Back from the dead!

Okay, I have no excuses.  I just got overwhelmed by my blog and had to step away.  However, I didn’t intend to step away for over one and 1/2 years.  Again, no excuses but it feels good to be back.

On my new LinkedIn Group (please search “Practice Management Study Group” in “Groups”), I started a discussion yesterday about employee compensation.  I wanted to continue that discussion here on my blog.

Now that I’ve been working with advisors for 6 years now, I feel as though I’ve seen a lot of different situations.  However, in about 80% of the clients I work with or have worked with in the past, I continue to see a lack of understanding of how to really compensate their employees.

There are few things in your firm more important than this issue.  Of course, the first step is to hire right – that’s a topic for another discussion.  After you hire the right person, compensating them is the next important  issue.

Above is an image from a report Angie Herbers published in her white paper “Growing Your Practice Through Human Capital Management”.  As you can see, this is a comp plan based on a % of net profit as the firm grows.  I believe, if the advisor is truly dedicating their time to grow the practice, this is a great incentive plan for all concerned.

No matter how you choose to compensate your employees, make sure you do so thoughtfully and with the belief they are your best chance at getting that quality of life you want and deserve.

I’m attaching a poll – I’m interested in hearing how everyone is compensating their employees.

Until next time, live your dream!

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