How to hire and use virtual support 

By Susan Chesney

Financial advisors’ use of virtual support services has become even more pronounced since the pandemic made advisors realize that much of their work can be done remotely. In fact, many firms are now working 100% virtually. Still, advisors may feel unclear about what type of help to hire and how to delegate if they are seeking virtual help.

Virtual assistants versus paraplanners

A prime attraction of hiring virtual staff is you can hire experts in the area you need for only the hours needed instead of hiring one full-time person who is “just okay” at all of them. Often, firms will start by working with either a virtual assistant or a paraplanner—roles that come with different skills and costs.

Virtual assistants tend to provide administrative and client service support. They can complete and process custodial account paperwork, set up and manage CRM software, and assist with performance reporting and billing. Some will even place trades. Virtual assistants can also help with generic administrative tasks, such as scheduling and mailings. These folks may have expertise in many fintech programs as well as custodial requirements. One told me: “We can do everything an in-person assistant can do except bring you coffee in the morning—but we can have it delivered!”

Paraplanners are trained to provide financial planning support. They tend to have a finance or accounting background, but typically don’t have advanced credentials such as a CFP^® or CFA. They have a basic knowledge of investments, retirement planning, insurance, estate planning, tax, and other planning issues. Think of paraplanners as members of your financial planning team who can complete research and create reports.

Some paraplanners have advanced credentials, such as the CFP^® designation or a master’s degree in personal financial planning or the enrolled agent credential. They have extensive experience in financial planning and probably have worked directly with clients. I call them “virtual CFPs^®,” to indicate that the support they provide extends far beyond entering data; it includes analysis and recommendations, as well as developing client deliverables.

Know your needs

Before running out and hiring support, it’s important to understand what tasks you want to delegate. Start by creating a list of all the tasks you work on over a few weeks. Highlight ones you dislike and that are not core functions of your business, or possibly those you do like but are not the best use of your time. Review the list and decide which you are willing to delegate.

Next, determine the type of expertise needed by the person who takes them over. Obviously, you would not want to pay a virtual CFP^® to print and mail holiday cards, for example. From there, you can determine the number of hours you might need at any specific service level. While the actual hours you will need from a virtual professional might turn out to be different, at least you will begin the working relationship with a clear set of expectations.

If you have never had support before, consider starting with tasks that would have a low impact on your business if things do not go well. Back-office tasks are easiest to delegate because the person will have no contact with your clients. Even getting tasks 75% of the way to completion would allow you to spend your time in more advantageous ways.

As a side benefit, you will probably find that hiring someone to work remotely forces you to create and improve your processes now that others must follow them. This will also help as your firm grows and you need to scale up your processes.

Keys to successful delegation

To work successfully with virtual support, you must be willing to delegate. If you feel the need to be involved in every detail of the task, then doing that task yourself will be faster than overseeing someone else to do it.

As a delegator, keep in mind there are many “right” ways to do things. Another person’s way may not be your way. Hiring an employee would provide you with more control than outsourcing to a contractor, although it may be difficult to keep an employee if you micromanage.

To successfully delegate, you should be able to do the following:

1. Have the ability to work virtually. This is obvious, but there are still offices out there with paper files. Business functions must be accessible from remote locations. You will need to think through what information you will share and how you will share it.
2. Communicate clearly. This is probably the most important factor. Your virtual service provider can’t do a task if you are not communicating what the task is, the process for doing it, and the deadline. Provide rules for check-ins, particularly if the project is research-based, and ask for feedback.
3. Build in lead time. Understanding turnaround time is important. This person isn’t sitting in the next room so that you can shout out a question. And you are not the only person they are helping. You may have control over an employee’s time, but you will not for a contractor. You cannot pick up the phone and expect this person to be available like an employee.
4. Review your engagement. Comfort and trust build over time as new abilities are discovered. Process improvements can create efficiencies for your firm.

Compliance

Last but certainly not least, it’s important to consider compliance. Any of the roles described above will require access to clients’ personal data, which in turn makes the paraplanner or virtual assistant an “access person” for compliance purposes. That means they are required to acknowledge your compliance manual, cybersecurity policy, business continuity policy, code of ethics, etc., unless they are already registered as an RIA. You should also check with your insurance provider to determine if this person would be covered. Do your due diligence! Compliance is an area that should be fully understood before hiring.

 

Generally, financial advisory firms do not go in one step from having no support to needing full-time support. Hiring virtually can allow for growth over time and can lead to a full-time position if necessary. Understanding your specific needs and ability to hire remotely will not only help to test your processes, but can also add expertise to your team.

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Susan Chesney is the owner and principal of Delegated Planning, a financial planning firm that provides advisors the ability to outsource some or all of the work involved in creating and maintaining their clients’ financial plans.

image credit: istock.com/Ilya Lukichev