December 7, 2022
Louis Diamond Quoted
by Glenn Koch
Despite the market downturn and investor uneasiness, registered investment advisory firms say recruiting new workers has become their top strategic priority, according to a study by Charles Schwab.
“Any RIA that is looking to grow, even looking just to sustain themselves, we’re definitely seeing being very active in the hunt for new talent,” said Louis Diamond, president of advisor-recruiting firm Diamond Consultants. “We’ve never gotten more inquiries for firms looking to add advisors, either producing advisors or servicing advisors,” Diamond noted.
“Clients are demanding more from firms in order for firms to defend their fees, so one way to protect the fee is to bolster the roster and increase capabilities,” Diamond added.
“I know from just speaking to clients that administrative staff is in high demand and then also looking at other subject-matter experts, whether it’s folks from the tax side or on the financial planning side,” Diamond said.
Although the study found that compensation was the benefit candidates most valued, it was not among the selections for the value propositions. Diamond believes that’s the right thinking since, as he says, compensation is largely revenue-driven and therefore mostly comparable across RIA firms.
“We don’t always see compensation being … the No. 1 driver,” Diamond said. “I think it’s much more about the role, the culture of the company, how am I going to grow faster, what resources do I have to better serve clients, is there opportunities for equity.”