Recruiting and Retaining Female Advisors

Here is how to get more women into the financial-services industry and empower them to become the next wave of visible and effective leaders.

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By Katherine Mauzy

Prospective clients looking for financial advice do not necessarily want advisors who look like them. They are, however, looking for advisors with diverse perspectives who can understand their unique needs. With that in mind, many organizations are seeking to diversify their ranks by adding more female financial advisors. With women accounting for just 19 percent of all advisors, the need is obvious.

Why does it matter? First, it’s a lost business opportunity. Nearly 60 percent of the wealth in the United States is held by women, many of whom have not consulted with an advisor. By 2061, there will be an unsurpassed wealth transfer of more than $59 trillion, according to Boston College’s Center on Wealth and Philanthropy, and women will inherit 70 percent of estates.

Second, with technology now both more widespread and useful, advisors can better offer the personalized planning today’s clients demand, making it even more important that clients connect with advisors with whom they feel comfortable. The more precise and personalized the approach, the more need there is for a broad range of advisors.

Recruiting and retaining women

As organizations look to diversify their ranks, they may want to consider the following three strategies for recruiting and retaining women: rethink recruitment; offer internal networking, coaching and mentoring; and elevate women to leadership positions.

One great way to build a more diverse workforce is to expand the pool of candidates. That means looking at people who are changing careers or reentering the workforce.

Rethink recruitment. One great way to build a more diverse workforce is to expand the pool of candidates. That means looking at people who are changing careers or reentering the workforce.

Many professionals, such as teachers, attorneys, psychologists and real-estate agents, have transferable skills. Further, they often have deep experience in meeting people where they are — and helping them advance to where they want to be.

There are also plenty of qualified candidates at wirehouses or regional firms looking for a new challenge.

In addition, helping to educate recent college graduates and those with a few years of experience about the opportunities available can help pique their interest and draw them into the profession.

These recruiting strategies are much more effective if they include accomplished women advisors. Showcasing women at recruiting and networking events helps candidates visualize their future success.

Finally, many people are looking for meaning in their work and to make a difference. Be sure to highlight that helping people plan for, and reach their most cherished financial and life goals is truly meaningful.

Offer internal networking, coaching and mentoring. Most advisors say providing strong internal support is key to their success. 80 percent of female advisors said ongoing training and coaching is the most important thing their firm can provide, according to the Edward Jones survey. More than four out of 10 (43 percent) say the biggest piece of advice they’d give women seeking success in financial services is to find a mentor or coach who can help them advance in their career.

These findings align with those of a McKinsey study that identified the three reasons women choose to remain at their current level or leave an organization: lack of role models, exclusion from informal networks and not having a sponsor in upper management to create opportunities.

Elevate Women to Leadership Positions. Women advisors agree that promoting qualified women to executive leadership positions is critical to attract and retain female talent. When asked what the most important things their firm provided to help them grow their practice, 45 percent of women advisors surveyed said leadership opportunities. That was followed closely, at 42 percent, by support designed for women financial advisors.

Whether it’s creative recruiting or promoting women to leadership roles, future-focused firms understand that clients and prospects are seeking diverse perspectives and looking for advisors with whom they can connect. With a massive wealth shift under way and more opportunities for a client-centric and data-driven approach, women advisors can become the next wave of visible and effective leaders. The challenge is to get more of them into the profession and atop the industry.