The silent risk in wealth management: Career paths disappearing at RIAs

The RIA industry built its reputation on long-term planning and steady stewardship. Yet when it comes to investing in their most important asset – their people – many firms are falling short.

The latest DeVoe Talent & Growth Report reveals a troubling decline: only 38% of advisors say their firms offer clearly articulated career paths, down from 53% just three years ago.

This erosion comes at the exact moment when next-generation professionals are making their needs clear. Sixty-eight percent identified a well-defined career path as their number one priority, far above compensation, perks, or flexibility. At a time when firms are competing fiercely for talent, the gap between what employees want and what firms deliver has never been wider.

The message from next-gen professionals is deafening: show us a path forward. Employees don’t need a promotion tomorrow, but they do need clarity on the path to get there. Without it, firms risk losing their best talent.

For RIAs, this isn’t an HR box to check, it’s a strategic vulnerability that threatens retention, client continuity, and enterprise value. Career pathing is a lever for engagement, retention, and longevity through succession. When firms offer only vague or informal direction, they signal to their most talented employees that their futures are uncertain.

In an industry where client relationships are sticky and built on trust, losing an advisor is not just losing an employee; it is risking client continuity, revenue, and long-term enterprise value. The same can be argued for non-advisor employees, such as client relationship managers or associate advisors, who often anchor the day-to-day client experience. When these roles lack a clear future, firms jeopardize both talent retention and client loyalty.

The numbers suggest this risk is mounting. Today, more than half of firms (54%) admit they provide only “informal direction” for career growth, and another 8% confess they offer virtually “little communication” at all. The trajectory is moving in the wrong direction across every measure, forming a rare chart where all the answers trend negatively over time.

External research reinforces the urgency. A Pew Research Center study found that 63% of employees who quit their jobs in 2021 cited lack of advancement opportunities as the primary driver. MIT Sloan adds that systematic career development coupled with feedback and coaching is essential to retention. In short, if firms don’t provide a visible ladder, ambitious employees will find one elsewhere.

And they may not wait long. High performers are also the most mobile. Firms that assume loyalty will carry them through are miscalculating. Purpose is not a substitute for structure, and good intentions won’t prepare the next generation or fully engage today’s employees.

The consequences extend beyond talent churn. Without clear pathways, firms are undercutting their own succession planning. A lack of structured career progression means the next generation of leadership is left underdeveloped, underprepared, and often underinvested in. The result is a double blow: attrition among rising leaders and weak benches for firms preparing for transition.

What can firms do? The solutions are not complex, but they require intentionality. Firms must design progression ladders for every major role, tie advancement to specific skills and training, and communicate those paths consistently. They must also revisit those paths regularly, linking them to performance reviews, incentive compensation, and development opportunities.

The payoff is significant. Firms that invest in structured career pathing not only retain their top talent but also build credibility with new recruits, instill confidence in clients, and create continuity across generations. In an industry where the competitive bar for talent is rising, those firms will be the ones that thrive.

The warning signs are clear. If RIAs allow career paths to fade, they won’t just lose employees, they’ll undermine the very foundation that has always set this industry apart: its people.

A renowned thought leader on RIA practice management, David DeVoe founded DeVoe & Company in 2011 with the mission to help wealth management firms achieve their greatest potential. Since inception, the firm has supported over 900 clients across consulting, investment banking and valuation engagements. Prior to founding DeVoe & Company, David led Schwab Advisor Services’ M&A services and Strategic client group.