Attracting, retaining and developing next-gen advisors can add value to your advisory business.
InvestmentNews released a whitepaper titled ‘Why and How to Develop NextGen Talent: An Adviser’s Guide’ tells why advisors should recruit young professionals.
The whitepaper gives these six reasons.
1. They act as a bridge to younger clients: As the NextGen clients come with a different temperament, outlook, and expectations, it will be easier for younger advisors to interact and understand their needs. These advisors can bridge the gap for firms whose client base is primarily in the age group of 50 and above. They can connect with second generation of existing clients better.
2. Offer different perspectives: Building a team with advisors who have earlier worked in other jobs, can bring wide range of skills, experiences and perspectives to the firm. As younger generation shift their jobs more often than before, they adapt to different situations quickly and can easily interact with a variety of individuals.
3. Adding technical skills: As NextGen members have grown up with technology; they can easily understand and incorporate different kinds of software tools which are used by advisory firms. Today, as more advisors are using technology to make their work easier, especially with possible incorporation of robo advice in some form, having younger advisors who are comfortable with these technologies will be a significant advantage to your business.
4. Boosting synergies and leverage: The presence of new generation advisors who are trained to support you can help save time. You can use your productive time to acquire new clients and work on improving business strategies to grow business.
5. Reinforcing a need for structure and process: Introducing fresh faces can help organise workflow processes and systems. It results in transparency in the hierarchal structure and provides clearer promotion guidelines and a more realistic thought about succession.
6. Succession Planning: Proper training of next-gen advisors, can help in succession planning for senior advisors and put in place a framework for their clients.
In the second series of this article, we will give you tips on how to groom young advisors.
