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
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.
