Financial advisory firms should consider paying more attention to the engagement of their workforce to enhance employee satisfaction and retain their talent, according to a Fidelity online survey that found 40 percent of advisors are not happy with their firms.
It's an important issue because half of financial advisors are expected to retire within the next 14 years and, on top of that, fewer graduates enter the financial services industry, according to research cited by Fidelity.
The 2018 Fidelity Talent and Diversity Study found that 60 percent of advisors are satisfied with their career, but one-third said their firm did not provide the value that they initially promised. The study included nearly 500 advisors and employees and was conducted in March and April.
The differences between advisors who are satisfied and those who are not too happy with their employers is evident in the areas of growth, teamwork, management support, expectations and basic needs, including advisor tools, according to the report.
Only 41 percent of the advisors polled said they understood what they needed to do to get promoted; 55 percent said they felt their opinion counted; 53 percent said they felt inspired; and 55 percent indicated that someone in the past six months at work had talked to them about their progress.
“In this increasingly competitive talent market, it’s important that advisors have a strong sense of community and purpose at their firms, as well as clearly defined growth paths and meaningful roles that allow them to deliver real value to their clients,” said Charlie Phelan, vice president of practice management and cconsulting for Fidelity Clearing & Custody Solutions, in a prepared statement. “The firms successfully retaining advisors are building engaged, connected teams, and also offering things like digital tools that help advisors work more efficiently.”
As for hiring and retention, the study noted that 60 percent of firms plan to hire advisors next year, but 59 percent of advisors feel it is a challenge for their firms to find talent and staff that fit their need. In addition, 55 percent believe their firm spends considerable time and resources on recruiting new talent and staff, and 37 percent believe their firm has been effective with their recruiting efforts.