Eliza De Pardo
B USINESS M ANAg EMENT
It is not a stretch to imagine that if we create more fluid , agile workplaces , we ’ ll be able to find people with know-how who can contribute their skills from remote locations .
In recent history , it is human ingenuity that has created transformation and true “ productivity-boosting power .” The Korn Ferry research maintains that , aside from a spurt from 1996 to 2004 , “ the digital technology revolution actually hasn ’ t boosted overall productivity .”
In the U . S . alone , human capital assets , including labor , knowledge and people , equate to $ 244 trillion , whereas there ’ s only $ 62 trillion in physical capital assets such as technology , inventory and real estate . The authors are unequivocal : “ Talent trumps tech .”
If Korn Ferry ’ s research has it right , governments , institutions , organizations and small business alike will be instrumental in growing the talent pool . Innovative approaches to training , education and continuous development will be required to feed the future economy .
When we turn our attention back to advisory firms , we see there is much to do . We need both immediate solutions and longer-term approaches to stop the strain on capacity and growth .
People are the leading indicator of success , and that idea should be central to the decisions made by leadership . The primary function of leaders is not simply to manage their firms . Instead , it is to assemble and grow the optimal combination of skills to serve clients . They must become “ human capitalists .”
What if advisory firm leaders put career path planning first and built the infrastructure that allowed talent to continuously develop , ensuring that every team member was supported to reach their full potential ?
Yes , team members would become more capable and better equipped to progress in their careers . Importantly , recruitment efforts could focus on backfilling the organizational structure with entry level positions , a far easier , lower risk undertaking .
Formal development programs also allow a firm to cast a wider net when recruiting people and tap other industries outside the expected ones . Entry level candidates with less experience and fewer qualifications can more quickly meet role requirements , becoming productive sooner .
This approach must be met with a formal process for bringing people on board : For example , new employees should get six months of structured training where they meet defined weekly milestones , receive internal and external coaching and follow other professionals . All these milestones should be tracked through to completion .
In “ role shadowing ” or “ job shadowing ,” new staffers follow an experienced team member to lead them through work activities while they observe , ask questions and even contribute to tasks . In this way , a firm creates regular , real-time opportunities for learning while building deeper connections that aid staff retention .
As the pandemic fades , albeit slowly , remote work practices are proving tricky to recalibrate . Executives and talent are frequently at odds over whether staff should have to return to the office . This will come at the cost of retention .
Businesses are in the meantime offering a growing range of benefits . Free meals , free parking , gym memberships , the freedom to bring dogs to work . … Anything to get talent back to the office .
The pandemic aside , are we missing an opportunity to reimagine a remote work strategy that increases access to tal- ent ? The pandemic has shown us which roles are genuinely “ remote-able .” Not part-time remote , or largely remote , but full-time permanent remote .
If we stop asking people to relocate and instead set up formal programs to bring people on board remotely , ensure strong remote leadership and career paths , and create culture at a distance , could we improve access to quality talent ?
It is not a stretch to imagine that if we create more fluid , agile workplaces , we ’ ll be able to find people with know-how who can contribute their skills from remote locations .
To ease the impact of the talent shortage , we can also outsource jobs : hire outsiders for their special skills in areas such as technology , marketing or compliance so that we can free up the talent in house to focus on other priorities .
In 2019 , De Pardo Consulting produced a study called “ The Six Dimensions of Standout Performance ,” for TD Ameritrade . The paper examined the growth-producing habits of the largest and most successful advisory firms in the U . S . " Connectivity " was highlighted as a key contributor to their success . By that we mean that the large firms are playing the long game . They are constantly planting seeds and tending to external relationships that create opportunities for future harvesting : They find talent among friendly competitors , when engaging with centers of influence or working with strategic partners . They ask influential members of their communities for referrals . All these endeavors help them create a network of potential talented candidates . ( These connections can also pave the way for mergers and acquisitions — which means accessing talent at a much larger scale .)
The most creative , agile and resourceful businesses will take the lion ’ s share of the talent pie over the next decade . Indeed , our most precious business asset is human . And it is at times like this we will rely most on human ingenuity to unearth solutions .
ElIza DE ParDo is founder and director of De Pardo Consulting .
30 | finanCial aDvisor magazine | july / august 2022 www . fa-mag . Com