From the advisor’s perspective:
“I run a very profitable financial practice, high-touch service model, excellent velocity and 90%+ advisory-fee-based. I have been a client of EmployShare for 15 years, and I have learned a lot of valuable lessons. Here is one.
This incident concerned an employee that went from having a great attitude and performance record to the exact opposite. To this day, I do not know why she changed so drastically, but I have learned since that we do not know what our employees do when away from work.
Like most financial advisor practice owners, I tend to react rather quickly to these types of negative issues, so I terminated the employee and notified EmployShare the following day. This turned out to be a costly mistake on my part, terminating the employee without first seeking guidance from EmployShare.
The disgruntled employee went on mission to get back at me:
- Filed an unemployment claim against me. EmployShare beat it.
- Filed a workers’ comp claim against me. EmployShare beat it.
- Filed a lawsuit for wrongful termination against my broker/dealer and me.
- The broker dealer liability was dismissed.
- The case was in my attorney’s hands.
- We settled for mid-six figures and never got to court, thank God.
My lessons learned from this incident:
- My staff knows everything in my practice: my GDC, my clients, and each other. I am a real employer target.
- Keep the EmployShare team informed and involved in all employee interactions that have the potential for risk.
- Had I consulted with EmployShare before terminating this employee, they would have staged the termination effectively and saved me hundreds of thousands of dollars.”