As an advisor at a growing advisory firm, you may be searching for ways to expand your capacity without having to add staff or sacrifice time or scale. Tapping into a virtual support provider—like a virtual admin or paraplanner—may be the solution you need to recapture time to spend with your clients.
But is it the right approach for you? Let’s walk through what a virtual support provider could do for your firm. We’ll also cover how to identify the right partner and manage that dynamic.
How Can Virtual Support Providers Help Advisors?
Fully trained and experienced, virtual or outsourced specialists can be a cost-effective alternative to hiring and onboarding full-time staff. For a firm in growth mode that isn’t ready to commit to more staff, this means it won’t have to take on the cost of salaries, benefits, and resources involved in onboarding, training, and certifying.
Consider the different roles you could have access to:
Virtual admins. A virtual admin might be dedicated to your firm for a certain amount of time (e.g., 8–24 hours) per week. They act as a member of your team, working alongside your staff and interacting with clients when appropriate.
Responsibilities vary across providers and can include making calls and sending emails, scheduling meetings, preparing paperwork, opening new accounts, entering client notes, and helping with billing, CRM support, and data entry. The virtual admin will use your systems, creating a seamless experience for clients.
Commonwealth recently developed several virtual admin-style programs for our affiliated advisors.
With VA Classic, a dedicated operations professional works with their firm part-time for six months or longer.
With VA OnDemand, advisors dealing with an unforeseen event or in a time crunch get access to a pooled team of operations professionals.
Virtual paraplanners. Similar to virtual admins in the sense that they become an important part of a firm’s team, virtual paraplanners have specific responsibilities. They assist the advisor in preparing financial plans while expanding the firm’s financial planning capacity and the number of clients an advisor can take on. These planners are highly trained and credentialed and know how to use a variety of planning software to develop a customized, comprehensive plan that incorporates the advisor’s planning process and modeling preferences.
Could You Benefit from a Virtual Support Provider?
If you’ve contemplated outsourcing to a virtual team, the answer may depend on whether you’re facing a short-term or long-term staffing issue.
If your team is stretched thin, is experiencing a continuity event, or needs to build capacity, a virtual partnership could offer support at a key time. You could revisit the strategy six months to a year from now.
If you see an opportunity to take some administrative tasks off a staff member’s plate to give them new responsibilities or expand their role, virtual admins could provide them with the breathing room needed to try new things.
If you want to convert to new planning software programs, a virtual planner could introduce these to you or the team.
If your firm is winding down, virtual admins can get your books in order.
If your firm uses a technology platform not commonly supported by virtual service providers, you may find that bringing in a full-timer is a better option than outsourcing.
How to Identify the Right Provider
Each firm’s scope of work will vary, as will the virtual provider’s capabilities. Remember to keep these factors in mind when doing your research:
Industry focused. A virtual admin who doesn’t specialize in the work of advisors would require significant training. So, inquire about training and certifying the experts you are bringing in. For instance, Commonwealth virtual admins complete an eight-week immersive training program. “Access to part-time help, along with the ease of not having to provide training, significantly impacts our ability to grow our business,” said Commonwealth-affiliated advisor Carrie Coghill, CFP®, AIF®, president and CEO of Coghill Investment Strategies, who uses the firm’s VA Classic program.
Reliability and experience. How seamlessly can this individual or virtual team become a part of yours? Inquire about onboarding timelines and how the virtual admins or paraplanners prepare to help your firm. For instance, what certifications do the paraplanners have (e.g., CFP®, CPWA®, and ChFC® designations)?
Customization. Anyone working on behalf of your firm should adjust to your way of doing business. For example, this could include representing your brand in a client phone call or, for a paraplanner, adjusting recommendations based on the strategies of your firm and the circumstances of each client.
Compliance and security. You’ll want to confirm that your service provider follows the same protocols as your firm, including background checks. How does their employment work with your service provider (e.g., Commonwealth’s virtual admins and paraplanners are full-time, vetted firm employees)?
Consistency. Will the specialists stay with your firm for a certain amount of time, or will you have to frequently get different people up to speed on your firm’s ways? Ideally, their tenure will be long enough (at least six months) so they understand your firm’s unique procedures and develop trust with you, your clients, and your staff.
Performance management. The service provider should handle the management of their employees, further saving your firm time. You’ll want to understand to what extent your provider will fill this role, as you don’t want the partnership to lead to more work for you. “The VA team serves as extra hands, providing essential support without burdening us with HR or morale concerns,” said Commonwealth-affiliated advisor Michael Paris, AIF®, CPFA®, of Paris International. “In addition, their system of backup ensures seamless operations even when they are temporarily unavailable.”
Getting Virtual Teams Up to Speed
While the service provider will ideally handle the human resources and performance side of your virtual support team, you will need to spend some time helping them understand your firm and how you operate. You’ll want to be prepared to explain your business, including what you need to get done and why. You could offer a list of talking points so they get to know your brand, as they will be representing your firm. You’ll also want to set aside time for regular check-ins.
Building Scale and Capacity
The defining factor in your decision to bring on external virtual firm support hinges on whether you believe the relationship will help you find the capacity you need to continue to evolve your business without sacrificing on the client experience. If you’re looking for a partner who can help you manage your workload, provide specific knowledge, and allow more time with customers instead of administrative tasks, a virtual support provider may be the right option for you.
This post originally appeared on Insights, a blog authored by subject-matter experts at Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.
