Associate financial advisors play an important role within a financial planning firm, for both their work today (e.g., preparing financial plan drafts and notetaking in client meetings) and their potential to become the next generation of lead advisors at the firm. Which means their development (and desire to stay at the firm) can contribute to the firm’s long-term health. At the same time, working as an associate advisor can come with frustrations based on the extent (and limits) of their job responsibilities and the freedom granted to them. For instance, because they have relatively less experience than lead advisors, their firm might not yet be confident in their ability to present ‘live’ in client meetings, as a mistake made by the associate in the meeting could reduce a prospect’s or client’s trust in the firm.
Perhaps reflecting these frustrations, data from Kitces Research on Advisor Wellbeing show that associate advisors are less likely to be “thriving“ (and more likely to be “struggling”) than more senior advisors and indicate that they are significantly more likely to leave their employer within the next year. Which suggests that creating a collaborative development plan that allows associate advisors to build and practice the needed skills to increase their client interactions and reach the next level could not only lead to more engaged associates, but also better leverage the investment the firm has made in them.
Advisory firms have a variety of ways to gradually increase associates’ client interactions, including external training, client-facing practice, and opportunities to progress internally within the firm. This type of support can empower associate advisors and get them ready to advance within the firm, while minimizing the potential for making mistakes in front of clients. External training options include development programs that help advisors build client communication skills (e.g., Amplified Planning’s CORE program and FPA Residency) as well as pro bono planning opportunities that can give associates practice working with ‘live‘ clients and give back to the community in the process. Internally, creating a progression that starts with asynchronous client communication to demonstrate the associate’s expertise (e.g., drafting substantive emails to clients and/or writing for the firm’s blog or newsletter) and leads to the associate presenting during client meetings on a single topic that they have mastered can allow the firm and the associate to increase their responsibilities in a structured manner.
Ultimately, the key point is that while associate advisors tend to have lower overall wellbeing scores than more senior advisors, finding ways to increase their skills and responsibilities, as well as creating a growth path that shows how they can play a bigger part in client meetings and eventually manage their own client households, could give them the confidence and feeling of empowerment that could not only improve their sense of wellbeing (and perhaps the likelihood that they will stay with the firm), but also increase the chances that the investment the firm has made in the associate will pay off in the form of a more skilled (and happier!) advisor who can help the firm thrive for years to come!
