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How to recruit quality advisers in a tough market
by Alex Steger on Jul 15, 2010 at 10:18
After transitioning a business to fee-based charging and positioning it for the retail distribution review (RDR), one of the biggest tasks is growing the firm, and recruiting the right type of adviser can often be difficult.
Quality is the top priority when picking staff but economic constraints and regulatory changes have put further pressure on the recruitment process.
Adviser opinion on the best way to recruit is divided, with some firms willing and able to invest time and resources in graduate schemes while others look for more immediate returns by bringing in staff through acquisition, poaching and headhunting.
Acquisition
Andrew Sutton, managing director of Hertfordshire-based Conforto, has overseen the acquisition of four firms in as many years, boosting adviser numbers to 11. He said quality of staff was crucial to any deal.
‘We won’t acquire a firm unless we are confident in the advisers in the firm we are buying. So a key part of our due diligence process is looking at what the new people are like. If you call that a recruitment process that’s part of it,’ said Sutton
Peter McGahan, managing director of Worldwide Financial Planning in Truro, takes the opposite view on acquisition, although two of his advisers were recruited this way. ‘It’s probably the least effective way. People don’t like to be bought or sold,’ he said.
‘In 2003 we started buying a few firms. No-one really wants to be bought and no-one wants to be sold. When they come, they come with a lot of baggage. We have a big management programme to turn those people round.’
Referrals
McGahan (pictured) said he found referrals the most effective recruitment process and 15 of the firm’s 23 advisers had been recruited this way.
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2 comments so far. Why not have your say?
Julian Stevens
Jul 15, 2010 at 11:41
As a very small firm, we aren't in a position to undertake graduate recruitment and training programmes. As far as recruiting experienced advisers is concerned, the one broker consultant who visits us regularly has been telling me for years that all the good IFA's that he knows are sitting tight where they are or they're running their own business like me. The only ones looking to move are those we wouldn't want (and I've had a fair few of those over the years).
Of course, there are exceptions, perhaps victims of the Park Row debacle, though competition for anyone any good is likely to be intense and, as a small firm, we don't actually have much to offer in the way of leads or a generous remuneration package.
Generally speaking, we're not interested in anyone presented to us via an agency, because virtually none of them has anything to bring to my business apart from an open hand and a big bill from the agency. And anyway, if they were any good, they'd be marketing themselves, not delegating the task to an expensive agency.
Growing a small IFA practice is harder then ever in this day and age ~ thanks to the Canary Wharf bully boys and extortionists it's all many of us can do to hold together what we already have.
report thisTony Davis
Jul 15, 2010 at 12:42
I have been recruiting financial advisers since 1990 and the process is akin to herding cats. The financial planning recruiting market is like no other. As a previous IFA and manager at Towry Law, Inter-Alliance, (Old Mutual and MI Group) I regularly had dealings with headhunters and was mainly disappointed with the candidate flow. I always found that self recruitment was the best policy and on this basis sucessfully grew my IFA teams as the Sales Manager. However this is a rare skill and there are very few ex-IFA Sales Managers still recruiting, I seem to be one of the few, along with my friend Tim.
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