The Challenge

Despite last year’s positive market conditions and relatively upbeat investors, overall satisfaction among financial advisors in the Employee Advisor segment has declined year over year to 701 (on a 1,000-point scale) from 732, and to 771 from 776 in the Independent Advisor segment.

Equally concerning to firms are declines in advisor loyalty, with the percentage of Employee Advisors who indicate an intention to leave their firm increasing to 17% in 2015 from 11% last year. Even among those who intend to remain, 38% say it’s because of contract requirements, compensation, or simply the lack of a compelling reason to move on. Many such advisors lack genuine, enduring firm loyalty, and should be considered at risk of attrition when their contract ends or deferred comp is fully realized.

With a significant number of current advisors approaching retirement age and the increasing flexibility and support available for those inclined to work as independent advisors, the ability of firms to acquire and retain proven talent is becoming even more critical.

The Solution

The J.D. Power U.S. Financial Advisor Satisfaction StudySM helps wealth management firms understand how effectively they are supporting their affiliated financial advisors, whether the advisors are independent or employees of the broker-dealer. The study identifies your firm’s strengths and weaknesses relative to key competitors, as well as opportunities for immediate and long-term improvement. It also provides insights on how your firm can improve advisor satisfaction, loyalty, and retention, and identifies specific opportunities for recruiting, including how to best leverage key competitive advantages.

A study subscription provides access to the tools needed to gain a comprehensive, in-depth understanding of how your firm is performing and to identify areas needing improvement.

Study deliverables include:

  • An analyst briefing that provides high-level executive insights into industry trends and study findings, allowing your firm to understand key drivers of satisfaction across all aspects of the advisor experience
  • Access to a personalized competitive data set, enabling you to see how your firm stacks up against competitors, the industry, and the highest performers
  • An executive presentation that provides a summary of your firm’s results against those of key competitors as well as actionable insights for improvement; presentations are delivered live, typically to an executive-level audience, and are intended to be a catalyst for strategic discussions and planning
  • A suite of analytical tools that allow you to conduct your own customized analysis of satisfaction drivers and Key Performance Indicators

The Benefits

Wealth management firms that subscribe to the study will be better able to understand their competitive position at a detailed, actionable level, allowing them to identify critical areas for improvement and prioritize investments in the areas that matter most to advisors.