It is no secret that the advice industry needs to forge a plan to increase the numbers of advisers, as many are set to depart the sector in the next few years.
There are several schools of thought on how to broach this subject, such as recruiting younger people, second careerists and encouraging women to return to work.
But there are some people who believe that one area is being prioritised and this may not be the best for the sector.
Questions around age
Scott Stevens, director of recruitment and acquisitions at Quilter Financial Planning, told International Adviser: “There is that structural problem, which is we haven’t gone after the immediately productive cohort.
“We’re not getting enough through the hopper, and this is not necessary just in terms of younger people coming in.
“There are a number of graduate programmes that are out there. So, we are getting young people.
“But you ask yourself the question, as a principal of the firm, would you be happy putting a 23-year-old in front of the average client, who is about 57-years-old?
“And, as a 57-year old, would you be happy looking at 23-year old? As they ask themselves, ‘how are they going to help me?’”
He admits that is a “gross generalisation, because there are some 23-year olds, who are absolutely fantastic and have got those soft skill sets and are brilliant in front of clients”.
But relying purely on younger talent to fill the industry’s dwindling ranks won’t solve the problem.
Natural lilt
Stevens, who was previously head of distribution at Quilter Cheviot, took up the role at Quilter’s financial adviser network in March.
He will also be looking at those switching jobs as a way of solving the talent crisis.
“I do think that people who are second careerists have a natural lilt in this space and have an advantage.
“Somebody that’s ex-military or an ex-sports person returning to work, they’ve got a life experience, which means that they have their soft skills and interpersonal skills that naturally lend themselves to becoming a quality financial adviser.
“So, I’m really excited about that element. Because we need to attract a whole new cohort in the industry if we are going to plug this gap.”
Attraction
But the big problem will be attracting second careerists, as even people in the sector do not feel it is something to scream and shout about.
Earlier in August, IA reported on an Openwork study which found only 48% would recommend becoming an IFA to those considering a career change.
“We have about 26,000 financial advisers, as of 24 December,” said Stevens; who, based on projections, expects around 7,000 of them to leave the industry in the next four years.
“The natural question is why are these people leaving? Is the job so unattractive that they don’t want to do it anymore?”
But those queries are only part of the puzzle.
“How do I get the 35-45 year olds interested in being a financial adviser? Some of that, of course, is education to know the variety involved.
“You are not doing the same thing every day, you get to be your own boss, it is not London-centric job, I get to work with people and, fundamentally, I get to work with a higher purpose to help people.
“Those are five cracking reasons as to be a financial adviser, let alone the renumeration as this can be hugely lucrative for you.”
Take the lead
Within the same Openwork survey, 72% of IFAs believe there needs to be a coordinated approach by industry trade bodies and financial service providers to attract more recruits.
More than half want the government to consider sponsoring initiatives, while two-thirds (66%) said that providers should expand their apprenticeship programmes to attract and train future IFAs.
Who should take the lead in recruiting more into the industry?
Stevens, who also became head of the Quilter Financial Adviser School in June, added: “I’ve been in the industry for 25 years now and this argument has raged on for a quarter of a century.
“When I first started, I think a lot of people felt it should be the premise of government that should help or the trade body. Those in grassroots level say we should be encouraging governments to put more into financial education and schools.
“I do think that life skill should be actively promoted by the government far more so than making some of the other things I see my kids involved in at school.
“But I think each organisation needs to play as part. In terms of making this finished space attractive, I think it’s really the industry needs to do that for itself. And that’s not the governing body. That’s us as companies.”
