At FP Transitions we’ve had a certain mantra when it comes to talent: attract, retain, reward. However, before an advisor becomes an industry leader, they cut their teeth as interns and junior planners. It took time for them to develop their experience, and–more importantly–it took growth and development opportunities and strong relationships to build their expertise. And so, another important word finds its way into the mantra: develop.
The future of the industry relies on nurturing the next generation of wealth management and financial planning professionals. For owners serious about harnessing all the benefits that come with developing new talent, any formidable strategy should include investing in and developing the next top advisory professionals. A firm’s enterprise strength is rooted in its people, and having a strong talent pipeline keeps it supported and thriving.
So, what are these new advisors looking for? For the second year, we partnered with the FINSERV Foundation to survey 100 students and next-gen professionals to discover just that.
Next-Gen Priorities
Among the 85 data points collected in this year’s survey, some top priorities stood out: career development, stable compensation, culture, and client connection.
New advisors value growth and development, especially through mentorship opportunities (93%) and clear career paths (81%). These two factors were rated as “very important” or “essential” when respondents evaluate potential firms for employment.
When evaluating compensation, the next generation highly values the security and stability of a proper base salary (85%), and health (36%) and retirement (54%) benefits. While equity pathways will certainly become important down the road, only 14% of respondents identify this as a current compensation priority.
Finally, new professionals are attracted to careers in financial services because of their impact on clients and communities. 96% of these next-generation advisors identified helping people reach their life goals as the top driver for pursuing this profession. And, finding a firm that aligns with their purpose and has a culture driven by that mission is very important, or essential, to 84% of respondents.
These are the things that next-gen advisors evaluate as they look for firms to join. They’re looking for a place where they can do the work, gain experience, and make a difference.
The AI Factor
New professionals are acutely aware of AI integrating into all aspects of professional life and are particularly concerned about how it will impact their employment opportunities and career development.
One of the top points regarding AI’s long-term effects on the industry is an over-reliance on automation. 64% of respondents expressed a concern that this will deteriorate human interaction and client relationships over time. For a group of professionals who put considerable value on connection and impact when pursuing this career, the prospect of losing that aspect of the work can be alarming. Those looking for entry-level roles were particularly concerned. Overall, 43% of respondents said AI-related job displacement was top of mind.
A notable highlight of the survey was that AI tools are being used to supplement and support client relationships, primarily through notetaking, initial data evaluation, and digital communication. Advisory owners maintain that automation does not take the place of human interaction and personal connection when serving clients.
Above all, firm owners should be able to communicate how AI tools are supporting a more efficient business.
Attract. Develop. Retain.
Incorporating next-generation talent into a well-planned growth strategy can be powerful. Here's what you can do to attract this new batch of advisors:
Invest in the future of your business through the development of new professionals and creation of a talent pipeline that supports your firm's strategy and vision.
