3 ways you can attract next-gen advisers

As the average age of advisers creeps over 55, we’re seeing growing interest from firms that want to add next-generation (next-gen) advisers to their teams. This is a smart strategy for several reasons:
• Advisers can get set in their ways, and young advisers who ask questions and suggest new ideas can help clarify business strategies.
• Younger advisers tend to embrace technology and also use it differently.
• Firms are better positioned to retain next-gen heirs when clients pass.
• Next-gen advisers can help relieve continuity and succession planning worries for a firm.

So how do you attract next-gen advisers to your firm? Here are three strategies to help you get started.

1. Develop relationships with colleges that offer CFP certification programs. Colleges and universities now offer programs to help students obtain their certified financial planner certification, and there could be some schools close to you. Texas A&M University, Clemson University, Delaware State University, Virginia Tech and Bentley University offer CFP certification programs, and these schools have a vested interest in helping to place their graduates in professional careers.

If you haven’t reached out to colleges in your area, this is a great first step. And it’s important to be open to college graduates across the board — a degree in psychology and communication can be just as valuable as one in finance when working with clients.

Pros: These students haven’t cultivated bad habits yet, are interested in a career as a financial adviser and already have a coveted designation.

Cons: You will need to devote time and energy to training and developing them, and they typically don’t have an existing book of business.

[More: Latest strategies for attracting Black college students to advisory careers take long view]

2. Look for young advisers who aren’t established yet. Sometimes, the right adviser works at a firm with the wrong business model. They could be a wirehouse rep who longs for independence or an adviser wishing to go fee-only at a firm that focuses on commission-based business. These advisers have experience and can build client relationships but are looking for a different structure and way of working.

Pros: These advisers have training and skills, can manage relationships and are willing to learn new business models.

Cons: Your firm has to find them, retain them and support their career development.

During your search, remember to network, attend industry conferences, and leverage LinkedIn and social tools to let people know you’re eager to hire.

[More: How firms can win the next generation of talent]

3. Seek out existing next-gen advisers. These potential hires are the perfect solution for many advisers, but they can be rarer than unicorns to spot. You will still need to do your due diligence, so don’t be hasty. Advisers must ensure that the new hire will fit from a philosophical standpoint (how the firm cares for clients) and from a practical view (the complementary skills brought to the firm). Since you’re hiring a seasoned professional, be prepared for the conversation to go both ways; the next-gen adviser will want to make sure your firm is the right fit, too.

Pros: These advisers can immediately bring assets and clients to your practice, help you scale your services and offer continuity and succession options.

Cons: The ideal candidates are tough to find, know their worth and often want ownership opportunities, so your firm must be set up to meet their conditions.

INVESTING IN NEW TALENT

Finding younger advisers to join your firm isn’t easy, but it’s well worth the investment of your time and energy. And if you happen to have next-gen talent at your firm already, ensure that you are mentoring them, developing their skills and helping them succeed. These advisers can help your clients thrive for multiple generations and allow your firm to prosper long after you retire — a win-win for everyone.

Kristine McManus serves as chief advisor growth officer at Commonwealth Financial Network.