How SageSpring Wealth Partners' next-gen strategy has fueled its success

For many experienced advisors, training next-generation talent can seem like a challenge and a hindrance as it takes away from their ongoing business efforts. But Jeff Dobyns, president of Nashville, Tennessee-based SageSpring Wealth Partners, said that view misses the mark.

"There’s this misconception in our industry that the time an advisor spends training up a new advisor equates to revenue lost, because it’s seen as time spent away from prospecting or serving clients," Dobyns said. "But if advisors incorporate mentees into their day-to-day, giving them firsthand experience they need to be successful, that mentee now has a track to run on and can be a huge asset for the advisor and his or her team."

Research from Cerulli suggests the wealth industry is barrelling towards a succession cliff, with 38 percent of advisors expected to grey out of the industry within the next 10 years. Meanwhile, the younger end of the talent pipeline has been extremely leaky, with more than 75 percent of prospective advisors dropping out of firms' training programs.

For Dobyns, the high attrition rate speaks to the sheer dedication needed to nurture next-gen advisors.

"Being a mentor – and speaking from my personal experience, the same goes for being a mentee – requires a level of trust and hard work from both parties in order to succeed in the long term," he said. "These young advisors are eager to learn, be a part of a team, build their practices and serve clients well, but we need to set them up with the right tools and skills to be confident and effective when speaking with clients, prospecting, or running meetings."

According to Dobyns, SageSpring – which recently leapt fully into independence by joining the Dynasty Financial Partners platform – was founded with mentorship and servant leadership in mind. The firm has been running its mentorship program for 20 years, which he said has paid off handsomely with an 89 percent success rate over that time.

"Our average advisor age is 37, and a ton of our standalone and team advisors actually started out here as mentees," he said. "We have younger advisors who are energetic, passionate, and incredibly sharp, and clients love working with them because of it."

One key factor for the firm's success is its approach to recruitment, which Dobyns said involves finding "the ideal team player." By intentially seeking out rookies who are hungry, humble, and smart, the firm builds a pool of talent that can grow and evolve into star performers.

"It’s just a matter of making sure they have what they need to thrive: a team that complements them and allows them to grow, really great operational and back-office support, and support in their pursuit of things like licensure and ongoing education," he said.

A December survey report from Devoe & Co. also highlighted next-gen talent development as a strategic imperative. Aside from a record low 42 percent of firms it polled having written succession plans, one in three firms expect leadership transitions to be "bumpy at best." And when asked to rate their belief in G2 or G3 advisors' readiness to take over leadership responsiblities today, 32 percent said they have low to no confidence – a 10 percentage-point jump compared to previous results from 2022.

As Dobyn tells it, SageSpring has been able to sidestep those kinds of concerns. After decades of human capital investment, he said the firm's veteran advisors now have a bench of young talent they can comfortably entrust their clients to.

"It’s in our culture. It’s SageSpring’s DNA," he said. "And then our more established advisors are able to create thorough succession plans that they can feel confident in as they get closer to retirement."