Why Some Firms Are Turning Operations and Support Staff Into Financial Advisors

In the ever-evolving landscape of financial services, firms are increasingly exploring innovative strategies to meet their growing needs. One such approach is transitioning operations and support staff into financial advisor roles. This shift, driven by various factors, is reshaping the industry and presenting both opportunities and challenges.



Factors Driving the Transition

1. Growing demand for advisors: As firms expand their client base and assets under management, the need for financial advisors grows. This demand is further exacerbated by the impending retirement of many experienced advisors, creating a talent gap that firms are eager to fill (Andrew Blake, Cerulli Associates).
2. Familiarity with the firm and clients: Transitioning support staff into advisors allows firms to leverage their existing knowledge of the company's operations, software, and client relationships. For instance, Denise Jackson, who had been with Frisch Financial for 20 years, knew all the clients and the relationship management software, making her a strong candidate for the advisor role (Field, 2023).
3. Cost savings: Transitioning support staff into advisors can be more cost-effective than hiring external candidates. This is because the firm avoids recruitment and training costs, and the transitioning employee is already familiar with the company's culture and processes.
4. Faster development process: Previous support experience can help individuals move through the development process faster than they might without that background. For example, Denise Jackson was able to skip the first phase of the firm's four-phase career path for advisors due to her familiarity with the firm's administrative and other processes (Field, 2023).

Benefits and Risks

Transitioning operations and support staff into financial advisors presents several potential benefits and risks for both the firm and the employees.

*Benefits:*

* Firms can tap into an internal talent pool, reducing recruitment and training costs.
* Transitioning employees bring existing knowledge of the firm's processes and client relationships, enabling them to hit the ground running in their new roles.
* Faster development processes allow transitioning employees to contribute to the team more quickly.

*Risks:*

* Learning curve: Despite their familiarity with the firm, transitioning employees still need to acquire new skills and capabilities to become effective financial advisors.
* Potential resistance from employees: Some employees might feel threatened or resentful about the promotion, leading to decreased morale or productivity.
* Potential lack of diverse perspectives: Hiring an internal candidate may limit the firm's exposure to new ideas and diverse perspectives.

Mitigating Risks and Leveraging Benefits

To mitigate the risks and leverage the benefits of this approach, firms should:

1. Provide adequate training and mentorship to support transitioning employees as they develop their new skills and capabilities.
2. Encourage open communication and address any concerns or questions employees may have about the transition.
3. Foster a culture of continuous improvement and encourage transitioning employees to challenge existing processes and explore new opportunities.
4. Recognize and reward transitioning employees' hard work and dedication to help build support among their colleagues.

In conclusion, transitioning operations and support staff into financial advisors presents a compelling opportunity for firms to meet their growing needs while leveraging the existing knowledge and experience of their employees. By addressing the potential risks and mitigating them through proper training, communication, and support, firms can successfully navigate this transition and create a smoother path for both the firm and its employees.