When it comes to talent management, financial advisory firms are facing a number of challenges.
To begin with, the advisory workforce skews older than many other professions, and many of the most successful professionals are nearing retirement age and considering an exit plan. Meanwhile, during the pandemic, those in the early or middle stages of their career got used to a new level of autonomy and flexibility that may not remain the norm.
Attracting new talent to the field is also difficult, and few collegiate programs are dedicated to financial planning and proactively bring new people into the field. Taken together, these factors are requiring financial advisory firms to rethink talent management in order to attract and retain talent—as is the pressing need to improve the diversity of the adviser industry workforce.
Future-Proofing
As PLANADVISER recently reported, J.D. Power’s “2022 U.S. Financial Advisor Satisfaction Study” shows that adviser attrition risk has increased this year across all categories, with 15% of advisers at wirehouse firms and 7% of independent advisers now categorized as “at risk” of leaving their firms in the next two years.