Break Away From The Pack

3 tips for financial advisors when it comes to vetting employees

On Behalf of | Aug 1, 2022 | Employment Matters |

One of the most important responsibilities you have, when you’re opening a new financial advising firm, is hiring ethical employees. These individuals should represent the values of the company that you’re opening. 

The people you hire will be responsible for taking care of other people’s money, which can amount to millions of dollars. The last thing that needs to happen is that your employees misappropriate funds that belong to someone else. One way that you can combat this is to vet potential hires very carefully. Here are 3 tips:

Verify their qualifications

It isn’t enough to just look at the qualifications someone claims they have. Instead, you need to take the time to verify the credentials of the people who are on your shortlist for hiring. This can include checking certifications and licensing, as well as contacting references

Conduct an in-depth interview

An interview can unearth a lot about a candidate. While you have to be sure you aren’t asking forbidden questions, such as those about their family composition or sexual preferences, you can discuss their methodology for handling clients and difficult cases. 

Implement a strong contract

The employment contract you use for people at your firm should be comprehensive. You need to know that the interests of the firm and your clients are protected. At a minimum, you should have a code of conduct, a non-compete clause, and a non-disclosure agreement in the contract. 

Unfortunately, even if you look into the background of potential employees, you may miss something. If you learn that an employee acted unethically, the survival of your reputation and your business may depend on how decisively and swiftly you act. Find out more about your legal options.