About 9% of brokers and advisors say they are likely to consider switching from their current employer to another firm in the next 12 months, up from 5% last year, a study by National Financial Services LLC, finds. The company, which offers advisor recruitment and other services to financial service firms, is a subsidiary of Fidelity Investments Inc., Boston.
National Financial’s annual study, called the Broker and Advisor Sentiment Index, saw a slight drop in job satisfaction among brokers and advisors, to 7.5, compared to last year’s 7.71. The index is based on a scale of 0 to 10.
It found 62% of those surveyed would prefer moving to a different type of firm-such as an independent broker-dealer, regional firm or registered investment advisor, rather than one similar to their current employer.
Compared to its previous studies, National Financial saw a decline in the ratio of those citing banks and insurance firms as the type of company they would prefer to work.
Among brokers and advisors who have recently moved, “a change in the firm’s direction” was their main reason for switching firms.
Among those who are considering switching this year, “better pay,” “desire for more independence and freedom” and “unhappiness with changes in a firm’s direction,” in that order, were the top 3 reasons for wanting to leave.
One of the biggest challenges facing those who change employers is finding new customers, cited by 42% of those who switched.