As the financial industry grapples with a talent shortage, there is a seeming consensus around the need to double down on recruitment and retention. While 2,706 advisors entered the field last year, the increase falls short of replenishing the pipeline heavily drained by retirees and an alarming 72% rookie failure rate.
To address the churn, it’s essential to identify some of the potential underlying causes. Key factors include ensuring advisors are well-prepared and properly suited to their roles. Another is the potential for financial professionals to create a meaningful connection between their careers and personal values.
Diversifying Education To Boost Career Potential
There are multiple opportunities for certifying new cohorts of advisor hopefuls, including online programs. Many universities also offer CFP-sponsored courses and award financial planning undergraduate and master’s degrees. This setting allows students to gain exposure to adjacent career tracks such as fintech, banking, accounting and others. Gaining insight into these related fields can help students make informed decisions and pursue the career path that best aligns with their goals for a successful future.
To further enhance the educational experience, many universities are now going beyond the core training required for certification, offering niche concentrations in behavioral finance, client psychology, financial psychology and more. Some courses prepare advisors to specialize in prenuptial planning, divorce guidance, working with celebrities and advising professional athletes. These specialties are increasingly attractive due to the emerging emphasis on the importance of forming strong human relationships to earn trust.
In addition to preparing advisors to connect more deeply with their clients, specialization can nurture their desire to fulfill a higher purpose. This can support job satisfaction and potentially increase career longevity.
Tailoring Training For Multigenerational Clients
Big data, aimed at market segmentation and meeting clients where they are on their unique journeys, stands to further drive demand for tailored financial planning solutions. This is particularly relevant for advisors seeking to connect with multigenerational investors, from baby boomers to early retirees and beneficiaries of the great wealth transfer.
Transitional life scenarios—when money is in motion—present a prime opportunity to establish new client relationships. This could also help boost the industry’s stagnating organic growth rate–a potential driver of career burnout.
The right education and training are key to preparing advisors to capitalize on opportunities that will drive their current and future success.
Supporting Advisors Through RIA Partnership
Balancing educational demands while juggling other priorities can be daunting. Fortunately, aligning with the right RIA platform can provide access to relevant and meaningful training to help lighten the load. RIA partner offerings range from built-in future-oriented tech solutions to one-on-one coaching and online learning. Many also extend opportunities for networking and mentorship.
Boosting Career Fulfillment To Support Retention
While there’s no magic bullet to solve the advisor shortage, adopting a refreshed educational approach offers promise by fostering career suitability and readiness for current and future industry professionals.
Supplementing traditional certifications with specialized training to meet evolving demands and enhance career satisfaction aligns with a growth mindset—critical to tackling the challenges financial professionals face today.
Jordan A. Hutchison, Ph.D., is the vice president of technology and operations at RFG Advisory, an innovator in the wealth management industry committed to empowering growth-minded independent advisors to build their businesses without compromise.