Recruiting Advisors Turning Independent,” released on April 27, discusses that and more, and is part of Schwab’s Market Knowledge Tools. Schwab’s tools help advisors make the transition to independence and can also help RIA firms find talented advisors who are a good match for their firm
“With a thoughtful recruiting strategy in place, adding experienced advisors can be a great way for firms to gain new talent, serve new client segments, uncover potential growth and succession planning opportunities, and boost revenues,” said Bernie Clark, senior vice president and head of Charles Schwab Advisor Services, in Schwab’s announcement.
Schwab’s white paper includes “case studies” of how three RIA firms–each with a different type of growth philosophy–brought seasoned advisors aboard. What they learned can be useful to other RIA firms that want to bring on experienced professionals.
“Business strategy:” Thoroughly understand your firm’s “long- and short-term business goals, core values, and the personal objectives,” so you can determine what characteristics of ideal seasoned advisor would complement your objectives.
“Compensation and equity:” These should be “consistent with the firm’s existing compensation philosophy, be competitive with the market, and be specific on incentive pay and ownership issues.”
“Recruiting and cultural fit:” Ask yourself: What characteristics of the firm’s culture are the most crucial elements for new people to embrace? Then you can assess what you’re looking for in new employees or partners.
“Operational fit:” Can your platform and back office “support the new business brought on by” additional advisors?