Business Transformation | 05.07.24
Leading Across Generations: Creative Approaches for Engagement
by: BISA Staff
As a significant portion of the advisor population nears retirement, there are gaps in experience and established client relationships at many financial institutions. Meanwhile, the industry needs to attract a new generation of clients, who have distinct expectations and financial goals. How can firms bridge these generational gaps and ensure continued success? At the BISA Annual Convention's "Leading Across the Generations" session, three successful program and sales managers — Najib Khan, Tim Sease, and Steven Tucker — shared insights and examples gained from their many years navigating these challenges.
Equipping Burgeoning Advisors
The conversation began with acknowledging the pressing issue faced by many — advisor recruitment. Tucker shared how the industry has more financial advisors over 70 than under 30. With this experienced generation approaching retirement, Tucker emphasized the vital role of empowering younger advisors within existing teams. These seasoned advisors are often the top producers, and their knowledge and client relationships are invaluable assets. However, Tucker explained that some mid-career advisors need additional support and education in order to grow and take on a larger book of business. This creates barriers to growth for many firms across the industry, as experienced advisors leave with few qualified replacements stepping in to fill their shoes.
Sease highlighted the need for a comprehensive, multi-generational approach to solving recruitment challenges. His organization, South State, tackles this by fostering a culture of collaboration and mentorship. They actively recruit from a wide range of industry backgrounds, ensuring a mix of experienced advisors and those new to the field. They've also introduced a partnership program where senior advisors mentor associate advisors. Sease has observed across the industry a disenchantment with large wirehouses among younger advisors, and in response, South State is able to position itself as an alternative — a place where advisors can have a voice and contribute to the firm's direction.
Engaging Experienced Advisors
Khan shared his perspective that open communication is a cornerstone for retaining seasoned advisors. Firms must understand advisors’ needs and aspirations regarding succession planning. For some, having these conversations may seem uncomfortable, but Khan believes it’s more uncomfortable not to have them. It’s better to plant the seed and come up with a strategy vs. feel blindsided when someone is picked off by another firm.
Sease's firm exemplifies this open communication approach by working with senior advisors to develop succession plans. Asking advisors how their succession plan would go if they wrote it themselves is an approach to discovering these interests and dreams among advisors and allows for collaboration between a mentor and mentee to flourish organically. This flexibility is a value-add provided by banks and credit unions that is not often found in wirehouses. For instance, Sease described a situation where a senior advisor wanted to retire and shared his main reason was to be able to fish more. South State told him he could have the flexibility to fish as much as he wanted if he would stay on a year part-time and mentor a younger advisor to take over his books. This win-win solution allowed the senior advisor to pursue his passion while ensuring his clients continued to receive exceptional service.
Tucker takes a similar approach, discussing “legacy” with older advisors. By having open conversations about values, team building and an advisor’s vision for the future, firms can encourage collaboration and a sense of shared purpose. This not only benefits the firm but also allows veteran advisors to shape their legacy within the organization.
Creating Personal Connections
All panelists agreed that building genuine relationships is essential for attracting and retaining talent across generations. For Tucker, recruiting is an ongoing process, and he believes it can be fun. He emphasizes consistency and a willingness to experiment. He actively uses LinkedIn to connect with advisors, aiming for an hour of recruiting activities daily. This includes scheduling regular lunches and coffee meetups to learn about his connections’ firms, challenges and lives. He shared a story of connecting with an advisor on LinkedIn who was studying for the CFP exam. He sent a personalized note of encouragement. Following the advisor's successful completion of the CFP, Tucker plans to celebrate by sending another personalized note and champagne. These personal touches create a strong employer brand and showcase the firm's culture, differentiating them from the competition.
Khan reinforced the importance of personal connection as a differentiator. He described an engaging “ask me anything” session he led in a business school class, where he addressed students' lack of familiarity with the financial advisor role. The session revealed that this generation is motivated by the desire to help people and make a positive impact, something they hadn't previously associated with wealth management careers. By thinking outside the box, Khan was able to connect with potential future advisors and create lasting connections. He encouraged students to reach out to him directly and received over 60 messages. Some of these connections he has maintained, and many are now actively seeking opportunities in the industry.
Attracting the Next-Generation Client
The discussion transitioned to another burning question: how can wealth management firms engage the next generation of clients? Khan pointed out a shortcoming in the industry — a lack of understanding of how to connect with the millennial and Gen X children of their current clientele. Traditional marketing strategies that resonated with their parents' generation may fall flat with the more digitally native generations.
Tucker's firm tackles this challenge by hosting educational client events specifically designed for younger generations. These events go beyond investment advice, offering workshops on topics like teaching children about money management. Integrating technology into the client experience is also crucial. They also aim to “wow” clients, creating fun events such as movie premieres and encouraging clients to invite their grandchildren. He believes taking risks is key to discovering successful solutions.
Sease's firm targets young professionals relocating to their area, leveraging data and digital marketing to reach them. By analyzing mortgage data, they can identify potential clients and use targeted digital outreach to introduce their services. Initially, Sease was unsure if some of the marketing strategies created would work — but he has since learned not to assume. For example, they sent out a brief, five-question form, and he assumed no one would fill it out — but many did, and they discovered one of their largest client relationships through this approach.
Social media engagement and a strong online presence are essential for attracting those who rely on these platforms for research and communication. But Khan goes beyond the surface, emphasizing the importance of search engine optimization (SEO) to ensure a firm's website appears in local searches. A well-optimized website can be the first point of contact for a potential client searching for "investment services near me."
Thinking Creatively for a Successful Tomorrow
As industry executives seek solutions for engaging next-generation advisors and clients, having the courage to think creatively and try approaches you aren’t sure about may hold the solution. We may not be able to solve today’s challenges with yesterday’s processes and traditions, so don’t hesitate to try something new — whether you hold a movie premiere, visit a college class or discover another out-of-the-box approach.