Perspectives on Meeting the Millennial Recruitment Challenge

Sponsored by Fidelity Investments

The financial advisory business faces a classic good news/bad news situation ‐ one that presents both opportunities and challenges. On the good news side, the number of investors using a financial advisor is expected to increase 27 percent by 2022. [1] Counter‐balancing that outlook is a looming shortage of experienced financial advisory professionals. Market research firm Cerulli projects that approximately 25 percent of advisors plan to retire or leave the industry within the next 10 years [2] , and for every eight advisors who retire, only three are trained to replace them. [3]

The industry appears to have been slow in developing strategies to address this challenge. For example, recruitment efforts targeting Millennials (born between 1980 and 1992) are bumping up against significant roadblocks. Two challenges are a widespread lack of awareness of the financial advisor profession and a misunderstanding about how it might align with this group’s core values (work‐life balance, opportunity for growth, and an interest in helping other people). [4]

Finding ways to meet those challenges may be critical to the future success of financial advisory practices. Firms that have successfully recruited Millennials value their tech expertise, work ethic and ability to adapt to changing situations. [5] A panel representing several points of view—broker‐dealer, recruiter, educator, and Millennial advisor—gathered to discuss this topic at the annual Fidelity Investments Recruiter Summit held in Boston in October, 2014.

The Summit Participants include:

  • Kevin Beard, Advisor Group
    Executive Vice President, Recruiting & Acquisition Strategy
  • Grace Kiem, Fidelity Investments
    College Relations, Program Director
  • Luke Dean, Utah Valley University’s Woodbury School of Business Program
    Director, Financial Planning Program
  • Joe Domek, Associated Bank
    Senior Vice President/Director of Sales, Associated Investment Services
  • Justin Hayward, Commonwealth Financial Group
  • Tammy Robbins, Lincoln Financial Network
    Senior Business Development Director

  • Read the full article here

    Read more: Recruiting Redefined: Perspectives on the Looming Advisor Talent Shortage ;

    Take the Quiz: Perspectives on the Looming Advisor Talent Shortage ;

    2013 Fidelity® Millionaire Outlook Executive Summary: Gen X/Y Millionaires Not Sitting Idle

    [1] U.S. Bureau of Labor Statistics, Employment Projections program as of December, 2012.
    [2] Cerulli Quantitative Update, Advisor Metrics 2014, Capitalizing on Transitions and Consolidation, Cerulli Associates.
    [3] Cerulli Quantitative Update, Advisor Metrics 2013, Understanding and Addressing a More Sophisticated Population, Cerulli Associates.
    [4] Fidelity® Recruiting Redefined Study, September 2014 (full survey criteria on the last page)
    [5] Ibid.
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    The 2014 Fidelity® Recruiting Redefined study conducted by Fidelity Institutional is based on multiple research methodologies including four in-person focus groups with 44 participants in total and four online quantitative surveys with 600 participants in total. Research participants included hiring decision makers at financial advisory firms, students (college and MBA), young financial professionals, new advisors, college counselors, and career counselors interviewed from April through June of 2014. All the research was “blind”— Fidelity was not identified as the sponsor during any phase. The study was administered by Greenwich Associates, an independent firm not affiliated with Fidelity Investments.Third party marks are the property of their respective owners; all other marks are the property of FMR LLC.Fidelity Clearing and Custody provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 200 Seaport Boulevard, Boston, MA 02210.

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