A new Fidelity Institutional poll found that nearly three-quarters (72% ) of broker-dealer and registered investment advisor (RIA) firm executives believe that there is a talent shortage in the industry, and acquiring or recruiting new talent is one of their firm’s top three strategic priorities.
However, most firms are still relying on more traditional methods of recruiting to attract candidates: 61 percent of executives polled cited referrals and word of mouth as one of their top strategies to find new talent for their firm.
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Research from Fidelity’s Recruiting Redefined study found that only three out of 10 new hires come from referral networks. Gen Y candidates are leveraging online tools like social networking sites and student/alumni directories, which may be underutilized resources for firms.
According to the poll, firms are looking to set themselves apart from their competitors to attract new talent – the top tactics executives cited to differentiate their firms include: Culture (66 percent), Brand/Reputation (47 percent), and Firm Growth (35 percent).
"Some of the best recruiting strategies we’ve seen have nothing to do with the act of recruiting itself, but originate from the core of the firm," said David Canter, executive vice president of practice management and consulting, Fidelity Clearing & Custody.
"It’s about distinguishing their firm from all the rest through their mission, their values and their strategic priorities. We’ve seen several firms use those key differentiators to their advantage in their recruiting efforts."
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By GlobalDataOne firm that has leveraged this tactic is Buckingham Asset Management which cites a culture that puts employees first as a big contributor to the growth of the business.
"Every person we hire plays a crucial role in the organization, so attracting and developing top talent is a key strategic initiative for us," said Adam Birenbaum, CEO of Buckingham Asset Management. "We’ve been successful in recruiting and retaining talent because we put such a big emphasis on our culture. We find good people and give them great opportunities."
The poll also found that even while most firms are using standard methods of recruiting, many of them are starting to recognize the need to cast a wider net when they look for candidates.
"Many respondents told us that they had successfully recruited advisor talent from outside of the financial advice industry," said Canter. "Some of the professions are ones we’ve heard before, such as accounting and law, but several firm leaders cited human resources, military and even education, as sources for talent. So we’re seeing firms thinking outside of the box when it comes to finding the right candidates to serve their clients."
