Training New Advisers for Client Retention

Bringing on and training more junior advisers is vital to client retention, with younger advisers ready to take on accounts from their seasoned counterparts.

Advisers who have experience training more junior staff say the best way to get them up to speed is ’not necessarily giving them smaller accounts or doing lots of training before they meet with clients. Rather, ’hands-on training with a more senior member of the team, learning by doing and being comfortable managing missteps will ultimately prepare newbies to take over accounts.

Getting in the Ring

Kristi Baker, a managing partner at CSi Advisory Services, a Hub International firm, is not too fussed about the types of client accounts on which younger advisers should be included. In fact, she says junior staffers can learn most from working with all types.

“All types of accounts could be good targets,” Baker says. “I think it’s important with new advisers that they have experience with different types of client size, demographics, location knowledge and the needs the clients have. We really try and get them exposure to as many as we can.”

Baker says CSi’s model of training is similar to her experience as a new adviser some 30 years ago. In that model, seasoned advisers and more junior counterparts work jointly together for two to three years on the same accounts. This is a “good formula” for putting the client at ease, the adviser says, because clients can maintain the relationship with those they’ have worked with and are comfortable with, while having the opportunity to work with a new individual as part of the team.

“Over time, we see that the client’s communication and the relationship really build with that team member,” she says. “Those of us who are stepping away start to slow down a little bit on responding, communication, and [the new adviser] picks theirs up. It becomes just this natural transition to communication and relationship-building over that two- or three-year time period.”

Baker finds many advantages to bringing in new advisers on client work. “I still am bringing in other advisers or other team members because I do find that there’s a great deal of value having others in the meeting: different perspectives, different voices, people who can listen, take those meeting minutes and contribute.”

Rolling With the Punches

Steven Kaczynski, a managing director at DBR Fiduciary Plan Solutions, notes that the learning process is not linear; reality may get in the way: Junior advisers may need to jump in to assist a client, even if they aren’t ready.

“Things don’t always go according to plan, and that’s not necessarily a bad thing,” he says. “There could be health or family issue or a maternity or paternity leave. That really accelerates the learning process for the new adviser—like a trial by fire.”

Kaczynski says a staff member might be out on vacation when there’s an urgent matter to take care of, and the new adviser has to step in and help the client out. He gave the example of being on a virtual webinar presentation, but his colleagues’ internet went out. He was forced to improvise and speak on a topic he had not prepared for.

“It’s often stressful in the moment,” says Kaczynski. “Training and onboarding are very challenging because everything feels new and at times overwhelming. But any kind of circumstances happening really does accelerate the learning process.”

Challenges Ahead

It’s one thing to be able to train junior advisers, but in a tight labor market, a key area for many advisories is finding good candidates. Michael Gheen, vice president and director of retirement plan services for Oswald Financial, says staffing up is currently the firm’s biggest challenge.

“The learning curve is fairly steep, and finding quality, experienced staff is difficult. “So we really emphasize our value proposition, the work culture, that we’re an employee-owned company. That’s very attractive to prospective employees.”

Looking ahead, Baker believes the biggest challenges new advisers face is how complex the industry has become. “We have share classes, different products, more recordkeepers, more tools and service,” Baker says. “Higher regulation and more technology have definitely added a level of complexity.”

She says it will take time to really understand those components. But new advisers should be willing to ask questions, dig further and figure it out along the way.

Additionally, DBR’s Kaczynski says one of the biggest challenges for newcomers is learning how different clients can be when it comes to their priorities, especially when working with a client that has a committee, which will often have various priorities amongst committee members.

“Now, when I onboard new advisers, I try to make sure that the focus is: Let’s listen to what the client says,” Kaczynski says. “Let’s ask questions so that we can really make sure that we are meeting them where they are and know what they want out of the relationship. Don’t tell them what they should want from us, but make sure we’re always asking, ‘How are things going with your plan? How’s business? How are you personally?’ Just really make sure we’re asking questions and then listening to the answers.”