“IT JUST DIDN’T work out.” A common response when I ask 401(k) advisors about recent employee turnover. It’s one thing when a new hire is not meeting standards. Regardless of resignation or a termination, you are likely relieved by their departure.
It’s another thing completely when a newer employee, one exceeding expectations, approaches with the dreaded “we need to talk” and “I wasn’t even looking” conversation which inevitability leads to regrettable turnover.
Your dream of taking much-needed time off just got squashed …again.
As a practice management consultant in charge of our Retirement Advisor Institute, staffing is one of the greatest challenges that 401(k) advisors face in their plan practices.
Good people are difficult enough to find, and retaining them for the long haul is a major additional hurdle.
Consider that most plan advisors started with financial service firms where success is measured by sales acumen. Few have any formal training in management or human resources.
What about being an effective career coach?
Not a chance. And yet wearing all these hats is critical in team development.
I’ve been through several coaching and talent development programs but am most fortunate for time spent with successful plan practices building top-notch teams.
For advisors seeking ways to develop staff, I now share concepts and ideas using a coaching model based on three phases designed to improve retention for those worth retaining.
Phase No. 1
It starts the minute a new employee shows up, literally.
Do you have a “Day One” strategy mapped out for when they show up? Has their work space been cleaned and stocked with all the necessary tools from pens to computers to hit the ground running?
Or, are there remnants of the storage unit/dumping ground that the space was prior to their arrival?
I’ve spoken with some of the top 401k practices in the country and universally, they are prepared for the new arrival.
Not only is the work space prepped but most will have a first day event such as a welcome lunch for all staff to meet the new employee and offer their help. This first impression not only builds excitement, but knowledge is likely lacking so having welcome access to fellow employees initially to complete tasks will go a long way.
This phase consists primarily of learning, so willing plan-provider and DCIO partners can also be valuable resources in spending time with newbies to move them up the industry learning curve. Feedback from all parties is critical to understanding if your hire appears to be a good long-term fit.
Phase No. 2
It typically starts when probationary periods are over and a determination has been made as to whether this person is valuable.
Yes, the manager/HR hat may need to be worn for some who aren’t making it, but you now enter a coaching phase and one of your greatest resources is administering one of several self-assessment tests, such as DiSC, Myers-Briggs or Kolbe.
They all share similar output by defining an individual based on one of four personality or behavioral traits. The value of doing this for a plan practice is that there is a place for everyone. You just need to figure out their role, which I call “right-fitting.”
Some personalities were born to sell and should be out winning new plan clients. Others will be very adept at relationship management or participant education.
Some will be great at customer service while others will prefer to work behind the scenes supporting ongoing operations, investments, compliance and plan governance.
Your role as a coach is to guide them towards a career path in the plan industry that is their best fit and one likely to increase their potential for long-term success.
Some companies use these assessments during the hiring process. Why do I recommend waiting until phase two?
Simply put, they are easy to manipulate. A candidate looking to be hired thinks there is a right and wrong answer and, as a result, might not be completely truthful.
To a hired employee, the test can be explained as having no correct answer, but rather a tool to help them find their most fulfilling long-term role within the practice. To state the obvious, mistakes will be made.
Effective managers are more tolerant but ensure those mistakes are not happening with your biggest clients.
Start small, meaning prospecting activities should begin at the small end of the market. Client-facing and back office activities should start with the smaller plans.
But, all along, can you afford to spend one hour of dedicated time with them every few weeks to discuss their goals, challenges and any obstacles they are facing? Can the rest of the team play a role, as well? This is the critical make or break phase where neglect leads to dissatisfaction, which can eventually lead to surprise resignations.
Phase No. 3
It’s the end zone. This is when they’ve demonstrated their proficiency, they’re self-sufficient and can be trusted to work with all of your clients. It is not easy to get here. But, by having laid a solid foundation for them and investing at least some time in their development, the reward is a growing, successful practice, and a happy employee.
Randy Fuss is a practice management consultant at CUNA Mutual Retirement Solutions.
Randy Fuss is a practice management consultant at CUNA Mutual Retirement Solutions.
