Explosion of Firm Models Poses a Human Capital Challenge By Angie Herbers - ThinkAdvisor
The success of financial advice firms hinges on their ability to attract and retain advisors. One way organizations can accomplish this is by providing career paths — clear sequences of steps by which employees may advance toward their professional goals.
But here’s the tricky thing: As the industry evolves, firm models are proliferating. And that adds another dimension to the hiring process — namely, making sure that your firm’s model matches the candidate’s career goals. If your firm type and the candidate’s goals are not aligned, you’re more likely to eventually lose the advisor and hire and train a replacement, which is expensive.
Not long ago, advisory firm models were limited to investment-only firms, wealth management firms and financial planning firms. That has expanded to include fintech financial planning firms and financial therapy firms. Each type of firm has a different service model, different target markets, different pricing structures and many other points of differentiation. Let’s look at the different firm types:
