Motivated and competent staff is key to the success of any business, large or small.

Yet when I talk to advisors about the things that frustrate them and are holding them back, attracting and retaining the right staff is often at the top of the list.

That's why I was interested in a recent guest article for Horsesmouth, the leading practice management site for financial advisors. Co-authored by Helen Modly and Tommie Monez, two members of the management team of a successful financial advisory firm in Arlington, Virginia it outlines five practical tips to get the right staff on board.

And to see more articles like this one and to sign up for a free trial subscription, go to www.horsesmouth.com. (Note as well that some Horsesmouth articles can be found on the website for Dynamic Funds.)

By Helen Modly and Tommie Monez

Hiring team members is one of the most important and also the most difficult parts of managing and building a practice. Build your hiring process around these five steps, and you won't have to kiss so many frogs along the way.

One of the great things about working in a small firm is being able to express and implement new ideas and the flexibility to change direction on a whim. We call it "management by shiny object."

However, when it comes to hiring, this method has been more of a curse than an advantage. Twice we have found individuals that so impressed us we considered hiring them on the spot. Not that they fit into our long-range plans, but just so we could have these great folks on our team. Twice we have discovered that hiring without a plan or a real job description is a really bad idea.

Here are the five lessons we've learned as we've developed from impulsively hiring shiny objects to methodically recruiting and building a great team.

Lesson #1: Don't stray

Know what position you are trying to fill and stick to it.

Before adding advisors or other team members, take the time for an in-depth look at the way your firm works. Solicit input from all employees for suggestions on how to make the work flow more efficient, more accurate, and more suited to the individuals assigned to performing each job.

Sometimes rearranging the work flow, adding appropriate technology, or changing roles within the firm will eliminate the need for new people. If you cannot create more internal efficiency, take the time to evaluate what roles you need filled short, mid-, and long-term. Develop a detailed job description for the most sensible position to fill next-and stick to it.

Lesson #2: Get formal

Create a formal search and selection process.

Identify in advance how you will use it to evaluate applicants. Determine specific criteria, answering these questions:

• Will a credit report or background check be required?
• How will you check references?
• Will you use any assessment tools, and who will administer these assessments to the candidates?
• What level of proficiency is required?

You will also need to determine in advance exactly what you are prepared to offer a new hire in terms of salary and benefits, schedule flexibility, time off, dress expectations, and so on.

Always begin the selection process with a personal phone call to the applicant. For most positions, good telephone skills are essential. The applicant should have a voice that is easily heard and understandable; he or she should have no distracting mannerisms and make no grammatical errors. A well-written résumé and impressive prior experience don't always translate into a good verbal communicator, but a quick phone call will tell you a whole lot about this critical skill set.

Is there an oracle among you?

It took us a while to realize it, but one of our staff has an amazing ability to assess and predict whether or not someone is a good fit for us. She is exceptionally good at judging personalities and skills and applying that to the big-picture view of how our firm works and how our personalities complement each other.

She is now responsible for narrowing the field of applicants for jobs at any level. This marks a sharp contrast to the way we used to operate, when a partner of the firm-yes, the one with "shiny object syndrome"-would make most of the hiring decisions.

Include whoever will be training or supervising the new hire in the selection process. Perhaps they don't need to be involved at the very beginning, but when you begin to narrow down your prospects, their perspective will be important.

Lesson # 3: Hire early

Don't wait until your existing staff is overwhelmed before bringing in a new hire.

When it comes to hiring, a good rule of thumb is that when you think you need part-time help immediately, it is time to hire your next full-time person. Adding personnel before you absolutely have to will give you the luxury of a little excess capacity for a while. This can allow you and your staff to concentrate more on long-range planning, marketing, or professional development before the work load grows to fully absorb your new person.

Lesson #4: Date first

Do multiple interviews and meet with the candidate socially.

The ultimate goal is to find a person with great job skills who fits in with your firm's culture, contributes to your firm's growth, and appreciates its successes. It may not be "till death do us part," but ideally this is going to be a serious long-term relationship. After winnowing out those who obviously don't meet your criteria, you will have one or more final candidates.

Now it is time to date a little. Depending on the importance of the new hire's position, multiple interviews may be appropriate. Additionally, consider meeting in more social settings, such as a corporate event, a game of golf, a long lunch, or dinner. You may be surprised at what you learn.

We once took a prospective new advisor out for golf and a leisurely dinner. Over several hours, she more than confirmed our initial impressions that she was smart, amiable, and would probably be able to generate considerable new business.

Over dinner, we began to realize that she was used to being fed prospective clients and kept score by the number of new relationships formed. Our firm is more concerned with the size and quality of new relationships. We often pass on the next client to wait for the best client.

We also learned that she was used to the resources of a very large organization and relied on the support of a large personal staff-staff we did not have. As much as we still liked her personally, this woman just wasn't the right fit. Not so shiny anymore! We were able to take a step back to reconsider another candidate.

Lesson #5: Invest in training

Your training must be well-organized, targeted, and effective.

Bringing new people on board is time-consuming for all involved and will typically be somewhat disruptive, at least for the people involved in the hands-on training. Be sure you have identified who on your team is responsible for what training and who is going to assist the trainer with his or her normal workload while your new hire gets up to speed.

While you are evaluating your new hire, he or she will be judging the job and your firm's culture. How organized and effective your training process is and how quickly you integrate your new employee into the team will be a big part of their decision process. Haphazard or ineffectual training will likely frustrate a new hire, who is already under pressure to perform and fit in. Poor training will also frustrate your existing staff. They want to see the new hire progress quickly so they can be relieved of the additional burden of training.

Part of effective training is to communicate how an employee will be evaluated and by whom. People will try to do what is expected of them. Be sure your expectations are clear and reasonable. And be careful what you incentivize, because that is what activity you are going to get the most of, perhaps at the cost of some other priority.

It's especially important to keep communication open and easy. At this point you have found someone appropriate and you have invested a lot of time, effort, and money to bring him or her aboard. Your firm as a whole needs to invest in this person's success.