What You Need to Know
- Edward Jones paused hiring of non-licensed advisors to cut costs due to the pandemic.
- Its current approach to hiring may result in fewer news hires than in the past, it says.
- The firm says it's investing in resources for advisors, including to boost virtual business.
Edward Jones has resumed hiring financial advisors after putting the brakes on recruiting in 2020 as part of cutting costs in response to the COVID-19 pandemic, the firm disclosed Friday.
The number of Edward Jones financial advisors fell by 60 in the first quarter of 2021 to 18,967, down from 19,027 a year ago, while total client assets under care soared 40% to $1.618 trillion from $1.157 trillion, according to a 10-Q filing with the Securities and Exchange Commission by parent firm The Jones Financial Cos.
Edward Jones “implemented measures to optimize firm resources and control costs, including a temporary pause on the recruitment of non-licensed financial advisors during 2020,” an Edward Jones spokesperson said.
However, the company “remains committed to financial advisor growth to continue to serve existing clients and future clients and create a positive impact in our communities by hiring both experienced financial advisors and non-licensed candidates in future periods,” the spokesperson explained.
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Therefore, Edward Jones has “restarted hiring and is committed to an innovative and intentional strategy to grow its impact by offering a plan and resources for both current financial advisors and new hires,” the spokesperson said.
Despite the resumption of hiring, the approach it is taking “may result in fewer financial advisors hired than historically experienced,” the spokesperson pointed out.
Edward Jones, meanwhile, continues to invest in virtual business enablement tools to help its branch teams succeed amid the ongoing limitations on in-person client prospecting and consultations, it said.