Hiring and Retention Trends

PizzichilloFrank Pizzichillo, AIF®, RIA Regional Director

The long-term viability of an independent RIA rests, in large part, on its ability to attract and retain top talent. The fact that 12,000 to 16,000 financial advisors will retire for the next ten years has fueled intense competition to attract the next generation of stewards of our nation’s wealth.

As a result, many RIAs have had to rethink their employment practices in recognition of the shared characteristics of the four generations now in the workforce.

Compensation is a critical lever an RIA must get right when it comes to building long-term sustainability into their firm. To get compensation right, an RIA must consider the generational and motivational factors that drive your employees’ approach to work.

WHAT WILL MOST LIKELY CONTRIBUTE TO YOUR FIRM’S SUCCESS IN THE NEXT 1-2 YEARS?

Elite_Advisor_Survey

Source: BlackRock, The 2015 Elite RIA Study

Generations and Motivations

Many factors shape the way people approach work, including when they were born. Some RIAs have employees spanning four generations:  The Silent Generation (born between 1925 and 1946), Baby Boomers (1946-1964), Generation X (1965-1980) and Millennials (born after 1980). Each generation has distinct attributes, shaped by their life experiences and the values they have embraced along the way.

Take Baby Boomers as an example. Generally speaking, Boomers have been defined by their work. They take pride in knowing they’ve done a job well done, and for the most part, believe rewards will follow. Employment perks and titles have meaning to those in the Boomer generation. The concept of a work/life balance as critical to overall well-being didn’t come into acceptance until long after they had established their professional identities.

Generation X employees have a different approach to work. They tend to be less formal, and question authority. They were born during a time of declining population growth and lived through downsizing environments. They are global-thinkers, self-reliant and resilient. These characteristics make them adaptive to job instability. They value time spent away from work, and would be willing to sacrifice pay to strike the right work/life balance. Money and perks don’t hold the same allure for Gen X as they do for Silent Generation or Baby Boomers.

Total Rewards System

When building for sustainability, an RIA should aim for a total rewards system with cross-generation and motivation appeal. A total rewards system integrates pay, benefits and overall experience . . . the key elements that employees value the most. Done right, a total rewards system provides the benefits employees value greatest, while also reinforcing the RIAs culture and enhancing the overall work experience. Non-compensation programs which become key components of a total reward system include work-life initiatives, such as wellness programs, flex time, and work-from-home initiatives. They also include training and development programs, and peer and corporate recognition opportunities.

A multi-generational team working towards a common goal can provide an RIA with a significant competitive advantage.  The key is to embrace the perspectives and approaches each generation has to offer and create a flexible work environment and total rewards system that values and motivates everyone, regardless of age.

The views expressed are those of Brinker Capital and are not intended as investment advice or recommendation. For informational purposes only. Holdings are subject to change. Brinker Capital, a Registered Investment Advisor.

Even in our Frenzied Industry, Shakespeare’s Voice Shines Through

Noreen D. BeamanNoreen D. Beaman, Chief Executive Officer, Brinker Capital

If you’re like me, then you have spent the last few weeks forcing helping your high schooler with his or her summer reading. In doing so, I came across a Shakespeare quote I haven’t seen in a few years, yet seemed apropos to the current climate of our industry—“Cry ‘Havoc!’ and let slip the dogs of war.” (Bonus points if you can name the play this quote is from).

The phrase itself characterizes victorious soldiers seeking spoils from a fallen foe. While poignant, advisors in the throes of the Curian aftermath are feeling like they are on the wrong side of the leash!

At Brinker Capital, I felt the foremost action our team needed to take was to be available to support financial advisors and their clients. Not to hit them over the head with how great we are, but to talk with them and understand how Curian’s offering benefited them and the goals of their clients.  We knew Curian had an impactful offering and sales culture, but we wanted to dig deeper. Our recent hire of Greg Verfaillie confirmed what we already believe at Brinker Capital.  As he expressed in his interview in RIABiz, “In the conversations I’ve been having with advisors, it’s clear this decision is not going to be made on product or platform; it’s about the relationship.”

Greg has given us insight into what attracted advisors to his former firm, the type of support that they found meaningful and what partnership means to them.  This has guided us in effectively providing the right portfolio alternative, strategically communicating so advisors can convey the right message to their clients, and most importantly, being respectful of the process they are engaging in when seeking a successor firm for their clients’ assets.

With our 28-year history and our dedication to understanding the needs of advisors, we are ready to help provide solid support and smooth transitions throughout this frenzied process. After all, as our aforementioned poet once said, “Experience is the teacher of all things.”

The views expressed are those of Brinker Capital and are for informational purposes only. Brinker Capital, Inc., a Registered Investment Advisor.

Brinker Capital Launches Brinker Investment Services

We are happy to announce the official launch of Brinker Investment Services—a division of Brinker that will be dedicated to serving the audience of independent Registered Investment Advisors. Heading up the BIS team is Bill Simon, Managing Director.

Concurrent with the launch of BIS, we are also happy to announce our partnership with Schwab and the availability of our offerings on their Advisor Services platform. To support this new distribution channel, we’ve brought Frank Pizzichillo on board as RIA Regional Director.

Please click here to read the official press release.