Featuring the views of over 200 financial advice professionals, NextWealth and Aegon’s latest research guide, Organic Growth for Financial Advice Firms, has revealed a number of interesting insights into how personnel development could lead to growth opportunities for advice businesses.
When asked to pick the factors they believed would be most helpful when trying to attract new clients, only 17% of advisers said the hiring of younger advisers, making it the 8th most popular choice. However, further results indicate that the value of backing younger advisers may be greater than they realise.
In the past 12 months, advisers aged under 45 generated the largest proportion of their personal revenue from new clients (22%). Advisers aged 45-54 saw 17% of their revenue come from new clients, while it was 14% for those aged 55-64, and 16% for advisers aged 65 and over.
Advisers aged under 45 are also more than twice as likely to be working with new clients that have simpler needs than the next closest age group (33%, compared to 15% of advisers aged 55-64).
NextWealth and Aegon’s new guide explores these results in more detail, highlighting the role younger advisers could play in growing advice firms. You can read the full guide here.
Heather Hopkins, Managing Director at NextWealth, comments on the value of hiring younger advisers for forward-thinking advice firms:
“Growth is a team sport, and having a range of different views, skillsets and ideas can only be a good thing for advice firms looking to lay the groundwork for achieving long-term strategic value.
“The firms building enduring value are doing several things in concert, including developing talent at every career stage. Hiring younger advisers can support that strategy when coupled with new ways of working that lift the whole team.
“Our research also shows that younger advisers draw in clients from a wider range of circumstances and sources. By pairing this new energy with the experience already in the industry, firms that invest in younger talent now could be in a favourable position to build the next few decades of trusted relationships.”
