Merrill To Lay Off 400 Brokers In Training Program
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True, but PG, GE, JNJ actually give their employees more than a desk and a phone. Mentors are assigned. They take time to develop talented people and give them time to build relationships. They understand that great accomplishments can take more than 90 or a 120 days…
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BH, you're missing the whole point. I don't think you quite get it. DO you realize what the cost of the entire recruiting/trianing department is? If everyone stuck, they would only need about 1/4 of that department. Do you know what they spend to fly all those newbs out 3 times, put them in the crummy hotel, and feed them? Open an office, outfit it, pay a BOA, etc.? Pay their salaries, benefits, etc? Licenses, exam costs, Dude, add it all up, and it's a TON of money. And almsot no newbs make any money for the firm in their first year or two. And it is NOT just at Jones. It's NOTHING like GE or PG or whatever. All the brokerage firms are basically providing seed money to their investments. Dude, I'm not defending Jones, or the practice in general. I'm just telling you from a pure financial standpoint, the investment is HUGE. [/quote] The firm is growing, it's profitable. So obviously this HUGE investment in Sloppy Joes at the training center is paying off for them. If you are growing your business this way, it's low class to go after washouts for their training costs, imo. If it's really not working for them, then they should try a different business model. ... Btw, I don't think that opening an office is a TRAINING cost, especially in that if one broker washes out, another one takes it over. That moves the firm along, imo. Keeping it light, feeling no sympathy for EJ (even though I do like my firm.)[quote=Borker Boy]I voiced the same sentiments about Jones’ exorbitant $75k in “training costs” a while back. My college degree cost about that, and as we’ve discussed in a previous thread, the majority of a new broker’s training is in the form of self-study and independent research.
If I'd finished college with the same amount of knowledge about my major and minor as I've received in industry-related "training" from Jones over the past few years, I'd be suing my university for a refund. Instead, you leave Jones, and they sue you. I believe it was Spiff who provided a laundry list of reasons why the $75k is a bargain. I'd imagine he's typing in tandem with me in response to your post. Stay tuned...[/quote]In a free market, the seller gets to choose is price. If noone accepts it, they need to lower the price until the highest bidder agrees to the price. EDJ set their training price at $75,000. You guys agreed to pay this price if you leave early. Not only did EDJ think it was worth $75,000, but so did the rookies who signed their names to a contract that stated that price.
What's so freaking hard about this? Did any of you babies ask them to break it down up front? No, you didn't. So, quit your whining.
I know in the ML training, you sign a document stating that you will pay back the cost of training but, to my knowledge, no one has been held to this in my complex, even if they leave on their own accord.
ice ice baby......
Madoff's clients are complaining too.....Cancer patients complain....these folks bring these calamities on themselves I assume.....
As Tony Robbins says you are what you chant.....or what you affirm like Stuart Smalley who is going to be a Senator from Minnesota!There have been some POA’s that have left in Arkansas who were sued for the Training cost once they left Merrill.
Can the companies go after you for training costs even if they let you go? Or only if you leave of your own accord?
[quote=jmatt]Can the companies go after you for training costs even if they let you go? Or only if you leave of your own accord?[/quote]
They don’t reward bad behavior with forgiving your debt. If they let you go because you can’t produce, they’ll probably leave you alone.
If they let you go they can’t go after you for training costs. Some states are considered “right to work” states and they would have a tough time going after you even if you left of your own accord…
This story is just another sign that the traditional, big firm minded brokerage firms are dead. Combine this ML story with Motorola and others cutting 401k matches and pensions and it only cements the fact that you can't leave your future up to some bean counter.
If a POA never signed a contract, can they still try to recoup training costs from you?
What they ‘can’ do I don’t know. That’s a question for an attorney if you are concerned. But, what they have done and are likely to do? Nada! POAs are either getting cut or leaving in droves and ML or BAC is not going to spend $10000s chasing small dollars.
You are exactly correct. During the worst market in many years, I was bringing in assets. Unfortunately, not fast enough for Merrill Lynch. I had a client appointment to bring in a Million dollar 401K on Thursday. Unfortunately they let me go on Monday. I had several people who wanted to get through the holiday season and deal with their finances in January.
I've brought in more assets this year than the Vice President who sits next to me. He told me that he inherited all of his accounts and he also churns them.
That was my first question. I was told they will not try to recoup training costs.
[quote=EXMerrillFA]
You are exactly correct. During the worst market in many years, I was bringing in assets. Unfortunately, not fast enough for Merrill Lynch. I had a client appointment to bring in a Million dollar 401K on Thursday. Unfortunately they let me go on Monday. I had several people who wanted to get through the holiday season and deal with their finances in January.
I've brought in more assets this year than the Vice President who sits next to me. He told me that he inherited all of his accounts and he also churns them.
[/quote]So...what was your screen name before you signed up as EXMerrillFA?
POA’s!!
Does anyone know how the non-compete clause works? What is says? And what they can go after if you have roughly $13M AUM and go to an independant.. I lost what I signed and am interested[quote=Phan2om]Bella,
What month are you in?[/quote]In case you care, I'm in December.