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Plague of failed hires at strapped RIA firms 'come back to bite them,' making the process of closing bandwidth deficits falter, two new studies show

Turnover rates hover near 50%, Cerulli and Ensemble report, and may be worsening as hires in market of talent scarcity has inevitable backlash.

Author Lisa Shidler February 28, 2024 at 3:36 AM
Admin:
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Stephen Caruso: RIAs that have turnover can find themselves disrupted.
Brooke Southall and Keith Girard contributed to the editing of this article.

Talentless

Talentless

February 28, 2024 — 1:55 PM
The problem is hardly a talentless pool but RIAs offering 2008 entry level pay and wondering why they can’t attract competent people. The solution is to revisit expenditures on expensive third party solutions and refocus that money on developing internal talent and processes.
realist

realist

February 29, 2024 — 7:17 PM
I would say the problem also has a lot to do with wire house advisors rolling out to start an RIA because of the increase in earning potential, only to realize they now need to reinvest their extra "earnings" to support their own firm. Most of these advisors are salespeople. They've never run a business or likely ever trained someone before. These are difficult skills for a mid 50's year old advisor to suddenly have to learn on the fly.

Related Moves

The classic RIA era is sputtering and firms must 'decentralize,' hiring non-advisors to specialize, new Cerulli report shows, or RIAs will 'limp along,' a second consultant says

RIA principals have killed Wall Street with semi-solo shops -- only 35% have 'specialized staff' -- but the comfort zone must evolve for growth

January 13, 2024 at 2:24 AM

RIAs need to race to zap COLAs, install incentives ahead of December performance reviews or face ramifications magnified by spiraling inflation and low morale

Paying staff too little, or too much, is always a risk, but 8% inflation and 20% dip in asset-based revenues from markets magnifies the downside potential of a cost-of-living default alienating talent or killing profits

November 29, 2022 at 12:02 AM


Mentioned in this article:

Cerulli Associates
Consulting Firm
Top Executive: Kurt Cerulli

The Ensemble Practice LLC
Consulting Firm
Top Executive: Philip Palaveev



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