Conservative estimates predict that over fifty percent of active financial advisors will retire in the next ten years. Meanwhile, less than five percent of advisors are under thirty years old, with fewer and fewer young people entering the field every year.
What does all of that mean for recruiting? It’s a seller’s market for experienced financial advisors. Your firm will need to have a solid value proposition and attractive compensation package if you want to have any chance of landing a new partner or associate. Let’s take a look at the best practices for recruiting experienced financial advisors, so you can attract top talent.
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Understanding What Real Professionals Value in an Advisory Firm
The “unique” value proposition you offer to clients isn’t anything that a seasoned advisor hasn’t already seen dozens of times before. To attract real professionals, you need to understand what they actually value. Financial advisors with significant experience will want to know the following:
- Compensation: Morgan Stanley, Wells Fargo, UBS, and others are offering guarantees based on trailing twelve-month revenue. If you’re an independent firm, research those numbers and offer sufficient compensation to compete.
- Equity: Experienced financial advisors may be willing to agree to more reasonable compensation if an ownership stake is part of the deal. Equity is as good as or better than cash in a recruitment situation, especially for seasoned candidates.
- Niche Market: Your niche market is part of your client value proposition, but a new advisor may be able to open up new markets for you. Offering the independence and autonomy for them to do so could be a deciding factor for them.
- Technology: Firms that don’t offer remote client service in 2021 will have difficulty competing. Experienced advisors are looking for technologically capable practices with modern online reporting, client portals, and video conferencing software.
- Reputation: Address your culture. Smart recruits will want to speak with existing employees at your firm to check on your reputation. Don’t expect those folks to hold the party line if they are mistreated. Authentic positive energy is important.
- Support Team: CPAs, paraplanners, and insurance experts are valuable team members who can help generate leads and make an advisor’s job easier. Younger applicants with no experience don’t know that. Seasoned advisors do.
- Succession: You’ll know that you’re dealing with a pro when this question comes up during the exploratory stage. Having a solid succession plan in place to ensure business continuity is important to experienced professionals looking for a new home.
- References: Advisors will want to speak with other advisors at the firm. They will want to better understand what it’s like for their peers. The best references are those that have either similar backgrounds or similar business mix.
Work with an Experienced Financial Advisor Recruiting Firm
For assistance with financial advisor recruiting, or if you’re interested in merging, selling, or acquiring a new practice, contact Bridgemark Strategies. Our team has experience in all of these areas and can help you put your firm in the best position for success.