Building employee loyalty

Having loyal employees is one of the key ingredients of a successful financial advisory practice. That loyalty is earned by treating your employees with respect and recognizing their contribution. Employees should not be seen as a means to an end or as individuals who simply earn a paycheque to do a job.

“The true testament of a good manager is to show your employees that you care,” says Heather Holjevac, certified financial planner with TriDelta Financial Partners Inc. in Oakville, Ont.

Sheryl Boswell, director of marketing with Monster Canada, the online job board, in Toronto adds that employees need to know they have a future at your firm, and are not merely doing a dead-end job. Here are four tips to build employee loyalty:

– Set clear goals

The most important thing, Boswell says, is to ensure that your employees have a job description that defines their duties, roles and responsibilities so that they are not unsure of what they should be doing. Give employees periodic feedback, so they know whether they are meeting your expectations. You also should ask your employees where they see themselves over certain defined time frames and how involved they want to be in your practice.

– Gather feedback

“Provide employees with the tools to contribute,” Holjevac says. “Be open to comments, suggestions and criticisms, and give [your employees] the opportunity to change processes.”

These goals can be achieved by having a collaborative work environment in which employees feel they can come forward to express their opinions, Boswell says. If appropriate, conduct anonymous employee surveys. This can allow employees to express opinions that they may not wish to be open about.

– Invest in employees

Hiring employees is an investment in their skills and expertise. Typically, employees consider salary and benefits as motivators, Boswell says, so make sure these factors are competitive. When you hire staff, you are making an investment in human capital that eventually will grow and pay dividends.

Therefore, Holjevac adds, it is necessary to provide relevant training and professional development to enable your employees to grow with you. Provide intangible benefits, such as flexible working arrangements, or get employees to participate in working groups or think tanks, through which they can learn from each other.

– Inspire and motivate

Motivation comes from the top, so lead by example. Holjevac recommends doing both “expected and unexpected things” such as ordering lunch, bringing in coffee, getting employees involved in team-building exercises or holding staff parties that include employees’ families.

You can also implement simple incentive programs using gift cards or establish a referral arrangement for bringing in new business.

While money is a motivator for most employees, Boswell recommends making employee recognition a part of your practice culture. Celebrate successes and give employees a forum to make them feel empowered. On the other hand, Holjevac says, money isn’t everything: “Loyal employees are motivated by working in a happy environment.”