3 Ways Small Firms Can Hire Smarter

While stiff competition for advisors favors larger firms, that doesn't mean smaller ones can't get the help they need.

By Angie Herbers

Unless you’ve been overly fixated on the Kardashians for last half-decade, you’re undoubtedly aware of the “talent shortage” in the advisory industry. Simply put, most independent firms are growing faster than professional schools can turn out new financial planners.

While the resulting competition for young advisors tends to favor the larger firms — those that can offer more attractive career tracks and benefit plans — that doesn’t mean that smaller firms can’t get the help they need: They just have to be smarter about it.

To help owners of smaller firms attract the professional talent they need, I tell them to them break down the problem.

Virtually, all independent firms evaluate professional talent using three factors: skills, talent and experience. And as you might expect, the better capitalized firms tend to look for candidates who rate highly in all three — and pay well to recruit them.