What Do the Big Firms Want in an Advisor?
I’d like to deviate a bit from my journey and talk about a rarely discussed topic. Your opinion on the matter would be particularly interesting, either to validate my own or render it void. Here’s my supposition.
When a large financial services company hires client-facing individuals, do they want great technicians or great salespeople (not that these are mutually exclusive but the combination of the two is rare)? Do they want people who are independent thinkers? Are they looking for people who are willing to explore new frontiers and create new and innovative ways of doing things? Or are they seeking people who will blindly follow company policy without so much as a question?
As many of you know, I came out of a very large organization. At that particular company there was an expression often spoken. People would joke about drinking the company Kool-Aid. The underlying message was that after a while people would begin to blindly follow company policy and surrender their own independence. When you work in a large organization you must either adapt to their way of doing things or fight the uphill battle to bring about change. Actually, there is very little you can do to materially change things unless you are in a position such as CEO, president, etc. Even then, I imagine the political roadblocks can be formidable.
Let’s get back to my initial premise. What kind of people are large companies looking for?
It’s been my experience that some of the most successful brokers are also the best salesmen. They are good story tellers, masters in the art of persuasion, and skilled in leading prospects down the primrose path. However, when it comes to understanding the more technical aspects of our business, they are intellectually challenged. I suspect as long as they don’t pose a great liability to the company there is little motivation to change things.
Think about how this model would work in the medical profession. Would you trust your heath to a doctor who didn’t have sufficient technical knowledge? I think the answer to this is obvious, yet that’s exactly what many are doing with their financial lives.
I believe this presents an opportunity for the independent advisor. What do you think?
Thanks for reading.
I found your premise interesting and have a couple thoughts in reply. I have been a financial advisor for over 20 yrs and have been at one of the large financial services firms for the past 16 yrs.
To make this observation about a firm with 15,000 plus advisors all being the same would be like saying all residents of a smaller town in America (towns of 15,000) are similar because they “chose” to live there. There are many reasons why an advisor chooses to practice at a large firm rather than go independent. Just like there are many reasons why a citizen “chooses” to live in a small town. Sure, there are characteristics that are similar among many of the residents. But, there are many differences too.
I am a fee based advisor utilizing primarily ETF’s, CD’s and bonds on a 1% max. annual fee platform. I receive no compensation for commission based products. I am a CFP and CIMA and take the practice of portfolio management and financial advising very serious. And I chose to do so at a large financial services firm with no pressure to change.
However, back to your premise on who the large firms hire, I will agree that the mold in looking for new hires is one of sales skills first. Most managers in the large financial services firms came up through the sales side of the business so they seek to hire those like themselves. But I suggest you drill down a little deeper to see who “sticks” and makes a career in the financial services industry. My view is that it tends to be the sound and intelligent practitioner who survives the early years when competing with the sales-seasoned peers and grows a professional practice..like those in the medical profession.
I found your premise interesting and have a couple thoughts in reply. I have been a financial advisor for over 20 yrs and have been at one of the large financial services firms for the past 16 yrs.
To make this observation about a firm with 15,000 plus advisors all being the same would be like saying all residents of a smaller town in America (towns of 15,000) are similar because they “chose” to live there. There are many reasons why an advisor chooses to practice at a large firm rather than go independent. Just like there are many reasons why a citizen “chooses” to live in a small town. Sure, there are characteristics that are similar among many of the residents. But, there are many differences too.
I am a fee based advisor utilizing primarily ETF’s, CD’s and bonds on a 1% max. annual fee platform. I receive no compensation for commission based products. I am a CFP and CIMA and take the practice of portfolio management and financial advising very serious. And I chose to do so at a large financial services firm with no pressure to change.
However, back to your premise on who the large firms hire, I will agree that the mold in looking for new hires is one of sales skills first. Most managers in the large financial services firms came up through the sales side of the business so they seek to hire those like themselves. But I suggest you drill down a little deeper to see who “sticks” and makes a career in the financial services industry. My view is that it tends to be the sound and intelligent practitioner who survives the early years when competing with the sales-seasoned peers and grows a professional practice..like those in the medical profession.