JERSEY CITY, N.J., April 10, 2019 /PRNewswire/ -- Leaders of some of
the nation's largest advisory firms acknowledge that hiring and
developing talent will be the biggest driver of growth for their
business in the next few years, but they face mounting challenges
in identifying the right talent, expanding their talent pools and
implementing initiatives that help drive diversity, according to a
poll conducted at the 2019 Elite Advisor Summit held by BNY
Mellon's Pershing last month in Fort
Lauderdale, Florida.
"Talent shortage is by far one of the biggest threats to growth
among advisory firms," said Gabriel
Garcia, managing director, Advisor Solutions at BNY Mellon's
Pershing. "It is critical that advisory firms start putting in
place measures that will increase their appeal as a 'best place to
work,' build their reputation in the marketplace and, perhaps most
importantly, help them tap into new and diverse talent pools."
The 2019 Elite Advisor Poll, which was conducted among the
executives attending the two-day, invitation-only event, reveals
that the majority (59 percent) of the leaders at the country's most
preeminent registered investment advisors (RIAs) and institutional
firms are finding it challenging to find the right fit for their
firms and 41 percent are not entirely satisfied with their firms'
efforts to hire women or ethnic minorities. For the majority (59
percent) of executives responding to the poll, the main challenge
in hiring women and ethnic minorities is the lack of enough
qualified talent from these pools.
Yet, when asked what their firms are doing to reach a more
diverse talent pool, almost half (47 percent) of the executives
responding to the poll indicate that they have not implemented some
of the best practice initiatives and programs, such as recruiting
at schools with a diverse student base, removing subconscious
biases from job descriptions, diversity training, etc.
Additional highlights from the 2019 Elite Advisor Poll
include:
- Recruiting: Only five percent of advisory firm
executives say they have no challenges with recruiting. Aside
from the challenges in finding the right fit, executives (20
percent) say there is a lack of talent in the marketplace and that
attracting talent to their firm is a challenge (17 percent).
- Retention: Providing opportunities for career growth is
deemed to be the most effective way to retain employees, according
to 55 percent of respondents. Only 16 percent say competitive
salary is an effective tool for retaining employees.
- Diversity: Slightly over a quarter (28 percent) of
respondents say their firms are expanding recruiting efforts to
include schools with a diverse student base. Meanwhile, only nine
percent say they offer diversity training and only 14 percent say
they are reviewing job descriptions to remove any subconscious
biases from the hiring process. Further, a mere two percent of
executives say their firms are measuring progress on
diversity.
About the Elite Advisor Poll
The Elite Advisor Poll
was conducted live via mobile phones during the 2019 Elite Advisor
Summit, which took place March 11-13
in Ft. Lauderdale, Florida.
The poll gauged attendees'—which comprised the executives of some
of the nation's largest advisory firms—views and concerns around
talent and technology. An average of 42 executives responded to the
talent-related questions.
About the Elite Advisor Summit
The Elite Advisor
Summit, hosted by BNY Mellon's Pershing, is a two-day,
invitation-only event with some of the country's most preeminent
executives of RIAs and institutional firms. The event is designed
to help advisory firms compete in today's fast-changing environment
and facilitate meaningful conversations, ideation and networking.
The inaugural Elite Advisor Summit was held Feb. 28–March 2, 2017,
in Aventura, Florida. This year's
Summit, which took place March 11-13
in Ft. Lauderdale, Florida, hosted
86 executives from the nation's largest RIA firms, representing an
average AUM of $9 billion and a
median AUM of $1.8 billion.
About BNY Mellon's Pershing
BNY Mellon's Pershing and
its affiliates provide a comprehensive network of global financial
business solutions to advisors, broker-dealers, family offices,
hedge fund and '40 Act fund managers, registered investment advisor
firms and wealth managers. Many of the world's most sophisticated
and successful financial services firms rely on Pershing for
clearing and custody; investment, wealth and retirement solutions;
technology and enterprise data management; trading services; prime
brokerage and business consulting. Pershing helps clients improve
profitability and drive growth, create capacity and efficiency,
attract and retain talent, and manage risk and regulation. With a
network of offices worldwide, Pershing provides
business-to-business solutions to clients representing
approximately 7 million investor accounts globally. Pershing LLC
(member FINRA, NYSE, SIPC) is a BNY Mellon company. Additional
information is available on pershing.com, or follow us on Twitter
@Pershing.
About BNY Mellon
BNY Mellon is a global investments
company dedicated to helping its clients manage and service their
financial assets throughout the investment lifecycle. Whether
providing financial services for institutions, corporations or
individual investors, BNY Mellon delivers informed investment
management and investment services in 35 countries. As of
December 31, 2018, BNY Mellon had
$33.1 trillion in assets under
custody and/or administration, and $1.7
trillion in assets under management.
BNY Mellon can act as a single point of contact for clients
looking to create, trade, hold, manage, service, distribute or
restructure investments. BNY Mellon is the corporate brand of The
Bank of New York Mellon Corporation (NYSE: BK). Additional
information is available on www.bnymellon.com. Follow us on Twitter
@BNYMellon or visit our newsroom
at www.bnymellon.com/newsroom for the latest company
news.
Sanuber Grohe
+1 201 413 2247
sanuberbilguvar.grohe@pershing.com
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SOURCE BNY Mellon