After spending over 20,000 hours talking with financial advisors about practice management, running a company, trustee services, client retention, and employee, I thought it worthwhile to write about one of those today – ideas on how to retain key employees on a financial advisor team and/or firm.
The demographic change happening within America is known by all (it’s aging pretty fast). Millennials and Gen Z knows this and it will continue to favor top talent to choose the best professional opportunities.
As a financial advisor, it is crucial to retain top talent within your firm. Employee retention is important for building a strong and stable foundation for growth, as well as maintaining high-quality customer service. Here are six ideas to help financial advisor firms retain employees:
- Offer competitive compensation and benefits packages: Financial advisors are in high demand, so it is essential to offer competitive compensation and benefits packages to attract and retain top talent. Consider offering competitive salaries, bonuses, and benefits such as health insurance, retirement plans, and paid time off.
- Foster a positive work culture: A positive work culture can go a long way in retaining employees. Foster a supportive and collaborative work environment where employees feel valued, respected, and appreciated. Encourage open communication, provide opportunities for growth and development, and create a sense of community within the workplace.
- Provide opportunities for professional development: Financial advisors are constantly learning and adapting to changes in the industry, so it is important to provide opportunities for professional development. Offer training programs, mentorship opportunities, and access to resources and tools that will help them grow and advance in their careers.
- Encourage work-life balance: Financial advisors often work long hours and deal with high levels of stress, so it is important to encourage work-life balance. Provide flexible work arrangements, such as telecommuting or flexible schedules, and encourage employees to take time off when needed. This will help prevent burnout and increase job satisfaction.
- Recognize and reward performance: Regularly recognizing and rewarding employee performance can boost morale and increase job satisfaction. Offer bonuses, promotions, and other incentives for high-performing employees, and celebrate their successes publicly.
- Offer a clear path for advancement: Employees want to feel that their careers are moving forward, so it is important to offer a clear path for advancement within the company. Encourage employees to set career goals and provide them with the resources and support they need to achieve those goals. Offer promotions and other opportunities for career advancement, and provide feedback and guidance along the way.
In conclusion, retaining employees is crucial for the success of financial advisor firms. By offering competitive compensation and benefits, fostering a positive work culture, providing opportunities for professional development, encouraging work-life balance, recognizing and rewarding performance, and offering a clear path for advancement, financial advisor firms can attract and retain top talent. It’s critical to accept that none of these ideas are guarantees. They merely tip the outcome in a more favorable outcome for the financial advisor team/firm.
Christopher Holtby is co-founder and Trust Educator at Wealth Advisors Trust Company, an independent trust company headquartered in South Dakota that is included in The Wealth Advisor's list of 2023 America's Most Advisor-Friendly Trust Companies. To learn more about Wealth Advisors Trust Company's capabilities, please CLICK HERE.
