If you’re a local or regional bank and run an in-house investment advisory practice, chances are that you’ve struggled with finding good talent. You’re not alone.
What are some things we know about recruiting investment reps?
- For starters, we know that there aren’t enough of them out there. Scratch that. There aren’t enough good ones out there. Sure, banks have been jettisoning Series 7-certified advisors for months now…but they’re keeping the top producers. This dynamic keeps the supply-side constraint as strong as ever.
- We know that only 5-10% of these reps are “lifers.” Performance and retention issues make this skill set a tough one to navigate.
- We know that care and feeding are critical, because these folks live on adrenaline and praise from their manager.
- Bottom line - Low supply + high wash rates + high maintenance = “let the Trust Department deal with it”
Where do top investment reps work? aka, “Where do you hunt for these people?”
- Banks, like yours
- Investment shops & wire houses
- Insurance companies
- For themselves as independents
Guess where you don’t hunt for reps? On job boards like Monster.com or Careerbuilder. And certainly not on Craigslist.
What are these top reps doing every day? Well…
- They’re making great money.
- They’re continually building their book of business - their clients love them and refer them business; in fact, 80% of new business comes from referrals for these folks!
- They’re happy.
All of these facts combine to form a truth that’s as plain as the nose on your face: you’re going to have to pry them out of a very good situation. In the next post in this series, we’ll talk about what you look for when recruiting a top rep away from a competitor.
