It's often said that people don't leave bad jobs, they leave bad managers. Nearly 6 in 10 workers who quit said they left because of their boss's management style, according to a recent
The impact of bad bosses on talent retention is clear, and wealth management firms are increasingly paying attention to the problem of how to nurture skilled leaders. Among other benefits, providing such training could save a firm the agony of employee turnover in the long run.
To address those challenges, some firms are investing in leadership development. Recently, Alpharetta, Georgia-based Merit Financial Advisors announced it would enroll 28 employees in training programs through advisor coaching and consulting firm ClientWise.
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Training the next generation of leaders
Going from the role of peer to leader can prove difficult for even the savviest team player, according to Ray Sclafani, founder of ClientWise. Anyone who has been great in one position only to find themselves promoted and miserable can likely relate, he said. But this transition can be especially difficult if new leaders lack training for how to handle their roles.
At times, moving into leadership ranks can be a bumpy ride for those who "haven't done the work to think about what made them good," he said. "You can't [simply] throw people who are good at their job into a leadership role."
Many advisors receive technical training early in their careers but little formal preparation for leadership as they move up the ladder.
"A lot of times, once you get out of the beginning of your career, you've got your licenses [and] mentorship programs, and then all of a sudden you become a manager, and there might be some cursory manager training," said Alex Hansen, chief advisor success officer at Merit. "But then effectively any of your professional development is on your own time, of your own picking."
The 12-month program is designed to go beyond teaching participants how to manage, instead targeting deeper leadership development. Ultimately, the goal is to help firms build an infrastructure of leaders capable of growing together over time, Sclafani said.
"All the branches have to continue to grow if the tree will continue to grow," he said. This will eventually evolve into "total team leadership interdependence," allowing leaders to work together toward shared outcomes.
The value of investing in talent
The program trains advisors through exercises focused on areas such as conflict resolution, skilled conversations and long-term goal planning. Investing in programs like these, which train for both hard and soft skills, also signals to employees that the company is committed to their growth, which can provide a morale boost, Hansen said.
Employees are more likely to "buy in" when a firm clearly invests in them, he said.
"When there's that mutual investment — you're investing your time and your effort and your knowledge, and the firm is investing monetarily in making you better — [that] shows that they see a future for you," he said. "Whereas, if you're punching in and out with your lunch pail, you may not see that same vision of the future you at your organization."
Hansen added that advisors who are selected for leadership development may also feel more confident about their future at a firm.
"The firm's investing in the money to get you in the program — they clearly see you here in two years, three years, and knowing that is empowering," he said.
And for firms like Merit, that leadership training can be tied to strategies for long-term growth and succession planning.
"It's tremendous to see the commitment that [Merit is] making to the program, because they recognize if they're to get where they want to go, the CEO and president won't have the capacity to do what they were once doing," said Sclafani. "They need to continue to develop leadership."
