The classic chicken or egg dilemma. Which comes first?  Acquiring more clients or hiring more financial advisors?  There is a natural tendency to hold off on hiring new talent until you see the goods.  However, firms with a service centered model can actually grow their business by adding more financial advisors to their team. Here’s why.

New Hire, New Network

Word of mouth and referrals are still king in attracting new business.  According to Nielsen, 92% of consumers believe suggestions from friends and family more than advertising.  No matter the experience level, a good financial advisor will bring a whole new network of people to the business.  Clients will often follow a senior advisor to a new firm.  Junior advisors are hungry to build their network.  Plus, they may have access to younger clients that can be cultivated now to ensure a healthy client pipeline in the future.  

More Personal Attention

If your digital marketing and referral strategies are bringing in new business, that’s great.  But, if you’re overloading your existing advisors with these new clients, customer service is going to suffer.  Clients have high expectations about customer service these days regardless of the level of assets.  Missing a call can mean losing a client.  Adding new talent allows the whole team to work with a manageable client list and provide a high level of personal attention.  The return is growth and retention.

Fresh Perspective

With any new hire comes fresh ideas and new perspectives.  Senior advisors may offer effective best practices learned at a previous firm.  Junior advisors may be more tech-savvy and offer new growth strategies in the digital landscape.  A fresh pair of eyes on any established business can help identify blindspots and advance solutions.

As firms develop growth strategies in 2022, it would be wise to examine the benefits of hiring new talent.  Marketing plans can include hiring benchmarks as various strategies are rolled out.  Ultimately, the chicken and the egg go together.  Marketing efforts and hiring advisors should be envisioned in harmony with each other.