Recruiting firms looking to attract and hold onto their millennial financial advisors might have an easier time if they pay close attention to the desires of these younger advisors, according to a new report.
For one, being established and known will work in your favor. That is because the younger generation of advisors are about making a name for themselves and that starts with treputation of the companies they work for, according to research by Eatontown, N.J.-based Discovery Data.
The 2021 Financial Outlook Report polled 390 registered investment advisors and or broker dealers on topics from their desire to return to a place of business to what would motivate them to change firms to their comfort level with digital technology.
Brand recognition, the research showed, emerged as one of the focuses for advisors in 2020. More than 81% of respondents with under 10 years of experience noted that brand association was a driving factor for whether they would stay with their current firm or move.
While more than 43% of advisors said working efficiently from home is a crucial element they would consider when selecting new employment, it weighs heavily for younger advisors, with 81% indicating that the ability to telecommute is important.
The opportunity for an increase in earnings also drives early-career advisors (67%) as well as mid-career advisors (70%) when considering a switch to a new firm, the research showed. In comparison, only 40% of highly experienced individuals placed high importance on greater earnings when considering a firm transition.
And although the ability to maintain a book of business when moving from one firm to another remains a top consideration for most advisors (70%), entry-level advisors were least concerned (64.5%). It was a higher priority for mid-career advisors (75.5%) and senior advisors (67.7%).
For most advisors (60%), gaining a larger payout on that business is also important, especially among those younger advisors, the research noted.
Another key finding in the Discovery Data research is that more than 50% of respondents work from the office by choice. But it pointed out that such action appears to be influenced by factors like office size, the number of local Covid-19 cases, and experience level in the industry. “A smaller population in the office regularly can make it significantly easier and less costly for firms to implement the necessary safety precautions,” the report noted.
To be sure, many advisors are still uncertain about making a permanent return to the office. More than one-third (35%) of respondents did not have a timeline for return over the next year or more. Further, 50% of senior advisors (more than 35 years of experience) were also unsure of when they would make a long-term shift back to the office.