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"What Are You About and Networking": From WJBK Fox 2 Detroit's Job Shop, news with Murray Feldman. |
Shifting Patterns of Retention and Recruitment in Wealth Management Organizations
By Beth Grossman, as appeared in Florida Banking Magazine
In the current volatile economic environment, a shift in the pattern and style of wealth management and private banking is taking place in geographic markets around the nation. As profit margins shrink, the wealth management segment of the banking platform is one of the most profitable, carrying the least risk. With the aging of the baby boomer population, more wealth is becoming available, more people are retiring and financial institutions want to be part of this trend.
As a result, more banks are entering this platform, and wealth organizations are seeking to hire and develop the “hunter-gatherer” or rainmaker -- the person with a large sphere of influence, a big book of business and the ability to move much of that book. Although a large number of investment advisors are available for hire right now, they are not always the candidates banks, financial institutions and boutique wealth management firms are seeking to work with their wealthiest clients.
As the economic climate becomes more challenging, employees seek stability, which is harder to find as the choices become narrower with every consolidation, merger and acquisition. Many institutions and boutique organizations are finding success by growing organically. Leaders are working with portfolio managers, for example, recognizing that their clients have come to rely on them for their technical knowledge and expertise in these challenging times.
Several trust banks have also combined the CFA, CFP and business development roles into a team concept that is gaining synergy within their organizations. The team makes investment and allocation decisions together – no one person is responsible for a decision; instead the group can make wise decisions based on the team’s collective intellect. Clients benefit from the expertise of several people, and the company gains loyalty to the organization, leaving less likelihood of a “mutiny.” Clients still have an allocated wealth manager (or planner, client advisor, portfolio manager), but they know that their team makes investment choices and that research analysts are also available to work behind the scenes.
Recent studies indicate that there is little succession planning occurring at most organizations to ready the trust sales department for the people that are needed to take on these roles as retirements occur. Forward-thinking organizations are training their current staffs for the trust sales expertise that will be needed in the coming years. Although the markets have suffered in the current economy and the boomers may wait a few years longer to retire, they will eventually retire and they will have funds to invest. Those organizations that do not have trained and knowledgeable staff to work with those clients will lose the race for those profitable dollars.
Networking Tips
Best Practices
Simplest Advice is: No one has ever made contacts by doing nothing! Start now and make a commitment for at least 1 hour a day. Increase the time and activities as your confidence grows.
Start with your immediate centers of influence: people you know well and who would be willing to provide you advice, assistance, referrals, etc.
Friends, family, co-workers, bosses, former co-workers, etc.
Brainstorm contacts-potential contacts, people with whom you did business, former clients, alumni.
Overcome call reluctance-it’s real and very common and there are specific techniques to overcome it.
Go to the library and the bookstore and online. READ and talk to people and evaluate your career path and what you really want to do.
Learn how to use Google to search for information online.
Do you need to reinvent yourself? If so, take some profile tests or see a career coach and discover what you want to do next. Don’t just leap into another job if you weren’t happy in the last one or if your career path is at a dead end.
Use networking sites, but don’t expect them to yield results just by being online. Use them as one tool in your toolbox. Spend time online but not all your time online.
Plan to get to an event (interview, lunch meeting, networking event-job, association meeting, interview, etc- at least 2 times a week minimum). Take a class, join a networking group, go to events you read about-go where you have likelihood of interacting with people.
Ask for contacts. Don’t assume people know what you do or that you are seeking a new job. People LOVE to give advice and talk about their own lives. Ask them about themselves.
You don’t need to actually ask for a job-look to make connections and ask questions.
Hearing “no” means you are getting closer to yes. Overcome that sinking feeling you get when you hear “no.”
Enlist someone else as your spokesperson, someone who can brag about you so you won’t have to.
Even if you are uncomfortable, do it!
You don’t need to be a computer whiz to network-start with LinkedIn.com—it’s very easy to navigate.
Twitter can be used to “follow” people in industries or at companies where you’d like to work or in which you’re interested. Remember that you are business networking. There is a difference between social and business networking-remember it always.
Think about what you can offer others also:your contacts, your insight and knowledge.
Always be very polite and professional-your facebook profile will be reviewed by your business contacts so don’t get “too comfortable.”
Set realistic expectations.
Set small goals that are attainable.
Consider using a journal to track progress to goals.