-value tasks while staying lean enough to avoid excessive coordination demands.

For solo or two-member practices, moving toward a 1+2 Triangle Team structure can be a strategic path to growth. Hiring a CSA first, followed by an Associate Advisor, can significantly boost productivity – if timed between the "profitability wall" (when hiring becomes financially viable) and the "capacity wall" (when help becomes urgently necessary). Proactive planning and structured onboarding – especially for Associate Advisors – are essential for success.

Larger teams that aren't positioned to reduce headcount can still improve efficiency by implementing systematized workflows and quarterly client service calendars. Defined processes ease the delegation burden on Senior Advisors, while quarterly client service calendars help prevent overservicing and clarify responsibilities. According to Kitces Research, teams that use four planning periods per year – each focused on a single planning domain – tend to achieve the best mix of client value and internal efficiency.

Ultimately, while three-member Triangle Teams can be a powerful model for enhancing productivity, each firm has the opportunity to define the team structure that best supports its unique mission and the lives its advisors want to lead. Whether the goal is to scale revenue, create more time for client relationships, or design a business that sustains a fulfilling lifestyle, understanding the trade-offs between leverage, coordination, and growth can help advisors make satisfying decisions with greater clarity and confidence!

Trends In Financial Advice Fees: What Financial Advisors Are Actually Charging For Their Services

June 16, 2025 07:03 am 0 Comments CATEGORY: Practice Management, Research

How advisory firms charge for financial advice has long been a central question in the profession. While many firms have historically relied on commission-based compensation methods – reflecting a sales-driven approach – financial advice has evolved with technological advancements and a greater focus on financial planning, with the Assets Under Management (AUM) fee emerging as the primary compensation model. Now, as financial advicers expand their services beyond traditional planning into more holistic, personalized advice, the very definition of financial advice continues to evolve. As a result, firms must continually reassess how they structure their fees to align with their growing range of services.

For firms evaluating pricing strategies, considering how others in the industry are adapting provides useful insights. Despite ongoing changes in the philosophy of financial advice, new Kitces Research on How Financial Advisors Actually Do Financial Planning finds that 86% of advisory firms still rely on AUM fees as their primary method of charging for advice. While this model remains widespread, firms have adopted different ways of structuring their AUM fees to align with their service models and client needs.

At the same time, AUM-based pricing is not without its criticisms. One common concern is that an advisor managing a $4M portfolio does not necessarily do twice the work of one managing a $2M portfolio, despite the fee being twice as high. However, most firms do not price their services in such a strictly proportional manner. Only firms using a flat fee structure, where a single rate applies to the entire portfolio regardless of size, use this kind of direct fee scaling. Instead, graduated and cliff pricing structures – which apply tiered or blended rates as assets grow – help balance costs across different client segments. These structures can also help advisors remain competitive on pricing, which may explain why 58% of firms use graduated fee structures, making them the most common pricing approach.

Despite its widespread use, AUM-based pricing has its limitations – it exposes firms to market risks and restricts the types of clients they are able to serve. To mitigate this, some firms 'unbundle' their fees, separating investment management, financial planning, and other services into distinct project-based, hourly, or retainer fees instead of covering everything under a single AUM fee. Notably, across nearly all client segments, research finds that the total fees charged by advisors who offer bundled and unbundled services tend to be nearly identical, suggesting that unbundling could be a viable way to make financial advice more accessible to clients with smaller portfolios. Another way firms reduce reliance on AUM fees is by using multiple charging methods, such as combining AUM fees with project-based or retainer fees. In fact, 72% of advisory firms use more than one charging method, allowing for greater flexibility in serving a broader range of clients.

Ultimately, as financial planning becomes more comprehensive and customized, fee structures are evolving to reflect this shift. While the mechanics of charging fees may not always change, the broader conversation around fees has continued to develop. At the same time, a wider range of fee structures could help firms serve a more diverse client base by expanding access to financial advice, which has traditionally remained concentrated in high-net-worth households. In other words, as financial planning becomes increasingly comprehensive, firms have the opportunity not only to refine their pricing models but also to rethink how they define – and deliver – value!Read More...

Creating A Hiring Experience That Better Attracts Talent (And Can Compete With Larger Institutions)

March 31, 2025 07:04 am 0 Comments CATEGORY: Practice Management

When it comes to growing a practice for the long term, talent acquisition is just as important as client acquisition. The people who handle the day-to-day work of the firm are crucial to its operations, particularly as firm owners and other leadership focus their time on higher-level strategic initiatives rather than routine operational details. However, developing a strong hiring process can be challenging – and it's easy to overlook its importance until the next hiring need arises. A firm with a clear and well-defined hiring process can attract stronger candidates and evaluate them more effectively, creating a compound effect that strengthens the firm over time.

In this guest post, Eddy Ricci, founding partner of Lead Advisor, explores how firms can refine their hiring processes to attract top talent and how small firms can stand out in a competitive talent market.

Ideally, the interview process is mutual: the firm needs enough information about the candidate to make an informed decision, and the candidate needs enough insight into the firm to do the same. To that end, interviewers can benefit from emphasizing speed (aiming to complete the process within 30 calendar days), connection, and candidness about the firm's strengths and areas for improvement. Additionally, discussing how the firm's core processes, values, and growth opportunities may directly impact the candidate can help candidates better understand what it's like to work at the firm.

A proactive hiring process considers all components of the role, including compensation, team dynamics, and the purpose of the role (especially if it's being refilled). It also plans for a smooth onboarding experience. Ideally, the process is intentional, documented, and repeatable – minimizing internal stress and reducing the time required to make a successful hire. This foundation can be built by creating not only a detailed job description but also an onboarding plan and ensuring the team is aligned and prepared for the new hire.

Once the job is listed and an initial candidate pool is formed, the hiring process can follow three interview stages. The first stage is a brief 'same page' screening to confirm the candidate's qualifications, answer initial questions, and outline the next steps in the process. Some firms may also include a work assessment after this step. The second stage is an in-depth interview, focusing on the candidate's technical skills and alignment with the firm's goals and values. At this point, candidates can also ask detailed questions about their potential role in the firm. The third and final stage is a mutual alignment interview, which addresses any remaining questions and ensures both sides are ready to move forward. By the end of the process, both the candidate and the firm should feel excited about the decision to move forward!

The key point is that firms that craft a repeatable hiring process can create a better candidate experience. A warm, connection-focused, and communicative interview process not only helps firms stand out to candidates but also improves the quality of their evaluations – ultimately increasing the likelihood of finding the perfect mutual fit!

From New-Hire To Confident Advisor: Structuring A First-Year Associate Advisor Onboarding Plan To Develop Technical And Client Skills

March 24, 2025 07:01 am 0 Comments CATEGORY: Practice Management

Almost anyone who has onboarded new employees will attest to the inherent balancing act it requires. New advisory firm employees need to learn ‘just a few' things: who their teammates are and how to work productively with them, who the firm serves, what makes the clientele unique, and how to navigate the daily operations and long-term goals of the firm. New associate advisors face an additional learning challenge as they are asked to internalize the hard and soft skills needed to deliver high-quality advice. In short, there's plenty to learn. Yet, new advisors also need opportunities for responsibility and autonomy to progress and remain engaged. For smaller firms – especially those with little to no experience onboarding new advisors – creating a well-paced financial plan can feel daunting. However, a structured and flexible onboarding plan not only helps an associate advisor ramp up efficiently but also ensures a smooth transition into an autonomous and fulfilling role!

In this article, Senior Financial Planning Nerd Sydney Squires discusses how to construct an associate advisor onboarding plan that guides an associate advisor through their first year, establishes clear checkpoints for progress, yet still allows enough flexibility to grow with the new advisor!

A few key principles can make the onboarding process smoother for both the associate advisor and their manager. First, clarity: both the advisor and manager should be able to clearly define the core financial planning skills that a new hire is expected to develop in their first year. Second, measurable progress: the plan needs objective standards and measurable benchmarks so that everyone can track development and stay accountable.. Third, balanced structure and flexibility: while the plan should serve as a clear ‘guiding star' for the new advisor, it also needs room for adjustments as the advisor's strengths and preferences emerge.

One effective way to structure the onboarding process is to organize the skills that the associate advisor will ideally learn in their first year into key categories. We have provided an onboarding plan template for advisors to download, which breaks up the skills list into two primary categories: 1) client communication skills (e.g., meetings, email communication, and phone calls), and 2) technical skills (e.g., building an initial financial plan). As the onboarding template is filled in over the year, the advisor and manager can review the plan during check-ins to assess progress, identify challenges, and highlight what feels most fulfilling in the role. Additionally, having a one-stop reference sheet with resources – such as compliance guidelines and broker-dealer help desk contacts – can minimize routine questions and streamline the learning curve throughout the onboarding process!

The key point is that while onboarding associate advisors is often a highly individualized process in small firms, a clear, structured onboarding plan ensures managers and associates stay focused on the big picture as the advisor learns and takes on new responsibilities at a sustainable pace. Ultimately, a little planning, a collaborative attitude, and strong communication (with a good sense of humor!) can go a long way in developing confident, competent, and autonomous advisors!