In the previous post, “Jerry Jones, a General Manager You Are Not,” we discussed the importance of hiring the right people. The benefits of hiring the right people are increased effectiveness, efficiency and improved profit.
But how do we hire the right people? And how do we keep them?
As a sales trainer for financial advisors, I often use the Moss Adams profitability and compensation survey results from financial advisors. Moss Adams concluded that the top tier firms paid employees 10% to 20% more, but with this, profitability increased by over 30%. This means financial advisors are getting more productivity from each employee.
The question now is how do we go about hiring the right people? Gino Wickman, founder of EOS – Entrepreneurial Operating System and author of Traction: Get a Grip on Your Business, suggests evaluating employees on the GWC scale: ‘Get It, Want it, and Capacity to Do It.’
Let’s look at how this plays out.
Getting it means understanding the big picture as well as understanding the small pieces to get it done. Does the employee understand his or her mission? Can the employee achieve the desired outcomes?
The employee needs to enjoy what he is doing and be motivated to excel. He or she needs to have a drive. This might not exist for every project, but in total, he or she needs to want it.
Capacity to Do It
The last function is having the education, experience and ability to handle the job. Education and experience are easy enough to measure. However, ability is more difficult. This is how an individual applies his or her knowledge to make decisions.
Before I began using the GWC scale, scorecards and DISC analysis to hire individuals, I hired an individual who had run two offices for a prominent wealth advisor. Prior to that, she was in charge of operations for two separate financial advisors, so she understood what we were trying to accomplish. She enjoyed managing people and sought leadership and management positions. With her previous roles, she had the education and knowledge; however, when it came to capacity, she could not apply her ability to communicate, make decisions or accomplish projects.
If one of your employees lacks one or several of these traits, it is time to part ways. While it might be difficult, you need to let the person go and hire the RIGHT employee.
Working with people is the hardest part about owning a business. As a financial advisor, I highly recommend using GWC to work with your employees in order to increase efficiency, speed and profitability.