By Maria Bethel, SVP, Marketing & Communications
Axtella
As many thought leadership pieces have pointed out over the past few years, the financial services industry is reckoning with its future as we prepare for an oncoming wave of retiring advisors over the next decade. Additionally, the U.S. is poised for one of the largest wealth transfers in history, as wealth passes from Baby Boomers to Gen X, millennials, and Gen Z.
The reality is that our industry should be on the precipice of welcoming a new wave of younger advisors to reflect this sea change – but industry efforts haven’t necessarily kept up with this oncoming demand. It’s not due to a lack of trying, but it’ll require some conscious mindset shifting on everyone’s part.
Our network of firms, Axtella, is doing our part to welcome in the next generation of financial advisors through coordinated outreach efforts like partnering with local high schools and universities. Even outside of coordinated event efforts, we all can start thinking about ways to better position ourselves for a new generation of employees. Here are some tips to keep front of mind:
- Focus on genuine connection.
One facet of the job that feels under-emphasized in recruiting efforts is that advisors aren’t just number crunchers. They help clients connect their dreams to their money, meaning advisors and financial professionals are much more relationship-driven than they are often marketed.
We need to lead with this talking point while attracting a younger audience of job seekers, which could make a big difference in changing their (often false) perceptions of the industry. I frequently find myself explaining that the industry isn’t like The Wolf of Wall Street – at least not anymore! – and that empathy and passion are key elements to making a successful advisor.
If you haven’t already, reflect on your practice or your firm: think about how relationship-driven your day-to-day is and how that can be a selling point for a new hire, especially one from a younger generation. - Embrace technology and social media
Let’s call a spade a spade: it’s paramount that every financial practice adapts their technology over time to stay up to date and to evolve with clients’ needs. But even beyond those logistics, having outdated tech platforms is a surefire way to disengage the next-gen audience
Younger audiences are also going to be curious how you’re utilizing social media, both from a client and recruiting perspective. Meet a younger audience where they are and get your name out where this audience already is – which means LinkedIn, maybe even Instagram or TikTok. (If you’re looking for methods to up your social presence, WomenShare recently posted ways advisors can utilize social media.) - Welcome cultural innovation
Younger professionals are growth-oriented and are going to look for career environments with opportunities to learn and level up. That’s why we recommend fostering an environment where employees are open to change so they can deliver better for their clients. This sets a standard for a younger generation that your culture isn’t static – and that newer employees can influence or have an impact on your culture.
Explore what programs or structures you can implement within your practice that encourage employee growth, whether that’s mentorships between new hires and your veteran employees or participating in third-party seminars/programs for additional development.
Ultimately, the industry isn’t going to change overnight. We’re going to see gradual change which requires thoughtful adaptation and accommodation between all generations.
But if there’s one thing our industry knows how to do, it’s how to make a concerted effort to connect and create change. We do it all the time for our clients, and now we owe it to ourselves to drive that same effort within our industry.
