Rewarding Behavior and Performance
Advisory firms spend more money on compensation than on any other expense. In fact, if advisors defined compensation appropriately, it would be clear that they invest more money in people than in any other area of their business. The challenges for advisors are to think of compensation as an investment, consider how they choose to allocate that investment, and determine what kind of return they expect on that investment.
Developed deliberately, a compensation plan can be a recruiting tool, a retention tool, and a communication device for expressing what's important to the organization. Further, a compensation plan defines the behavior the firm values and will pay for—and the ...