"With this growth we see increasing competition for talent. In fact, 50 percent of new hires in 2013 left one RIA firm to join another. It's therefore vitally important for firms to develop well-planned and cost-effective ways to incentivize top-tier employees to join and remain in their ranks.

"The most successful firms are doing this by establishing operational discipline to manage the growth of their business, and part of that discipline includes sharpening their compensation philosophies," Georgis added.

It's not just the pay that draws the best employees, although data from the study indicate that base salary made up 88 percent of total cash compensation in 2013. In addition, more than nine out of every 10 employees also got some form of incentive compensation.

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Then there are benefits packages, which also have a substantial influence on prospective employees' decisions. Four out of five firms offered medical insurance, and 46 percent also offered dental insurance. Nearly half of the firms in the study also offered other benefits, including:

• Vision insurance – 31 percent;
• Life insurance – 40 percent;
• Long-term disability – 46 percent; and
• Fully paid maternity/paternity leave – 48 percent.

In addition, 73 percent provided a 401(k) plan while 41 percent offered a profit-sharing plan.

"Talent management is an essential focus for firms, especially as founders and principals look to develop the next generation of leaders and build enduring enterprises," said Georgis. "Competitive and comprehensive compensation packages, along with clear paths to partnership help ensure retention of employees within a highly competitive talent environment, setting up firms for success now and into the future."

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