Advisors base their performance on return. Why wouldn’t that same mindset apply to cultivating the partnership pipelines within their firms?
Good question, thought Reegan Rae. The process of buying out the firm’s founding partner was more complicated than she and her partners expected. Surely they could engineer a better way.
A matrix of employee ownership paths is now gaining traction at the firm, after it managed to retain key talent through the Covid-19 pandemic.
“Not everybody is motivated just by money, so you have to put equal care into your culture,” Rae said. The typical mode of professional service firm advancement — mainly rewarding rising advisors for bringing in new business — overlooks other dynamics that are just as important for firm longevity, Rae maintains. “It was very results-driven but short-term,” she said.
Four years ago, the firm adopted a multilayered approach that rewards accreditations, years of experience, expertise and contributions to firm culture. Staff aiming for partnership can work toward internal credits that convert to equity ownership.
The new system puts structure around the firm’s ambition to be equitable and fair to all employees, Rae said, adding that staff can track their progress toward advancement. “If you’re trying to create an equitable model, is there an option for everyone to qualify for partner? That’s inclusion,” she said.
— Joanne Cleaver