Four reasons to stay with your firm


Advisors regularly receive calls from recruiters, consultants, branch managers, complex directors and business development officers. In either case, it seems like everyone has a solution (read: “firm”) to sell.

However, there are some realities that every advisor should be aware of. Moving is a hassle; it is not without risk; and it certainly isn't right for every advisor at any given time.

So I challenge advisors to reverse traditional thinking. Don't fall victim to the “grass is greener” mentality. Instead, think critically about why you should decide to stay put.

Here are four factors to consider:

1. Stay because you get equal value from your firm.

There are many ways to define “equal value”. For some, that means paying as high as possible. For others, it means more support and resources. At the end of the day, advisors want to feel like they're getting what they paid for. For wire advisors, this is often a fairly simple equation as the firm keeps roughly 50-55% of the revenue in most cases. And wires provide a great degree of support and service. Think about the various costs they incur on your behalf, such as asset custody, branding, technology, human resources, compliance, investment products, etc. But the question is fair, especially in light of UBS's recent move to cut base pay for some advisers: Are the big firms delivering value commensurate with what they charge?

2. Stay because you have the ability to serve customers without limitations.

Ultimately, advisors have agency over where and how they choose to serve clients. But it also comes with the responsibility to deliver like a true believer. And one of the first and most fundamental questions advisors should ask themselves, whether they're considering switching or not, is do they have the tools, resources, support and products to serve their client base? For most advisors, the answer is not black and white. They may have the financial planning tools they need to serve their mass affluent clients, but not their high net worth clients. Or they may have access to SMA/UMA but not sophisticated alternative investments. As long as you can serve your customers without limitations, you can consider other factors like compensation and growth – but customer service should rightfully be first and foremost.

3. Stay because your firm is helping you grow.

In a bull market like the one we've enjoyed over the past few years, growth is often obscured. Many advisors experienced record years in 2023 and 2024. In these times, it's critical to ask this tough question: Are you growing because of your firm or in spite of it? While not all advisors are concerned with organic growth, most are. Despite this, advisors often point to the fact that they are achieving tremendous success as a reason not to want to “upset the apple cart,” but if you can achieve even more success elsewhere, you may have left chips on the table.

4. Stay because there really is nothing “better enough” out there.

New brands and models enter the landscape almost every week. Can be rotated upside down to keep track. And most advisors don't like the process of exploration and due diligence. So how can advisors ensure they are in the best possible place? A low-cost option is through periodic passive due diligence: Internet research, peer networking, discussions with recruiters and industry consultants, etc. Commit to catching the latest industry trends every year (or at least every other year). This approach does not require a single meeting with external firms or managers (hence “passive”). In short, stay because you can rightly say that your firm is the best possible place for you, not because your firm is all you know.

It may sound difficult to evaluate each of these factors collectively and faithfully to arrive at a decision of stay versus flight. But it comes down to a very simple calculation: Stay because your firm serves you, your team, and your clients. Don't stay because you are stuck or because of inertia or fear. This is a goal all counselors can aspire to in this new year and beyond.

Jason Diamond is Vice President, Senior Consultant of Diamond Consultants – a nationally recognized recruiting and consulting firm based in Morristown, NJ that focuses on serving financial advisors, independent business owners and financial services firms.



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