Don’t Get Trapped In A Recruiting Numbers Game
By Patrick Farrell
Investacorp President & CEO
As recruiting continues to intensify, firms and advisors face an increased risk of being caught up in a “numbers game,” where certain firms exclusively emphasize recruiting volumes versus a “quality over quantity” approach, with “quality” being defined as advisors who are the best long-term fit possible with the firm’s platforms, service model, advisor community and culture.
Firms seeking quality advisors as defined above must first clearly articulate the qualitative traits—beyond just production and assets—that are part of this picture. From there, firms need to go the extra mile in conducting due diligence to ensure that advisors who look great on paper actually pass muster in real life, while ensuring that the firm is able to meet the business and cultural expectations of those advisors they hope to recruit.
Accomplishing all three of these tasks demands a level of “know thyself” honesty that not every firm is ready to embrace, but the pressure is rising to do so. Successful and experienced advisors who have already been through past recruiting cycles are increasingly looking past the numbers alone, and diving deep on other criteria that directly support a long-term fit.
Clearly Articulate The Qualitative Traits
While high production and client asset levels are always welcome, independent firms need to go further in pinpointing the mix of services and clients with which its ideal advisors will have expertise. And for some firms, the advisor’s geographic location is also a key factor.
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