Hey Yahoos, telecommuting not too popular with advisers, either

Despite tech tools, home workers lack camaraderie, ability to meet clients.
APR 17, 2013
Many financial advisers agree with the notion that Yahoo Inc. chief executive Marissa Mayer put forth when she reined in telecommuters at the Internet search engine company this week — collaboration works best if people are actually together. Thanks to videoconferencing solutions like Skype and document-sharing services like Google Drive, remote workers can literally be on the same page as other employees who are sitting together in a conference room strategizing about a client's financial plan. However, such setups don't do much to boost camaraderie between the adviser and staff members. Neither do they allow for interaction with clients who come into the office for meetings, advisers said. In fact, only about 21% of advisers offer their employees the benefit of telecommuting, according to a 2012 survey by the Financial Planning Association. The larger the firm, the more likely it is to offer workers a chance to work some time from home, with up to 25% of firms with 31 or more employees allowing some telecommuting. But most advisory firms offer employees a different office perk aimed at helping them with the challenge that causes most people to seek to work from a home office in the first place. That is, they try to help workers balance family and workplace demands. More than three-quarters of financial planning firms offer employees flexibility in their work schedule, including allowing employees to go to doctor's appointments, or take their children to them, without having to use official time off. Such “lifestyle” perks are important to offer employees in a services-based industry like financial advising, said Angie Herbers, a personnel consultant who works with financial advisers. These benefits give employees perceived control over their day, which is important if advisers want to keep their staff engaged in their jobs. And advisers do want to keep employees engaged, or bigger troubles ensue, she said. A failure to provide the right perks can create a negative image in workers' minds that can never be overcome, she said. That leads to poor morale and ultimately to the most disruptive effect, high turnover rates, Ms. Herbers. So while advisers may largely agree that the financial planning business isn't an ideal application for telecommuters, they may want to consider whether they offer other office perks that tackle the root challenge employees face so they want to continue showing up for work.

Latest News

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline