The number of brokers and financial advisors considering switching to another firm is expected to nearly double in 2008, up to 9% from 5% in 2007, according to a study released Monday.
With nearly twice as many brokers and advisors considering switching firms, combined with the fact that the top reason for actually switching is driven by a change in their employers direction, it is imperative that broker/dealers maintain a positive work environment and take into account how decisions affecting their firms futures will influence broker loyalty, said Sandra Metraux, executive vice president of National Financial, the institutional trade-clearing arm of Fidelity Investments.
Brokers and advisors cited higher pay, unhappiness with their firms direction and a desire for more independence and freedom as the top three reasons for wanting to leave.
More than 30% of those considering a move work at insurance companies and banks.
As broker/dealers compete for the strongest producers in a zero-sum environment, recruiting and retaining brokers is the No. 1 priority for the firms long-term success, Metraux said.