Wirehouse firms know all too well that their efforts to retain top representatives by offering deferred compensation plans and forgivable loans are not enough. Financial advisors know they have to repay these loans if they decide to leave early. In effect, firms have to find new and creative ways to keep their advisors from being plucked by aggressive finance recruiters to the independent world.
Barbara Herman, senior consultant for Diamond Consultants, states,
“Now more than ever, retention depends on providing real value to the advisor at every production level and at any tenure in the industry.”
How do you add value to the advisor? Rich Franchella, Sr., manager for RBC Wealth Management, has had success retaining the financial advisors in his territory. He has a few options. A primary concern for advisors is their BOM is not available when they need them. Make sure to provide financial advisors with a way to reach you whether you are in the office or not. Also, make sure to value your to advisors by helping invest in them and help them plan for their own financial future.
These ideas are effective to make advisors feel they are appreciated which makes them feel valued. This may be just the way to retain the advisors you already have.