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Learn Why Job Descriptions Are Essential For Overall Effectiveness At Your Firm

Learn Why Job Descriptions Are Essential For Overall Effectiveness At Your Firm

Updating and writing job descriptions are one of the most effective employee communication tools for managers, hr personnel, and prospective employees.  Job descriptions are beneficial to both an employee and your firm.    Employees will understand what is expected of them and how they will be evaluated.

A job description provides consistency and clarity for everyone involved.

Creating job descriptions results in a thought process that will help your firm:

  • Establish the role that each position plays in attaining the overall firm goals
  • Determine how critical each job is
  • Decide how positions relate to each other in the firm
  • Define current employee roles and identify the characteristics and skill base needed
  • Attract qualified new candidates and aide in hiring
  • Evaluate performance accurately based on the expectations of the position

Each job description should include the following components:

  • Job Title
  • A summary statement– two or three sentences describing and summarizing the purpose or objective of the position.
  • Functions and responsibilities of the position- details of what the job entails. Include details about all roles the employee will hold including any supervisory roles and the reporting structure. An important feature to include in a job description is “other duties as assigned.”   By including this in a job description, the employer can add new tasks when the need arises.
  • Skills and qualifications- list the required attributes and education needed for the position & insights into how they match the culture of your organization.
  • Evaluation methods- identify what is most important for the employee and the organization.  Include details on when evaluations will take place.
  • Compensation- provide a concise view of how the employee will be compensated broken down into base salary, benefits, and other investments in the employee such as training. Listing a range instead of a specific figure will give you more flexibility.  If applicable, include information about how employees are eligible for advancement within the range, sales commissions, bonuses, and annual raises.
  • Work Location and Schedule- include the physical location, days & hours, vacation and/or PTO structure, & potential overtime that may be required.
  • Employment type- full-time / part-time, temporary, employee, or contractor.

Ironstone will help you develop quality job descriptions and identify important gaps that you may be missing in each description.  We will collaborate with you, and execute a solution to help you get the results you are looking for.  We will work with you in creating detailed goals that go deeper than the surface.

Do you value  clear, up-to-date job descriptions at your company? How is your current system working?   We want to hear from you!   Let us know!  Contact us for assistance in starting and improving your firm’s job descriptions. 

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Strategic Planning-Incentive Plans!


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Human Capital Strategies

Human Capital Strategies

A successful compensation plan ensures that you pay for what you get while you get what you pay for.  Industry research heavily supports the benefits of investing your interests in Human Capital that will directly affect your bottom line.  Based upon Ironstone’s work with multiple advisory firms to establish hiring, staffing, and compensation systems/plans, we have established the following key components to consider while building your compensation plan:

A Compensation Model Is Determined By The Following:

  • Firm goals (Rev, AUM, Households, Client Retention, etc.)
  • Available firm resources (Business and Human Capital costs – i.e. budget)
  • Competitive environment (demographic factors – NYC vs. Small town USA and hiring competition)
  • Solo, Silo, Ensemble Firm

A Compensation Plan Structure Is Based Upon:

  • Well-defined roles/responsibilities of each position (Job Descriptions for Producer and Non-Producer)
  • Salary ranges for each role
  • Clear incentive opportunities (% of Net Rev, % of salary to pay out for performance)
  • Established benefits – paid time off, medical, 401k, career development
  • Outlined performance goals for each position
  • Regular performance reviews (quarterly recommended) to determine if individual goals are being met and what type of incentive to pay

Compensation Structure Types Include:

  • Non-producers are paid salary only, while Producers are paid salary plus incentives
  • Non-producers and Producers are paid salary plus incentives to drive performance
  • Non-Experienced employees are paid higher salary with career path incentives – i.e. acquiring licenses 7/63/65, CFP, – moving towards a higher % of Rev pay with experience and in turn, salary becomes lower
    • Attraction of non-experienced is the ability for a firm to “mold” and align the individual to the practice
  • Experienced employees are paid lower salary with higher % Rev incentives because of experience

Common Mistakes Are:

  • Lack of structure around compensation – IDEAL GOAL – disciplined, transparent, and explainable structure – avoid subjectivity
  • Paying out bonuses regardless of whether firm has reached goals
  • Lack of conducting consistent performance reviews or aligning performance with pay
  • Using line of credit to pay bonuses
  • Incentives only being monetary – money does not motivate everyone – time off, personal development, wellness programs, awards, working virtually, etc…

While the benefits of an outstanding compensation plan might be clear-cut, the components and drivers can be somewhat of a mystery.  A clearly defined and well communicated STRUCTURE is the key to your successful compensation model!  Disciplined compensation plans are crucial for top-performance.

Develop strategies for effectiveness without paying too much and maintaining competitive compensation.  Ironstone can help you attain this and help you gain insight into how to make sure that performance meets firm standards, which align with firm goals and ultimately results in success.

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Business Development-Marketing Plans!