Half of all financial advisors feel they are at least somewhat or completely in control of their businesses and their time, leaving the other half to feel varying degrees of being out of control, according to a new FPA study.
Fifty-three percent of the advisors surveyed say they are not in control of their time and 49 percent say they are not in control of their businesses, according to the 2014 Time Management and Productivity Study conducted by the FPA Research and Practice Institute. The remainders in both cases are either somewhat or completely in control.
This second study by the research institute, released Thursday, questioned 750 financial professionals from across the country representing firms of all sizes. It grew out of the first study, The Future of Practice Management, which revealed time management as a major problem for financial advisors.
The data gathered is aimed at enabling advisors of all backgrounds to assess how the greater advisory community is coping with various productivity issues, including process standardization, business planning and delegation, says the FPA. The study was done in collaboration with Julie Littlechild, CEO of New York-based Advisor Impact.
Only 13 percent of advisors feel completely in control of their time, while a mere 10 percent feel in complete control of their businesses. This is despite investing significant time in their work. The study shows 35 percent of advisors spend more than 50 hours a week at work and another 39 percent spend 40 to 49 hours.
“Obviously, if only 13 percent of advisors feel they have complete control over their time, there are going to be far-reaching ramifications on their businesses and their overall stress level,” says Valerie Porter, director of the FPA research institute. “As a practicing CFP professional myself, I know the impact positive time management has had on my business and my work with FPA and the institute.”
Advisors who feel at least somewhat in control of their businesses and time hold one more client meeting a week than those who do not feel in control, the study shows. While that may seem like a small number, the FPA says, 50 more client meetings a year means the advisor can work with more clients, which impacts revenues.
The greatest obstacle advisors face to increasing productivity, according to 36 percent of respondents, is trying to do too much. Another 31 percent feel it is increased administrative burdens and 30 percent blame their own procrastination.
Those advisors who have clearly defined business goals (68 percent of respondents) and personal goals (59 percent) were more likely to feel in control, the study shows. At the same time, 84 percent of the advisors who consider themselves in control rate their business plans as effective, compared with only 44 percent of those who feel out of control. Planning and having time to prioritize activities are the two things that have the most impact on productivity, the advisors say.
Advisors also need a strong support team, work process and technology to be in control of their business and time, the study shows. Fifty-one percent of advisors indicate that having clearly defined and standardized processes are the best ways to improve efficiency, followed by better delegation (47 percent) and better scheduling (38 percent).