Can All The Ambitious Recruiting Plans Succeed?

Monday, April 18, 2011 06:44
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Can All The Ambitious Recruiting Plans Succeed?

Tags: recruiting

The only way that all the firms aggressively recruiting out there can meet their targets is if they find a better way to keep the reps they already have from leaving. 

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It's not shocking that better retention is the secret to building a bigger advisory network. About 8% to 9% of all advisors change firms every year.

 

From the advisor's point of view, that's a great number. It means mobility and freedom.

 

But from the firm's perspective, it means on average, 8% or 9% of all front-line personnel are heading for the door at any particular time. 

 

That's a huge headwind for broker-dealers that want to boost their net head counts by maybe 2% this year.

 

Sure, anyone can dangle enough checks in front of disaffected reps to add 100 to 200 brokers to their sales force. Doing that in addition to overcoming attrition . . . gets expensive, if it's even possible at all.

 

Great piece on how the math works out over here.

 

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