A newly released joint study–The Race for Top Talent–by Pershing, a unit of The Bank of New York, and consulting firm Moss Adams says that all types of broker/dealers are vying to attract top talent. The study is a component of TalentConnect, a program recently launched by Pershing that helps broker/dealers and RIAs with recruiting, retention, and succession strategies.

Independent B/Ds are competing with insurance and bank B/Ds, and even RIAs, the study says, to reel in talented employees. B/Ds must better articulate their unique values, the study counsels, in order to attract top talent. Payout happens to be the “predominant misconceptions about why investment professionals change affiliations,” the study reveals. “Payout, in fact, ranks lower than culture as an important aspect of the decision-making process when leaving a firm.”

The study also notes that, according to recruiters, “the single biggest source of talent within the industry will come from entry-level investment professionals currently producing less than $250,000.” Attracting and retaining these rising stars, the study says, will help a B/D grow its business “exponentially” and “is likely to have a far greater return on investment than paying large sums for the experienced investment professional.”