What do high performers look for in leadership?
Financial advisors look for leaders that provide a clear vision and direction for the organization. Top-performing advisors want to be successful and to do that they want to understand where the organization is headed and how their work contributes to achieving the desired objectives.
Advisors, particularly RIAs, appreciate leaders who give them freedom to execute without micromanagement and are able to provide the appropriate support. Empowerment is the key here.
With respect to other members of the firm beyond advisors, these top performing individuals seek leaders who invest in their development, challenge them with stretch assignments, and help advance their careers. If this does not happen, they will walk. This includes meaningful and timely feedback that is constructive with the aim of helping them improve, hit their goals, and advance their career.
Finally, high performers respect leaders whose actions align with their words. Integrity and consistency are key attributes top performing talent has a keen eye for. You can’t fake it.
There is no right or wrong answer here. So, I will use an answer I learned in business school: it depends. In a competitive talent market, discussing compensation up front is nuanced depending on the situation. If you’re talking to an advisor, compensation is going to be a strategic conversation that is likely to be a top discussion point.
As it relates to other professionals in a wealth management firm, you may be better served discussing the vision and direction of the firm and the value of being a part of the organization. Staying focused on the role and how it ties back to building a high-performing team sets a clear expectation for the candidate. In the end, it comes down to the right fit, skill, attitude, and a commitment to achieve results as a team.
In my experience, there are what I call the three deadly sins that repeal the best talent.
This includes when office politics replace vision and values; a failure to develop an inclusive environment for ideas and perspectives; inadequate or unclear communication; or fostering an environment fueled by blame over recognition. I am sure there are others, but committing any of these three will lead talented performers to the exit.
Does it ever feel like there just aren’t enough financial advisors out there to meet the demand from retail investors? There’s data that shows this isn’t just in your head.
Researchers at Cerulli Associates found that the number of new advisors joining the industry just barely offset the number of trainee failures and retirements. With 37.5% of advisors expected to retire over the next decade, the advice industry “has a headcount problem,” Cerulli concluded.1
Of course, just about everyone wants to build a team that can achieve sustainable business growth. Actually doing it is often easier said than done. In fact, increased competition is making it more difficult than ever to attract and retain top talent, according to Carolyn Armitage, Founder and CEO of RIA Circle and Wealth Management Consulting.
Carolyn and I talked about this challenge on a recent episode of Synergize, the TradePMR podcast where I host conversations with people from a variety of disciplines about what it takes to grow a business. She told me that if RIAs want to make the right hires – people who can help position the firm to capitalize on the growth opportunities in today’s market – there are three things they can focus on. Here are some things we covered in that conversation, which you can check out anywhere you get your podcasts.
While this may seem like more of a big-picture issue for businesses that wouldn’t necessarily impact hiring, it’s absolutely crucial for bringing on and retaining high-quality new employees. High-performing people often want to know that there’s a purpose to their work beyond the day-to-day grind and achieving sales objectives.
Having a clear vision and a set of guiding values can help them be fully committed. If you want to attract people who see your company as more than just another job, be able to give a clear answer to questions like: Why are we doing this? Where is the company headed?
“It's so easy for folks to hire people that they like, and it's really hard for them to get rid of people that they like, even if they don't really fit the bill for what [is] needed for the organization,” Carolyn said in our conversation. “If you can really hone in on what you're looking to achieve and what are the skill sets to get there, that will help you define more of a niche for the people for you to recruit and retain.”
Oftentimes, organizations are underutilizing the people they already have on their team. Whether it’s because someone is in a role that doesn’t best suit their skills, or because the business hasn’t offered them a path for advancement, these people are at risk of leaving for somewhere where they are more likely to grow.
Like with technology – where people can sometimes get distracted by the latest and greatest tools rather than just maximizing what they already have – a good leader needs to have a good assessment of what they already have on their team and make sure it’s aligned with the company’s purpose. Ideally, the leader of a growing business will embrace all different types of personalities and have them in the right roles to maximize their skills sets and strengthen the overall organization.
Be honest about who you are as a CEO and as a leader. That might sound strange at first, but the more authentic and self-aware you can be about your strengths and weaknesses, the more you’ll be able to appreciate how other peoples’ differences can add value. This can help you be more intentional when looking to hire people with skill sets that complement your own.
Instead of just hiring people who you like or who are just like you, look for differentiation to maximize the abilities of your team. The last thing you want is to be like the emperor who has no clothes. Instead of surrounding yourself with “yes” people, surround yourself with a variety of thoughts and opinions to increase the number or perspectives you have.
¹The Financial Advisor Industry Has a Headcount Problem, Cerulli. Published Jan.16, 2024.