There were once complaints in the financial advice sector about a lack of new, young talent coming into the industry. Now, however, it seems that there isn’t room for new talent, even if it’s out there.
Several large companies have curbed their plans to hire lots of new talent in recent weeks, with Charles Schwab being the latest. It has decided to relinquish its objective to hire 3,000 financial advisors every year for a net of more than 400 advisors annually. Instead, its new goal is just 80-100 advisors per year – possibly even less.
Part of the reason for Schwab’s decision reversal is that it had been expecting an interest rate hike. With that likelihood decreasing, Terri Kallsen, the company’s chief of retail services, said its recruitment goal had to change too.
However, not everyone agrees with this approach.
spoke to Greg Pollock, President and CEO of Advocis, The Financial Advisors Association of Canada. He believes it’s important to think about the long term.
“Larger companies may have decided to lower their 2016 advisor recruitment goals for a number of reasons, be it market volatility, interest rates, or revised business objectives,” he said. “While this may be the case, there is still opportunity for advisors to bring new talent into their firms.
“Demographics are shifting quickly in Canada, and I believe it’s important for distribution networks to stay ahead of the curve with respect to recruitment and retention. There simply are not enough younger advisors entering and staying in the industry. We need to create and maintain an environment that not only attracts new advisors but cultivates top talent.”
Randy Cass, founder and CEO of Nest Wealth also believes that a firm focus on recruitment is vital for his business.
Great people are the foundation of any successful company,” he said. “At Nest Wealth, since we’re supported by a rapidly growing business and an industry that's evolving quickly, it means that we’re looking to grow during these difficult market conditions. It’s a great chance for our company to hire extremely talented people who just happened to find themselves working at businesses that faced tough times.”
What is your approach to recruitment during this period? Leave a comment below with your thoughts.