Ninety percent of RIAs report that their number of clients has increased or remained steady in the past year, and 57% report that new client assets are coming from full-commission firms, according to TD Ameritrade Institutional’s Advisor Index Survey.
To maintain this growth, nearly 40% plan to add staff in the next six months, and of these, 25% are looking to hire a female adviser to attract female investors.
“Adding staff is a very important process for each adviser,” said George Tamer, director of strategic relationships, TD Ameritrade Institutional. “As business owners, RIAs share a common goal of finding a balance of talent, skill and personality to fit within their current culture and values.”
The survey of 502 RIAs also found that compared with 2011, more advisers are investing in human capital efforts, with 50% spending more on salaries and bonuses, 43% making professional development expenditures and 40% expanding their staff.
RIAs also believe they are doing a good job of managing their people. A majority (87%) rate themselves as good managers, yet only 69% have a current employee manual, and only 56% have formal, written job descriptions for each role in their office.
“Properly managing the human capital in your business is just as important as managing the bottom-line numbers,” Tamer said. “It’s in the best interest of your clients and the success of your business to provide meaningful training and opportunities for growth to attract and retain the best talent in the industry.