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Next Item Previous Item Go back to White Papers List The rising cost of health care in the United States has become a worrisome risk to a financially-secure retirement. With that in mind, it’s important to understand the various components of Medicare, the federal government program that provides health insurance to most Americans age 65 and older. For Americans 65 and older, any conversation about health care must include Medicare. Your eligibility for this program at age 65 means that your health insurance will likely become more affordable, and you won’t be denied coverage for pre-existing conditions. It’s important to understand what happens with regard to Medicare when you retire and how you can obtain the best and most cost-effective coverage. This white paper covers some important aspects of the Medicare program. What Is Medicare? The original Medicare and Medicaid programs were signed into law at the Truman Library in Independence, Missouri, by President Lyndon Johnson on July 30, 1965, with former President Harry Truman looking on. In 1945, President Truman was the first sitting president to endorse national health insurance. The original Medicare legislation (Title XVIII) extended health-care coverage to almost all Americans age 65 or older. On July 1, 1966, when Medicare was implemented, more than 19 million Americans initially enrolled in the program. About 48 million Americans age 65 and older are now enrolled in Medicare, as well as another 9 million or so younger people with disabilities. Subsequent legislation has made a number of changes to the program since 1965. How Is Medicare Financed? There are 3 primary sources of Medicare funding: Medicare Part A (hospital insurance): Medicare Part A is financed largely through a 2.9% payroll tax paid by employees and their employers (1.45% each). That amount increases to 2.35% on earnings over $200,000 single/$250,000 married, employees only), which goes into the Part A Trust Fund that helps pay the eligible hospital expenses of Medicare beneficiaries. Medicare Part B (medical insurance): Medicare Part B, which helps pay for doctors’ services, outpatient care, and home health care, is paid for primarily by general government revenues, with Medicare beneficiary premiums accounting for about 25% of the Part B financing. Medicare Part D (prescription drug coverage): Medicare Part D, which helps cover the cost of prescription drugs, is also paid for primarily though general government revenues. Some state payments and beneficiary premiums finance the balance. Who Is Eligible for Medicare? Medicare Part A (hospital insurance) is provided at no cost to U.S. citizens and permanent residents of the United States who meet certain eligibility requirements. Anyone enrolled in Medicare Part A can, on an optional basis, enroll in Medicare Part B (Medical Insurance) by paying a monthly premium. Medicare beneficiaries with higher incomes will pay higher Part B premiums. Age 65 or older: Beginning at age 65, you are eligible for Medicare if you or your spouse worked for at least 10 years (40 quarters) in Medicare-covered employment and you are a citizen or permanent resident of the United States. You do not need to be receiving Social Security retirement benefits to qualify for Medicare at age 65. At any age: A citizen or permanent resident of the United States who has end-stage renal disease (ESRD) can get Medicare at any age. In addition, regardless of age, someone who has been entitled to Social Security disability benefits for 24 months or who receives a disability pension from the Railroad Retirement Board and meets certain conditions is eligible for Medicare. Finally, someone with ALS (Lou Gehrig’s disease) will automatically receive Medicare the month Social Security disability benefits begin. If you are not certain about your eligibility for Medicare, you can call the Social Security Administration tollfree at 800-772-1213 or visit the official government website for Medicare. What Medicare Does Not Cover It’s important to know what Medicare does not cover so you can avoid surprises. Teeth, eyes, and ears. Generally speaking, Original Medicare does not cover dental work and routine vision or hearing care. This means it does not cover dentures, which can run anywhere from about $1,000 to more than $5,000 for a complete set. A single tooth implant cost close to $4,000. However, if a dental condition involves an emergency or complicated procedure, it could be covered. Routine vision checks are generally not covered. But if you have an eye condition like glaucoma or cataracts, basic Medicare will cover your care. If you decide to go with an Advantage Plan, there’s a good chance dental and vision will be included. However, it will likely be limited. Medical care outside the United States. If you plan to travel the world after your turn 65, you need to know that basic Medicare generally does not cover care you receive outside the United States. If you choose an Advantage Plan, emergencies are often covered worldwide. However, routine care received overseas might not be. In this situation, you can look into travel-medical policies specifically targeted at the 65-and-over crowd. Depending on the specifics of the coverage and your age, these policies can cost about $175 or more per month. Long-term care. In general, Medicare does not cover long-term care. There are insurance policies that cover it, although they can be pricey. And the older you are, the more they cost. On average, an American turning 65 today will spend $138,000 in future long-term-care costs, according to a 2017 Bipartisan Policy Center report. Long-term care includes things like daily help with bathing and eating. Enrolling in Medicare at Age 65 There are 2 ways in which you can enroll in Medicare at age 65. If you are already receiving Social Security or Railroad Retirement benefits: If you’re already receiving Social Security retirement or disability benefits or Railroad Retirement benefits, you will automatically be enrolled in Medicare at age 65. You should receive a package of Medicare information, together with your Medicare card, in the mail. If you don’t receive the package by your 65th birthday, contact the Social Security Administration toll-free at 800-772-1213. If you are not yet receiving Social Security or Railroad Retirement benefits: If you’ll be turning age 65 in a few months and are not yet receiving Social Security or Railroad Retirement benefits because, for example, you’ve decided to delay retirement, you need to call or visit your local Social Security office to enroll in Medicare. You can also enroll in Medicare online. You can enroll in Medicare at age 65, even if you don’t plan to retire at age 65. The recommendation is that you contact your local Social Security office or enroll online about 3 months before your 65th birthday. Medicare Part B You will be automatically enrolled in Medicare Parts A and B. But because you have to pay a premium for Medicare Part B, you have the option of turning it down. If you do not enroll in Medicare Part B during your initial enrollment period, you can enroll later during a “general enrollment period” from January 1 through March 31 of each year, with your coverage then beginning the following July. Be aware that your monthly premium could increase 10% for each 12-month period you were eligible for, but did not enroll in, Medicare Part B. Medicare Coverage Options Medicare provides you with choices on how to receive your Medicare benefits. You can choose to receive your Medicare benefits either through Original Medicare or through a Medicare Advantage plan: Original Medicare (Parts A and B): Original Medicare is operated by the federal government and consists of Part A (hospital insurance) and Part B (medical insurance). With Original Medicare, you choose your doctors, hospitals, and other health-care providers. Most people do not have to pay a premium for Part A because they or their spouse paid Medicare taxes while employed. Part B is optional because it does require payment of a monthly premium. Most people enrolled in Part B will pay a premium of $135.50 per month in 2019. Higher-income Medicare beneficiaries will pay more.You have the option to enroll in Part D – Medicare Prescription Drug Plan. It’s run by private insurance companies and helps cover the cost of your prescription drugs. Because there are gaps in the coverage provided by Parts A and B, you also have the option to purchase a Medicare Supplement or “Medigap” insurance policy, also sold by private insurance companies, to help fill those gaps. Medicare Advantage Plans (Part C): Medicare Advantage plans are generally HMO or PPO plans, although private fee-for-service plans are also available and are run by private insurance companies that are approved by and under contract with Medicare.You can choose to receive your Medicare benefits through a Medicare Advantage plan if you elect both Medicare Parts A and B. The Medicare Advantage plan will then provide other benefits covered by Parts A and B, with the exception of hospice care. The plan might provide additional benefits that aren’t otherwise covered by OriginalMedicare, such as prescription drug coverage. Unlike Original Medicare, though, Medicare Advantage plans usually require that you either use plan doctors, hospitals, and other health-care providers or pay more for the services you receive.With a Medicare Advantage plan, you do not need to, and cannot, purchase a supplemental Medigap insurance policy. Medicare Advantage plans, however, may have a monthly premium you must pay, in addition to the Medicare Part B premium. You might also be charged a copayment amount for covered services you use. Initial Enrollment Periods When you initially enroll in Medicare, you’ll need to choose between Original Medicare and Medicare Advantage. Your initial enrollment period is the 7-month period that begins three months before you turn age 65, includes the month you turn age 65, and ends 3 months after the month you turn age 65. If you decide to enroll in Original Medicare, you’ll then need to decide if you want to purchase a Medicare Prescription Drug Plan and/or a Medigap policy. Annual Enrollment Periods While your initial choice of Medicare options is an important decision, it is not an irrevocable decision. Each year, you’ll have these opportunities to change your Medicare coverage: Open enrollment period: You can make the following changes during the annual open enrollment period (between October 15 and December 7), with the new coverage taking effect on January 1 of the next year: 1) An individual covered by Original Medicare can switch to a Medicare Advantage Plan. 2) An individual with Original Medicare can add or switch Medicare Prescription Drug Plans and/or Medigap insurance policies. There might be medical underwriting requirements. 3) An individual with a Medicare Advantage Plan can switch between Medicare Advantage Plans or drop Medicare Advantage, switch to Original Medicare, and add Medicare Prescription Drug Plan and/or Medigap insurance coverage. Medicare Advantage Disenrollment Period (January 1–February 14): An individual enrolled in a Medicare Advantage Plan can switch to Original Medicare and can also join a Medicare Prescription Drug Plan. Coverage begins on the 1st day of the month after the plan office receives your enrollment form. There is no right to buy a Medigap plan without satisfying medical underwriting requirements. General Medicare Part B Enrollment Period (January 1-March 31): An individual who did not enroll in Medicare Part B when first eligible can sign up from January 1 through March 31 of each year, with the coverage taking effect on July 1 of that year. If you didn’t sign-up for Part B when you were initially eligible, you may have to pay a late enrollment penalty for as long as you have Medicare. Your Part B premium may increase 10 percent for each 12-month period that you could have had Part B coverage but didn’t sign up for it. Special enrollment period: There are situations for which you may not need to enroll in Medicare Part B when you first become eligible. For example, you or your spouse might still be working and covered by a group health plan, meaning that you don’t need Part B coverage. In this instance, you can enroll in Part B without a late enrollment penalty at the following times: Anytime while you have group health coverage based on current employment. During the 8-month period that begins the month after the employment ends or the group health plan coverage ends, whichever happens first. If you have COBRA coverage, you must enroll in Part B during the eight-month period beginning the month after the employment ends. If you enroll in Part B during a special enrollment period, you then have a 6-month Medigap open enrollment period, which gives you a guaranteed right to purchase a Medicare Supplement Insurance policy. Caution: If you receive health-care coverage, including prescription drug coverage, from a current or former employer, union, or other source, you should contact the benefits administrator before dropping any of your current coverage and/or enrolling in any of the Medicare coverage options. It is important that you understand how your insurance works with Medicare before making any changes. If You Need Help Paying Your Premiums If you cannot afford to pay your Medicare premiums and other health-care costs, there are federal and state programs available for people with limited income and resources. Here are some examples. Medicare savings programs: States have programs that pay Medicare premiums and, in some cases, might also pay Medicare Part A and B deductibles and co-insurance amounts. To qualify for a Medicare savings program, you must have Medicare Part A and meet specific state requirements with regard to your income and financial resources. To find out if you qualify, call or visit your State Medical Assistance (Medicaid) office or call Medicare at 800-633-4227. Ask about getting help to pay your Medicare premiums. Extra help paying for Medicare Part D (prescription drug coverage): You automatically qualify to receive extra help paying for Medicare Prescription Drug Coverage if you (1) have full Medicaid coverage, (2) belong to a Medicare savings program, or (3) receive Supplemental Security Income (SSI) benefits. You may qualify for the Medicare low-income subsidy (LIS) to help pay prescription drug costs if your annual income and your financial resources are below specified limits. For more information, contact your State Health Insurance Assistance Program (SHIP) or Medicare at 800-633-4227. Medicaid: Medicaid is a joint federal and state program that helps pay medical costs if you have limited income and financial resources and meet other eligibility requirements. Some people qualify for both Medicare and Medicaid (and are therefore called “dual eligibles”). Medicaid requirements vary from state to state. Contact your State Medical Assistance (Medicaid) office for more information and to see if you qualify. State Pharmacy Assistance Programs (SPARs): Some states have SPARs that help certain people pay for prescription drugs based on criteria such as financial need, age, or medical condition. Each SPAR has its own rules and helps in different ways. To find out about a SPAR in your state, call your State Health Insurance Assistance Program (SHIP). Online Resources There are so many pieces and parts to Medicare that it can get confusing. We don’t have room here to cover all the details. Please visit www.medicare.gov , the official U.S. government website for Medicare. It is a comprehensive, easy-to-use online resource that allows you to accomplish the following: Check your Medicare eligibility. Review what Medicare covers. Compare Medicare health plans, prescription drug plans, and Medigap plans in your area, including how much they cost and the services they provide. Locate helpful phone numbers and websites, such as for your State Health Insurance Assistance Program (SHIP). Learn about your Medicare rights and how to file a Medicare appeal. Download many helpful Medicare-related publications. Medicare also provides a secure online service for accessing your personal Medicare information, located at www.MyMedicare.gov . After registering on the site, you’ll be able to do the following: Complete a questionnaire that will enable Medicare to process your bills correctly. Track your health-care claims. Request a replacement Medicare card. Check your Medicare Part B deductible status. Track the preventive services you can receive. Find information about your current Medicare health and/or prescription drug plan or search for a new one. Facts About Retirement and Medicare

Next Item Previous Item Go back to White Papers List As you spend decades in the workforce, you dream about retirement. As it gets closer, you think about how to bring your dream to life. Each person’s idea of retirement differs based on their goals, desire or need to continue working, as well as other considerations. Regardless of your idea of retirement, you need to consider some specific things and take preliminary steps to get ready for retirement. Financial and life goals, as well as feelings about working and planning for healthcare needs are some of the most crucial factors to evaluate when you are getting ready for retirement. Getting Ready for Retirement As you spend decades in the workforce, you dream about retirement. As it gets closer, you think about how to bring your dream to life. Each person’s idea of retirement differs based on their goals, desire or need to continue working, as well as other considerations. Regardless of your idea of retirement, you need to consider some specific things and take preliminary steps to get ready for retirement. Financial and life goals, as well as feelings about working and planning for healthcare needs are some of the most crucial factors to evaluate when you are getting ready for retirement. What Are Your Retirement Goals? Everyone thinks about how they would like to spend their days during retirement. You might want to travel, attend classes for things that interest you, volunteer for organizations and causes you are passionate about, and/or participate in other hobbies. You also need to consider the location where you want to live and type of housing you want in retirement. If you’ve spent decades maintaining a house and yard and paying down or even paying off a home mortgage, you might not want that responsibility anymore. Maybe you want to downsize and buy a condo or townhome, maybe you want to be in a retirement community, or maybe you want to buy an RV and travel around the country. In any case, as you are getting ready for retirement, many of your choices will hinge how and where you want to live. To Work or Not to Work Those who have spent their life punching a time clock, working long hours, or running their own business often fantasize about having all the time in the world during retirement. Yet, leaving the workforce can be a traumatic experience for some. You might not be emotionally ready to retire, and that is perfectly okay. Each person is different; and, unless you are a commercial pilot or have another profession with a mandatory retirement age, you don’t have to call it quits until you feel ready. Financial needs might dictate if, or how much you need to work during retirement. For others, too much time on their hands results in boredom and sometimes, even depression. When you are planning your retirement, you need to evaluate if you want and need to work, and how much time per week or how much income you need or want to make. Living the Good Life by Eliminating Debt When you near retirement, you might choose to work, but it’s ideal if you aren’t forced to. Eliminating your debt prior to retirement will help reduce your monthly income need. Start with any credit card debt, outstanding loans for cars, boats, and other toys, and any other money you owe. If you still owe money on real estate, you should work on paying down or paying off any mortgages on your primary residence and any vacation properties you own. You will still have monthly expenses such as utilities and insurance premiums, but you can live a higher quality of life when you aren’t paying debt once you choose to quit working. Determine a Preliminary Monthly Budget Once you have an idea of your retirement goals, where you want to live, and whether you want to work, you need to determine how much your monthly expenses will be and how much income you need to support them when you retire. These numbers won’t be exact but having some idea will help you make decisions about housing and the extent to which you need to work. Calculating a preliminary monthly budget requires examining your retirement income streams, which can include: Pension benefit Social Security benefits Traditional IRA accounts, Roth IRAs, and SEPs One or more of several types of annuities Your monthly income amount from all of these sources can vary based on the age you choose to retire. In fact, if you choose to take withdrawals from some retirement accounts prior to age 59 1/2, you might face a 10 percent penalty on top of regular income tax. Similarly, each year you wait beyond your Full Retirement Age, up to age 70 to collect Social Security benefits, your monthly benefits will increase by eight percent. No additional benefits exist to start collecting Social Security benefits beyond age 70. Aside from evaluating your monthly income and expenses, you also need to consider any family obligations you might have. Do you have adult children with special needs or other dependents for which you need to provide? Will you continue any support you provide after retirement? Do you want to help grandchildren pay for college? Plan for Healthcare Once you reach age 65, you are eligible for Medicare. You have the option to choose Original Medicare or Medicare Advantage, as well as the Prescription Drug Plan. While some Medicare options cost less than others, you still need to plan for premiums, deductibles, co-payments, and services not covered by your plan. If you plan to retire before age 65, you will need to determine how you plan on covering health care costs until Medicare kicks in. Other healthcare things you need to plan for include vision and dental services not covered by Medicare, as well as long-term care. Medicare only pays for medically necessary nursing home expenses, and you have to meet a very strict criteria to be approved. There are a number of long-term care insurance plans which exist to help provide a host of services that aren’t covered by regular health insurance. This coverage is designed to include assistance with your routine daily activities, like bathing, dressing or getting in and out of bed. A long-term care insurance policy helps cover the costs of those routine daily activities when you have a chronic medical condition, a disability or a disorder such as Alzheimer’s disease. Most long-term care policies will reimburse you for care given in a variety of locations, such as : Your home. A nursing home. An assisted living facility. An adult day care center. Using your personal savings and investments, as well as home equity also could provide a solution for long-term care expenses. Planning for long-term are expenses is especially important when someone loses a spouse or doesn’t have anyone to help with daily care. Contact Hoopis Performance Network to Learn More About Planning for Retirement HPN provides knowledge and skills training for management, producers, and staff in the financial services industry. We aim to help you grow your business by putting exceptional resources at your fingertips to help your clients increase their financial literacy and plan for their retirement. Contact us today for your training and education needs and to learn more about how you can help and encourage your clients to take the steps they need for a rich and fulfilling retirement. Getting Ready for Retirement

Next Item Previous Item Go back to White Papers List Ancient Chinese philosopher Confucius expressed his belief in the importance of learning from interaction when he wrote, “I hear and I forget, I see and I remember, I do, and I understand.” There are no shortcuts when it comes to being successful, just as there are no shortcuts when it comes to gaining knowledge and understanding. Why We Must Get Training Right The training you offer can distinguish your firm or agency from others, which in turn can help you attract top talent. This is one area in which you just cannot take shortcuts. According to the 2018 Deloitte Millennial Survey, about 8 in 10 millennials say that on-the-job training, continuous professional development and formal training led by employers will be important to help them perform their best. Employer training and support quite obviously help millennials and the Gen Z cohort perform their jobs, and as their careers progress, the role of employer as educator will take on even greater significance. The study noted that 73 percent of those who plan to stay with their organizations more than five years say their organizations are strong providers of education and training. But young professionals are looking for training that goes beyond technical and sales skills. Young professionals are especially seeking help building confidence, interpersonal skills and— particularly for Gen Z—ethics/integrity aptitude. In their view, businesses are insufficiently focusing on nurturing these and similar soft skills. More than one-third of millennials (36 percent) say it is “essential” to a company’s long-term success that its employees and leaders have strong interpersonal skills, but only 26 percent are offered much help or support in developing them. A similar support deficit exists in the areas of confidence/ motivation, ethics/integrity, critical thinking and innovation/creativity. Failing to train your team members can be a catalyst for them to seek out organizations that offer better training. That can be costly to your organization. Employee Benefit News reported that turnover cost approximately 15,000 per employee who earns an annual salary of $45,000. That number is much higher for top producers. We Retain More Knowledge when We Participate in Training Actively Edgar Dale, famous for his research on this subject and his “cone of experience,” found that after two weeks, we tend to remember only: 10 percent of what we read 20 percent of what we hear 30 percent of what we see 50 percent of what we see and hear 70 percent of what we say and write 90 percent of what we do The higher our level of participation, the more information we retain. From a business perspective, higher retention of information translates to a higher ROI on your investment in providing training to your team. How to Engage Participants in Learning This is why it is so important to have participants in any learning course do more than just sit there and listen to what is being presented. Here are some strategies you can ask your instructor to use in an effort to get your team members more involved in their learning: Require participants to complete pre-work before the training. Before the training, if possible, connect with all the participants, probably via email. Ask them what they hope to learn from the session and if there are any specific questions they would like to get answered. This involves them in the training before it even begins. During the training, present the material in several different formats, such as written bullet points with images, video or audio clips, quiz questions and hands-on exercises. Offer different methods of training. Consider off-site, on-site, online self-study and online instructor-led programs. Make it easy for participants to follow along with what is being presented and to take notes, either online or on paper—whichever they prefer. Let participants know what’s coming. One effective way to do this for longer training classwork is to use the 50-10-50 module/break format. People tend to tune out and get restless if a training module lasts longer than 50 minutes. Let them know you will conduct a 50-minute training session, and then they will get a 10-minute break. Then the next 50-minute session will begin. When participants know ahead of time that the workshop will break at a specific time, it reduces their stress and distraction. They likely will need to check their email or return calls. Choose participants randomly during the training to answer questions or offer their perspectives. They will want to be prepared in case they are called on, so they will pay closer attention. Require participants to complete worksheets, and then collect and review them. If it’s not worth instructors’ time to inspect what they expect, then soon it won’t be worth the participants’ time to complete the assignments. Break the participants into groups and ask them to engage in discussions on the topic. Have the participants write or say how they will translate the information, concepts and techniques they have learned into actionable activities they can use with their clients. Have your instructor create high-value deliverables that summarize and expand on what the participants have learned. Listing or linking to additional support resources is a valuable way to keep adults engaged long after your training seminar is over. You can offer these deliverables in the form of printed handouts or via an online LMS. Offer praise when participants offer contributions to the training and when they excel at grasping the concepts and translating them into real-world scenarios. Mistakes to Avoid in Training In addition to the above tips for engaging learners in their training, here are some common training mistakes for your trainers and instructors to avoid. Most of these common mistakes boil down to organizations, trainers and/ or participants attempting to take shortcuts in the learning process: Mistake #1: Offering training as an afterthought — or not at all. To become known as the organization that offers the best and most valuable training, it must be included in your budget. You must devote time, staff and money to training. Otherwise, it’s no more than an afterthought, or at best, a one-time event. Ongoing training is the hallmark of dynamic organizations that attract the best talent. Plus, when you train your own team members, you are investing in your own company. Mistake #2: Creating cognitive overload. That occurs when too much information is delivered at once. If participants feel overwhelmed, they will be unable to absorb the concepts you are sharing with them. This is a common occurrence when it comes to new agent/advisor onboarding training, since there is so much information to provide in such a short period of time. Offer classroom training in short segments, and stick with “bite sized” online training courses or modules that offer learners a small bit of vital information at once. This online coursework can be used as an initial presentation of the subject matter or as a training follow up after a classroom session. Repetition is the key to learning and recall. (This is one of the beneficial features of FSEdNet video training; our hundreds of videos last an average of only 8.5 minutes each.) Mistake #3: Using outdated materials. Make sure all your training materials are updated, with current statistics and facts. Participants are likely to lose confidence in the credibility of the information if the information is no longer accurate. Mistake #4: Ignoring differences in learning styles. We know people learn by doing. We also know that some people tend to learn better through visual or audio content. Be sure your content isn’t just written or spoken; but it contains a blend of written, audio, visual and even gaming elements in your training materials. Mistake #5: Ignoring generational differences. We can’t assume that all baby boomers prefer traditional training materials and millennials, or Gen Z prefer online training. A study of 1,000 professionals by Activia Training found that younger employees prefer classroom learning. Thus, when utilizing eLearning the style and design of its format is very important. The best designs are those which replicate a classroom experience, which should contain a blend of live speakers, along with visual enhancements to engage and supplement the learning process. Voiceover PowerPoints scored the lowest when it came to eLearning. Mistake #6: Trying to teach all knowledge levels in one class. When possible, tailor your training according to skill level. Veteran agents or advisors who have been selling life insurance for their entire careers obviously don’t need an introductory class on life insurance. Assess knowledge levels before deciding which participants should take which training. Also, don’t assume people know more or less than they really do. Mistake #7: Leaving out important aspects of the participants’ everyday activities. Training your agents or advisors in sales and negotiation strategies is essential but be sure to complement that training with product training and how to manage a practice as well. And, as mentioned earlier, millennials and Gen Z want training in “soft skills.” Offer training in a variety of skills. Mistake #8: Failing to follow up. The learning shouldn’t end the moment the training ends. Training is a process, not an event. One of the key benefits of eLearning via an LMS, is that the training curriculum is available for a refresher whenever the information is needed. No trainer can design a curriculum to fit every situation or client event at the exact moment needed. So, having the ability to return to a specific training topic at any time is a winning solution. Thus, repetition is the key element to any learning process. Set expectations for posttraining follow-up. Ask participants to submit reports three months later, for example, to explain how they have used the training. Schedule a get-together three or six months later, and have participants share their thoughts about the training. Ask participants to write down two or three specific goals for how they will use the training in their professional growth. Check back with them three and six months later to learn about their progress. Mistake #9: Skipping the assessment step. Ask participants to fill out an evaluation form before they leave the room or as soon as they sign off the online training platform. Make sure someone compiles the data on these forms to understand what worked and what could be done better next time. This is extremely important. Training requires a significant investment of your organization’s time, money and resources, so it pays to learn what type of impact it’s having. Do not allow anyone involved in the training of your team, or the participants, to take or accept shortcuts! It’s human nature to try, but we must form the habit of never accepting any shortcuts in learning or business. Consider Hoopis Performance Network for Advisor, Leader and Staff Training An effective resource for training financial advisors is HPN, which features online, ondemand, total video-based training built on four Disciplines of Success with access to more than 600 training sessions. The coursework can be either self-study or facilitator-led, and it complements any firm, agency or company training programs and marketing selling systems. With our mobile application your advisors can access the video training anytime, anywhere, on their computers, smartphones or tablets. It’s a cost-effective, time-efficient way to increase productivity, thus retention. All of our platforms are designed to help all levels of those in the financial services industry enhance their career opportunities by learning and understanding more. Which results in helping them reach their full potential by sharing ideas, concepts, techniques on topics that will help turn potential into reality. Don’t Shortcut the Learning Process

Course Catalog Go Back to Main Catalog Page Accountability and Difficult Conversations Performance Indicators and the GAP Analysis Conversation Setting Expectations to Drive Behavior Accountability Coaching Best Practices How to Conduct a Coaching Conversation Tactical Strategies for Coaching Advisors Three Levels of Training Interaction - Coaching & Consulting Phase Understanding Mentoring - Intermediate Development - Coaching Developing Training - General Helping Your Advisors with Goal Setting Planning and Debriefing Sales Appointments Three Levels of Training Interaction: The COP Phase Training Your Advisors on Marketing Why Advisors Typically Fail Development-Training Creating and Delivering Your Value Proposition Developing Leaders: Keys to Effective Leadership The Leadership Mindset and Insights Time Management Concepts and Techniques Leader Philosophy Compensation and Benefits Cultivating Potential Recruits Over Time Developing an Ideal Candidate Profile Developing Your Message to Attract Top Performers Diversity Recruiting Generating Advisor Referrals and Developing Centers of Influence Recruiting and Selecting College Graduates Understanding Sourcing for Potential Recruits Recruiting - Finding Approaches to Increase Productivity Understanding Joint Work Best Practices Understanding Onboarding and Momentum Building for New Advisors Recruiting - Momentum Building How to Conduct an Initial Recruiting Interview How to Determine When Someone Is Not a Fit Selecting Top Performers Utilizing Reverse Selling in Selection Recruiting - Selection EDGE: The Leader's Journey EDGE: Developing Leaders EDGE: Emerging Leaders EDGE: Excelling Leaders EDGE: Growing Leaders EDGE: Tools and Resources Menu Close Try It Free for 14 Days Get full access to the platform—risk-free. No credit card. No commitment. Just results. Start building your advisor bench today. Start Your FREE Trial

Next Item Previous Item Go back to White Papers List The other day, I saw a question that a software company owner posted online. He asked if it’s necessary to be “nice” in business. He was frustrated with employees who’d complained about feeling pressured to work 70+ hour weeks, having to chase new business with a fierce competitiveness and working within a tyrannical internal culture. His feeling was that true professionals are born fighters. I don’t agree. I believe a strong firm culture builds a strong firm. This is not to suggest that success can be achieved, individually or as a firm, without focus, energy, initiative and passion. It can’t. Success can be achieved, however, in a culture that values integrity, employees, compassion and high ethical standards. I believe that a strong firm culture develops and sustains a strong firm. Employees who are part of a strong culture that aligns with their own personal values tend to be more engaged in the organization, and therefore more productive. This article makes the case for a strong firm culture that emphasizes happy employees and strong values. It also lays out a framework for analyzing your firm’s culture and strategies for making improvements where needed. Take a Cue from Scrooge Who doesn’t know the story of Ebeneezer Scrooge, the penny-pinching, mean-spirited old grouch of a business owner who Charles Dickens brought to life in his 1843 novella A Christmas Carol? As the story went, Scrooge was an aging and bitter business owner with no family of his own. The ghost of a deceased former business partner was haunting his subconscious. Scrooge had one lone employee, Bob Cratchit, to handle the company’s books and collect from customers with the ferocious zeal of an IRS agent working for a bonus. A family man with a disabled son named Tim, Cratchit meekly asked Scrooge for Christmas Day off from work. It was a request for which he would pay dearly in the form of nonstop verbal and emotional abuse from Scrooge. Scrooge eventually granted Cratchit Christmas Day off without pay, only because of the Christmas custom. Besides, no businesses would be open for business on Christmas Day and, thus, no collections could be made. Bob eventually persuaded the sad and lonely Scrooge to join the humble Cratchit family for Christmas dinner. Scrooge saw the positive spirit of the sick son, Tim, and the struggles of this loving family to make ends meet on the paltry wage Scrooge was paying. He heard the warnings of his ghost-partner, Jacob Marley, urging him to choose love over money. Eventually, Scrooge rose to become a business owner who knew the value of values. He learned that a happy employee with a healthy work–life balance could help him build a successful firm. Happy Firm, Happy Life OK, I’m taking some liberties here with the old phrase, “happy wife, happy life.” A happy employee is absolutely necessary to building a strong firm. Employees who come to work excited to fulfill the firm’s mission, effervescent with energy and ideas, and with a plan and the focus to execute the plan are typically successful employees. Successful employees set goals. They meet and exceed deadlines. They contribute to the success of their teams and to the firm as a whole. Compare these successful employees with the disgruntled employee who chronically shows up late or barely on time. The one who has a tired, disinterested look on his face. The one who takes too-long lunches, shuffles out early and complains to co-workers about colleagues or leadership. Employees like that are a cancer to an entire organization. They can breed negativity throughout the ranks with their bad attitude and divisive behavior. They can turn a high-octane sales meeting on its head with disruptive comments and sighs or scare off potential clients by complaining or being unprepared. Imagine what can happen to a firm in which many employees give off an unprepared and negative vibe. If your firm isn’t fostering a strong and positive culture, you will end up with a weak and negative firm. Studies prove this point from many angles. Let’s take a look at some eye-opening facts. Happy Employees Are Up to 20 Percent More Productive than Unhappy Employees A study conducted in 2015 by Competitive Advantage in the Global Economy looked at the correlation between employee happiness and workplace productivity. This study found that happy employees give more effort at work. As a result, they are 20 percent more productive than unhappy employees. This is not to say that happy employees are more productive because they are working more hours. Happy employees know when to put in extra time and when to take a break. They aren’t distracted with unattended at-home responsibilities or with a fear of unreasonable demands at work. As a result, happy employees are free to focus on work tasks at hand because they are not distracted by stress. They are properly rested, and they are physically and mentally strong. They have a clear focus for achieving goals at work and responsibilities at home. Happy Employees Are More Accurate in Their Work than Unhappy Employees Perhaps because of their state of happiness, happy employees are not only more productive than unhappy employees, they’re also more accurate in their work. According to the same study just mentioned, those employees averaged 19 percent greater accuracy than employees who reported they were unhappy at work. According to the study, the improved accuracy can be attributed to three key factors: Fewer distractions and, thus, better focus Greater investment in personal and organizational results Stronger desire to achieve goals and meet expectations Employees Who Are Encouraged to Live a Healthy Work–Life Balance are Twice as Likely to Be Happy at Work A Robert Half study on workplace happiness found that employees with a happy home and work–life balance were two times as likely as “workaholics” to be happy at work. According to the study, happier employers were also more loyal, more accurate in their work and more productive. Not surprisingly, organizations known to promote a healthy work–life balance also are able to attract and retain happier (and more productive) employees, according to that same study. So what is considered to be a healthy work–life balance? Here are some of the top factors mentioned in the study and other employee surveys: Flexible work options — Telecommuting and working from home are no longer new concepts. According to the Robert Half study, these are important factors that successful employees consider when choosing an employer. Flexible schedules — Flextime is an increasingly common option, allowing employees to combine work, home and downtime into a schedule that promotes personal productivity. Healthy-living support — On-site gyms or gym memberships, employer-sponsored wellness programs and stress-management programs have been shown to improve employee happiness, productivity and retention. If your firm lacks the financial or human resources to manage a wellness program or offer flexible working arrangements, there are other things you can do to promote a healthy work–life balance for employees. Here are just a few ideas: Contact your health insurance provider to see if it offers wellness programs, wellness incentive initiatives or other programs at no cost to your firm. I know of a few firms whose health insurance plan gives employees up to $30 per month in a health savings account if they wear a fitness bracelet and log 10,000 or more steps each day. Contact local gyms to inquire about workforce membership discounts. 3. Contact wellness professionals in your area to see if they sponsor health fairs or conferences. You might find integrative wellness teams of physicians, nurses and even licensed massage therapists willing to go to your location for a wellness day of health screenings and chair massages. Consider employee incentives that reward productivity with a gift certificate for a massage or paid time off. Look to your corporate vendors for positive ideas. For example, perhaps your retirement plan administrator offers free on-site financial planning workshops, or your accounting firm offers free tax-planning classes. Plan a team-building event annually or quarterly. You can do this to announce a new initiative such as a new corporate code of ethics (more on this below) or to promote a day of fun like a spring picnic, a day at the ballpark or a walk for a cause. A Happy Sales Force Produces Nearly 40 Percent More In his bestselling book The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work, former Harvard professor and popular TEDx speaker Shawn Achor turns traditional thinking on its head. In the book, Achor scientifically lays out why happiness breeds success, not the other way around. When it comes to sales force happiness and productivity, Achor says happy sales reps are nearly 40 percent more successful than unhappy sales reps. If that’s not a compelling argument for doing everything reasonable to foster happiness in your firm, I don’t know what is! You can get Achor’s book new or used here. (Tip: think about giving a copy of this book to everyone on your leadership team to ignite the happiness spark in your firm.) The Case for an Ethical Workplace Happiness and numbers are important, but they’re certainly not everything. A strong firm is supported by a strong code of ethics, which conveys trust and reliability to employees, customers and the community at large. Think about it: if clients don’t trust your firm to act with integrity, will they stay with you? Probably not. Trust is critical to long-term customer retention, and longterm customer retention is necessary for the long-term success of any organization. The problem with the discussion of ethics is that it’s difficult to define. You know it when you feel it. Here are some examples of what ethics looks like (and doesn’t look like): Employees laughing it up by the water cooler might be having a great time and appear happy, but if they’re spending more time at the water cooler than they are on achieving goals, they’re not the productive employees you want. Productive employees respect their employer’s time and money. An employee who will do or say whatever it takes to close a sale might be driving numbers, but if she’s untruthful or doesn’t deliver what she promises, then she’s going to cost you dearly over time. An employee willing to break your rules for clients might be making them happy in the short term, but he is cheating your firm. Those clients’ temporary satisfaction can’t last because in their gut, they know they can’t trust your employee to do the right thing. Creating a code of ethics is important to encouraging team members — requiring them — to act with integrity. It conveys your firm’s values in writing and makes it clear that team members and leaders are expected to uphold those values at all times. A corporate code of ethics is a complex set of ideas and expectations distilled into an easy-to-understand and easy-to-follow guide for employees and leadership. Creating a code of ethics can take a lot of time, but it’s worth it. It protects your firm’s reputation and your client relationships, and it promotes a high-quality workplace and workforce. I recommend reading this guide for help with researching, developing and upholding a strong code of ethics. Once you understand the importance of having a code of ethics and work through the process of creating one, you will increase employee pride in your firm and respect among your clients and within your community. Why Top-Down Passion Produces Bottom-Up Results Happiness alone doesn’t produce results; a happy workforce led by passionate leaders does. You can’t fake passion. If you don’t believe in your firm or love what you do, it’s going to show. Employees, clients and your community will feel your lackluster vibe. On the other hand, if you love the work you’re doing and the impact you’re making, your potential and existing clients will feel your positive energy. High-quality advisors will want to work for your firm. Clients will want to refer you to their friends and family. The community will seek you out for solutions, speaking engagements and leadership roles. If there’s something you don’t love about your firm, from your employee relations or customer quality to your bottom line, or even your interior décor, figure out why and change it. In my white paper “Igniting Passion into Your Firm’s Culture,” I spell out the importance of passionate leadership and a passionate workforce. If you haven’t downloaded this white paper yet, please do. It offers great ideas for finding your passion for what you do and fostering it among your employees. The key takeaways in that white paper center around a common theme: empowering your employees by investing in them. Here are examples of ways to do that: Implementing a mentorship program in which employees are heard, motivated, helped and held accountable Considering and using external coaching and training programs like the ones we deliver at HPN Encouraging and providing continuing education to employees (beyond what’s required by law) Giving recognition where recognition is due Offering incentives and rewards for performance Encouraging an open-door policy that allows employees a safe avenue for discussing concerns and ideas. Without an open-door culture, disgruntled employees might take their grievances to the breakroom instead, and that can spell trouble for your team. In other words, passionate leadership means thinking actively about how to promote and encourage employee success. In the process of educating and supporting happy, productive and ethical employees, passionate leaders naturally deliver success for the firm. Is Your Firm Culture Working? Is your firm culture at the top of its game? Are you and your leadership passionate about tomorrow, satisfied with your numbers and proud of the work you’re doing? Are your employees happy, loyal and productive? If yes, then keep doing more of what you’re doing. It’s working! If not, or if you know in your gut there’s room to improve, then it’s time to think about how to create a stronger firm culture and, ultimately, a stronger firm. We can help. Hoopis Performance Network training and courses are designed specifically to help financial services firms grow and thrive ethically, passionately and successfully. Contact us to see how our team can get to work with you and your team to help you ignite your passion, create a happier workforce and build a stronger firm. How a Strong Firm Culture Builds a Strong Firm

Next Item Previous Item Go back to White Papers List Many of the methods we use to persuade and motivate others such as nagging, pleading, coercing and brute force, not only fail to work, but many times, they make things worse by making people mistrust or even become angry. Some persuasion tactics will not only hurt the cause, but damage relationships by creating resentment or remorse. Effective persuasion is different. It’s subtle, unsuspecting, and non-confrontational. The human mind is surprisingly malleable and easy to manipulate, if you know what it is you want and what you’re doing. When you effectively persuade, you are not trying to control someone. You are trying to nudge them to take action or see things from a different perspective. One’s ability to persuade has held great social prestige in the ancient Greek world and throughout history. Aristotle was the first to introduce persuasion as a skill that could be learned. He argued that the most effective persuasive attempts contain three concepts: ethos, pathos, and logos. Ethos Ethos refers to the character of the speaker. If audiences believe that the speaker is credible, they are more likely to be persuaded. He believed that this includes body type, movement, dress, body language, sincerity, word choice, and reputation, in addition to expertise and charisma. Ethos is about the audience’s perception of credibility and it is the most powerful of the three persuasive means, according to Aristotle. Pathos Pathos is the psychological and emotional state of the audience. Aristotle believed that our ability to be persuaded is closely connected to how pleased and friendly or pained and hostile we are feeling. He also recommended that we determine the difference between our audience’s actual state of mind and their desired state of mind. If you can help them see how to get from their current state to their desired state, you can persuade people to do almost anything. Logos Logos refers to the actual substance of a message, or logic provided as proof to the listener. Aristotle argued that humans are basically reasonable beings who make decisions based on what makes sense. You can be more persuasive and convincing by using reason and logic in your arguments. Influence: The Psychology of Persuasion Whether you are selling financial instruments, insurance, or boiled peanuts, the psychology behind selling, is deeply rooted in persuasion, which is influencing someone to believe or act in a specific way. Many people have observed and commented on persuasion, but Robert Cialdini is the most quoted in business and how persuasion relates to sales and marketing. In Influence: The Psychology of Persuasion, originally published in 1984, Cialdini identifies six principles of persuasion, which have been expanded by others over the years. Let’s first look at these six principles – reciprocity, scarcity, authority, consistency, liking, and consensus – and how you can apply them to prospecting and acquiring new clients. Reciprocity Reciprocity is a social convention that compels people to return a favor to someone who does something nice for them. You probably heard the adage, “You scratch my back, I’ll scratch yours.” Companies may send free samples of a product with the hope (and proven trackrecord) that the receiver will likely feel an obligation to buy the product. This, and offering “extras” or “bonuses,” are common examples of reciprocity. Since it’s impossible to give free samples, extras, or bonuses of insurance, stocks, and commodities, your gift to clients can be your knowledge. Consider creating video content, downloads, and e-books to attract clients on your website, or offer free workshops or webinars. The real power of reciprocity lies in the fact that it’s such a strong social norm, and a universally expected give back. While not everyone practices reciprocity, the majority of people will, without even realizing it. Keep in mind that you should never expect reciprocity, so do it for them, not for you. Reciprocity works when there is no expectation of return because the sincerity of the gesture is what gives it its power. The need to return the favor is strongest when the initial favor was done with no expectation of repayment. Be generous and helpful as often as possible, in the hope that those you help will be on your side when you need them in the future. When used regularly, reciprocity can be an indispensable sales tool. Scarcity The economic principle of scarcity has been around for ages. When resources are in short supply, people want more of them. Understanding the psychology of scarcity and how it can impact decision-making can give you an additional edge in the sales process. Using the principle of scarcity to persuade others requires that you create a sense of urgency, motivating people to act. You see scarcity being used all the time in ads that say, “Selling Fast,” “Only 3 left,” and “Limited Time Only.” In the financial services industry, salespeople can create that sense of urgency by sharing with prospects what they risk losing if they don’t act on your proposal today. Appealing to your client’s fundamental needs of shelter, love, self-esteem, and self-actualization can be very persuasive. For example, an agent/advisor selling life insurance may ask a client what will happen if he or she dies. What will happen to your family? Will they have money to survive? How will your death financially impact your family, and will they be able to maintain their lifestyle? Some agents/advisors apply this principle by limiting their availability. Don’t tell a prospective client that your schedule is “wide open.” Instead, give two options for when you “can squeeze them in.” Be careful not to create a false sense of urgency or you will lose credibility. Sincerity and truthfulness are keys to repeat business and lifelong clients. Authority Establishing authority and credibility that you know about the service you are providing or the product you are selling is especially important in the financial services industry. People will generally listen and act when they feel they are with credible experts. If you speak confidently, clearly and concisely, people are more likely to listen to you, to take what you have to say seriously, and to agree with you. Prepare what you want to say and practice it. Write out your scripts and practice them regularly. When speaking, avoid filler words (such as ‘umm’, ‘err’ or ‘like’) because these suggest that you’re struggling to express your message or that you are uncertain about its validity. Establishing authority means you must send signals to prospects about what makes you an authority before you attempt to persuade them. This also requires walking a fine line between confidence and arrogance. People don’t want to hear you boast about your accomplishments or about how smart you are. Your website and digital marketing campaigns play a valuable role in establishing authority. Providing accurate, educational content on a regular basis through video content, newsletters, and blogs, will demonstrate your knowledge to others, making it more likely that they will buy from you. Consistency Most people don’t like to go back on their actions or words. Once they say something, human nature will tend to make people stick to what they said, in fear of looking indecisive. Applying the principle of consistency to the sales process is about asking for small actions and commitments from prospective clients throughout the sales process, also known as the “yes ladder.” Giving them early and small opportunities to agree with you allows them to be a part of the process and makes it easier for them to give you the “big yes” later. Some people refer to this as the “foot in the door” technique since once you get your foot in the door, it’s harder for them to close it. Your clients need to feel like they were not forced into decisions, or they may get cold feet or resent you. You can ask for commitments from prospective clients during website or in-person interaction. For example, ask for an email when you offer free content, ask a prospect to commit to a phone or office appointment, or ask a prospect to take a survey about their needs. Consistency is built through regular communication and interaction. Liking Prospective clients are more likely to buy from salespeople they like. Cialdini outlines three specific elements of the likability principle: People like those who are similar to them. People like those who pay them compliments. People like those who cooperate. The best salespeople will take time to make a personal connection with prospects about things that have nothing to do with the product or service they are offering, either on the phone or in person. They might talk about kids, sports, television, movies, college, or any other common ground. Applying the liking principle online is a bit trickier, and it can take more time. The single best way to create likability online is by creating an outstanding ‘About Us’ page on your website or a bio page, if you are an agent/advisor. Tell your readers about your hobbies, your core values, and why you enjoy helping and educating your clients. The more likable you are, the more people you will persuade to buy from you. People tend to adopt a “herd” mentality, meaning they may look to others to make decisions. This behavior is often driven by the desire to fit in. Many may think, “If they are doing XYZ, so can I.” You can apply the principle of consensus to the sales process by harnessing the power of testimonials. Whether you share videos, blog posts, or talking to a prospect in person, sharing success stories from current and previous clients inspires prospects to “jump on the bandwagon.” Another powerful way to activate consensus is through online reviews from third-party sites. Prospects searching for you online can see positive comments, encouraging them to join others who have done successful business with you. Additional Tips and Techniques As a spin-off from these basics’ techniques outlined by Cialdini, there are other persuasion tips and techniques which can also help you to effectively persuade others. Keep in mind that the ultimate goal of persuasion is to convince the client or prospect to adopt a new attitude as a part of their own core belief system and choose to buy from you. Content Organization If you carefully describe or explain things in such a way that influences how the recipient interprets the information, you are ‘framing’ that content. This technique is often used to influence audiences in political debates. The three core elements of framing include: Placement – Make sure you choose the right time, place and people to communicate with. Are both members of a partnership in attendance? Approach – Make sure you carefully construct how your argument is presented. Focus on the positives, rather than any potential downsides of an agreement. Words – Make sure to select the most appropriate words to explain your viewpoint. Mark Twain once said, “The difference between similar words and the right words is the difference between lightning and the lightning bug.” Choose your words wisely. An example of this is the difference between using the words “cheap” and “inexpensive.” It is important to frame your words to say how you want your client to feel. Go Big and Then Small This approach is the opposite of the “foot in the door” approach or “consistency” principle. A salesperson will begin by making a large and possibly unrealistic request. The individual responds by refusing. The salesperson then responds by making a much smaller request, with may often come off as conciliatory. People often feel obligated to respond positively to these offers. Since they refused that initial request, people often feel compelled to help the salesperson by accepting the smaller request. Anchor Points The anchoring bias is a technique that can have a powerful influence when negotiating or selling. Basically, your first offer has the tendency to become an anchoring point for all future negotiations. An example of this is if you are trying to sell an insurance policy. If you suggest a larger policy first, that larger policy will become the anchoring starting point for your client’s decision. While you might not sell a policy that large, starting high might lead you to getting a higher sale. “But You Are Free” By simply reminding those who you’re talking to that they are free to make their own decision on whatever the topic you’re discussing, will make them more comfortable and feel less pressured. This is a highly effective strategy that is easy to implement. Body Language Never underestimate the power of your body language, which has a significant impact on your ability to persuade: Smile naturally. This will make you seem approachable and likeable. Raise your eyebrows. This signals you are not a threat, and gives the impression that you are friendly and approachable. Avoid crossing your arms and putting your hands in your pockets. These are “closed” positions and they signal that you are not flexible, comfortable, or approachable. Use eye contact. Making regular eye contact shows an interest in the conversation and the person you are talking to. You will also appear as more trustworthy. Show your palms. This technique goes back to the cave men days when the first thing we need to verify is that the visitor is not holding a weapon. No matter how far this dates back, it still indicates you are telling the full story. Clothing While these may seem subconscious, they have proven important and effective in aiding persuasion. Show your neck. This indicates that you are unthreatening and easy to approach. Color. Make a special attempt not to clash with your environment. Wear colors that soften your look without weakening you. Wear colors that make you feel confident. Professionalism. While it’s important to establish authority through your clothing, you don’t want to appear to be inflexible or inappropriate for the situation in which you are meeting. Conclusion Persuasion is not a new concept but is one that is used in advertisements and conversations every day. Techniques for improving your ability to persuade others are likely to make you more successful. Keep in mind Zig Ziglar’s words, “The most powerful persuasion tool you have in your entire arsenal is your integrity. The Power of Persuasion

The Hoopis Performance Network has formed alliances with industry organizations that complement our existing resources, products and services. Strategic Partners Leverage Our Strategic Partners to Increase Performance & Productivity The Hoopis Performance Network has formed alliances with industry organizations that complement our existing resources, products and services. Harry Hoopis and his team field tested the tools and resources within his very own “Living Laboratory.” Over 850 financial services companies in more than 70 countries around the world turn to LIMRA first to help them build their businesses and improve their performance. These members rely on our 90 years of industry experience, along with resources in Research, Consulting, Assessment, Development, Compliance and Regulatory Services. Visit Website Why choose us, our clients choose to work with rekroot because of our integrity and effectiveness, through innovative ways to serve as your resource for achieving growth goals. Our mission, what this means to you is, we invest the time to listen and understand, by reviewing your current progress, in line with where you want to be as an office and team. What we do, the real benefit is we will provide a personalized comprehensive analysis that aligns with your goals, values and objectives with actionable items. Visit Website Through our millions of profiles of people for over 3,500 organizations, we have developed highly sophisticated ways to measure these success factors using a variety of proprietary normative profiles. SMG is a leader in talent management solutions, partnering with clients worldwide to help them attract, select, retain, and develop top potential employees. Now the largest sales profiling company in the world, our online system is available 24/7, 365 days a year in 45 countries and in over 40 languages. Our Predictor of Potential (POP™) is a definitive example of our innovative and science-based approach. The POP™ has been thoroughly validated regularly since its creation in 1978 – and we are always improving upon it. The POP™ has become the basis for our other proprietary profiles. Visit Website 25 Point System’s software platform for on-boarding and developing new advisors helps managers attract, retain and grow a digital-age field force by integrating innovative activity management concepts and skill development tools, in an environment that inspires self-management and accountability. Modeled after 25 Point Systems under John Baier’s industry-renowned 25-Point System. 25 Point Systems includes engaging features like leaderboards and a team-based social media feed. Built-in skill development tools introduce micro-learning content, and provide an interface that enables a producer to record scripts and selling techniques, submit to their trainer, manager or mentor, and gain feedback any time of day. At its core, the concept is built on game-like levels, allowing assignments, skill development and production goals to be set for each producer, and utilized as the criteria for incentives, rewards, and advancement opportunity. Visit Website RAD Potential Advisory delivers evidence-based hiring and coaching solutions tailored for sales-driven organizations. By leveraging data analytics, predictive assessments, and targeted development programs, we help clients make smarter talent decisions and build stronger teams. Trusted by businesses across industries, RAD transforms raw data into actionable insight. Visit Website Leadercast is a leadership development organization that hosts events, including the renowned Leadercast Live conference, which features top leaders from various industries. They provide valuable insights, resources, and tools to help individuals and organizations develop and enhance their leadership skills. Through in-person and digital content, Leadercast empowers leaders to unlock their potential and drive success. Their mission is to create leaders worth following who can inspire and elevate those around them. Visit Website InsuranceNewsNet (INN) is the insurance industry’s #1 trusted news source! For cutting-edge insights and innovative strategies, turn to INN—the go-to platform for financial professionals seeking the latest news and resources to fuel success. We deliver timely updates, expert analysis, and actionable content that empowers agents, advisors, and firms to stay ahead of the competition. With award-winning journalism, cutting-edge digital tools, and results-driven marketing solutions, we help our partners grow their businesses and maximize their impact. Our readers save time by accessing all the critical content they need in one place—InsuranceNewsNet.com—without having to sift through multiple publications or news outlets. Visit Website Life Happens is a nonprofit organization dedicated to helping Americans take personal financial responsibility through the ownership of life insurance and related products, including disability and long-term care insurance. Life Happens also seeks to remind people of the important role insurance professionals perform in helping families, businesses, and individuals find the insurance products that best fit their needs. Life Happens does not endorse any product, company or insurance advisor. Its only interest is seeing that consumers get the coverage they need to protect themselves and their loved ones. 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Next Item Previous Item Go back to White Papers List Parents are a crucial part of their children’s financial education. Research has shown that parental modeling and teaching has more positive, impactful, and long-lasting influence on financial attitudes than academic-based programs. How, what, and when you teach your kids about money are personal decisions determined by your values and experience. Start Early It’s never too early to start teaching children about money. Otherwise, until they start earning a living, it’s easy for kids to think that money “grows on trees”! Parents magazine offers tips for ways to teach children about money from ages 2 through ages 16 and older. Beth Kobliner is one of the nation’s leading authorities on personal finance for young people. She is a commentator and journalist and the author of two New York Times bestsellers: Get a Financial Life: Personal Finance in Your Twenties and Thirties and a guide for parents titled Make Your Kid a Money Genius (Even if You’re Not). She says that by age 3, kids can grasp basic money concepts. By age 7, many of their money habits are already set. Her advice is to begin as early as possible to “Start wringing money lessons out of everyday life.” Parents are a crucial part of their children’s financial education. Research has shown that parental modeling and teaching has more positive, impactful, and long-lasting influence on financial attitudes than academic-based programs. How, what, and when you teach your kids about money are personal decisions determined by your values and experience. Start Early It’s never too early to start teaching children about money. Otherwise, until they start earning a living, it’s easy for kids to think that money “grows on trees”! Parents magazine offers tips for ways to teach children about money from ages 2 through ages 16 and older. Beth Kobliner is one of the nation’s leading authorities on personal finance for young people. She is a commentator and journalist and the author of two New York Times bestsellers: Get a Financial Life: Personal Finance in Your Twenties and Thirties and a guide for parents titled Make Your Kid a Money Genius (Even if You’re Not). She says that by age 3, kids can grasp basic money concepts. By age 7, many of their money habits are already set. Her advice is to begin as early as possible to “Start wringing money lessons out of everyday life.” Ignorance About Financial Management Is Stressful A 2018 PwC study revealed that just 24% of millennials demonstrated a basic understanding of financial concepts. And 54% of millennials are worried about paying back their student loans from college. Adults experience profound stress over moneyrelated issues, and part of the reason is that many adults were never taught money-management skills. According to a survey from the American Psychological Association, money is a leading cause of stress in the United States. APA has conducted the annual survey for more than a decade, and money and work have consistently topped the list of stressors. In the August 2017 survey, 62% of respondents said money was their biggest stressor, and 61% said work was their main source of stress. We certainly don’t want our children to experience this kind of stress. Knowledge is power, and when we teach young people how to be good stewards of their money, those lessons will benefit them for a lifetime— and their children and grandchildren, too. The key is to help children develop positive behaviors and habits from an early age. A 30-year study published in the Journal of American Medical Association Psychiatry in May 2019, makes a strong link between a specific behavior set and future income. The researchers followed the lives of 2,850 6-yearold children. They found participants who went on to make less annual income between the ages of 33 to 35 all had one common trait demonstrated at a young age: inattention. The researchers considered inattention to be a lack of sharing, poor focus, blaming others/ showing aggression, and high levels of anxiousness. If you can work with your children on these inattentive behaviors, you can have an impact on their earnings 3 decades later. The researchers recommend that you do 4 things to help children be more attentive to money when they are children so they can be more successful adults: encourage sharing, encourage them to focus on one thing at a time, teach them to get along with others and to feel empathy, and help your child manage anxiety by giving your child uninterrupted time in the day to express their worries and to brainstorm solutions with you. Here are additional tips for building good money management tips in your children. Teach Them the Basics Don’t wait until your kids are leaving for college to introduce them to the basics of financial life. Give them the latitude to make mistakes and learn from them. Let children see their money grow. This is where the age-old piggybank comes in. When children see their money accumulating, it increases their motivation to save. Also, when kids see you swipe a debit or credit card at a store, they don’t understand the correlation between your working long, hard hours in your job and having money to buy things. It appears like “magic” to them. Show them how it all works. When they reach what you consider an appropriate age, make your children responsible for sticking to a budget. Give them an allowance that’s enough to pay for their clothing and entertainment needs. If they overspend, don’t bail them out! At some point in high school, open a checking account for your children and fund it with their allowance. Teach them the basics about how to make deposits, keep track of their debit-card expenses, and balance the monthly statement. If they get the “opportunity” to learn firsthand about the stupidity of paying overdraft charges, it will be a valuable lesson! Teach financial discipline. Kids need boundaries. They need to learn that you can’t have everything you want when you want it. Setting and sticking to spending limits helps them learn this important lesson. • Show them how to save for big expenses. If your kids want a “big ticket” item, such as a nice car, help them realize that “money doesn’t grow on trees” by requiring that they contribute at least a portion of the purchase price, perhaps through an after-school or summer job. Introduce your children to debit and/or credit cards. Do so when they reach an age you feel is appropriate and in a way that’s consistent with your beliefs concerning the use of credit. It’s generally recommended that kids gain some experience with credit cards before graduating from high school. Consider beginning with a secured credit card (sometimes referred to as a “credit card with training wheels”) by requiring a cash collateral deposit that becomes the credit line for that account. If they use the secured card judiciously, you can consider moving on to an unsecured credit card. Make certain they understand that the use of credit is a privilege, not a right. A company called Greenlight offers a debit card for kids that parents manage from their phones with flexible parental controls. Greenlight’s mission is to help parents raise financially smart kids. The Greenlight debit card comes with a Greenlight app for both parents and kids. Parents can instantly send money to kids, turn the card off from the app if needed, and receive alerts whenever the card is used. They can automate allowance payments and manage chores so kids can learn to earn! These safe and secure experiences give parents the peace of mind they need to allow kids to manage their spending, saving, giving, and earning. Introduce high schoolers to investing, using real money. Start with money market accounts. From there, introduce them to fixed-interest investments, such as savings bonds and CDs. Then move on to the stock market via mutual funds. Check out the stock market games available on the Internet. They can be a fun, educational way to introduce teens to the stock market. Some families even set up investment clubs for their teenagers to teach them investment basics. Teach your kids the importance of having money saved in an “emergency fund.” When expenses arise that were not budgeted for, let them see how having money stashed away saves the day, as opposed to borrowing money for the emergency or paying for it with a high-interest credit card. Even young children can understand the concept of exchanging a sum of money for something they want. Teach them how to allocate money, such as 20 percent for savings, 10 percent for giving, and 70 percent for spending. Show them how to reach a savings goal. Let them see how saving X amount of their allowance each month will add up to the amount needed to buy a toy or new video game in a certain number of months. Be a good role model! While not a guarantee, children who grow up seeing you do the right things financially are more likely to follow your example as they mature. When planning a trip to the store, get your kids involved. Let them help you preparing a shopping list and/or spending budget. Help them understand how a list/budget helps avoid the expense and pitfall of impulse buying. Take your children shopping with you. Teach them about pricing, brand names, sales, comparison shopping, coupons, brand-loyalty programs, and how to evaluate at is the “best deal.” Involve your kids in the family budget. Show them the monthly bills for car payments, utilities, mortgage, insurance, and credit cards. Explain the portion of your budget that is allocated for savings. Teach them firsthand about your family’s cost of living and how you follow the process of making and sticking to a budget. Have an age-appropriate discussion about needs versus wants with your kids. When it comes to purchasing decisions, ask your children why they need the item…or if it’s simply something they want. Encourage them to use websites that will help them learn about money management. Today, kids are all about learning online. Here are some websites that can help your kids get excited about, and engaged in, learning about money online. Planet Orange is a fun, interactive website sponsored by ING Direct that teaches kids in grades 1 through 6 the basics of earning, spending, saving, and investing money. Kids start by creating a character astronaut who is assigned a mission that revolves around money. They then design their own spaceship and begin their mission. Practical Money Skills teaches kids about money by letting them play fun games. For example, the Road Trip game teaches kids that, to keep a car running, you have to pay for things like gas and insurance. Affording those things sometimes means sacrificing trips to the mall. The website also features football and soccer financial games, as well as Ed’s Bank, which teaches younger kids the importance of saving money and money values. Even the U.S. government is doing its part to help kids learn how to manage money. H.I.P. Pocket Change gets kids interested in money by focusing on its history. After logging on to the site and then clicking on the “Toons” section, your child will be taken through interactive cartoon presentations of how money is made, what it looks like in other countries, and the history of money. Plus, there are games and a collector’s club for kids who want to collect coins. And finally, a website you could share with your children’s teachers is Next Gen Personal Finance, or NGPF. It’s a nonprofit organization founded in 2014 to connect educators with free resources, professional development, and advocacy tools to equip students with the knowledge and skills to lead financially successful and fulfilling lives. The site offers free access to more than 100 online activities, videos, articles, and other resources. Teach Your Kids About the Power of Interest Children need to learn about “good” interest, such as interest paid by savings accounts, and the “bad” interest that accumulates when credit card bills are not paid in full and on time. Here are some tips for doing just that. Take your child to the bank or credit union and open a savings account. Let him or her calculate how much interest (“free” money!) the account will earn over time. Require that your kids save a certain percentage of their allowance and birthday/ holiday money. Review monthly statements with them, pointing out how interest has increased the value of their account. When children meet their savings goals, consider matching their savings. For example, at the end of each month, you could reward their savings with $1 for each $10 they’ve saved. Show your kids your credit card bills and explain how important it is to pay them on time. Illustrate for them the “bad” interest that will be charged if the balance isn’t paid in full when due. Most of all, teach your children the wise use of credit. Help them understand that credit card debt is the equivalent of financial handcuffs. If You Decide to Give Them an Allowance Some parents feel strongly that an allowance is the best way to teach children financial responsibility. Other parents feel just the opposite. Here are some suggestions for ground rules to set if you decide to give your kids an allowance. Don’t give children an allowance until they have some understanding of money and are old enough to count. An allowance given at a young age should be for the purpose of helping kids learn a spending/saving/sharing balance. Teach them how to split their “earnings” into three piggy banks or glass jars: savings, spending and sharing. Consider giving children an allowance beginning in elementary school. Set guidelines. Make it clear that a certain percentage of the allowance is for savings and another percentage is for giving. One school of thought says a kid’s allowance should not be tied to household responsibilities. Kids should be expected to perform certain household chores because they are family members…not because they’re paid to perform them. You might, however, want to pay children for performing bigger chores or additional chores that you would otherwise pay outsiders to perform, such as raking the yard or washing the car or the windows. Another approach is to develop a list of chores for your kids to complete around the house. Pay them a base allowance, whether they complete the chores, but pay a higher allowance when all chores are completed satisfactorily. Teach them the rewards of hard work! What happens when your kids hit you up for a raise in their allowance? The experts say this is a great opportunity to teach negotiating skills. Engage them in a discussion that includes questions such as when they received the last raise in their allowance, if the raise will cover new expenditures, and how much of the raise will they save. How much allowance should kids receive? Your answer will depend on your values, income and common sense. Don’t be swayed by what your kids’ friends are getting. Many parents give their kids the equivalent in today’s dollars of what they received at the same age. Whatever amount you decide on, consider increasing the allowance as your child’s age increases. Also increase the financial responsibilities that go with the allowance. For example, a gradeschooler’s allowance might cover just incidentals, but a teen’s allowance might be expected to pay for clothing, entertainment, gas, and auto insurance, as well as incidental purchases. Again, your objective is to teach financial responsibility. How often should you pay an allowance? The general recommendation is that younger kids should be paid every week. As they reach their teens, however, you might want to shift to twice a month or monthly. This more closely approximates the real world, where they’ll need to be able to budget between paychecks. Teach Them to Give Back Giving something back is an important value for children to learn at a young age. This is something they need to see you doing and practice doing themselves. Let them experience the joy of giving. Even young kids can learn giving by donating toys or clothes around the holidays. Teach by example. Encourage your children to participate in your tithing, charitable contributions, and/or community volunteer activities. Let your kids choose an organization that supports a cause they feel strongly about. Teach them how to evaluate whether a charitable organization is putting its funds to good use. Don’t assume that the causes you care about are the same ones they care about. Consider matching your children’s monetary charitable contributions. If you teach your children sound money habits when they are young, it will help them be good stewards of their money as adults. It’s our hope that some of the suggestions in this white paper will make your job just a bit easier. Plus, you might just learn some great tips yourself! Teaching Kids About Money

Next Item Previous Item Go back to White Papers List Introduction When the Coronavirus pandemic disrupted business as usual in 2020, many financial services leaders were left wondering how to recruit in a world where meeting candidates in person was suddenly impossible. Like many business owners, they had a choice of either adapting to this new environment or waiting it out and hoping for the best. Most realized early on that adapting was the only real solution. And after several months of working in a virtual world, many have also realized that virtual recruiting provides unexpected benefits. Even if the pandemic had not occurred, the move to virtual learning was probably inevitable. In one 2019 survey, more than half of the Gen Z and Millennial participants surveyed said they would not consider a job at a company where they felt the application process was outdated. They value personal connections but expect organizations to leverage technology. To them, an outdated application process is a sign that they can expect outdated systems and support if they join the organization. The good news is that college-aged Gen Z participants in that same survey were twice as likely as Gen X and Millennials to consider a career in sales. Strong, interested candidates are out there, but how you recruit them matters. To see how leaders in financial services are faring in this new environment, we spoke with 12 experienced agency and firm leaders from nine different companies. Some of these leaders had been recruiting virtually for some time, while others made the switch with the onset of the pandemic. All have proven track records recruiting and retaining top performers. This white paper explores the challenges these leaders faced and the opportunities they discovered as they adjusted to a 100 percent virtual environment, as well as the strategies they are using to survive and thrive during this turbulent time. Key Takeaways for Leaders Be well-versed in using videoconference software, and learn to use features such as screen sharing, breakout rooms and the whiteboard. Now is the time to strengthen relationships with your centers of influence. Let them know you care about them personally and professionally. Schedule weekly or biweekly virtual career seminars and use your centers of influence and agents or advisors to drive attendance. Stick to your selection standards. Many people might be looking for work right now, but not all of them are a good fit for the profession or your firm. Hone your listening, observation and questioning skills for conducting virtual interviews, and use other steps in the process to provide a complete picture of candidates’ ability to perform and fit with your culture. Virtual Platforms Leaders who participated in our research use a variety of videoconferencing tools, including Zoom, Microsoft Teams, Google Meets, Adobe Connect and Skype for Business. Using videoconferencing software to conduct meetings with candidates creates a more personal connection than a phone call and allows leaders to assess candidates they can’t meet in person. Listening, questioning and observing become more important when on a videoconference because some of the nuances you might notice in person can be lost. Still, nearly every leader in our research said they can get a good sense of a candidate’s fit with the profession and with their culture through videoconferencing. One leader leverages the platform as an added step in his selection process. He notes, “I can tell if someone got onto a call early and paid attention to lighting, the camera angle, things like that. All of those things are indicators to me of the caliber of the candidate.” Because so many people are familiar with videoconferencing now, your recruiting and selection team must be well versed in using the platform. This is particularly true with Gen Z and Millennial recruits, who are looking for tech-savvy organizations. Several of the leaders we spoke with use platform features such as the whiteboard and breakout rooms. One leader uses the whiteboard exclusively with no PowerPoint presentation. He feels this creates a more engaging and interactive presentation than “death by PowerPoint.” Another leader purchased stand-up desks for his team, so they project more energy as they interact with recruits than if they were sitting. Many leaders have also started using virtual backgrounds. This can project a more professional image and conceals any clutter that you might not realize is behind you while on screen. Many virtual backgrounds are available for free online, and several companies have also created virtual backgrounds that feature their company logos. As prevalent as videoconferencing technology is, though, leaders warn that you shouldn’t make assumptions. It’s still a good idea to check with candidates ahead of time and thoroughly explain the virtual recruiting process. Recruiting Candidates Virtually Many leaders in our research were already using social media to source candidates before the 2020 pandemic. For most, however, the process following that initial virtual contact was often in person. Today, that has changed — the entire process, from sourcing through selection, is virtual. One leader noted, “I’m bringing people on board that I have never actually met in person and may not meet for some time.” Referrals Whether virtual or in-person, referrals from financial professionals and centers of influence remain the leading source of candidates. Obtaining these referrals is not significantly different in a virtual process. Actually, it might be easier during this time when many people are working from home and are easier to reach. It’s especially important to keep your centers of influence engaged right now. Some leaders have started holding weekly virtual meetings with their centers of influence to teach them about their culture and the type of candidate most likely to succeed. Leaders also suggest giving centers of influence talking points about the virtual recruiting process. As always, be sure to keep them informed on the progress of their referrals. Don’t forget that your centers of influence might be experiencing hardships during these difficult times; their businesses might be closed, or they might be struggling with health issues within their families. Now is the time to show that you care about them, both personally and professionally. Whether you are meeting in person or through a videoconference, the Golden Rule applies — give help before you ask for help. One leader offers a word of caution: adhere to your hiring standards. Many people have been displaced from their jobs during the pandemic. And as much as you and your centers of influence would like to help them, you must stick to your selection standards. Finding people who are the right fit for the profession and your culture is just as important as ever. Social Media LinkedIn is still the most-used social site for making connections. The ability to connect with people through groups and mutual connections allows recruiters to make warm-source introductions that are more likely to result in a hire. Many leaders are also using Facebook, Instagram and other social media sites to attract candidates to their agencies’ and firms’ cultures. As one field leader noted, “Everyone is at home right now, and they are all on social media.” As with centers of influence, remember that, with candidates, it’s better to give than to receive. Leaders in the research stressed the importance of posting content that provides value on social media sites, not just asking for referrals and introductions or posting job openings. Use these sites to introduce people to your values and culture and to demonstrate thought leadership in your areas of expertise. Career Seminars Many leaders in our research indicated they are holding weekly or biweekly virtual career seminars to introduce candidates to the profession. They post the events on social media and provide talking points to their financial professionals and centers of influence to help draw candidates to the event. During these virtual seminars, leaders talk about the benefits of the profession and share their personal stories. Many speak of the changes taking place in the industry and the opportunities that come with change, such as the need to grow the profession because of an aging field force and the need for more women and more ethnic diversity in the profession. They talk about the opportunities available and discuss why this is an excellent time to come into the profession. And they explain how they will help candidates build and grow their businesses. Most leaders recommend that virtual meetings last no longer than 30 minutes and be as interactive as possible to keep candidates engaged. The only challenge leaders identified for these events is that much of the collateral they would normally hand out in an in-person meeting is not designed for a virtual event. Some scan and send material via email or post it to be downloaded; others have redesigned recruiting materials for their virtual process. One field leader also noted, “We ask for feedback at every event—even our career seminars. It’s how we continue to improve and attract new people.” Job Boards and Career Fairs With so much consolidation in the industry, along with the disruption in business due to the pandemic, some field leaders and recruiters have started using targeted job boards such as wallstjobs.com or reaching out to wholesalers to connect with financial professionals who are actively seeking new careers. Virtual career fairs are becoming more and more common as well. As colleges and universities adjust to the new virtual environment, they have begun hosting virtual career fairs for their students and alumni. Where that isn’t happening, some leaders have reached out to colleges and offered to host virtual job fairs for them. Job sites such as flexjobs.com and indeed.com also regularly host job fairs. Other sites, such as jobfairsin. com, post listings of virtual job fairs throughout the United States. Selecting Candidates Virtually Selection processes differ across organizations, but all use some combination of the same elements: virtual interviews, job-sampling activities, behavioral assessments and a candidate review process. Virtual Interviews Agencies and firms are using a combination of one-on-one and group videoconferencing interviews during their selection process. Some prefer virtual interviews because they feel candidates are more relaxed when they are in their own environment, and leaders can get a glimpse of the real person. Another advantage of the videoconference is the option to record it. When this is an approved option, leaders and recruiters can focus on the conversation with candidates without having to take notes. And they can go back and review the video to capture details or identify items they want to follow up on after the meeting. Most leaders haven’t changed their questions in the virtual interview process. However, they are paying more attention to body language and asking more follow-up questions to be sure they are getting a good feel for a candidate’s willingness and ability to do the job. They are also spending more time digging into candidates’ reasons for joining the profession. Leaders who are experienced with virtual interviewing recommend taking advantage of videoconferencing features such as breakout rooms. For example, one team starts with a large-group meeting for all candidates and then separates them into smaller groups using breakout rooms, where candidates can have more in-depth conversations with different managers. Pre-Recorded Interviews Some agencies and firms are experimenting with prerecorded video interviews as an initial screening tool. This is especially useful in college recruiting because recruiters can reach out to more schools and more candidates than they can by on-campus, inperson recruiting. Candidates are asked to submit prerecorded videos answering questions supplied by the recruiter. It’s helpful to provide candidates with a tip sheet on how to prepare for this type of interview. Candidates are usually more relaxed because they can prepare and record their answers at a time that’s best for them. And recruiters save time because they can review the videos on their own time as well. There are talent acquisition companies, such as yello. co, that specialize in automated recruiting systems and offer comprehensive services for prerecorded videos. For a less expensive and simpler option, you can simply ask candidates to create a video and send it to you or post it on a secure site. Job-Sampling Activities Leaders are continuing to require candidates to complete fact finders and market surveys and to present business plans. The only drawback to doing these activities virtually is that often, the materials they use were not designed for a virtual process. This has been a minor inconvenience, though, and leaders have quickly adapted. Just as before, leaders are using job-sampling activities to determine if candidates have a market and if they are willing to prospect. The leaders we spoke with also stressed that, in today’s environment, it is more important than ever to see if candidates can overcome challenges. Several leaders require candidates to submit a written business plan. Some have candidates present their plans virtually; others have candidates email the plans to the leadership team. The main purpose of the plan is to help recruits get off to a fast start. Leaders also use these plans as an assessment tool. They look at the quality and effort that went into the plan as an indicator of the candidate’s work ethic and desire to succeed. Behavioral Assessments Many leaders were already using behavioral assessments in their selection processes; others have added them since the pandemic. One leader noted the importance of these assessments right now: “Since I’m not meeting with people in person, I’m depending on these tests to fill in the gaps. If they don’t pass the test, they’re out. No exceptions.” Among the behaviors leaders look for are emotional intelligence, social intelligence, conversation skills and high energy. Candidate Review Process Recruiting teams typically meet weekly to review the past week’s candidates and prepare for the next week’s interviews. As part of the preparation process, one team discusses how they can customize presentations for individual candidates. Because the meeting is virtual, this more personalized approach is much easier to do. Virtual Challenges Virtual recruiting is not without its challenges. Several leaders noted that testing centers have been closed during the pandemic, which is preventing recruits from getting licensed. And, while it may be easier to connect with people when they are at home rather than in the office, that’s possible only if you have their personal contact information. Some candidates, particularly experienced professionals, are reluctant to commit without meeting the leadership team in person and seeing the office space. As locations begin to loosen shut-down requirements, some leaders are allowing high-potential candidates to visit the office, even when selected candidates will be working from home. The greatest challenge for some leaders has been launching recruits. There appear to be two schools of thought within the financial services community. Some leaders feel it is unfair to launch recruits at a time when building their client base is going to be difficult, especially when their onboarding and training will also be virtual. “This is a significant obstacle for new people,” one leader noted, “and it’s unfair to bring them on at this time.” Some leaders have put their internship programs on hold for the same reason. These leaders are focusing their energies on experienced financial professionals. They believe experienced people will get through the pandemic successfully because they already have a client base and are established in the business. Other leaders feel this is the perfect time to bring on inexperienced people. “This is not the new normal for inexperienced recruits,” a leader who is actively recruiting new people said. “It’s simply their normal. They don’t know a different way. To them, it’s just how we do business. I don’t get the same resistance as I do with some of the experienced folks.” Whichever “camp” leaders fall into, all agree that virtual recruiting is not going away. It might never replace inperson recruiting, but it will play an important role in the process moving forward. Virtual Learning Is Here to Stay Many of the leaders we spoke with talked about the benefits of working virtually — for themselves, their agents and advisors, their staff members and their clients. More than one leader remarked, “I’m never going back to doing everything in person.” Several leaders mentioned that they are more efficient and getting more done using a virtual approach. They’re saving time by not driving to different locations and can fit more calls into each day. One leader said he has shaved five days from his recruiting cycle time by doing everything virtually. Even though they are busier than ever, several leaders also mentioned having a better work–life balance with the move to virtual because it provides more flexibility in their scheduling. However, one leader did point out the challenges many female recruits are facing. With schools and daycare centers closed, many parents — women in particular — are trying to manage increased demands on their home and work lives. “It’s important to be sensitive to those challenges,” the leader said, “and let recruits know you will support them through the process.” Leaders in our survey shared two important pieces of advice for virtual recruiting. The first is to have a process and follow it. Each step in the process becomes even more important when you aren’t meeting with people in person. The second is to embrace this new approach. Don’t be afraid of the technology, and don’t wait for things to go back to normal. This is the new normal. When the Coronavirus pandemic occurred in 2020, some of the leaders we spoke with had already been recruiting virtually for years, some jumped right into virtual recruiting and others were a bit slower to accept it. But almost everyone agrees that the change has created unexpected opportunities for increased efficiency, productivity and growth. Virtual Accountability

Next Item Previous Item Go back to White Papers List When an agency or firm needs a new sales manager, top management’s logical first choice is often the star sales producer. Most top performers are excited about the promotion, and they don’t want to let their bosses down, so they take the job. They think it would-be career suicide to turn it down. That’s why many top salespeople end up taking a sales management role, even though they never really wanted to be a manager. They want to please others around them, and they want to help the company, but many are not prepared for the challenges and changes that lay ahead of them. Being Good in One Job Doesn’t Guarantee Success in Another Remember the classic “Peter Principle”? It was an observation that in any kind of hierarchy, people tend to rise to their “level of incompetence.” In other words, as people are promoted, they become progressively less effective because good performance in one job does not guarantee similar performance in another. Sales producers are conditioned to excel on their own, and they know what works for them as individuals. Teaching others how to have similar success is an entirely different skill. That’s why, once promoted to sales management, great salespeople often struggle to succeed in the new role. Tiger Woods isn’t known as a great golf coach, and you don’t see LeBron James conducting shoot-arounds. Their gift is in their own performance, and great coaches know that. Why Salespeople Often Fail at Management When we promote top sales producers into management, we lose their extraordinary sales production. And if they aren’t happy in the management role, we run the risk of losing their talent altogether if they leave the firm or agency. Without management training, new managers typically struggle to excel in the unfamiliar role. They might not enjoy leading others to succeed, and they might become impatient with producers who lack the talent they have. To compound this problem, their associates want strong leadership but might not be getting it, so they often leave the agency or firm, too. You can see why promoting your top producer into management without the proper preparation can be a costly mistake. Two Potential Solutions Here are your primary options. Choose the one that’s right for your organization: Conduct an external talent search for a sales manager with a successful track record of management success. Promote a top sales producer only if he or she has expressed a genuine interest in management and only after providing the person with management training. Before you do that, establish a process for evaluating sales management candidates, the same way you evaluate potential agents or advisors. Hold them to the same standards you would hold external candidates. This will help you avoid moving a producer into management just because you like him or her. Consider Hoopis Performance Network for Management Training One effective resource for training new or existing managers is HPN, an innovative virtual platform designed for financial leaders who are building a region, an agency or firm, a sales unit or a sales team. You can get access to hundreds of high-impact sessions for all levels of experience, divided into five distinct elements of success. These sessions are short and easily digestible, averaging less than 10 minutes. Your managers can access the video training anytime, anywhere, on their computers, smartphones or tablets. Think Twice Before Promoting Your Star Producer into Management