Happiness, much like beauty, seems to be in the eye of the beholder. After weeks of talking with brokers across Canada, Investment Executive found that utter contentment remains elusive for many of them. The reasons vary.
Some reps would like more money and benefits, or more independence, or perhaps a stable of richer clients. Others say bliss would be found if they worked at some other company, or in some other part of the country.
Napoleon once said, “It is by baubles that men are led.” Some brokers at Edward Jones seem to agree, as they appear happier than many counterparts because of perks, free training and a private office to call their own.
Other brokers, particularly those at TD Evergreen who face pay cuts, are saying: “Forget the baubles and show us the money.”
Several Evergreen brokers point to RBC Investments as their ideal. The rebranded RBC Dominion Securities Inc. is indeed one of the highest-ranked firms in terms of stability, and yet many of its own brokers use words such as toxic and paranoid when discussing its corporate culture.
A broker in British Columbia who works for National Bank Financial Inc. admits to admiring Raymond James Ltd., and a Hamilton, Ont., area broker formerly with Merrill Lynch Canada Inc. says he’s thinking about jumping to that firm for the higher payout. At Raymond James, however, many brokers are not happy campers because of brand confusion and a bad advertising campaign.
In short, it often appears that many brokers believe that true happiness is just over the horizon, probably at another firm. The sentiment is understandable, says Claudine Kapel, a rewards and performance management consultant at Towers Perrin in Toronto. After all, the markets are quiet, the industry is consolidating and many brokers are probably finding it hard not to entertain the thought that the grass might be greener elsewhere.
“Employers are no longer offering a job for life, and employees no longer expect it,” she says. As a result, individuals become far more conscious of other opportunities that may be available.
A survey by Kapel’s firm finds that management effectiveness plays a major role in employees’ sense of engagement in their jobs.
Managers at CIBC Wood Gundy might be on the right track in this respect. Although the firm didn’t score particularly high in the overall Brokerage Report Card, its brokers generally had nice things to say about the company despite its state of flux in absorbing Merrill.
“Top level management is very impressive,” says one advisor in the Maritimes. “If there’s something Merrill brokers bring to the table that’s better than Wood Gundy, then they’re willing to adapt it.” Other CIBC Wood Gundy brokers give the firm top marks for the communications and transparency that managers have shown during the transition.
Concerns about working at bank-owned brokerages are not limited to Merrill staff. One NBF advisor in British Columbia says banks have ruined the business. Others are a little more tempered in their criticism, but say being owned by the bank, dealing with all the red tape involved and being branded as a banker are some of the worst aspects of their jobs. “Nobody is happy with the new culture,” says a ScotiaMcLeod Inc. broker in B.C. “The bank has intruded enormously.”
“Banks tell you what to do, they don’t ask you,” says one Evergreen broker in Alberta. A colleague in Ontario echoes the sentiment, saying banks “have no idea what the client wants.”
Money, as always, tends to have a pacifying effect. A Towers Perrin survey of employees at major North American firms found that competitive base salary was ranked No. 1 of the factors required to attract good employees. Kapel says concerns about compensation are probably magnified by the weak markets. “It does have an impact on people’s morale and their enthusiasm for their particular place of employment.” IE