With a new cohort of advisors heading into the investment industry, multi-generational practices and succession planning will be key to the future success of advisory businesses.
A panel during the 2023 Envestnet Elevate Summit centered on how hiring diverse candidates and implementing digital technology advances practices more so than their traditional counterparts, and touched on its urgency as Millennial and Gen Z clients dominate the workforce.
The strategies become even more crucial once advisors realize that the needs of their younger clients vastly differ from what was previously tried-and-true, said Patrick Delaney, vice president and insights leader with T. Rowe Price.
“Most of you have built your books on the backs of Baby Boomers,” Delaney reminded advisors. “You need to evolve and adapt because for their children, the role they want you to play is vastly different than from the last years.”
The point echoed a similar view expressed just a few weeks ago at the 2023 NAPA 401(k) Summit, where author and consultant Cam Marston advised professionals on marketing themselves to a new generation of workers. Millennial and Gen Z workers aren’t just searching for experience or advice—they want personality, genuineness, and authenticity.
This means not only overcoming stereotypes by self-educating on topics ranging from race, gender, technologies, and generational differences, but also being comfortable in doing so. And while human behavior naturally includes biases, clients need to know their advisor is willing to learn about the prejudices and favoritism against their client demographics.
“Step out of your comfort zone and embrace it. With this, you’ll be able to create meaningful context,” added Miriam Lewis, chief inclusion officer at Principal Financial Group. “Think about this as an opportunity rather than an issue.”
This extends to recruitment and hiring as well, notes Delaney. Not only should advisors hire inclusively for the success of their practice, but for their clients’ comfort, as well.
“The mere appearance of someone like them can add a level of comfort and familiarity to that interaction,” he said. “No matter how hard you try and how personal you get, you might not be able to overcome because of experience.”
And, hiring with an inclusive mindset doesn’t just diversify your workforce, but your thinking too, added Lewis.
“Just having diversity in the room makes everyone think more broader and intently,” she said.
SEE ALSO:
- Envestnet Elevate Summit 2023: Growth Strategies For Your Practice
- Envestnet Event Showcases How Advisors Can Harness Tech to Elevate Client Experience
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
