Poor retention rates can be turned around: AMP
Low retention rates among financial advisers can be turned around with more mentoring and transparency, says Felicity Cain, adviser recruitment manager at AMP Financial Services.
Wednesday, May 29th 2013, 6:00AM 
15 Comments
by Susan Edmunds
She told the Institute of Financial Advisers in Auckland that it was estimated that 10% to 40% of new advisers stayed in the role long-term.
A US study had shown just 16% lasted four years or more.
The FMA would like to build up the number of AFAs in particular, to cater for the growing KiwiSaver advice need.
Cain said AMP had done a survey between 2007 and 2011, talking to advisers about their reasons for leaving the industry.
The top reasons were a lack of mentoring, fewer leads than promised or expected, more evening work than anticipated, a difference of opinion on selling methods, too much paperwork or a partner who did not understand the demands of the industry.
Australian research had shown a lack of career progression, the search for better compensation or frustration with a lack of recognition were also reasons to leave, Cain said.
She said advisers hiring juniors into their practises were not articulating career progression options in a way they could understand. She said new advisers needed to be offered tangible benefits as they reached set milestones, such as an increasing shareholding.
She said communication must be provided on a continuous basis, and expectations that were created during the recruitment process needed to be delivered upon.
Cain said New Zealand advisers faced a struggle to hire juniors into the firm. Salespeople were the third-hardest job type to recruit, she said.
Just 34% of recruiters were successful in New Zealand, she said, compared to 46% globally.
But she said hiring rather than planning to sell the business at retirement was a good way for advisers to retain a level of control over the business they had built up.
| « RFAs should become AFAs | IFA working on pro-bono offering » |
Special Offers
Comments from our readers
AMP continually overpromises and underdelivers to their advisers and they need to get that right first. Like putting on a conference, fixing their marketing, delivering on their remuneration terms, upgrading their technology, sacking useless middle management.
So why we can wail on AMP, the reality is that as an industry this is the very real issue as to who will buy your client base/takeover when the time comes...
Yes I am sure AMP are not much fun to be associated with, but adviser recruitment across the industry is a pretty common issue as illustrated by the 40 or so grey hairs in this session.
Sign In to add your comment
|
|
Printable version |
|
Email to a friend |
