Over the past five years, advisors recruiting advisors has become an increasingly hot topic. Why?

Consider these possible reasons:

* Boomers are getting older. With 29% of the general population-and perhaps a corresponding percentage of advisors-entering their sixties, a growing number of senior advisors are looking for junior advisors to whom they can transition their practices.

* The trend toward multi-advisor firms continues. Remaining a solo practitioner is becoming ever more expensive. The cost of developing and integrating technology is one reason why expenses have grown. In addition, some advisors like the image of a larger organization; they equate it with greater sophistication.

* Some advisors see an opportunity to leverage well-established systems and processes by making them available to other advisors for a fee.

* Advisors who feel burdened by their client list, but who want to continue building value in their business may choose to staff up, rather than prune clients or offer a partial book for sale. These advisors often seek to transition clients within the firm by taking on junior advisors.

* Solo practice can be lonely. Affiliating with another advisor or firm provides case sharing, intellectual stimulation and social interaction.

START WITH A STRATEGY

Because the reasons for recruiting a new advisor vary so greatly from firm to firm, it is naïve to lump all recruiting cases together. But regardless of why an advisor wants to recruit, it's wise to start with strategic positioning.

Before you start drafting a list of recruiting requirements, ask yourself these questions:

1. What are the long-term and short-term purposes for recruiting?

2. What general value and specific benefits does the firm offer to a recruited advisor?

3. What is the firm's culture?

4. What values are critical for anyone who affiliates with the firm?

AVOID COMMON PITFALLS

Advisors are not professional recruiters, so they tend to make mistakes when they don the recruiter's hat. Here are five common errors and some tips for avoiding them:

* Nonexistent or incomplete value proposition. A firm must provide clarity about the value it offers a prospective advisor and consider who might appreciate what is offered. For instance, standardized systems and processes aren't valuable to an advisor who has his or her own and doesn't want to change, and offering marketing support to an advisor who has plentiful referrals yields little excitement. So, first, inventory what you offer and then identify the type of advisor who would value it.

* Unclear or incomplete expectations. Often advisors are reluctant to be specific about expectations, believing that they should be flexible and keep the door open. But just as is the case when prospecting for new clients, it's impossible to be everything to everyone. Identifying an ideal advisor candidate is a good idea. And being clear about responsibilities and deliverables helps both the recruiting firm and the candidate. Though it takes time in the short run, it helps in the long run to ensure retention.

* Sloppy interview process. During interviews, there's a tendency to wear rose-colored glasses. We see what we want to see in a candidate. If something doesn't feel right during the interview, we gloss over it. A classic example among advisors is to overexaggerate the abilities of an inexperienced junior interviewee to produce enough revenue to cover their own salary or draw.

Implement a rigorous interview process that involves multiple advisors and conversations. Develop a list of predetermined questions to keep the interview focused. In addition, using an objective behavioral profile test is also a best practice.

* Making assumptions. Although there's no way to avoid assumptions, there is a way to counter this behavior. Before finalizing an agreement, ask yourself what assumptions you and the candidate are making. This gives you a chance to ferret out disconnects before you form a union.

* Ignoring culture and chemistry. Compensation and perceived fairness are common reasons why deals fall apart. Equally important are culture and chemistry, though many advisors aren't conscious of their firm's culture until someone new tries to fit in. If someone walked into your office, how would he or she describe it after 10 minutes? Quiet? Bustling? Upscale?

LEARN BY EXAMPLE

To further illustrate the challenges involved with recruiting and adding to an established firm, here are two true stories. A third story demonstrates how one organization tackled and overcame these challenges.