Lou Stanasolovich, CEO and president of Legend Financial Advisors in Pittsburgh, remembers when he used to have a problem: Some of the people he hired were far from plug and play. Much to his frustration, they lacked the skills necessary to do their jobs well when they joined the firm.

So he developed a solution. He started training some of the young people who would become entry-level employees through a student intern program. "Over the years, we've discovered that it's easier to grow talent than to purchase it," Stanasolovich says. "We end up having to train purchased talent almost as much as home-grown talent. Former interns make up half of our core staff of 18 employees." Currently, the firm, which serves 210 clients with an average account size of $1.6 million, has 16 interns.

Four Seasons

The key to Legend's internship program, Stanasolovich says, is that it dispenses with the typical, cursory summer training, and engages promising college students as part-time employees to work year-round. "Summer internships are a waste, both for the planning firm and for the intern," he says. By working only during the summer, interns "don't add value to your firm, nor do they acquire real experience."

Most of Legend's interns average 17 hours a week during the academic year and 40-plus during the summer months. Interns start at $8.50 an hour, and have the potential to move up to $12 an hour, plus bonuses—a cost-effective wage for the quality of their work, Stanasolovich notes.

College students selected for the program tend to major not only in finance and accounting, but also in marketing and information technology as well. In addition to having solid academic credentials, successful applicants must pass Legend's own battery of tests. These tests include spelling, writing, proofreading and reading comprehension. "They'd better be able to read and write if they work here," laughs Stanasolovich, a former cost analyst for U.S. Steel who entered the field in 1982.

Interns who join the firm full-time must learn quickly from a 250-hour training program that includes videos on professional development, computer skills instruction, the rigors of assembling financial performance reports, and preparing balance sheets and conducting financial research.

Matt Melago, a senior analyst in the investment banking firm of Anderson LeNeave & Co. in Charlotte, N.C., also interned with Legend. "Lou has proven over many years that he can successfully integrate his interns with the strategic and financial goals of his firm," Melago says.

Many of the interns who join the firm full-time have developed a skill level enabling them to start as assistant financial advisors—a level that they wouldn't have reached without the intensive, long-running intern experience behind them. At this point, many are working on obtaining CFP designations. Their initial duties include preparing financial plans for new clients and updating plans for existing clients. (This work is reviewed by higher-level staffers.)

Four current employees who interned with the firm handle marketing, staff training and IT. All interns are trained on the use of the Bloomberg Professional Service terminal, Morningstar Principia and portfolio management software. They are also prepped in income tax planning software—skills that some of the firm's outside hires are lacking.

Rules to Work By

Interns must follow meticulous procedures that ensure not only learning, but also precision in serving clients. "You have to love teaching to implement this model," Stanasolovich says. "And you must be ultra-organized. We have checklists for interns to follow for every conceivable procedure, down to the most minute detail."

By fostering this kind of learning environment, Legend has achieved some economies of scale by involving interns in training. "They are so good that they help us train new interns," adds Stanasolovich.

Jim Grote, CFP, is a Louisville, Ky.-based writer and director of development for Boy's Haven. He contributes regularly to Financial Planning.