Wealth management has a talent problem. Over a third of financial advisors are projected to retire in the coming decade, but nearly three out of every four new advisors fail to enter the profession successfully.
This research from Cerulli Associates found that more than 40% of the industry’s client assets will be ready for the taking in coming years, but most likely without enough advisors to manage them. This presents a big problem for wealth management firms looking to improve their longevity and success over time (not to mention, continue growing their client base).
As firms look ahead to their future, they need to consider their advisors’ futures more intentionally. One area they can do this is by improving company culture, which can be a strong draw to the industry and set new advisors up for success. This blog breaks down why culture matters for talent acquisition and retention, and gives tips on how to start improving company culture now.
Attract Top Talent With a Strong Culture
Especially in a tough job market, company culture is something wealth management firms should have their focus on. As noted above, the majority of new financial advisors don’t succeed in breaking into the profession. The ones that do will be hard to win over to your company without a solid culture backing your firm.
Culture has a real impact on your firm’s reputation and sustainability over time. Not only does a strong culture impact the type of talent you attract to your firm, but one survey found it can also be a strong draw for potential clients. The survey found that 97% of investors said a positive corporate culture was a key part of their selection criteria for asset managers. Why? Because it indicated the strength of the services provided.
A strong culture can differentiate your firm from your competition in more ways than one, and it also makes it more likely that the right kind of talent (who aligns with your mission and values) makes it to your firm. Once you’ve drawn in the right type of employee, it’s crucial to retain them.
Improve Employee Engagement and Satisfaction
When no strong culture exists at a wealth management firm, it can be easy for an advisor to feel disengaged, restless, and dissatisfied. For example, advisors may feel like they have little leadership support to work on important projects, or that they don’t have the right technology and tools to execute their day-to-day workflow with clients and back-office co-workers effectively.
On the flip side, a strong, supportive culture that fosters collaboration, inclusion, and growth opportunities helps advisors stay engaged, satisfied, and motivated. With advisors already having so little time to spend with their clients, one way to improve employee engagement is by updating your technology and workflows.
Docupace reduces paperwork, creates streamlined workflows, enables compliance at every step, and makes integrations across other platforms easy. By removing pain points that can be automated or eliminated with platforms like Docupace, you can boost employee satisfaction and make it less likely that you’ll lose top talent over time.
Reduce Turnover and Boost Retention
When it comes to reducing employee turnover, nothing compares to having a strong work culture. One study found that nearly two-thirds of employees said a good company culture is a top reason why they chose not to leave. A strong company culture is almost always rooted in company values and purpose.
For wealth management companies who want to improve your culture, start by working on these three areas:
- Prioritize open communication and transparency. Regular check-ins from leadership, listening to feedback, and open-door policies can go a long way to improving overall trust and engagement.
- Encourage employee well-being and work-life harmony. By seeing employees as humans, not just workers, you can live your company’s values.
- Emphasize recognition and growth opportunities. Especially for employees trying to break into the industry, offering a clear path for career advancement can nurture loyalty and long-term commitment.
In the end, your firm is only as strong as your culture. By prioritizing your company’s values and creating programs that live them, you can ensure better talent acquisition and retention, and even attract more clients.
Docupace’s platform can support your RIAs and help them be more productive, which can improve engagement and satisfaction. Learn more about us here.
