How to keep junior advisors from washing out before they get started

investmentnews.com:

Why are some firms able to keep junior financial advisors in the fold while others repeatedly watch them wash out?

The failure rate among rookie advisors was more than 72%, according to a recent report from Cerulli. The study shows financial advisor head count grew by just 2,579 advisors in 2022, with the number of new advisors entering the business barely offsetting retirements and trainee failures.

Sure it’s a tough business, but there has to be a better way to grow and retain talent. Right?

Maybe Baird has the remedy, or at least a recommendation, considering that its financial advisor training program has had a 40% retention rate since inception of the program in 1991 and 90% retention of next-gen financial advisors over the past five years. 

The rotational program, located in Baird’s Milwaukee headquarters and select branch locations, lasts up to two years and is open to individuals with three-plus years of sales or related experience and a college degree.

“This program is by invitation only, meaning an experienced financial advisor needs to indicate or agree to bring on a new junior teammate,” said Anita Volk, next generation talent manager in Baird’s private wealth management business. “There are no surprises, these teams understand the benefit of having a multigenerational team, and the diversity of thought that it can bring to the way they service clients.”

During the due diligence process and throughout the five-month training, Baird makes sure the senior partner of the team the candidate will be joining outlines clear expectations around what success and top-tier performance will look like.

Some teams include some production goals, while others might focus more on the candidate servicing clients, giving