By Melissa J. Anderson (New York City)
Earlier this week Pershing announced the results of a new study into the financial advisory workforce. The results revealed that while younger generations really desire coaching and mentorship, and older generations want to provide that, there may be a bit of a communication barrier.
But, according to Pershing, it’s critical for financial advisory companies to work out this challenge. After all, in the next decade, 12,000 to 16,000 advisors will retire. Considering the rate of retirement and an anticipated increase in demand, the industry will have to add up to 237,000 people in the coming ten years.
Kim Dellarocca, director and global head of segment marketing and practice management at Pershing, explained, “Each day, the industry sees young advisors exit the industry and never return. Firms need to think about how to recruit and retain younger advisors by understanding their drivers and motivations – and convey to them that being an advisor is a rewarding and fulfilling career.”
Companies have to make sure that financial professionals who are retiring are able to convey all of the institutional knowledge and client servicing know-how to the next generation of advisors. This challenge is not unique to the financial advisory industry – as we are all aware, the difficulties in maintaining a productive relationship between different generations run throughout the ages.
Pershing’s report “The Inaugural Study of Advisory Success” provides some advice on how people approaching retirement can best communicate with their younger employees, so that they feel they are leaving their legacy in good hands.