Almost 40% of independent advisors in the United States are thinking about growing their team in the next six months, a new survey finds.
The latest quarterly TD Ameritrade Institutional Advisor Index Survey, finds that nine in 10 registered investment advisors (RIAs) report the total number of clients they are serving has increased or remained steady over the past year. The average annual revenue growth rate is 15%.
In order to sustain that growth, nearly 40% of advisors are considering adding staff in the next six months, it reports. The survey found that, of those advisors looking to hire, one quarter will look to hire a female advisor to help attract and retain female investors. In the meantime, nearly 80% of advisors have experienced no turnover in their offices over the past year, it says.
“The survey mirrors what we’ve been hearing from advisors, who say successfully cultivating new staff in an advisor’s business can be a difficult task, but in the end, it is essential for growth,” said George Tamer, director, strategic relationships, TD Ameritrade Institutional.
The top human resources challenges advisors say they face today are hiring and firing (22% and 18%, respectively), followed by developing and training staff (12%). Only one-third of RIAs outline a career path for new employees, the survey also found.
“Properly managing the human capital in your business is just as important as managing the bottom line numbers,” said Tamer. “It’s in the best interest of your clients and the success of your business to provide meaningful training and opportunities for growth to attract and retain the best talent in the industry.”
The survey of 502 RIAs is based on a telephone survey from March 29 to April 9. The margin of error in the survey is ±4.4%.