Companies that are known for competitive pay and excellent employee benefits may have the highest turnover rate. In the wealth management industry, why are top advisors leaving big firms? Let us find out.
Bureaucracy and rigid conformity to rules
In the wealth management firm, advisors may have to push through a lot of red tape to get things done. The excessive amount of regulation and rigid practices can turn the employees away.
Millennials want to work for employers who are transparent and supportive. Working in a highly bureaucratic environment is not just draining for people but also unproductive.
The brand has lost its shine
Working with a well-known brand is every employee’s dream. However, brands can sometimes steer away from practices that once made them “wanted” among clients and employees.
For example, suppose your firm is focused on building relationships only with advisors rather than the firms the advisors represent. In that case, the firm may be losing out on a huge brand-building and relationship-building opportunity.
Technology allows them to be independent
Advisors choose to work with renowned firms because they realize the value top talent can provide. However, if they aren’t getting enough value, your top advisors may leave your big firm even if it’s booming with profits.
Today, with technological advancements, people can easily find applications and programs that make their jobs easier. Why would an advisor want to stick with you if they can find everything they need elsewhere?
Each firm has its own set of cultural values. Just like a wealth management firm prides in its values, the client themselves or the client’s firm may also have their own specific values. An advisor may feel torn between the two if the values between both parties don’t match.
When faced with such a conflict, an advisor may re-think their place in the firm. Should they stay or move on?
Low commissions and no salary raise
A booming firm is not an indication of a competitive employee pay. Advisors rely highly on commission money. If an advisor feels they are putting in a lot of work and bringing in clients but aren’t getting compensated fairly for their efforts, they may feel discouraged.
If they bring up pay raises and are shot down, it may be the last straw that breaks their back.
Are you looking to join a wealth management firm that values your contributions and helps you grow to your best potential? Avior Executive Search can help you connect with companies with high employee satisfaction and retention rates.
ABOUT AVIOR EXECUTIVE SEARCH
Avior Executive Search is a professional recruiting firm specializing in the wealth management industry globally. We have built a proud reputation based on our search process and market knowledge and have an unmatched network with extensive search experience in the United States, Canada, Latin America, Europe, and Middle East global wealth management industry. To learn more about how Avior Executive Search can help you, contact us.