Staff lacking knowledge of firms’ business goals

Half of advice firms are failing to communicate their plans for the business with their employees.

According to Business Health, one in two owners say they have not shared their high level business goals for the year ahead with their staff. 

This is compounded with the popularity of remote working meaning staff can feel disconnected or isolated from the rest of their teams.

“Staff are more isolated and therefore less likely to have the true sense of how secure their employer is if they’re seeing less of them. Remote shouldn’t mean less connected but we fear for many it does,” principal Terry Bell said.

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A knock-on effect of this is staff retention, particularly important after the industry has experienced an adviser exodus, with staff keen to understand how they fit in with a business and whether they can grow their career there. 

Bell said there are several different options for staff communication with differing levels of effectiveness. 

The most effective method is speaking to staff in person that bring the team together as a single community and allow staff to meet each other, especially new hires. 

“Some of our clients have sought to build out their in-person updates by incorporating additional training/education sessions for their staff as well as including perhaps a social event (dinner to acknowledge new comers, achievements and milestones for example). Others have leveraged their PD days and/or conferences by simply including their update in the agenda.

“A Q&A session is generally included, allowing staff to ask their questions and seek the feedback they’re looking for in a safe, collaborative environment.”

On the other hand, virtual communication via Zoom or pre-recorded videos can be cheaper and convenient but lack personalisation and run the risk of being ignored. Email communication presumes staff will understand the content and firms should allow an opportunity for further clarification.

“Whichever communication approach you adopt, there will no doubt be extra costs involved, but these will be far less than the cost of replacing staff who otherwise might decide to leave because they don’t feel part of the team or aren’t confident as to its future.”

Last week, Money Management spoke with consultancy firm Human to Human about why leadership programs can help staff gain managerial skills and improve staff retention.

“Financial services businesses are busier than ever and costs are spiralling, which means it has never been more important to empower people in a financial services team to lead change and spend time working on improving the business,” founder Michael Back told Money Management. 

As firms rapidly expand to meet the demands of Australians seeking advice, more internal resourcing and clearer structures are necessary to avoid growing pains in the business.

 “Outsourcing and technology are taking care of a lot of traditional ‘hard skills’, so people need to focus on mastering ‘soft skills’ in their careers such as change management, client experience and creating better working environments.”