Congratulations! You’ve found a candidate and they’ve accepted your formal offer for employment. But what are the next steps? If your answer is “wait for them to show up on your doorstep and get them moving right away,” you’re in for a rocky ride.
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There are actually plenty of tasks that will need to be completed in the on boarding process—some even before the new hire’s first day. For a detailed look, check out this month’s article, “How to Set Up Your New Hire for Success.”
Skipping through this process could cost you in productivity and revenue for years to come. Here are some real-life examples of on boarding, or lack thereof, gone terribly wrong.
The data points (aka. process) by which these firms were evaluated are:
- Adopting a mindset that team members are investments, not instruments
- Preparing and completing a pre-hiring checklist
- Defining roles
- Outlining short and long-term career path options
- Collaborating on trajectory
- Assigning a mentor
- Periodically meeting, monitoring, and checking in
True Story: $525 million AUM planning and investment firm, of 14 employees, sacrifices full year of productivity and profitability and loses 1 senior advisor due to lack of on boarding.
This firm brought on a novice advisor from a well-known and respected CFP undergraduate program and provided a $65K compensation package. As expected, the advisor had very little experience in the field.
On the surface, this is not an exorbitant salary or a terrible move if you have the time, resources, or processes already in place to train and prepare the advisor to take on client management and servicing tasks, without constant oversight, within 90 days of hiring. This, however, was not the case at this firm.
With no guides, resources, or training program to follow, the new hire was left defenseless. Naturally, someone else in the firm had to neglect their own position in marketing and client management to spend time training the advisor. The time commitment was overwhelming for this individual who virtually went from generating business leads and client management to being a highly overqualified hand-holder. So, not only was the firm taking on the $65k compensation expense, but was sacrificing potential revenue and quality client service.
Enter the domino effect.
Meanwhile, a senior advisor in the firm who was accustomed to leaning on the marketing department to generate leads, saw the firm stagnate and their numbers plateau. This advisor, unsupported and wary of its longevity, jumped ship and took clients with them. They opted for a firm with a more robust new hire and training process and stellar marketing department that would support their advancement.
Profitability remained in the single digits a year longer than expected, marketing virtually ceased, and every member of the team felt these burdens ripple into and suffocate the company culture.
After everything was said and done, it took a whole year for the new advisor to finally meet with a client and get to work—through no fault of their own. Since then, this advisor has proven to be a big asset to the firm.
What’s truly striking about this case is that it’s not an isolated incident. Many advisory firms, whether they’re big or small, in the countryside or in cities, often make the same mistakes. The good news is that there are ways to prevent this from happening to others.
Don’t Skip This Step!
The best business practices, including how new employees are welcomed, are organized and made efficient to save time and resources while boosting productivity and workplace culture.
But there’s more to it than just practical advantages. These processes are also investments in your team. They demonstrate that you value their time, are willing to put in effort to help them grow, and see them as key members of your organization.
Don’t let this true story be you. Start systematizing and making time for your on boarding process today.
As always, feel free to reach out if you have any questions or share with a friend if you think this information could add value. Good luck transforming your business!
