WP Asks: Why do new advisors quit in their first three years?
Holjevac said mentorship has narrowed to products and sales, and that the office environment went with COVID-19. “Today, I think we need more practical mentorship that goes beyond products and sales to include client acquisition, business development, relationship building and the realities of running a business,” she said. “Additionally, just being in an office environment, which facilitates collaboration is missing post Covid.”
“A firm has to do more than recruit someone and wish them well. Training, a clear framework, mentorship, and ongoing coaching all matter. New advisors need help developing both their planning skills and the business disciplines required to build a sustainable practice,” Allen said.
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A firm has to do more than recruit someone and wish them well. Training, a clear framework, mentorship, and ongoing coaching all matter.
Brent Allen, IG Wealth Management
IG’s response is to widen the entry points, Allen said, through internships inside advisor teams, salaried planning roles with an established client base, an entrepreneurial path with income support during the start-up period, and team-based roles within existing practices. He reported year one retention above 80 percent for newly appointed entrepreneurial advisors, higher when team members and employee roles are included.
“Few firms are hiring new advisors, and we are proud that IG is a place that can still support the right person with an amazingly rewarding career opportunity,” Allen said.
Holjevac said the industry needs different compensation and business models, including fee-for-service planning.
