August 22, 2017
- Director, Business Performance Solutions, TD Ameritrade Institutional
Your firm is growing faster than you can keep up with; you know you need to hire . . . but for what? Which role will make the biggest impact? Depending on your stage of development, the answer to these questions will vary. If you are an Operator (generating under $500k in annual revenue), your next best hire may be an administrative assistant. If you are an Accelerator (generating $1.5M-$4M in annual revenue) your next best hire may be an operations manager.
Questions to ask:
• What problem/issue are you trying to solve (for example, release capacity of lead advisor, bring specialized services in house, or increase efficiency)?
• What would the individual’s specific responsibilities be?
• Is there enough work for a full-time employee (FTE)? If not, can you leverage a third party?
• Is this an immediate need, or are you looking to hire in anticipation of future growth?
• How much can you afford to pay? How long will it take to achieve the ROI you anticipate?
• Of all the roles you can potentially hire for, is this the one that can make the biggest impact at this time? In the future?
Here are some general staffing benchmarks to consider as you look to add to staff and design your future organizational structure.
Only you can decide what—and who—is the next best hire for your firm. In some cases, you may be looking to hire immediately to relieve existing capacity constraints or to help contribute towards your firm’s strategic objectives and future growth trajectory. Take time to be sure you are identifying the right role and sourcing the right individual. A bad hire is hard to undo and the negative effects may impact your firm for a significant period.
For more information on what staffing looks like at each stage of development for an advisory firm, access the 2017 FA Insight Study of Advisory Firms: People and Pay executive summary.
FA Insight is a product of TD Ameritrade Institutional, Division of TD Ameritrade Inc. FA Insight is a trademark owned by TD Ameritrade IP Company, Inc.