Retention of Advisors, Agents and Planners
Enhancing Retention
It seems that every magazine we read on the management of Financial Services Professionals tells that we need to adopt a culture of excellence to retain good producers. Then they tell you that recruiting great Financial Services Professionals start with recruiting and pre-selection. Guys…enough already! How many times can you re-write the same thing? What we need is feedback and advice on retaining quality sales professionals beyond the promise of money and great products.
Recruiters have gotten smarter. They realize that the art of thriving not surviving insures retention of quality professionals in the Financial Services workplace. Improving producer retention and increasing productivity have puzzled Financial Services companies for decades. In this section of Auburn Mountain we try to give Financial Services Recruiters and Financial Services Mangers a brighter vision of how to retain quality Financial Services Professionals.
“Imagine”
During the hiring process, the aspiring Financial Services Professional is often asked to “Imagine you being a successful Financial Services Professional. Imagine yourself sitting in your own private office conducting or providing the following services for clients:
- financial planning
- investment planning
- insurance planning
- college planning
- retirement planning
- elder and long term care planning
- estate planning”
"Envision"
During the hiring process, the aspiring Financial Services Professional is often asked to embrace this Vision.
“Envision yourself:
- managing your own agency or firm with one or more administrative assistants.
- hiring several producers as your firm grows.
- learning in excess of $120,000 (personal income) per year.
- acquiring 400 client families over a period of four years.
- serving clients with average household income of $100,000 to $250,000.
- serving clients with average household income of $300,000 to $999,999 by your 8th year in the business.
- owning a primary residence in an affluent area of town.
- owning at least one summer home and rental property.
- actively involved in your community.
- successfully managing a thriving practice.”
Relentless Support And Coaching Enhances Retention
Financial Services Recruiters and Managers should be keenly aware that if we give aspiring Financial Services Professionals this vision…we must give them relentless support and coaching to achieve this vision. If we do this we will retain good people in the business. If we fail to manage them to their expectations….they will leave us. Retaining quality Financial Services Professionals is as critical as oxygen is to all inhabitants of earth. Without both we can’t survive.
Titles & Occupations Are Different...Motivation & Development Are Similar
There are many titles or names that Financial Services Professionals might use depending upon their legal credentials, years in the business, companies and/or products they represent. These terms could include financial consultant, financial advisor, financial representative, registered representative or financial planner. Where Financial Services Professionals work vary as well. Many work for investment brokerage firms, insurance companies or banks, offering strategies on a wide range of topics, including retirement, estate planning, insurance protection, funding for college, and general investment management options. Although they go by different names and work in different occupation and place….the motivation and development are similar if not the same.
What Really Motivates Financial Services Professionals
What is the fuel that drives the Financial Services Professional to ride out the first several years in business as they grow a clientele and build a solid professional practice.? Money does count…it is not the main motivating factor. The main motivators seems to be:
- Competent respectable managers
- Great mentor support system and joint work capability
- Access to excellent training and coaches
- A working culture that is connected to the people.
Competent Respectable Managers Insures High Retention Rates
Companies could have the best and superior products and services and still lose talent to the competition or worse...The Financial Services Professionals leaves the profession entirely. Financial Services Professionals do not leave the business or a firm because of money. They leave because they feel we (management) loss interest in them and their career goals. This happens as we get slack on the assistance, encouragement and motivation we gave them early in their career.
I firmly believe that this does not happen on purpose. It happens, as we get busy with recruiting new Financial Services Professionals, we take our eyes off the ones that have passed their initial training and compliance checks. They are further out in orbit as we say. Yet we can’t let them get so far away from the sun that they weaken and die. Management must do a daily balancing act i.e. recruit, develop and retain their career Financial Services Professionals. When management communicates a uniform consistent clear message that they are there to “HELP”…this sets the stage for strong employee retention.
There are many surveys and studies that show that the Financial Services Professional’s relationship with the manager is one of the most significant in a Financial Services Professional’s progress in the first two years. The Financial Services Professional’s immediate manager controls all career progression and educational opportunities. Managers that take time to become a mentor and friend…who know what the employee can do and want to do will build a stronger healthier Financial Services Professional over time. This will impact the firm’s and the industry retention.
Great Mentor Support System and Joint Work Capability Enhances Retention
Mentors have expertise and great client relationships. Mentors spend most of their time with 20% to 30% of their top clients. They do not have time to work with the lower 70% and most alarming…they do not have time to expand their markets. On the other hand, the aspiring Financial Services Professional has limited knowledge, plenty of time and very few clients. The sales management team is not far away. It is the Sales Manager and Sales Trainer that is coordinating the activities between two producers. They are also responsible for being sure the “new guy” is honing his/her sales and product skills. As you can imagine, the Mentor –Mentee relationship is mutually beneficial. The smart companies, distribution channels and agencies that leverages the Mentor –Mentee relationship finds that that the experienced producer revenues skyrockets and the young producer is taking firm root in the firm. The real value is that both the young and experienced producer are enjoying revenue and career growth, great quality of life and recognition among their peers. This is a lasting winning work culture for both.
Access To Excellent Training and Coaches Enhances Retention
Companies do spend enormous amount of money to train Financial Services Professionals. Most companies are pretty good about training and developing their talented people in the first two years or so. Some companies even have a “Career Road Map” of some sort that detail out the education initiatives and training objectives.
Fate does have its irony it seems. You see, it at the middle or end of the 3rd year where the focus and energy on the development of Financial Services Professionals begins to wane. The irony is that by some estimates…nearly $200,000 is spent on training per professional in the first four years. As I mentioned earlier, It happens, as we get busy with recruiting new Financial Services Professionals, we take our eyes off the ones that have passed their initial training and compliance checks. They are further out in orbit as we say. Yet we can’t let them get so far away from the sun that they weaken and die.
By the way industry designation programs do not replace producer training programs. Many companies make the mistake of thinking “ Well, she is involved in the CFP, CLU or CPCU program...what else does she needs?” This is a fatal mistake. Industry designation programs compliment not replace producer training programs.
High retention numbers will result from field and home office management being as passionate about the continued development of their Financial Services Professionals. Simply stated, companies needed to show and the Financial Services Professionals need to feel the same passion and helping hand from their management in their 5th year as they did in their first year.
A Working Culture That Is Connected To Financial Services Professionals Allows Us To Thrive
Companies need to establish and enforce working cultures and environments that:
- Train and encourage managers to understand Financial Services Professionals personal preferences. What motivate one person may not motivate another person.
- Encourage not frown on quality time off of and time spent with families and community events.
- Publicly praise and celebrate teamwork such as sharing referrals and working jointly on client cases.
- Don’t play favorites. To be sure you need to give recognition where recognition is due. But do not go down the path that leads to obvious favoritism. This may turn people off. It is unfair and illegal in the American workplace.
- Product wholesalers and other specialists who support the Financial Services Professionals recommendations to clients must believe in this enabling culture. If not…then they are out! Wholesalers must enhance the Financial Services Professionals capability to:
- Compete for and support high net worth clients
- Understand the products and services that help them to grow, manage and protect wealth for clients.
- Understand and explain products and services to clients.
- Deliver expertise in areas of insurance, investments, tax and retirement planning.
The Investment Is Substantial
The investment that companies make in the growth and development of Financial Services Professionals are substantial. This is to insure that the American Public has competence and caring professionals serving them.