Millennials tend to be the most mobile generation, but for those seeking to break into the financial advisory business, staying put can be critical to long-term success.
Recruiters agree that up-and-coming advisers need to focus on building a positive reputation in the industry and, thus, should think long and hard before switching firms.
“In advising, there's two reasons to move early in your career,” said Bill Willis, president of Willis Consulting Inc. “One, you're highly successful and in tremendous demand. Or two, you're failing and need to move to have another chance to build your business.”
Building a business is not easy but is critically important, according to recruiters.
“Broker firms are desperate to find good trainees. But it's tougher than ever to make it as a full-fledged financial adviser,” said Danny Sarch, founder of Leitner Sarch Consultants Ltd. “If you're a wealthy 55-year-old, would you trust a 25-year-old with your money?”
That is an obstacle that can be overcome by playing by the rules, according to Mindy Diamond, president and CEO of recruiting firm Diamond Consultants.
“If you have a book of business, you have an insurance policy,” she said “As long as you are clean and compliant and growing, you'll always have a home.”
But while staying put is important for success in the financial advisory business, Millennials generally tend to move around a lot early in their careers. According to a survey released this week, 64% of Millennials leave their company in less than three years.
“If Millennials can't see a path up, they move out,” said Dan Schawbel, managing partner of Millennial Branding, a Generation Y research and consulting firm.
Mr. Schwabel said companies can play a key role in ensuring that their Millennial employees don't jump ship so soon.
“If you offer other opportunities at the company, then they move that person around the company,” he said. “They get to learn and network, and work out of different places. This is good for everyone, not just Millennials.”
The costs of losing Millennials cannot be underestimated in terms of both dollars and morale. According to the survey, 87% of companies spend $15,000 to $25,000 to replace each Millennial they lose. Beyond that, 71% of companies surveyed said losing Millennials leads to increase in workload and stress of current workers.
The top indicator for keeping Millennial employees around long-term is not positive attitude or past resume history but rather good cultural fit. Half of those surveyed said culture is the best indicator for longer retention.
More than 200 firms participated in the
online survey, which was conducted by Millennial Branding, and career website Beyond.com. The survey consisted of responses from human resources professionals across a range of industries.
