The Bank of New York Mellon's Pershing Unit Releases New Study Focusing On Trends Shaping Advisor Recruitment and Motivations Be
August 15 2007 - 9:00AM
PR Newswire (US)
JERSEY CITY, N.J., Aug. 15 /PRNewswire-FirstCall/ -- Pershing LLC,
a unit of The Bank of New York Mellon, has released a new
independent study with Moss Adams LLP entitled The Race for Top
Talent. The study is a component of TalentConnect(SM), an
innovative program recently launched by Pershing to help
broker-dealers and independent registered investment advisors
(RIAs) address every phase of an investment professional's life
cycle ranging from recruiting and onboarding to retention and
succession. The report uncovers motivations behind investment
professionals' loyalty and provides home office executives,
business development managers and branch managers with best
practices for attracting and retaining talented investment
professionals. The study also offers broker-dealers valuable
information to help them competitively differentiate themselves and
enhance their value propositions. According to the study, industry
demand for attracting top investment professionals is outpacing
supply, a trend that continues to increase at an exponential rate.
In order to maintain a competitive advantage, broker-dealer firms
will need to make concerted efforts to place human capital
management at the forefront of their strategic objectives. Key
findings from the study include: * All Broker-Dealers Are
Experiencing an Industry-Wide Race for Top Talent -- Today,
broker-dealers are competing with every affiliation model for top
talent. Independent broker-dealers are competing with insurance
broker-dealers, bank affiliated broker-dealers and even independent
registered investment advisory firms (RIAs). In fact, more and more
often, an advisor contemplating a change may not only consider
different affiliation models, but is also more open to complete
independence; * Broker-Dealers Need to Develop Compelling Value
Propositions to Attract and Retain Top Talent -- A value
proposition that fails to appeal to the investment professional's
emotional interests will likely not attract nor retain high-quality
talent. Payout is one of the predominant misconceptions about why
investment professionals change affiliation. Payout, in fact, ranks
lower than culture as an important aspect of the decision-making
process to leave a firm; * Shift Focus to Recruit Entry-Level
Investment Professionals at the Branch Level -- According to
recruiters, the single biggest source of talent within the industry
will come from entry-level investment professionals currently
producing less than $250,000. Attracting and retaining these
"rising stars" is a strategy that will grow a broker-dealer's
business exponentially and is likely to have a far greater return
on investment than paying large sums for the experienced investment
professional. James T. Crowley, managing director at Pershing,
said, "As the financial marketplace continues to evolve and become
more complex, broker-dealers will increasingly need to focus on
attracting and retaining top-tier investment professionals to help
them succeed. This new study identifies crucial human capital
challenges and opportunities facing broker-dealer firms and
provides them with important information to help them expand their
advisor network and enhance their overall recruiting efforts."
Philip Palaveev, senior manager at Moss Adams LLP, said, "The only
factor limiting the growth of the industry today is the ability of
firms to find experienced and skilled people they can deploy in the
field. No matter what direction the industry takes, the firms with
the best investment professionals will have the most success
financially." TalentConnect is a component of Pershing's Ideas
Without Limits(SM) practice management program for broker-dealers
and RIAs. TalentConnect offers valuable research, insights into
trends shaping the recruiting market, workshops led by
industry-leading consultants and a wide range of tools for
attracting, retaining and developing top performers including,
guidebooks, podcasts, white papers and marketing support. Two
guides are now available to assist broker-dealers in their efforts
to attract and retain top talent. These include: A Guide to Attract
Top Talent and A Guide to Relationship Recruiting. For copies of
these guides, please e-mail Pershing LLC at . The Race for Top
Talent was commissioned by Pershing LLC and independently executed
by Moss Adams LLP. For a copy of the full report, please e-mail
Pershing LLC at . Pershing LLC is a leading global provider of
financial business solutions to more than 1,150 institutional and
retail financial organizations and independent registered
investment advisors who collectively represent over five million
active investors. Financial organizations, investment professionals
and independent registered investment advisors depend on Pershing's
depth of experience and consultative approach to provide them with
forward-thinking solutions that help them to grow their businesses.
Located in 19 offices worldwide, Pershing is committed to service
excellence and to providing dependable operational support, robust
trading services, flexible technology, an expansive array of
investment solutions and practice management support. Pershing
(member NASD/NYSE/SIPC) is a member of every major U.S. securities
exchange and its international affiliates are members of the
Deutsche Borse, the Irish Stock Exchange and the London Stock
Exchange. Pershing LLC is a subsidiary of The Bank of New York
Mellon Corporation. Additional information is available at
http://www.pershing.com/. The Bank of New York Mellon Corporation
is a global financial services company focused on helping clients
manage and move their financial assets, operating in 37 countries
and serving more than 100 markets. The company is a leading
provider of financial services for institutions, corporations and
high-net-worth individuals, providing superior asset management and
wealth management, asset servicing, issuer services and treasury
services through a worldwide client-focused team. It has more than
$20 trillion in assets under custody and administration and more
than $1 trillion in assets under management. Additional information
is available at http://www.bnymellon.com/. DATASOURCE: The Bank of
New York Mellon Corporation CONTACT: Barbara Gallo of The Bank of
New York Mellon Corporation, +1-201-413-2930, Web site:
http://www.bnymellon.com/ http://www.pershing.com/
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