As advisory firms grow and accumulate clients, they inevitably reach the point where it’s necessary to either stop growing, or start hiring staff members to expand the capacity of the firm. Initially, the first hire or two is usually administrative support staff, who are responsible for completely relatively well-defined, standardized, and repeatable tasks – key tasks for a financial advisor to delegate, but ones that are relatively straightforward to train on, and even re-train in the event of staff turnover.
However, when it comes to the next stage – hiring associate advisors and paraplanners who may someday take over client relationships (or even the entire firm) – the process of training and even hiring itself is far more difficult. Not only because the stakes are higher – as it’s more costly to the firm to have a financial advisor turn over, especially once they’ve begun to develop direct relationships with clients – but also because the development curve of a financial advisor is so long (taking years or even a decade to fully develop), that it’s difficult to be certain who will end out being a good advisor in the first place.
In the guest post, New Planner Recruiting co-founder Caleb Brown shares his perspective on what it takes to find, attract, and retain top next generation advisor talent, based on his own experience on the front of lines of recruiting young talent for the past 10 years. From what really is most predictive of candidate success (the effort they put into getting the job in the first place, and their “why” for becoming a financial planner), to the reasons that certain firms have more trouble than others in attracting and retaining talent to begin with (the unfortunate reality: your firm may not really be as “great” of a career opportunity as you think, relative to the other options available for top talent!).
The good news, though, is that the rise of financial planning in undergraduate degree programs means that today’s rising talent is, truly, the best trained and capable young talent the profession has ever produced. Which doesn’t mean every hire will be perfect, or even that everyone will work out (for any number of other life transitions that happen to people in their 20s and 30s), but for those who are willing to put in the time and effort, the rewards of hiring next-generation talent have never been better!