The Always-On Hiring Plan: Why Continuous Hiring is a Must for Financial Advisory Firms

You can no longer afford to think about hiring only when you have to - reactive hiring is costly, time-consuming, and risky. Instead, an "always-on" approach to recruitment provides a continuous pipeline of talent at a lower cost. By understanding that recruitment is an ongoing process rather than a one-time event, financial advisory firms can build relationships with potential candidates before needs arise, ensuring access to skilled professionals who align with their culture and are ready to step in when opportunities emerge. This proactive approach not only eliminates the stress of rushed hiring decisions but also supports the firm's strategic growth objectives through a steady flow of qualified talent.

So, what are the real risks of relying on reactive hiring? Spoiler…they’re more costly than you thought!

💡Reactive hiring is a dangerous game. It may seem like the easiest option when faced with an unexpected vacancy, but it ultimately leads to increased costs, compromised quality, missed opportunities, and a constant cycle of instability. Here are the details:

1. The High Cost of Urgency

Reactive hiring is often more expensive. When you're scrambling to fill an immediate vacancy, you're often at the mercy of the market. This can lead to:

• Higher Recruitment Fees: Agencies and recruiters know you're desperate and may charge higher premiums.
• Premium Salaries: You might need to offer above-market salaries and benefits to lure talent quickly, potentially disrupting your established pay scales and causing dissatisfaction with current staff.
• Lost Productivity: While you're searching, the work doesn't stop. Existing employees may become overburdened, leading to reduced productivity, errors, and even burnout.
• Training Overtime: Quick onboarding often means longer hours and additional resources spent on training.

2. The Compromise on Quality

When faced with the pressure to fill a role quickly, firms often settle for candidates who are “good enough” rather than ideal fits. This can result in:

• Poor Cultural Alignment: A hasty hire might not align with your firm's values, leading to friction, reduced teamwork, and potential turnover.
• Skill Gaps: A reactive hire might lack essential skills or experience, requiring additional training, supervision, and potentially impacting client service quality.
• Long-Term Instability: A bad hire is costly to both the business and morale. Turnover creates additional disruption and expense.
  

3. A Missed Opportunity for Employer Branding

Reactive hiring doesn't allow you to actively manage your employer brand. Instead:

• Limited Exposure: You may be forced to rely on a narrow pool of job seekers, missing the opportunity to attract candidates who are not actively looking, but may be a better fit.
• Negative Perception: Scrambling for talent can project an image of instability and desperation, discouraging talented professionals from considering your firm.
• Missed Referrals: You are not optimizing employee referrals, which is a great way to source quality talent.

4. The Perpetual Cycle of Reactivity

Reactive hiring becomes a self-perpetuating problem. By not planning for future talent needs, you are more likely to find yourself in the same situation again and again:

• Never-Ending Scramble: You will never get ahead. There will always be another gap, which means you're consistently playing catch-up rather than building a stable and strategic workforce.
• Hindered Growth: Constantly scrambling to fill roles prevents you from focusing on strategic initiatives, client development, and overall business growth.
• Reduced Employee Morale: Constant disruptions and overburdening of existing staff are likely to increase stress levels, which impacts morale.

5. Missing Out on the Future

The reactive model is a short-sighted approach. While it may address immediate needs, it fails to:

• Identify Future Leaders: You miss opportunities to identify and nurture high-potential talent that could be developed into future leaders.
• Adapt to Market Changes: You will miss market trends as you do not have a pipeline to build a more diverse and robust talent pool.
• Secure Long-Term Stability: Reactive hiring creates instability instead of building a foundation for long-term success.

From Reactive to Ready: Quickly Enhancing Your Hiring Process for an Always-On Model

💡Reactive hiring leads many financial advisory firms into a cycle of rushed decisions and compromises. Fortunately, switching to an always-on hiring model is simpler than you might think. By implementing targeted improvements to your recruitment process, you can transform how you attract and acquire talent.

Here’s how you can start quickly moving from reactive to ready:

1. Start with a Talent Audit: Know What You Have and What You Need

Before you can hire strategically, you need a clear understanding of your current talent landscape. This means:

• Skills Mapping: Identify the skills and expertise you currently possess within your team and pinpoint any gaps.
• Future Needs Assessment: Anticipate upcoming roles, project growth trajectories, and pinpoint the skills you’ll need to support that growth.
• Performance Evaluation: Assess your current employees' performance and potential. This will highlight potential internal promotion candidates and reveal areas for external hires.
• Creating a Future Map: Look ahead and determine what skills, people, and talent you will need in 1 year, 3 years, and 5 years.

2. Build Your Employer Brand: Show You’re a Great Place to Work

A strong employer brand will act as a magnet for top talent. Here’s how to start building yours:

• Showcase Your Culture: Highlight your company values, work environment, and team dynamics on your website, social media, and employee testimonials.
• Employee Advocacy: Encourage current employees to share their positive experiences, increasing credibility with potential hires.
• Engage in Industry Communities: Share your firm's thought leadership and insights, showing you are a respected thought leader within the industry.
• Website Optimization: Create a compelling careers page that is inviting, up to date, and easy to use.

3. Create a Talent Pipeline: Always Be Networking

Instead of waiting for a vacancy, start proactively building your talent pipeline:

• Networking Events: Attend relevant conferences, industry events, and career fairs – not just to post your openings, but to make connections with potential talent.
• LinkedIn Outreach: Use LinkedIn to identify, research, and connect with professionals who align with your talent needs and reach out with relevant, personal messages.
• Employee Referrals: Incentivize current employees to refer qualified candidates from their network, which increases quality and saves time.
• Community Engagement: Engage with local universities and associations that house your target audience of talent.

4. Simplify Your Application Process: Make it Easy for Candidates

A cumbersome application process can deter even the best candidates. Streamline it:

• Mobile-Friendly Applications: Ensure your application process is accessible and easy to use on all devices.
• Clear Job Descriptions: Write detailed and compelling job descriptions, highlighting the responsibilities, requirements, and company culture.
• Quick Responses: Respond to applications promptly and provide regular updates to candidates throughout the process.
• Realistic Timeline: Be realistic about the time needed to interview and onboard. Transparency is key.

5. Prioritize Quality Over Urgency: Don't Settle for "Good Enough"

With an always-on model, you have the luxury of prioritizing quality over speed. This means:

• Structured Interviews: Develop structured interview processes that assess both technical skills and cultural fit.
• Multi-Stage Evaluations: Consider incorporating skills assessments, behavioral interviews, and team interactions into your hiring process.
• Candidate Relationship Management (CRM): Stay in touch with candidates in your pipeline, even if you don’t have an immediate opening.
• Consistent Feedback: Ensure you are consistent in your feedback for internal and external candidates.

6. Leverage Technology: Automate Where Possible

Technology can help you streamline your hiring process:

• Applicant Tracking Systems (ATS): Implement an ATS to manage applications, track candidates, and automate tasks.
• Social Media Management Tools: Use social media management tools to schedule content and engage with potential candidates across multiple platforms.
• Video Interviewing Tools: Use video interviewing to save time and resources during the initial interview stages.

7. Measure and Adjust: Continuously Improve

Your hiring process should be an ever-evolving system. Use data to continually optimize your approach:

• Track Key Metrics: Track metrics such as time-to-hire, cost-per-hire, employee retention, and quality-of-hire.
• Seek Feedback: Get feedback from both new hires and existing employees on your hiring process.
• Adjust and Refine: Be flexible and make adjustments based on the data and feedback.

Cultivating a Continuous Hiring Mindset

A continuous hiring plan is more than a recruitment strategy—it’s a mindset that prioritizes the long-term success of the firm. Always meeting new people, building relationships, and keeping an eye on emerging talent ensures that financial advisory firms remain resilient and competitive in a rapidly changing industry.

By focusing on proactive recruitment, prioritizing quality over urgency, building a strong employer brand, and investing in the future, firms can position themselves to thrive. In an industry where talent is a key differentiator, those who embrace continuous hiring will reap the rewards of a stronger, more agile team.

Enhancing Your Hiring Strategy with TruGrowth Roundtables

Struggling to develop an innovative hiring strategy? Join TGC’s Modern Roundtables, where you'll collaborate with peers, receive expert guidance, and refine your hiring pipeline. Our Modern Roundtables are designed for leaders who want to refine their processes through collaboration with like-minded professionals. By joining an exclusive group of 8 peers, you’ll engage in strategic discussions that directly impact your development strategies.

What You’ll Gain:

• Peer Insights: Share challenges and solutions with other leaders who have mastered continuous hiring.
• Expert Mentorship: Receive guidance from industry experts on optimizing your hiring pipeline.
• Innovative Solutions: Explore the latest platforms and methods for attracting top talent, discussed in our roundtable blog and live sessions.

💡 We are launching 2 new Roundtable Groups in February. Spots are limited—complete this form to see if it’s the right fit for you. Complete this form.