LAS VEGAS, Oct. 29 /PRNewswire-FirstCall/ -- Schwab Institutional, a
leading provider of custodial, operational and trading support for
independent fee-based investment advisors, today announced a new offer to
help advisors manage their human capital needs, including finding new
talent, retaining and rewarding existing employees, structuring their
organizations more strategically and efficiently, and developing sound
succession plans.
The new offer was on display at the IMPACT(R) 2007 conference in Las
Vegas, where Schwab is celebrating its 20th anniversary serving the
independent advisor industry.
The new human capital offer, available only to Schwab Institutional
clients includes four services: a Human Capital Solutions website with more
than 50 tools and resources, an online Career Opportunity Service to help
advisors find new employees, an online Compensation Benchmark Tool to help
advisors make more informed decisions about compensation and two new
compensation white papers, Creating An Effective Compensation Plan and
Developing & Implementing An Incentive Compensation Plan.
More than one-third (35%) of firms participating in the recent Schwab
Institutional RIA Benchmarking: Growth Trends Study reported that hiring
talent was a key challenge, ranking it the second biggest barrier to growth
and firm productivity.
Specific elements of the offer include:
-- Resources to help align organizational structure to firm strategy
-- Tools to plan for capacity and future staffing needs
-- Guidance on strategic and systematic recruiting and hiring
-- Compensation planning for recruiting and retention
-- Resources for developing retention programs including performance
management and employee development
-- Strategies for succession planning to transfer firm ownership
Through the new offer, which is available at no additional cost,
advisors will also have access to:
-- Personalized Support: Experienced business consultants and account
managers offering one-on-one support to help advisors identify and
solve key human capital issues, specific to the size, development stage
and resources of each firm
-- Knowledge-Sharing Events: Workshops, conferences, and roundtables
throughout the year providing opportunities for hands-on learning and
the sharing of ideas with peers and experts
-- Comprehensive Resources: Dynamic websites and industry-leading
publications providing immediate access to educational content,
tactical templates, in-depth reports, and a proprietary Compensation
Benchmarking Tool
Along with this new offer, Schwab Institutional recently announced a
new relationship with national human resources outsourcing company TriNet
to provide healthcare and benefit services for independent investment
advisors and their employees.
"Finding, retaining and compensating talent is clearly a critical need
for advisory firms that are determined to harness the exponential growth we
are seeing in the industry," said Kelli Cruz, Schwab Institutional director
of advisor practice management. She noted that the RIA industry is growing
at approximately 20 percent a year.
Schwab Institutional's new human capital tools and resources are part
of GrowthPoint, the company's integrated practice management program for
RIAs seeking proven ways to manage and evolve their businesses. GrowthPoint
comprises four offerings: Business Strategy and Planning, Human Capital,
Marketing and Business Development, and Transition Planning.
Tools that Address Advisors' Needs
Schwab Institutional's new Compensation Benchmark Tool is an online
database that provides advisor firm principals with compensation-related
information for more than 20 different advisory firm job descriptions based
on RIA-specific salary survey data. Site users have the ability to screen
compensation information across a variety of search fields, including job
title, employee experience, firm type, firms size, and geographic location.
The Human Capital Solutions website is a resource for advisors seeking
proven best practices in implementing an effective organizational model and
building teams that match the firm's core objectives and values. The site
contains tools and templates, such as sample organizational charts,
capacity planning worksheets, recruiting tips and tactics, sample job
descriptions, interview checklists, and sample career paths. It also
provides advisors with a link to the Schwab Institutional Career
Opportunity Service, an online employment database dedicated solely to
serving the independent investment advisory industry, where advisors can
recruit experienced, qualified professionals.
Two New Industry Reports
Schwab Institutional's two new white papers address best practices in
compensation and incentive compensation. The first report, Creating An
Effective Compensation Plan, identifies key elements in a successful plan
for compensating employees and discusses the evolution of how advisory
firms use the plans to maximize productivity and performance.
"The compensation trends discussed in the report vividly illustrate the
lengths to which firms will go to attract and retain top talent," commented
Cruz. "From 2002 to 2006, advisors averaged 64 percent more base salary and
total compensation, were twice as likely to have ownership, and nearly 50
percent more likely to have a retirement plan."
The second report, Developing & Implementing An Incentive Compensation
Plan, shares strategies for designing incentive plans that motivate and
reward employees, including determining what kind of plan is right for
different kinds of firms, identifying specific plan structures for
different roles within a firm, and implementing and managing a plan.
According to the report, incentive compensation plans are increasingly
popular among advisory firms. In 2006, 25 percent of firms maintained an
incentive pool, up from 18 percent in 2004. Firms with performance-based
incentive plans had an average profit margin of 21.1 percent in 2006,
compared to 17.2 percent for firms without a plan.
About Schwab Institutional
Schwab Institutional is a leading provider of custodial, operational
and trading support for independent investment advisors. Since 1987, Schwab
Institutional has supported independent investment advisors by offering
support and services to help grow their businesses and help their clients
reach their financial goals. As of September 30, 2007, client assets
custodied with Schwab Institutional stood at $581 billion. These assets,
managed by the approximately 5,500 independent advisor firms Schwab
Institutional currently serves, represent approximately one-third of total
client assets custodied with The Charles Schwab Corporation. Brokerage
products offered by Schwab Institutional are not FDIC insured, are not
guaranteed deposits, and are subject to investment risk, including the
possible loss of principal invested. Schwab Institutional is a division of
Charles Schwab & Co., Inc.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 306 offices and 6.9 million client
brokerage accounts, 1.2 million corporate retirement plan participants,
212,000 banking accounts, and $1.4 trillion in client assets. Through its
operating subsidiaries, the company provides a full range of securities
brokerage, banking, money management and financial advisory services to
individual investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org),
and affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment
advisors through its Schwab Institutional division. The Charles Schwab
Bank, N.A. (member FDIC) provides banking and mortgage services and
products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org) is an
electronic trading technology and brokerage firm providing services to
highly active, online traders. More information is available at
http://www.schwab.com. (1007-1699)
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Michael Cianfrocca of Charles Schwab, mobile,
+1-415-307-1558, michael.cianfrocca@schwab.com; or Gauri Mundkur
of Makovsky + Company, +1-212-508-9606, gmundkur@makovsky.com,
for Charles Schwab
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