If you’ve seen one article on outsourcing tips, you’ve seen them all.
I know this because I’ve read way too many – and written a few myself! I can promise you, though, this article isn’t that. Instead, I want to put forward the real questions you should ask when considering a new outsourcing solution.
First, let's state the obvious – when a practice reaches out to us, there are a few common reasons. Typically, these are:
- Cost efficiency: Outsourced paraplanners often offer a more cost-effective solution compared to hiring full-time, in-house staff.
You aren’t paying someone when you don’t have work for them or having to spend money training more staff when another leaves. - Time savings: By allocating tasks like research, strategy development and advice documentation writing to outsourced paraplanners, advisers can save significant time, allowing them to focus on their client relationships.
- Flexibility: Outsourcing provides the flexibility to scale resources up or down based on business needs, ensuring that support is available during busy periods without long-term commitments.
- Access to expertise: Many outsourcing providers offer specialized knowledge and experience, ensuring that businesses receive high-quality and compliant advice documentation.
These are all solid reasons to start outsourcing, but what keeps businesses coming back and staying with their outsourcing partners for the long haul?
Seamless handover process
The ease of the handover process is a big one. Some outsourcers have five-page requests they need completed before they will start working on a file; others have new programs and platforms the practice needs to join before they can submit a new request.
Advisers have enough hoops to jump through these days, and getting a file off your desk and into the hands of the paraplanner should not have so many barriers. The ideal outsourcing provider works seamlessly within your system, not the other way around.
If the handover process is smooth, businesses are more likely to stay put and avoid the hassle of transitions.
Managing key person risk
Key person risk is another crucial factor. Having a dedicated paraplanner is great, but what happens when they’re sick, on extended leave or they resign? A reliable outsourcing provider ensures that there is always someone available to keep things running smoothly, mitigating the risks associated with losing a key team member.
A quality outsourcer will ensure there is a practice profile with the key things to note for each practice, as well as a second or third paraplanner who meets the practice early in the relationship. This avoids the risk (perceived or real) of the ‘main’ paraplanner going away and ensures the adviser isn’t explaining their process or thoughts over and over again.
Not just a data-in, data-out service
Businesses appreciate paraplanners who go beyond just data entry. A good paraplanner adds value by questioning and enhancing the advice provided. This strategy development approach helps improve the quality of advice and fosters a deeper level of trust between the business and the outsourcing provider.
Knowing that issues will be picked up, helpful strategies will be flagged and they have a sounding board available means advisers can have a 10-minute discussion and leave the file in the hands of the paraplanner to produce the advice.
Outsourcing paraplanners also often act as a gatekeeper for compliance requirements. Their specialized knowledge in areas like compliance helps ensure that all documentation meets regulatory standards, reducing the risk during audits and providing peace of mind to businesses.
Support during busy seasons
During peak times, having additional support is crucial. Outsourced paraplanners provide essential support during advice backlogs and busy seasons, ensuring that advice is delivered promptly and efficiently.
Having a team large enough and reliable enough to maintain a consistent turnaround time is invaluable. Anyone can have a five-day turnaround time in quiet periods, but outsourcers who aren’t prepared easily get pushed out to four-plus weeks during the busier months!
When timeframes blow out, the practice pays for this in the form of less satisfied clients, longer wait-times for advice fees and workflow bottlenecks. Businesses stay with providers who stand behind their timeframe with a service guarantee. Reliability in meeting deadlines ensures client satisfaction and smooth operations.
The final word
Outsourcing can be a game-changer for your business, but it’s not just about finding the cheapest option or the one that promises the quickest turnaround. It’s about finding a provider that integrates seamlessly into your system, offers a reliable and inquisitive paraplanner, and can meet your workflow as it fluctuates.
When you’re next considering an outsourcing partner, remember to look beyond the surface and ask the questions that truly matter. It’s not just about looking for any old outsourcer; it’s about finding an extension to your team that will stick with you through thick and thin.
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