The CFP Board Center for Financial Planning has issued a new publication aimed at helping financial planners to become better employers and attract and retain the next generation of advisors.
The guide, called "Financial Planning Career Paths: Building More Sustainable and Successful Businesses," was developed with support from BNY Mellon's Pershing, according to a press release.
The guide is designed to help advisory firms structure, and effectively communicate career path opportunities. It focuses on financial planner recruitment, onboarding, training, career development and retention, according to the center.
“Top firms in the profession are utilizing career paths to secure a lasting competitive advantage and build sustainable organizations," said CFP Board Center for Financial Planning Executive Director Marilyn Mohrman-Gillis in the release. "They are important frameworks for developing the skills of professionals with various levels of experience so that they can progress in their careers, serve their clients well, and contribute to their firms at the highest level."
The guide identifies a five-step career progression ladder that advisors can use as a model for employees in their businesses:
Analyst - This entry-level position allows professionals to learn about the financial planning process and begin their careers at the firm;
Associate Advisor - This is a technical position that focuses on drafting financial plans and developing analysis that can be presented by the lead professionals at the firm;
Service Advisor - This position requires a CFP certification and focuses on communicating with clients and responding to their needs. This step of the career path is critical for the successful development of professionals, as it sets the foundation for the future development of relationship management and business development skills;
Lead Advisor/Managing Director - The cornerstone position of the profession, strategically manage client relationships, develop and implement a service methodology and guide clients through important financial planning decisions;
Principal/Partner - In many firms, the highest contributing Lead Advisors/Managing Directors also take on leadership roles. They should be professional experts, serve a large group of premier clients and contribute to the growth of the firm.