Hire! Don’t misfire! Wealth managers reveal the biggest mistakes when bringing on new employees

Along similar lines, Jamie Jones, director of teaming & business development at Janney Montgomery Scott, says financial advisor teams often make the mistake of hiring reactively instead of strategically. They often feel the “pain” of capacity, rapid growth or transition; and then rush to hire someone rather than clearly defining the role that the team needs.

“The teams that are most effective at hiring are those that step back and design what their future organization should look like aligned to their long-term vision and goals. They hire with intention. They will clearly define the roles and responsibilities of the talent needed, traits & attributes desired, what success looks like, and align the appropriate compensation,” Jones said.

Moving on, Mike Papedis, founder and CEO of Fusion Financial Partners, calls treating hiring like a resume exercise instead of a team psychology decision as the most common hiring mistake.

“Hiring is an art. And the psychology angle matters more than most firms admit,” Papedis said.

Papedis also calls the belief that a firm must hire only from inside wealth management a huge mistake. Yes, if you’re hiring a portfolio manager or compliance lead, industry experience indeed matters. But for many roles — including many advisor seats — the real key is the ability to manage a relationship, not be right, according to Papedis.