Talent shortages, succession woes, and anxiety face the financial industry daily.
A study by Pershing, ReGENeration: How Gen Y Could Revitalize the Industry – and Bring New Life to Your Firm, tells us more than 237,000 new advisors across all business models are needed in the next decade to meet market demands.
The talent shortage for young financial planners is forcing panicked advisors into bidding wars to position seasoned professionals at the throne upon retirement. Cerulli Associates reported in their research that the average advisor is 52 years old, and just 5% of advisors are younger than 30. Each year, the industry will see 10,000 to 15,000 advisors retire. Fidelity’s 2013 RIA study found that 67% of firms polled do not have a succession plan in place.
Advisory firms must create plans and processes in order to attract the millennial workforce and the talent they bring with them.
Training: Many college grads have completed a minimum of one internship prior to graduation and are well prepared to enter the workforce. Even so, they are eager to learn more through mentorship and career shadowing. Explain how and who will train them at your firm.
Technology: Generation Y grew up with technology in their hands. Typically sleeping with their smart phones and IPads, they are keenly aware of the latest and greatest applications and improved mechanics. Millennials want current technology at their disposal to help them work more efficiently and increase productivity levels within the firm.
Success: Provide details outlining how your firm will position them to reach their goals. Design and communicate a career track with specific guidelines and be certain to stick to the plan. Allow new advisors to set individual goals that align with the goals of your practice. Millennials want to know they can advance within the firm.
Performance Management: Gen Y welcomes constructive feedback to track, measure, and see that their contributions are valued and contribute to the overall success of the business.
Work/Life Balance: Millennials will work hard but want flexibility. Firms trying to attract new advisors should consider alternative work arrangements for community or family events and offer telecommuting options that allow advisors to finish up a project at home.
The list above will provide your firm with a competitive advantage in hiring and retaining the younger generation. Another consideration is to offer internships to current college students. Doing so will allow new advisors and your firm the opportunity to see if the culture, business, and the aura are a good fit for all parties involved prior to a formal commitment.
Pershing concludes their study by saying, “With more than 7.2 million students obtaining a degree each year in the U.S., those students could represent a fresh annual influx of over 500,000 interested new prospects. The responsibility falls on firms to transform that potential into measurable action.”
The foundation of our Performance Coaching and Consulting Programs are based on Ironstone’s Fundamental 4™, which is essential to design, develop, and sustain a successful business. Our ultimate goal is to help you avoid trial and error; shifting your mindset to launch your process of intentional change. [LEARN MORE]
Photo courtesy ©iStock/Getty Images/Thinkstock