Top Five Issues with Onboarding New Reps

Onboarding new financial advisors (FAs) has always been a risky process. Despite the efforts put into recruiting new team members, there’s always a possibility that new recruits won’t work out or they may decide that they’re unhappy in their new position. To avoid the costly high turnover rates of consistently hiring new personnel, consider these five issues that tend to sink new recruits during the onboarding process and learn how to be proactive in keeping the good ones (literally) on board.

1. Lack of Managerial Involvement

According to a Gallup survey, a mere 12% of employees “strongly agree” that their organizations “do a great job” onboarding new employees. In part, this can be attributed to a lack of managerial involvement. Managers are often understandably busy; however, as a result, they may shift the responsibility of onboarding new team members to other people who aren’t equipped for this role. This means that new trainees may not be exposed to the expertise, experience, and knowledge that their managers can offer.

If this sounds familiar, it means your new advisors may not be properly trained. You can resolve this problem in one of two ways. First, develop a culture in which managers are equipped to be hands-on by establishing weekly check-ins and an open-door policy. Second, you can develop a structured mentor program in which advisors can shadow a senior team member in order to network and increase camaraderie.

2. Absence of Job Training

Many new advisors aren’t fully prepared to work directly with clients when they start their new roles, which sets them up for failure. However, you can avoid this by establishing an in-house training program that includes in-depth topics such as:

  • Policies
  • General administrative procedures
  • Client-experience protocols
  • Marketing procedures
  • New client onboarding
  • Ongoing client management

Firms often have these systems in place but don’t have them written down. Formally draft your business’s procedures so that advisors will always have an easy reference which will help solidify their contributions to your firm. As a result, you’ll achieve consistency across your organization as team members gain experience.

3. Representatives Don’t Pass Their Qualification Exams

Passing their qualification exams is a vital requirement for financial advisors. When they fail, it delays their ability to truly perform in their role. Once registered, it’s much easier for them to hit the ground running. To enable FA success, you should offer securities training before FAs take their exams. By providing this training, it will significantly increase your FAs’ chances of passing — the first time.

4. New Hires Feel Like Cultural Misfits

It’s hard for new hires to assimilate into an organization, especially if they have to do it through guesswork. Many firms are good at discussing their philosophies, values, and vision, but not at accurately conveying them. To adequately explain these concepts, firms may need to take a step back and evaluate them to ensure they’re accurate and not just aspirational.

To help your new advisors feel as if they fit into your firm’s culture, don’t just focus on idealisms that are outlined in a slideshow presentation. Instead, tell them stories and share anecdotes and other experiences to help them get a real sense of your organization. With this information, they’ll be immersed in the true culture and be better equipped to comfortably make their own contributions.

5. Disorganized Working Environment

A disorganized work environment gives off a negative vibe to new members of an organization. Disorganization is often accompanied by high stress and negative perceptions. To avoid these, firms can invest in refining their procedures so that new (and existing) team members feel less overwhelmed. Optimize your work environment through better organization by:

  • Focusing on efficiency and effectiveness
  • Creating an organizational chart
  • Supporting front-line employees
  • Strategically defining roles

Additionally, companies with disorganized work settings often lack structured reward systems or promotional opportunities. This can be a huge turnoff because new hires may ask themselves whether working for the firm is a good investment of their time, or worse, question whether becoming a member will ultimately hurt their career.

By offering motivational opportunities and committing to employee recognition, you’ll derive many benefits, including higher employee morale and lower employee turnover. Firms that truly invest in their employees will find that their team members are more likely to commit to them for the long term.

A staff that’s equipped to thoroughly know the ins and outs of a heavily regulated industry can go a long way toward success. Securities Training Corporation offers qualified education training and licensing preparation for financial professionals. To learn more about the exam prep program and how STC can help you quickly get your new team members licensed and up to speed, please reach out today.

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