401(k) Specialist Issue 4 - 2019 - 15

401(k) BEST PRACTICES
the thoroughbreds to whom Ramsey referred
is not taking enough time to properly
interview candidates. The fault is attributed
to a small business owner's lack of time.
" Doing everything yourself and completely
overwhelmed, it can be easy to just
hire someone to help you, " Ramsey noted.
" So, you begin to hire quickly because you
really don't have time for the interview.
Before you know it, you've hired an 'employee'-someone
who comes in late and
doesn't care as much as you do, instead of a
team member. That's why it's so important
to invest time in the interview process. "
He created an " Intentional Employee
Interview Checklist " to help EntreLeaders
prepare for the right way to interview. For
example, consider questions the advisor
needs to know versus wants to know, the
pace and timing of the interview, and the
interviewer's favorite go-to question that
gets to the " heart of a person " and can be
asked at any time.
" It helps interviewers know the right questions
to ask, so you're weeding out the 'donkeys'
quickly and potentially saving hundreds
of thousands, maybe even millions of dollars
lost in productivity and lost opportunity. "
A bad hire that leads to potentially
millions of dollars in lost productivity had us
wondering about other mistakes he sees advisors
make, and how they're effectively avoided.
" The biggest mistake financial advisors
make is the same mistake many people in
business make, and that is being merely
transactional and not relational, " he said
in a nod to the RIA model. " People aren't
units of production; they have dreams, goals,
hurts and crises. Your customers need to be
engaged relationally. They want to make
smart decisions about their money and their
future. They don't want to be sold something
by a slick talker. "
Again, referencing the heart of a teacher,
he only recommends advisors who can
clearly explain their investment philosophy
and take their client's opinion into account.
" I tell our listeners to be very comfortable
with the fact that this is their money. Financial
advisors need to remember that their job is
not to intimidate, but to teach and advise. Do
that, and you'll earn more business. "
Financial wellness
Financial wellness is all the rage, with
more companies adopting the health and
wellness techniques of decades past for
better financial security for their employees.
For 401(k) advisors, it's a key ingredient for
more successful participant outcomes, one
reason for its current popularity.
But what role, specifically, does it play in
keeping employees focused and therefore
productive, reducing stress and positively
impacting the employer's bottom line? And
what trends is Ramsey currently seeing that
an offering like SmartDollar can address?
Financial wellness is a broad term that
means many things, and it must be done
right.
" One thing we're seeing that's downright
dangerous is the trend away from changing
behavior and toward making people feel
comfortable, " Ramsey bluntly stated.
He referenced companies that offer employees
access to loans and payday advances
to help them " deal with whatever mess
they're currently in, " and one that offered a
payment plan for big-screen TVs.
" I tell our listeners to be very comfortable
with the fact that this is their money. Financial
advisors need to remember that their job is
not to intimidate, but to teach and advise.
Do that, and you'll earn more business. "
ISSUE 4 2019 | 401kSpecialist.com
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401(k) Specialist Issue 4 - 2019

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