Wealth management companies are in a race to attract and retain top-level advisors, and with plenty of jobs to fill, only those firms that invest in the right areas will be successful. Regardless of the industry, business leaders always have to ensure that employees are satisfied and engaged to improve business outcomes. Let’s take a closer look at some of the current practices being used by leading broker-dealers around the country to attract and retain top talent.
Advisor Salaries Are on the Rise
Different factors entice the best advisors. However, pay remains a deciding factor for which firm they choose to work with. Top advisers can produce more than $1.5m in gross commissions and fees annually and net a significant percentage of that amount. That being said, advisor pay is not only a simple percentage. Instead, it’s a complex combination of bonuses and salaries, primarily determined by the number of client assets they manage and the firm they work for.
You need to make sure you pay at or above the “market rate” before someone else does. Don’t wait from an advisor or team to walk out the door. This is why the best wealth management firms work with an executive search firm focused on their market.
Firms are investing more capital in upgrading traditional office spaces to attract high-producing advisors. It gets easier to attract better candidates when you can offer them high-quality office space. In addition to being productive environments, modern workspaces should also promote socializing, innovation, relaxation. That’s why the best financial planners look for opportunities at broker-dealers located in freshly constructed, Class A office buildings.
Flexible workplaces such as working from home and away from the office are also becoming increasingly popular. In fact, for many candidates, the ability to work remotely is of primary importance and may drive their decision to join a company. This set-up is more feasible than ever due to all the remote work technology that has been developed over the recent months.
Enhance the Employee Life Cycle
Since it’s a tight labor market, businesses that prioritize the employee life cycle can improve their odds for attracting suitable candidates and retaining them. It’s essential to optimize all of these stages to ensure a better employee experience: attraction, recruitment, onboarding, retention, development, offboarding, and happy leavers. For instance, regarding attraction and recruitment efforts, a growing number of financial recruiters are leveraging the power of social media to assist in finding intense matches between firms and candidates. Then, firms can further optimize the retention stage by keeping advisors challenged and motivated with ongoing career development opportunities and incentives.
Provide Positive Leadership
Although some competition can be healthy, research shows that cut-throat work environments are detrimental to productivity. Instead of micromanaging, firms that mentor and support their employees typically see dramatic benefits. Here are some characteristics of positive leadership:
- Recognition of employee achievements, both big and small.
- Offer personalized management to each advisor.
- Focus on the sales process instead of not meeting goals.
Firms that have implemented structured coaching programs have reported improved employee retention, especially among millennials. Employees need to know what a successful career path looks like, and mentors can help paint that picture.
But, in the end, it all circles back to who you hire. First, you have to differentiate your brand from the competition with authentic values, workspaces, and the right compensation. Then, you can focus on improving the employee life cycle through mentoring and ongoing skills development. The value of a search professional to guide you is invaluable in the battle to attract and retain top talent. Alan Goldstein from Avior has over 31 years of search expertise and can help you find the best candidates in the wealth management industry.