Questions to ask before hiring a junior advisor

You need additional staff and think it’s time to bring a junior advisor into your practice. But you’re not sure what responsibilities they should have, what type of training works best and how to structure their compensation.

“What I’ve found is that when people say they want to grow, what they’re really saying is, ‘I have the opportunity to serve more clients,’” said Angie Herbers, a 17-year consultant to financial services professionals. “But hiring someone should be the last solution.”

Herbers recommends considering alternatives first. “Get more efficient. Scale the practice. Make your client base smaller.” You should also take into consideration that training a junior advisor can take anywhere from 18 months to three years before you see a return on your investment.

Take time to assess exactly what you want that junior advisor to do. Are they supporting senior advisors? Are they bringing in clients or meeting with new clients? Will they be participating in operations? “This is the step most people skip,” Herbers said. “Most advisory firms hire without really knowing what the junior advisor will do.”

Getting the junior advisor to a more senior level as fast as possible is critical, so you’re not facing a revenue loss, Herbers said. “You want them working with clients, or on their own with clients as quickly as you can. Otherwise, you may as well bring in an administrative person who doesn’t give advice.”

Read more in the Round the Table article “Training and compensating junior advisors.”

Written by Liz DeCarlo, Round the Table editor