1. 20 CONNECT | SUMMER 2014
The Right Way to
Bring on an Associate Advisor
Bringing in the right candidate can help you achieve the next level in your
business, find a suitable successor – or both
W
hether you are focused on finding a succes-
sor to your practice or have been fortunate
to have experienced growth in clients and
assets that exceeds what you want to manage on your
own, consider the reasons to add an associate advisor to
your business.
Adding new advisors and providing the proper path to
success are integral parts of industry growth. A 2013 re-
port from consulting firm Accenture noted the average
age of a financial advisor today is about 50, and 21 per-
cent are over 60. Yet, of the estimated 300,000 financial
advisors in the country, Forbes reported in 2012 that
less than 5 percent are under age 30.
Associate advisors fill many roles in an office, from suc-
cession planning options to attracting younger clients,
but awareness of all the implications growing your team
creates is essential. Some simple questions to consider
before making a decision can include:
1. Is this a good time to expand our practice? Are there
any reasons this process should wait, or is it long overdue?
2. Have I defined exactly what I am looking for so I can
select the best candidate? Once interviews are com-
pleted, the question becomes – is this person truly the
best fit or just someone to fill a role?
3. Am I prepared to take on the shift in my role from
advisor to trainer and manager? For groups looking to
add an associate advisor, is there a designated person for
those duties?
4. How will I leverage the associate advisor’s talents to
make the most of their role on the team?
Because the candidate you hire becomes a reflection of
your practice, finding the best candidate and building
a mutually beneficial relationship for success requires a
strong plan.
Starting the process to find the right advisor
Laurie Burkhard, senior business
consultant at independent bro-
ker-dealer Securities America,
often coaches advisors on success-
ful ways to manage the entire
process of sourcing and hiring an
associate advisor. The map she
gives to advisors follows this
guidance:
Search for the ideal candidate
• Double the amount of time you would normally allow
for a hiring process. This position can be slower to fill
than many other positions in your office.
• Get creative in your recruiting. Beyond common
sources like Monster.com and CareerBuilder.com, use
your connections on LinkedIn to find candidates as
well.
• Consider outsourcing the hire. Ask if your broker-
dealer has resources to assist, or consider a local
agency.
Laurie Burkhard
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2. Set a clear list of expectations for the role
• Look for a team player who is willing to learn from
you as a senior advisor.
• Decide if they show enthusiasm for the role, while
realizing that this is a fantastic opportunity for them.
Understand their strengths and weaknesses
• Someone who knows the industry but is not strong
at generating their own leads could be a valuable asset
to a team that has more leads than they can manage.
The associate advisor can follow up with leads and close
the sale while providing a high level of service.
• Candidates with no industry knowledge may be bet-
ter suited for a sales assistant role where they learn your
brand and philosophy while learning the industry.
An Advisor’s Perspective
For advisor Denise Fries, the decision to add an associate
advisor hinged on the quality of service for clients and
the quality of life for her team.
“We had too much in AUM per advisor to provide the
level of service we wanted and still work a reasonable
amount of hours,” Fries said.
Fries has been building a successful practice in Bryan,
Texas, for the past 30 years. Ten years ago she brought in
a second advisor to work with her, and the continued
growth of her business led her to add an associate advisor
two years ago.
At the time, Fries was participating in a coaching pro-
gram at her broker-dealer, Securities America. She gained
insight from Burkhard, a certified masters coach, on what
to look for. Moving forward with a theme of “come grow
with us,” they received many applicants from the ad they
placed. The associate advisor they selected answered the
ad on a local news station’s job site.
Fries was deliberate in her recruiting, addressing many
common concerns faced while evaluating candidates to
ensure they would be a good fit to join her practice and
integrate well into the group. Although her goal was
originally to consider two new associate advisors, only
one candidate possessed the skill set and demeanor for
her team.
“I knew I wanted someone with industry experience, so
I did not have to provide training from the ground up,”
Fries said. “I also wanted someone with community
involvement – a servant’s heart, who would not just
focus on themselves, but work towards the betterment
of the whole team.”
Matthew Gentry came on board in early 2012, and the
transition was smooth from a team of two advisors to a
group of three, with Fries leading the team. Having ex-
perienced onboarding an advisor earlier in her practice
gave Fries a clear vision for Gentry’s training. She said
the first year of introducing clients to a new associate
advisor can be challenging.
“It’s not a quick process. I still have clients who will only
see me,” Fries added. “But Matthew takes on most new
clients.”
She quickly worked to enhance Gentry’s skills by having
him accompany her on appointments to build relation-
ships and handle follow-up matters for clients, a process
that went on for a full year. That training aspect helped
him connect with the firm’s current clients.
Today, Gentry works with about 200 accounts totaling
$25 million in assets.
SUMMER 2014 | CONNECT 21
“We had too much in
AUM per advisor to
provide the level of
service we wanted and
still work a reasonable
amount of hours.”
- Denise Fries
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4. What to think about for your practice
Advisors who do not have a plan for training and inte-
grating new advisors may have a bumpier experience
than Fries.
Roger Verboon, director of practice succession and
acquisition at Securities America, fields a lot of questions
on the process.
“The main question advisors ask first is: how much do
I pay them, followed by: how is that figure broken
down,” Verboon said. “Yet, the two areas that advisors
struggle with most in the process are knowing how to
train and knowing how to leverage a new advisor in
their practice.”
The decision to bring on an advisor usually stems from
trying to solve a problem in the practice, such as no suc-
cession plan, too many clients to manage or scalability
in growing the business, Verboon said. Advisors who
focus on problem solving often overlook a crucial factor
– is the senior advisor mentally prepared to take on the
extra workload of the transition element and embrace
the shift from being an advisor to a manager of another
employee?
“One pitfall in the process is senior advisors who expect
the junior advisors to be them right away and immedi-
ately know what to do.” Verboon said. “Many advisors
are great at what they do, which is building relationships
and providing excellent client service, but they are not
managers by nature, so this process will take time.”
Verboon helped develop Securities America’s Associate
Advisor coaching program, designed to provide a struc-
tured approach to training new advisors by providing
the steps, tools and resources as an alternative for senior
advisors who may not be prepared for this part of the
process. This standardized approach allows every aspect
of the transition to be addressed by industry experts
who can provide guidance through this time.
Many advisors have successfully integrated new members
onto their team and been able to enjoy the benefits to their
business. The most essential part before you onboard an
associate advisor is having a clear plan of how they will be
trained, managed and properly leveraged in your business,
so both of you can grow and succeed together.
“Many advisors are great at
what they do, which is
building relationships and
providing excellent client service,
but they are not
managers by nature, so this
process will take time.”
- Roger Verboon
SUMMER 2014 | CONNECT 23
For more on hiring an associate, turn to page 45 to download an
“Associate Advisor Guide.”
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