It’s projected that more than 33% of financial advisors will retire over just the next decade. Unfortunately, that’s not the only challenge being faced by recruiters and hiring managers. The retirement wave, combined with fewer new advisors, is leading to more job openings than applicants.
Securing the right talent is going to take a very proactive hiring approach, like enticing next-gen employees, along with more focus on improving the popularity of these professions. The first step to recruiting the top financial advisors from Gen Z is learning what they want and expect from employers. Then, you can implement these strategies.
1. Modernize Recruitment
We have to leverage the latest communication tools and technology to recruit next-gen advisors. Firms that are having the most success are investing in text message-based recruiting and advertising careers on social media platforms like Snapchat. If you want more relevant talent, then job postings have to be optimized for Google.
2. Partner with Schools
A growing number of financial institutions are offering summer internships to aspiring advisors while they are still in school. It can be an effective solution for firms that are planning to add several more advisors to their roster because it creates a pool of applicants that have already been screened.
3. Provide a Career Path for these Top Financial Advisers
Provide a clearly defined career path to up-and-coming advisors. This helps to attract candidates that are striving to succeed because they can see how to move up the ranks in your firm.
4. Use Mentorship
The top talent from Gen Z looks for jobs at firms with strong mentorship programs that last 6-12 months. Another thing that we’ve noticed is that next-gen employees gravitate toward positions that enable more collaboration among co-workers and clients.
Instead of setting advisors against each other all of the time, try advertising team-based incentives along with a culture of reverse mentorship to promote cross-generational collaboration.
5. Don’t Be Afraid of a Succession Plan
It’s important to have a formal, organized succession plan. It’s also an essential part of the talent management process, especially when the number of leaders that are retiring is greater than the number of new advisors being recruited.
Firms that fail to plan are only planning to fail. Firms need to create a path that enables retiring financial advisors to pass down their years of wealth-management knowledge and working relationships to new employees.
If we want to recruit a diverse workforce, then we have to highlight the benefits of being a top financial advisor that really matters to Gen Z including work schedule flexibility, unlimited income potential, the use of modern technology, mentorship, and career growth.