Why the advice profession struggles to bring in young talent

Why the advice profession struggles to bring in young talent

A lack of support for smaller firms, no clear entry route and a general lack of knowledge about advice are all reasons why the profession is struggling to recruit talent, according to this week’s FTAdviser podcast guests.

Appearing on the latest edition of the FTAdviser podcast, Tim Morris, IFA at Russell & Co, said firms struggle to bring in young advisers because of the time commitment and costs it takes to train these people up.

Morris said: “A lot of advice firms, especially smaller firms aren't willing to take on this investment, which is not just monetary but also timewise, because it takes a while for people to get through all of their exams.”

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He added that even once the exams are finished these trainee advisers still are not ready to go into a client facing role because it takes more time and investment to learn the soft skills needed to talk to clients.

It is well known that the profession is getting to the stage where it will soon have a raft of advisers looking to retire and either sell up or pass on their businesses on, but there may not be enough young people coming into the profession to plug this gap.

Also appearing on the podcast, Derek Bradley, chief executive officer at Panacea Adviser, said advisers need to find ways to make the profession more attractive. 

This could involve making more roles available via apprenticeships so that young advisers can learn while also making a living.

“Apprenticeships might be another route to actually go down because not everyone is necessarily equipped academically, although you would assume this would help. But it doesn't. 

“It's a people business as well. And I think dealing with clients is something that no matter how many qualifications you have, if you haven't got that interaction and empathy with the clients you're trying to support, then it's not going to work.”

To listen to the full podcast click play on the player above. FTAdviser's podcasts are also available on Apple Podcasts, Spotify, Google Podcasts, Stitcher and Acast.