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December 07, 2022 at 02:27 PM
Recruiting new staff is RIA firms’ top strategic priority, coming in ahead of recruiting new clients through referrals, according to Schwab’s 2022 RIA Compensation Report. Eighty percent of firms reported plans to hire this year.
Schwab found that the industry will have to hire upward of 70,000 new staff members over the next five years, based on current growth rates and the number of RIAs, and that is without accounting for attrition, retirements or new firms.
Researchers found that RIAs generally add a new role for every $360,000 in revenue. As they grow, firms onboard dedicated client service teams, specialized operational and investment roles and executive management positions.
Compensation is the benefit candidates most value, according to the study. Total cash compensation increased by more than 6% at the median from 2020 to 2021 across the 27 roles considered.
Both traditional and nontraditional employee benefits are an important part of a total rewards package. Nontraditional benefits, such as hybrid workplace models and health and wellness benefits, complement traditional ones such as health and dental insurance, and together strengthen a firm’s offer.
Schwab conducted its study in the first quarter among 1,218 firms that custody with either Schwab or TD Ameritrade; these represent $1.8 trillion in assets under management.
See the gallery for compensation data for 17 RIA positions, according to Schwab’s research. The pay ranges represent median pay at the 20th through 80th percentiles.
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