Client relationships, the chance to help grow a business and achieving a balance between work and a personal life are among the main reasons advisors are drawn to the profession, according to a Schwab survey.
Of the 571 advisors that participated in the Schwab RIA Talent survey, two-thirds said that their current position was their second (43 percent) or third (21 percent) career.
“By understanding the career paths of advisors as well as the aspects of the profession that draw new talent to it, RIA firms can better prepare for and capture the many opportunities ahead,” said Neesha Hathi, Schwab Advisor Services senior vice president.
More than half of the respondents reported having looked at other investment-related firms, including wirehouses and brokerage firms, prior to choosing a position at an RIA firm.
This was particularly true of advisors under 40 years old. Thirty-five percent of advisors under 40 considered a wirehouse firm before working at their current RIA firm versus 26 percent of those aged 40 to 50 and just 11 percent of those over 60 years, says Schwab.
Advisors under 40 years old also report being attracted by the opportunity to contribute to firm growth (55 percent) and the opportunity for greater career advancement (47 percent).
About half of both men (55 percent) and women (48 percent) advisors held a position at another financial services firm prior to their current RIA role.
Men were more likely than women to have had roles in sales (38 percent versus 15 percent) and trading (35 percent versus 16 percent). Women more often held previous positions in operations (34 percent verusu 17 percent) or administration (23 percent versus 14 percent).
The majority of all advisors polled (58 percent) believe the profession offers more challenges and opportunities for growth and learning when compared to other types of financial services models, such as wirehouses or banks.
“For today’s independent advisors, identifying, attracting and cultivating diverse talent [that] understands and values relationships is a strategic business imperative,” added Hathi.