HIRING

Hiring Virtually: Focus on Qualifications, Not Location

By Alex Hopkin, CFP^®

Hiring is a top concern for many financial planning firms. Whether you’re making your first hire or looking to grow your existing team, chances are it has crossed your mind. It is a hot topic in our industry, with concerns that there is a lack of qualified talent.

When looking for the right fit, there are many things to consider, such as experience level, education, specialized training, personality type, and career goals—to name a few. Couple that with restricting applicant searches to those within a commutable distance to your office, and it’s no wonder we hear there’s a shortage of qualified candidates.

What if you focused solely on the key qualifications and removed the location dependency? Applications soar. You then switch from searching for a limited number of satisfactory candidates in the local area to having the difficulty of whittling down a large candidate pool of highly qualified applicants. Now that’s a good problem to have!

The Virtual Shift Has Happened

Just a handful of years ago, virtual financial planning positions were rare. It used to be a firmly held belief that for a new hire to be successful, they had to be in the office. Additionally, there were concerns over cybersecurity, compliance, and training. However, over the past few years, we have seen a shift to hiring virtually—organizations from small boutique firms to large broker-dealers have embraced the trend. Here’s why it makes sense:

Find the Best Talent: Your firm may be located in San Diego, Calif., but what if your best candidate is located in El Paso, Texas? Remote hiring allows you to find the perfect candidate, anywhere!
Benefit from Flexibility: Flexibility is key when it comes to virtual positions. Firms hire new team members for anywhere from five to 40 hours per week as either 1099 contractors or W-2 employees. There is no need to be concerned that you don’t have enough work to hire a full-time employee—there are plenty of applicants who are only looking for part-time positions. Typical applicants for virtual positions include career changers, stay-at-home parents, military spouses, and those looking to simply ditch the commute.
Gain Cost-Effectiveness: A firm owner’s time is their greatest asset. Far too often, advisors are spending unnecessary time on tasks that could be automated with technology or delegated to a team member (outsourced 1099 or W-2 employees) at a lower cost than their personal hourly rate. Additionally, if you hire a 1099 paraplanner, you only pay for the hours you use their expertise—not wasted time at the water cooler. Not only that, hiring virtually also gives you the ability to grow your firm without expanding your physical office, thus reducing your overhead costs.

In-Person or Virtual?

While there are some tasks that are still better suited for in-person hires, many tasks can be outsourced to a virtual team member. When choosing which tasks should be delegated, it is recommended to make a list of those you don’t enjoy doing or that take away from your ability to focus on existing clients and prospecting. Some of the most common tasks outsourced virtually include:

Client onboarding
Account paperwork
Managing account openings and transfers
Data gathering and entry
Managing CRM and reporting software
Reviewing financial documents
Creating financial plans
Preparing presentations and/or deliverables
Presenting financial plans to clients
Taking notes during meetings
Following up with clients regarding ongoing tasks

Alleviating Concerns

Although we have seen a rise in virtual financial planning positions, many of the same concerns mentioned earlier still exist. Fortunately, with improvements in technology and a wider acceptance of virtual work, there are now ways to alleviate these concerns:

Cybersecurity: Remote work often means remote access to sensitive financial data. A solid confidentiality agreement and clear data handling protocols—like VPNs and secure file sharing—are essential to protecting both your clients and your business.
Compliance: Check with your compliance department to find out its specific requirements. For example, some need a virtual hire to complete fingerprinting and a background check before they can be cleared.
Training: A great way to prepare for a new hire is to create a training library. As you complete tasks you plan to eventually give to your new hire, screen record your actions with an explanation of what you are doing. Save these to a cloud-based document sharing platform so your new hire can watch, pause, rewind, and take notes as needed.

The Right Person Is Out There

Finding a candidate who meets your experience and education requirements and also matches your firm’s culture and values can be difficult, but it is the key to a successful, long-term hire. The right candidate for your firm is out there, so don’t give up! But perhaps consider expanding your search—the person you need may just be located a little farther away than you expected.

Alex Hopkin, CFP^® is the founder of Simply Paraplanner, a job board website and recruiting platform specializing in virtual positions in the financial planning industry since 2015. Contact her at alex@simplyparaplanner.com.

image credit: Adobe Stock Images

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