Strategy
OPINION OF THE WEEK: Be Creative To Attract More Wealth Management Career Entrants

The sector must be more willing to think about how to attract young adults to work in it, particularly at a time when financial services have lost much of their appeal as a career channel.
A regular topic that we look at in our publications is talent
management. Where do wealth managers come from? How best to train
them? What’s the most important quality to have – raw IQ or
emotional intelligence? How diverse should hires be and when will
it be clear that success is achieved?
These are familiar questions. The challenges are undeniable. As
we
reported last year, the average age of a financial advisor in
the US is nearly 60 years old and over one-third of financial
advisors are expected to retire within the next 10 years,
according to a recent study by Cerulli Associates. About 15 per
cent of wirehouse advisors and 7 per cent of independent advisors
in the US are at risk of leaving their jobs in the next two
years, a JD Power US Financial Advisor Satisfaction Study found.
Right now, advisory firms have an average of three open
positions, an Ameriprise Financial survey showed last year. One
suspects that the situation in the UK, parts of continental
Europe, the Gulf and Asia-Pacific aren’t a lot
different.
I think there is another challenge, that goes deeper than
contemporary nostrums about diversity, equity and inclusion, or
technological change, important though they undoubtedly are.
There is the problem, as far as I can judge it from talking to
firms, that many graduate-age people don’t think wealth
management and banking is a cool place to work. It’s also still
under the long shadow cast by the financial maelstrom of 2008. It
might be unfair, given the problems in other sectors (think of
airlines, or the UK’s National Health Service, parts of law
enforcement in the US, etc) but undeniable. There’s a
multi-trillion dollar and the equivalent wealth transfer
happening as Baby Boomers slip off this mortal coil. But if the
average advisor age is pushing 60, then more advisors in their
30s, 50s and early 50s are needed who can talk the language of a
rising generation.
It would be folly to imagine that this can all be fixed by
changing dress codes, getting rid of mahogany-lined offices,
fancy titles and changing names of venerable banks to something
that sounds like Star Trek. Younger adults don’t want to be
patronised and hard though it might feel to someone of an
older generation, Millennials and Gen Zers aren’t creature from
outer space. They have their concerns about money and providing
for later in life just like their older peers; they want to build
careers and deal with the risk life throws at them. They do
expect rapid service, a desire to talk to actual people – not
just an algorithm – but want the process to be in some ways as
quick and convenient as booking a flight or hotel.
But in terms of career, what the industry is not, in my view,
doing enough about is showing why wealth management is a great
field to work in. It ought not to be hard, because at root what
this sector is about is helping wealth creators and inheritors
put their money to work effectively. That means learning to “look
around the corners” of life: anticipating trends, understanding
cutting-edge business sectors, and working with creative
and energetic people. It means being able to talk to
businessmen and women who know how to “make it rain” and who have
made big changes in everything from digital technology to
transport.
Working with go-getting people is surely a fascinating world to
be in. And you get to talk about philanthropy, learn about the
struggles and debates within families, see the pros and cons of
living in different countries, gain an understanding
of politics and culture, master a language or two, and be
knowledgeable enough to hold a conversation about art,
classic cars and the occasional super-expensive bottle of French
wine. To have a career when this is part of the daily job is
surely about as engrossing a career as one could have.
Speaking as a business journalist of three decades’ standing, I
can tell you that writing about all these topics, and more, has
been the most fulfilling part of my career, so it isn’t much
of a stretch to imagine that young adults with blood in
their veins and ideas in their heads, ought to be fired up about
making a career in wealth management.
The challenge I throw down at wealth managers is this: make these
points to people as part of your career sales pitches and be
smarter and more creative in the ways you do it. Illustrate, with
case studies – perhaps in job adverts – what being a wealth
manager can be like, the type of challenges the job brings, and
the satisfaction it affords. Kill the jargon. Finally, stress to
anyone who wants to enter the field that by protecting the
legitimate wealth of those who hold it, you encourage the
production of goods and services, and the jobs connected to
them on which the economy and public services depend. Tell
people that they are, therefore, a vital part of the chain that
holds an economy and all that it represents, together.
Do it right, and the problem will not be running out of wealth
managers but managing the rush of candidates.