For financial professionals, as for most individuals, income matters. While the vast majority of financial professionals (84%) say it’s unlikely they’ll leave their broker/dealer in the near future, better compensation from another broker/ dealer is the top motivator that might lead a financial professional to make the change. More than one in three (36%) say higher payouts alone could motivate them to leave their current broker/dealer. And among respondents for whom it’s likely they’ll change broker/dealers in the next two years, none say they’re “extremely satisfied” with their current compensation.
One reason compensation is important, many financial professionals say, is that higher payouts can be reinvested into their business, driving the potential for growth. That said, financial professionals may not automatically choose the broker/dealer with the highest compensation if that move doesn’t also offer improvements in other areas, such as technology and company culture.
A high level of satisfaction with current payouts also keeps compensation from driving financial professional transitions on a broad scale. Consider that 86% of respondents report satisfaction with their current compensation. Given that many independent broker/dealers offer similarly competitive levels of compensation, a firm’s broader offerings can prove to be the differentiating factor when it comes to luring financial professionals.