5 recruiting strategies to attract top talent to your firm in 2024

February 15, 2024 8:00 AM

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In a tough job market, recruiting for the best talent is more competitive than ever. Firms are restrategizing their efforts to woo top financial advisors, while also struggling to replace a large number of those planning to retire. The extra pressure to hire has led to smart strategies that include connecting with colleges, focusing on diversity programs and implementing pro bono work.

Read more about these recruiting plans in our roundup.

Back to school: the value in creating college connections

In the next few years, 37% of financial advisors are expected to retire, according to research from Commonwealth Financial Network and Cerulli Associates. To queue up the next class of talent to support these open roles, Commonwealth is doubling down on its efforts to recruit via college programs.

A recent expansion of the "talent exchange initiative," a program Commonwealth first piloted with Bentley University, has expanded to eight additional planning schools to support campus recruiting visits, a job seeker directory and invitations to the company's conference.

"It opens up that aperture, if you will, to say, 'When I'm in school, I don't necessarily see these opportunities, and now I get the chance to do it,'" David Israel, VP of field outreach at Commonwealth, told Financial Planning's Tobias Salinger. "The numbers are daunting in terms of replacing this generation of advisors."

Read more:

Commonwealth expands college ties to stem succession challenge

Pro bono work can give firms a recruiting edge

Don't think of pro bono work as volunteering. Think of it as a recruiting tool. Forty-six percent of respondents to a survey from the nonprofit Foundation for Financial Planning (FFP) said they would be more likely to work at a firm that offers pro bono financial advising.

"There's just a special satisfaction that advisors get when they're helping somebody who has very little margin for error," Jon Dauphine, CEO of FFP, told retirement reporter Nathan Place. "So they're really helping somebody who sometimes is on the knife's edge economically, and they can literally transform lives."

And yet, just 28% of planners said their current employer "has an encouraging policy" regarding pro bono work. That's a missed opportunity, as almost all respondents — 99% — who did pro bono work said they were motivated by the "satisfaction I get from helping people in need."

Read more:

In the scramble for talent, pro bono work could give firms an edge

Wine bottle of wine, flowers on a cruise ship.

From boat cruises to wine bottles, compensation tools to win over advisor talent

How to attract and retain younger workers? Money is still the most important factor — but it's not the only one. Company culture, professional development opportunities and even simple handwritten cards can make a big difference to prospective hires.

Josh Harris, managing director of corporate development at Coldstream Wealth Management — an RIA based in Bellevue, Washington — is focused on communicating the value of team to potential hires, and often invites recruits on a boat cruise around a lake to get to know them in a relaxed environment. He hopes that doing so will show them his firm knows how to "have authentic fun."

"I think that makes a difference in this day and age because, again, anybody who wants a long career wants an experience," he said. "They want an incredible journey. If they resonate with the way we approach life, which is hopefully a lot of fun, hopefully a lot of good work, for the purpose of doing right by our clients, then usually it's a pretty good fit."

Read more:

How to woo advisor talent in a tough labor market

Prudential leans on college recruiting to increase the number of Black financial advisors

Prudential is working to rectify diversity issues within the financial services industry, where only 1.8% of certified financial planners are Black, by partnering with The American College of Financial Services to provide financial career opportunities to more individuals of color.

"This is to really help us grow our marketplace — we across the industry have a lot of work to do to have more diverse customers," said Salene Hitchcock-Gear, president of individual life insurance at Prudential. "Particularly for Black Americans, there is a stronger alignment and comfort level to talk with someone who's a financial professional who may have similar life experiences."

Prudential and The American College will work with HBCUs to advertise career opportunities, as well as provide educational resources to help educate college students on financial terms and concepts.

Read more:

Just 2% of financial advisors are Black. Prudential is using college recruiting to tackle the wealth gap

How wirehouses can up their appeal to leading talent

As wirehouses slowly but surely lose their luster among leading financial advisors, is there an opportunity for them to more consistently attract top-producing talent?

It's a complicated question with a complicated answer, explained Phil Waxelbaum, founder of Masada Consulting, during a recent Leaders episode hosted by reporter Dan Shaw.

"The advisors in our industry right now are more wealthy than any of their predecessors. They're financially stable. They've got great personal balance sheets," said Waxelbaum, a recruiter with more than 40 years of experience in the financial advisory industry. "And the real question becomes: How do you appeal to someone who is financially well off? There's a quality of life component that's more important now than ever before. And if you had to define what the wirehouses need to do, they need to exercise those levers that enhance quality of life. And very few of them are doing it."

Read and watch more:

How wirehouses still make waves amid moves to independence