How do I compensate my employees? Specifically, how do I compensate employees in a way that is in align with how other advisors and firms are compensating employees? Many advisors pay their team members arbitrary salaries and bonuses without ever thinking long-term about the team members' development or compensation growth. In this video I discuss how advisors can begin to think about institutionalizing employee compensation pathways.
What are the takeaways?
1. Consider the roles and not the people when designing compensation.
2. Create compensation pathways that include tiers of salary and incentive compensation so that folks know there is a long term plan for them.
3. Make sure the incentive compensation is based on and aligned with the behavior and activity you want to drive within the role.
Video is 9:36 long