The RIA channel has enjoyed tremendous growth in recent years. From 2008-2012, more than 4,000 advisors wirehouses and large advisor firms to join the ranks of Registered Investment Advisors, according to Cerulli Associates. In the last year and a half alone more than 1,300 advisors have made the decision to go independent. Over the next 13 years, however, 8,600 advisors are expected to leave the industry each year. While that may appear to be cause for alarm, Craig Katz and Greg Sauer of Meridian IQ see an opportunity for advisors looking to recruit talent. Craig and Greg detailed strategies for attracting new advisors in a recent genius session for Trust Company of America.
Meridian IQ recommends, first and foremost, that advisors take inventory of their own practice and identify their key differentiators. Metrics advisors should consider, both for their firm and their prospects, include geographic location, assets under management, compensation structure (fee-only or commission), size of firm, types of clients serviced compared to the competition, other services offered and the culture of the firm.
Using this information, advisors need to develop a competitive analysis and profile of their firm and then work to identify prospects who fit the mold. Meridian IQ provides data that can be used to build the competitive analysis and profile. Once the profile and targets are established, enterprising advisors then need to set aside time to proactively recruit.
Katz suggests hosting speakers as an indirect tactic for attracting talent. Some prospects may very well be interested in joining your firm based on what the speaker says, while others will at least benefit from having attended the event. Sauer recommends advisors set up Google Alerts to supplement other recruiting research. Certain keywords may help to capture opportunities as they appear online.
For more information on Meridian IQ and how it can help you grow your firm, visit www.meridian-iq.com.