4 Ways the Wealth Management Industry Can Win a War for Financial Advisor Talent
As the wealth management industry struggles to attract top financial talent amid a third pandemic year, two fundamental factors drive an advisor’s decision about who to work for. “How to win the talent war,“a new research report from Arizent, the parent company of Financial Planning, fails the new recruiting landscape to find out how support staff advisors currently think about compensation and work-life balance.
The Arizent study surveyed 599 respondents in wealth management, banking, accounting, insurance, mortgages and other industries, including 486 at senior levels. Nearly one in three wealth management respondents, 28%, said low compensation was the top driver of revenue.
But it’s not just a question of dollars. Whether it’s a large brokerage, a small independent business, or a national or regional company, having strong administrative, IT, front office, and product development processes is crucial. Advisors want to see these necessities — especially full-time assistants — almost as much as they want better compensation, according to the report.
Advisors also want the freedom — to work remotely at least some of the time, and sometimes to work away from the head office. One in five companies participating in the study said a lack of offsite positions and flexible work locations were holding back hiring. One in four, or 24%, said rigidity caused employees to leave.
All of this means that wealth management firms that meet employees where they want to be compensated, flexible and independent from bureaucracy are well positioned to attract top talent. With 90% of surveyed employers struggling to recruit, companies will need to “make sweeping changes to their policies, practices and benefits to stay competitive and fulfill their role,” the report says.
Scroll down for four key points from the Arizent survey: