by Frank LaRosa, President/CEO – Elite Consulting Partners
How Firms Are Differentiating Themselves In An Increasingly Competitive Recruiting Market
In a financial services climate currently defined by market fluctuations, financial services firms are turning to increased recruiting efforts, to stabilize their workforce while attracting the best talent and highest asset levels, in order to remain competitive.
Relevance as a firm in a hot recruiting market goes beyond the dollars of the deals you are offering when it comes to attracting top advisory talent. For firms to stand out from the pack with their recruiting offering, greater focus needs to be spent on capital for resource development and long-term growth strategies, all while keeping an eye on the impacts of the emerging consolidation trend.
While there are a number of factors that play into a firm’s ability to compete in this market, it is foreseeable that these three conditions will prove the most impactful when firms go to the table to win in the recruiting game.
Power in Numbers
It’s no secret that there is power in numbers, especially when it comes to a firm’s AUM and capital. Firms must have a large industry presence to support their advisors. For example, if part of a firm’s value proposition to advisory talent is the ability to provide expansion and growth opportunities for practices, then it must have the demonstrated capital to invest in new marketing, technology, and business solutions.
Firms must also have a place of presence in the industry overall, to show both strength and stability when attracting advisors during turbulent market times. It all comes down to perception. With large numbers of staff and advisors, firms are able to establish their spot as leaders in the industry. This contributes to the perceived strength of the company, which helps attract talent. A firm’s image is just as important as its capital when it comes to attracting and retaining qualified advisors.
Forward Focused Thinking
Firms can’t just rely on being successful today. They need to prove to their advisors that they have a long-term vision for success – and the action plan to achieve it – if they want to recruit and retain talent.
Firms can accomplish this by demonstrating that they have substantial strategies in place to scale their business far into the future by continually adding value to advisors’ practices, regardless of where the market goes. If a firm’s growth strategies don’t account for market fluctuation, it’s going to be difficult to recruit or even retain advisors, given the current climate. Advisors need to know that they are protected, regardless of what the current market conditions are, to make a move to a new firm partner with confidence.
Firms also need to provide flexible marketing support for advisors that takes into account not just branding today in terms of social media and digital tools, but also where the puck is going for the future, such as emerging AI, and VR marketing tools. Remaining committed to the cutting-edge technology and administrative solutions that make advisors more efficient should be part of every firm’s strategic planning.
Additionally, efficiently navigating the need for compliance, while providing support to the entrepreneurial nature of independent advisors, is a must for every firm seeking top notch talent. Being flexible and catering towards advisors’ needs is what will keep a firm strong far into the future.
Consolidation is key to staying competitive
As firms seek to increase their place of presence in the industry, trends towards consolidation won’t just continue, but increase. To remain competitive, convey a larger brand presence, and demonstrate the access to capital that establishes stability, firms will band together not just in the hopes of attracting advisory talent, but also in an effort to weather market conditions overall.
The importance of a solid recruiting strategy is paramount for financial services firms that want to stay ahead of the curve in the industry. By focusing not just on the needs of advisory talent now, but creating a framework for advisors to realize ongoing success, firms will not only be winners of the recruiting wars of today, but in the future as well.
