Q: How should an advice company go about recruiting new advisers?
A: First, it is worth stating that there are a number of reasons why a company may choose to bring new advisers on board, and these will determine the best way in which to approach recruitment.
They could include the company expanding, or a need to bring in specialists or consider succession planning and the next generation of clients.
Apprenticeships are a key way in which to spot and nurture new talent in the industry and, in its recent Spring Statement, the government restated its commitment to apprenticeships and introduced a more financially attractive proposition for employers.
A major advantage of hiring an apprentice is that, in addition to being able to guide the apprentice through the technical training and qualifications they need to become competent, you can also ensure that their approach to clients, the way in which they follow processes and their methodology are in line with the culture of your company.
While facilitating an apprenticeship within your company is an option, it can be costly (both financially and in terms of time) and requires specific training and development skills.
Outsourcing some of the training to a scheme that has been set up specifically to train the next generation of financial advisers can save you time and money and means that you can concentrate on the practical, on-the-job training delivered to your apprentice.
From personal experience, every single one of our apprenticeship cohorts has been fully subscribed since we launched the New Model Business Academy Financial Adviser Apprenticeship, and there has been significant interest from advisers interested in recruiting, which, on a micro-level, paints a very positive picture for the long-term future of the sector.
If you were interested in planning your retirement and how the business could continue in your absence, then you may be looking for a more experienced adviser to take the reins.
In these cases, I would recommend industry networking events as a rich seam that you could mine.
Not only could they offer an opportunity to meet advisers looking for a change of direction, but also you will be well positioned to hear about any companies that are winding down or being bought out, leaving advisers without a base.
In addition, networking events allow you to perform the most reliable form of due diligence on your potential new employee – word of mouth recommendations from their peers.
If you are a network member or use the services of a support provider, you should be able to use the power of its connections to tap into similar information; again, your network or support company will know about situations where the principal of a company is retiring or about sole traders who are considering joining a company instead.