Hiring more staff does not guarantee business growth
There is no evidence that hiring more employees will spur company growth, according to Michael Kitces, chief financial planning nerd at Kitces.com.
He said the top earning advisors are the ones who “are really good at leveraging a team of 3-4” to get the most out of the staff.
Kitces spoke at the Chartered Institute for Securities and Investment (CISI) Financial Planning Conference in Milton Keynes today (October 6).
He told delegates at the event that team structure and staff support is a higher engine of advisor growth and productivity than technology.
Kitces spoke about recent research his company has conducted on “How Financial Advisors Actually Do Financial Planning.”
Most of a financial advisor’s time is motivated by what they do with their clients and prospects, he said.
However, only about 20% of an advisor’s time is actually spent in meetings with clients.
The advisor spends an average of two hours preparing and following up by one hour client meeting.
The study found that, more and more, counselors have become more and more “personalized”. About 15% of advisors create a personalized plan for each client.
Meanwhile, about 32% use scheduling software in a more “collaborative” way with the customer live in meetings.
Additionally, research has found that the time it takes to develop financial plans depends on how advisers are paid.
Those paid by the hour generally took the most time, while those paid through compensation and assets under management generally took the least time.
He also found that those who hold the Certified Financial Planner designation typically spend significantly less time developing financial plans than those who do not.