Talented young advisors are hard to find. As the labor market tightens and the demand for advisory services grows, the war for talent will likely prove even more competitive in years to come.
Taking the time to develop “home grown” talent is a vexing challenge for many, but some argue it is a worthwhile pursuit with many benefits for the practice and the lead advisor.
Why should you care? Here are three of the biggest benefits to having a well-equipped next generation advisor on your team:
1. Greater Revenue Potential for The Team
Research from FA Insight indicates that firms with junior advisors perform better on a whole host of metrics, most notably they have 44 percent greater income per owner than those without. Cultivating lower cost talent to create leverage for highly productive lead advisors can be a great driver for productivity. For advisors that really enjoy client-facing activities more than the behind the scenes planning work, a properly trained junior advisor can create a freeing experience.
2. Sharpening Your Saw Raises Your Game
You never know a subject so well as when you have to teach others to do it. One advisor recently shared that coaching his junior advisor on how to develop her network and build a brand in the community reignited his passion for prospecting. Having to answer some of her basic questions forced him to rethink his positions in the context of the current environment. He went from being a passive player on social media to an expert user of LinkedIn in three weeks and taught his protégé as he went.
3. Peace of Mind for Your Clients
If you have gray growing up top, you can be assured your clients are wondering about your succession plan. With life expectancies extending into uncharted territory, clients want to be assured they will be taken care of and some are thinking beyond their own lifetimes. Who will take care of their grown children’s finances? Who will take care of their surviving spouse? Having a multi-generational team with junior advisors progressing on a path demonstrates continuity and offers wealthy clients peace of mind. The team not only serves to support retention of existing assets, but can work to ensure continued referral flows from advocates don’t dry up.
In our recent webinar, Building a Culture Where Next Gen Advisors Thrive, we share research on what the next generation of advisors want and what they need along with key steps to helping them succeed. If you are interested in taking on a junior advisor and want to do it “the right way” or if you have a next gen advisor and are struggling to realize the benefits, this research may give you the insight you need to create a high performing team.
Christine Gaze, CIMA®, is the President of Purpose Consulting Group, LLC and the co-founder of Breakthrough for Growth, LLC.