How do you have time to even read this? Have you seen the jobs market lately? And don’t you have an inbox that is bursting at its electronic seams? Being a financial advisor in 2023 grows more challenging each passing month it seems. What’s more, other wealth management firms (some big, some niched down) are occasionally an appealing option when you are swamped with work on a busy Tuesday afternoon. 

Furthermore, strong stock market returns this year and continued robust employment numbers across the economy are good problems to have, but they can also mean that your days are filled with meetings, and you might not have the help you need to get everything done at a high quality. According to one industry survey, these conditions, along other factors, have led many advisors to become dissatisfied with their jobs.

Troubling Stats on Advisor Job Satisfaction

Research performed by J.D. Power found that just 30% of employees and 28% of registered investment advisors (RIAs) “probably will” be working at their current companies in the next one to two years. The 2023 U.S. Financial Advisor Satisfaction Study, released in July, suggests that turnover in the industry might be about to take a leg higher, further pressuring existing wealth managers’ duties. 

The survey of more than 4,000 financial advisors also underscored job dissatisfaction among those who have thoughts on seeking out greener advisory pastures. Moreover, even professionals generally content with where they work were much less likely to recommend or promote their company to others, at least compared to the minority of advisors who were highly confident that they would be at their current firm two years down the road.

Risks Rise as Advisor Commitment Is Called into Question

So, what kind of firm do you operate? Are you solo? Have you taken on an employee or two in the past few years? Perhaps a paraplanner to help you handle your book of business? If you have at least a small team of financial planners, then the trends mentioned above might make you tug at your collar. 

The study also emphasizes that even if an employee remains on your payroll, there is an unsettlingly high probability that they might not be truly committed to the job (and your clients). You might recall the so-called “quiet quitting” trend that was profiled across the mainstream media in 2021 and 2022 amid the work-from-home environment and robust employment market. If J.D. Power’s assessment is correct, that might be a risk for the advisory community today.

The Looming Challenge of Rising Advisor Retirements

Sure, there are macro factors at play, but combine a tight labor supply with increasing retail client demand, as portfolio values swell and real estate prices rebound — along with the ongoing reality that the advisor population is aging — and serious problems may be brewing. The same research concluded that the average age of an advisor was 56 as of earlier this year; one in five of whom said they plan to hang ‘em up within five years. Other industry research shows comparable results, with potentially more than one out of three professionals retiring over the coming decade.

‘Not Enough Hours in the Day’

Driving the emergence of dissatisfaction on the job is primarily a lack of time. We hear this frequently from firms with whom we partner, usually in the introductory stages of the relationship. Just as employed advisors at larger broker-dealers feel as if their days and weeks are jam-packed with new tasks and can’t-miss meetings, RIA shops struggle to keep up with high-priority time commitments and some new fire sometimes even needs extinguishing during our initial discussions. 

If you’re like almost half of those surveyed, your stamina has been drained from non-value-added tasks on the administrative side of the business. After all, having a full slate of client work that truly helps individuals and families you care for is not bad by any means, but compliance hiccups and unnecessary paperwork gets in the way of making a difference.

It All Leads to Less Happy Clients

The news gets even more dour. Earlier this year, J.D. Power reported that clients have become less sanguine regarding to what extent their advisor is really serving them. Investor satisfaction had dropped 17 percentage points from a year earlier. It’s reasonable to make the conjecture that advisors are less happy, leading to increased client frustration, and so goes a troubling cycle for industry practitioners.

What Needs to Change at Your Firm?

What can be done to improve this advisor engagement problem? How can your firm attract new and committed talent to your lineup? Have you considered taking a step toward differentiation and adding a staff of subject matter experts who can be your helping hand on both the investments front and with those pesky, hours-sucking administrative responsibilities? 

Part of Halo’s mission of “impact before profits” is to clear the grunt work clutter for today’s busy advisor. Our staff becomes an extension of your staff in that we take on so many of those back-end workflows that may not exactly be running so smoothly right now. In addition, teaming with Halo means acquiring an innovative, award-winning tech stack that helps smaller firms compete with the big guys.

Effective Help Means Being Able to Grow at Scale

Through a partnership like this, investment advisors can separate themselves from others in the field by proactively engaging with clients and focusing financial plans rooted in a client’s values and goals. Unfortunately, so many planners appear to lack precious time for actual hands-on service, let alone the capacity to grow a business.

As the profession grows more complex, crunched for time, and as today’s leaders ride into the proverbial sunset, help is needed to ensure employees feel empowered and have the drive to deliver the best client service.

The Bottom Line

Storm clouds are brewing on the horizon. We aren’t talking about some market crash or macro risk that could cause clients to make poor financial moves. Rather, the wealth management profession faces a possible crisis. There are too few advisors today — even before so many plan to retire over the coming years. With one eye on the exit among experienced planners, too many younger advisors are not happy with their work situation. Support is needed to stymie this trend. Partnering with a staff of professionals whose mission is to boost advisory shops’ tech stacks and relieve operational tasks is more valuable than ever.