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Providing a path for career growth is essential to every business. Two recent conversations with young, talented professionals illustrated the price an advisory practice will suffer if it lacks a career track for growth.
Even in this age of virtual relationships, I find it gratifying to meet friends and colleagues in person. I recently met with Tom, a friend and partner in a medium-sized law firm, over a cup of coffee at a café with a counter-cultural vibe. He’s a family man with two boys, so I thought. But I was surprised to learn that he now has a two-year-old daughter. “It’s been too long,” we both murmured. Indeed!
We got caught up on our families, (mis)adventures and of course, work. I shared with Tom my recent conversation with an owner of an advisory firm (“Dave”) who was experiencing a high staff turnover. I asked Dave if he provided a clear career path for his hires. His answer was that he has always been willing to generously reward hard workers.
“But do they know that? And when was the last time you promoted anyone?”
I pressed Dave.
As it turns out, no, they don’t know that, and as a matter of practice, Dave doesn’t promote people – although his intention has never been to provide dead-end jobs to his people. He truly wants his workers to feel fulfilled and provide a home where they can grow professionally. But without a clear career track, Dave was unwittingly making it easy for motivated and capable employees to leave.
Tom listened intently and told me that his law firm has been losing people too due, in part, to a lack of clarity surrounding a career path. With the firm’s strong brand, they are in a fortunate position to be able to attract strong lawyers. And the firm provides a warm, collegial culture. But, after some toilsome years, the associates realize that a clear roadmap to partnership doesn’t exist. Inevitability, the ambitious ones leave to join firms with a concrete partnership potential.
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“Tim” is a young CFP® professional in his late-20s, outgoing with vibrant energy. I met him over lunch at a popular burger joint known for its selective use of ingredients from local ranchers and farmers (though rather comically we ordered chicken burgers with a side of salad instead of fries).
He recently left the advisory firm where he began his career. He had been with the firm for 11 years, starting in his teens. Not bad for a Millennial, a generation known for its propensity to “jump ship” every couple of years! He is eternally grateful for the opportunity that was granted to him, and the nurturing and mentorship he received from the firm’s seasoned advisors.
I asked him why he left the firm, though delicately phrasing the question, “What were some difficulties for you at the firm?” His answer was straightforward. After toilsome years, paying his dues, he sensed that his career wasn’t going anywhere. He was eager to learn and obtained the CFP® credential. He diligently supported advisors, waiting patiently for the opportunity to be assigned direct client responsibilities. Even after his requests and their apparent acquiescence, there were no concrete steps to make it a reality.
In its defense, the firm has not been growing and it couldn’t support another advisor position. But, Tim tells me, shifting client responsibilities to him would have freed up the senior advisors’ time for them to get out of the office and acquire new clients. But the senior advisors were unwilling or unable to transfer even small clients to Tim. Perhaps the routine was too comfortable for the advisors. Or, maybe they enjoyed their clients’ dependence on them too much to imagine another person handling their needs.
Tim was done. “I didn’t want to be an assistant for the rest of my career. So it was time for me to go.”
A job without professional and personal growth is a dead-end job. No one wants a dead-end job, and when one ends up in one, he or she will find a way to leave. This is painfully obvious, yet, surprisingly, many firms don’t provide a clear career track to their employees.
Hoon Kang, CPA, CFP®, ChFC, CLU is a practice management consultant with Elliott Bay Advisors. His practice focuses on helping founder-centric advisory firms transform from practices to enduring businesses with transferable enterprise values. His articles have appeared in AICPA PFP Planner, Leimberg Information Services and Journal of Financial Service Professionals. He can be reached at [email protected].
Read more articles by Hoon Kang
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
