While the first wave of financial advisors nears retirement age (and scrambles to finalize succession plans), a new generation of planners is entering the field without a clear path of establishing themselves in a still fairly young industry. This presents a dilemma on both sides: veteran advisors need forward-thinking talent to continue the work that they've started; new planners feel unsure of where to get their first three years of experience.
In this, the first of a multipart blog series on how smaller advisory firms can hire and motivate new advisors, I'll present some of what I've learned over the years on how to smartly hire new advisors for your firm.
According to the Financial Planning Association's "2010–2011 Financial Planning Salary Survey," nearly half of financial planning firms reported that they planned to hire additional staff over the next 12 months. Students surveyed who are graduating between 2012-2013 with a certification or degree in financial planning expect to start in a junior financial planner or paraplanner position; 87% will hold a bachelor's degree and 61% will hold Certified Financial Planner certification by the time they graduate.
With the majority of firms still relatively small–fewer than five people—finding that right "fit" is a challenge, and a potentially costly one if a new advisor doesn't stick around.
So while casting a wide net for talented new advisors may work for larger firms, we "little" guys have to be incredibly selective about who we bring on board. That means going beyond the numbers and finding the superstars who will make a difference in the firm not only today but also in years to come.
Recruiting Beyond the Numbers
I don't have to tell you that a dazzling resume does not necessarily make for a dazzling addition to your practice. At Private Ocean, we go through a hiring process that is key to creating the right team. That means lower turnover and greater loyalty, and because we aim for enviable levels of client service, we've chosen new hires who share our philosophy on customer service and as a result elevate our company's reputation.
That may sound like finding a needle in a haystack, but investing the time to select recruits makes a world of difference in running an efficient practice on track for a successful future. So here are some of the best recruiting practices I'd recommend:
