Don’t let your rookie advisors washout. They could be hall of famers someday.
Almost half the financial advisors in the market are over the age of 55, and within a decade of their own retirement. It’s a simple demographic fact that seemingly bodes well for young talent seeking to enter the wealth management business. Less advisors above them means more room for career growth, right?
Not necessarily.
A lot of promising young wealth managers get washed out of the industry early in their careers and it’s not always due to a poor hiring match. In a large number of cases its due to an overwhelming pressure to bring in new assets. A pressure that can be avoided if managed correctly from the onset.
Many firms squeeze young talent to develop contact lists, forcing them to make cold calls (smile-and-dial) and set appointments to generate business during the early months and years of their careers. This can often encompass high rates of rejection and lead to job dissatisfaction and burnout among young advisors.
Matt Pearson, president of Nepsis, says his firm attracts and retains young talent by focusing on their education and developing strong processes, rather than prioritizing the acquisition of new assets.
“We believe that by concentrating on how the business works and by working alongside experienced advisors, new entrants to the industry can set themselves up for future success,” said Pearson.
Added Pearson: “Emphasizing the process and the fundamentals of investing, rather than new business. This approach helps to form the bedrock for a successful career and allows young advisors to mature and grow into well-rounded and seasoned professionals.”
Dimple Shah, head of corporate strategy at Osaic, says she expects about 10 trillion of assets managed by advisors to switch hands over the next couple of
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