Heat Recruitment has published a 16-page guide for advisers on how best to recruit and incentivise financial adviser talent whilst the sector is in a state of "flux".
The recruitment consultancy claimed financial advice firms were being pressured by a "dwindling talent pool" and had to adopt a "proactive approach" to recruitment if they were to compete with their rivals.
It stated advisers were increasingly sought after, with the financial services sector contributing £119bn to the UK economy in 2017 and accounting for 3.2 per cent of all jobs.
The guide placed particular emphasis on the importance of creating a "compelling proposition" for advisers, warning that a job change represented a significant shift for people which had to be well justified by the new role.
The guide read: "Financial reward alone simply won’t suffice: building a bespoke proposition will require insight into what motivates IFAs to do their best.
"It may even be the case that the next job they take will be in a firm that places distinct importance on the health and wellbeing of their employees."
The guide suggested younger candidates may be more likely to be incentivised by the proposition of working with advanced technology that promotes productivity.
The paper encouraged advisers to ask uncomfortable questions during the recruitment process as a means to mitigate risk, suggesting it was better to be aware of the reasons a candidate may decline a job offer than to "bury your head in the sand".
It read: "Don’t hesitate to ask the individual how such a significant job change could impact their personal life; whether their partner will have reservations about the move; if the cost or inconvenience of the commute is causing a niggling doubt from the get-go.
"You should fully anticipate a counter-offer, so don’t try to impress by being a mind-reader: most times, this will only see the candidate slip between your fingers and back into the hands of their current employer."
The guide also addresses talent pooling, technology, sustaining momentum in the recruitment process, and the fee income structure.
It is offered to advisers free of charge.
rachel.addison@ft.com
