Banks and credit unions say turnover is not a problem, but account managers know there are lots of opportunities for good advisors.
Those surveyed in Investment Executive‘s annual Account Managers’ Report Card say it is relatively easy to move to another financial services firm. (The score for “ease of moving firms” jumped two whole points this year, the biggest jump in any category.)
As a Bank of Montreal account manager in Ontario puts it: “Because there is no book, there is no problem with leaving — just with starting over.”
Account managers are employees of the institution and, as such, usually can’t take their clients with them. (Clients, however, can always choose to follow.) So that feeling of freedom account managers enjoy is not because their employers are making it easy for them to go. It’s because rival firms are always receptive to welcoming strong advisors.
“Right now, there is a great market for people,” says Anne Lockie, head of sales for personal and business clients with RBC Financial Group. “Take Royal Bank of Canada: we’re expanding. For folks with the right accreditation and the right skill sets, there are always opportunities in the marketplace.”
Lockie’s comments echo those of executives at other banks, who told us that they, too, are in hiring mode. They are drawing new account managers from promotions within their organizations, from among university graduates and by hiring advisors from other banks and firms.
Account managers aren’t being poached
just by other banks and credit unions. In our 2005 Planners’ Report Card (in the June issue), a number of mutual fund dealers acknowledged that they, too, were hiring people from the banks.
“We’ve had a lot of success recruiting individuals from the banks,” says Kevin Regan, executive vice president of financial services at Investors Group Inc. in Winnipeg.
Despite this seller’s market for advisors, many told us they were happy with their employers. And the financial institutions themselves don’t think turnover is a huge issue. Account managers rate the importance of ease of moving firms rather low, at 6.9.
“Our turnover in the entire sales force is less than 10%, and it is down to 4% for our financial advisors,” says Wendy Hannam, executive vice president of domestic branch banking at Toronto-based Bank of Nova Scotia. “In our internal satisfaction surveys, 92% of our advisors rate our bank a great place to work. We work hard at maintaining a culture in which our employees are valued.”
Says Royal Bank’s Lockie: “I would say we haven’t suffered from a whole lot of turnover issues. I think our challenges have been mostly internal. What we’re trying to do is make sure we can create roles in which people can stay with the same set of clients for longer periods of time.
“I think that’s an issue the whole banking industry needs to come to grips with. As you become more and more engaged in the wealth-management business, I think people want longer continuity from their account managers or financial planners.”
Don Rolfe, president and CEO of Credential Financial Inc. in Vancouver, says turnover is less of an issue in the credit union industry than it is for the banks, pegging it around 1%-2%.
“Credit unions are community-based,” Rolfe says, “and they are also member-based.
You have a responsibility to members and to the community. It’s about serving customers on a long-term basis. It’s not to say brokers aren’t serving clients, but the [credit union] model is different.”
Rolfe adds that credit unions tend to pick up advisors in rural areas when banks or small financial services firms close branches.
The banks say keeping good staff is a priority. And they are working to give account managers every reason to stay. “We have very open lines of communication,” says Scotiabank’s Hannam. “Our fundamental premise is: ‘We care about our employees.’
So we ensure that, for all of the things that are important to them, we have systems and policies and programs in place to make sure they happen.”
Hannam says this involves making sure compensation is competitive, that there are means of reward and recognition for the managers and that training is always accessible.
Lockie says Royal Bank provides all those things, but believes what is most important is providing appropriate leadership.
“The reason people come [to Royal Bank] is because they want to work for people they like, and they want to see that the management team will help them accomplish what they want to accomplish,” she says.
@page_break@”Our management team is very much engaged in external recruiting,” she adds.
“Making sure you have great sales
managers is an important part of [attracting and keeping staff]. We spend a lot of time there.” IE