I am working on a fascinating client project, focused on Total Rewards strategy, with a special project partner, and I think a little light went off in my head: lots of the decisions we make about our careers (or even life) are really “total rewards” decisions!
It may sound trite, but it made me reflect on my own journey to leave a great job with a well-established company and start a new enterprise with a set of like-minded partners. What drove that decision? Well, truth be told, it was a total rewards decision.
As I speak with friends, clients, or even prospective partners considering joining Meritarc, I often mention my three objectives (in order):
- THE WORK I want to solve a particular set of client problems that I haven’t seen properly addressed yet
- THE PEOPLE I want to work with a set of people that I have deep respect for, the kind of people that truly become a second family
- THE MONEY I want to have a real wealth creation opportunity based on the time and effort I put into this, and the franchise value I will build
When I consider the different total rewards frameworks that consultants use in advising clients, they are all sensible. Largely, these are hierarchical lists of the various benefits, perks, compensation programs, etc. that firms may consider using. And not everyone (obviously) is going to be responsive to the same set of rewards. The three groupings I have listed above really resonate for me, and I do think “the work” and “the people” sometimes get lost in the larger, more complex structures.
As we evaluate building total rewards strategies for our firms, do we as advisors get so caught up in the details of “401K match vs. gym membership” thinking that we sometimes lose track of the things that really compel employees to make a career somewhere?
I know there are challenges:
– not every job is inherently fascinating, how do we keep the work vibrant for everyone all the time?
– we can’t control how every person we hire behaves, is it realistic to think we can even influence this?
– we have limited revenue and profits, how different can pay really be?
I believe these are all challenges we can overcome. I am making a pretty big bet on this idea, because I am leaving security to try to tame these challenges in my own firm.
My colleagues and I will dig deeper on this, and build more structure and tools around how a firm gets there, if this is the kind of approach they want. In the meantime, I would love to hear thoughts and opinions from people who have been thinking about this or have other perspectives.