First, the salary, although decisive, is not the only essential factor in hiring and retaining employees. Thus, only 28% of respondents ensure that low pay is the main factor in the departure of talent.
Other factors also have a big impact. Advisors would thus look for firms with solid administrative and IT processes in particular. They also want full-time assistants to help them, and freedom in where they work and how they work.
Arizent’s investigation therefore comes to a few main conclusions:
Employees want a better work-life balance. They want more flexible work, but also better pay and benefits that support them in and out of the office.
Yet employers are rather closed to the idea of relaxing working conditions. Only 12% say they are ready to do so. And 11% plan to offer better and more affordable benefits and perquisites.
“Companies that don’t adapt to the new remote work mentality will continually experience higher than normal attrition rates as we lose employees to companies that allow 100% remote work” , comments one of the survey respondents.
More than half of respondents (56%) feel more competitive pressure from companies in their industry. This pressure comes from two places essentially according to Arizent.
Registered investment advisory companies are putting pressure on this. Many advisors decide to abandon brokerages for these independent companies because they can have more control over their practice or because they are fed up with the pressures imposed by their management.
Last year, more than seven in ten advisers, or 71%, said they preferred working for an independent firm, according to Cerulli Associates.
Pressure is also coming from national and regional broker-dealers competing with Wall Street brokers. Small companies are thus more flexible in terms of recruitment agreements and therefore manage to convince certain professionals to join their ranks.
This option “particularly appeals to advisors who seek an environment close to independent space, but who are reluctant to give up support systems,” says Marina Shtyrkov, associate director of wealth management at Cerulli Associates.
To be happy, a counselor needs a lot of support, including the staff of middle and back office, product development specialists and front line staff. They also want IT support and in order to have staff in this area, it is necessary to offer competitive remuneration.