Developing Talent
The majority of the client base at most RIA firms is aging,1 which has created a new impetus to meet the needs of younger investors. Currently, younger investors control over $4.6 trillion in investable assets.2
An effective talent development strategy can help your firm:
- Attract and retain next generation advisors,
- Create a pipeline of high-performing talent,
- Cultivate inclusion and commitment through mentorship and/or sponsorship by senior leaders,
- Strengthen employee engagement,
- Reduce expenses associated with extended vacancies,3 and
- Strengthen your succession planning.
By prioritizing people as one of your most important investments, you'll be creating a signature firm culture, offering the client experience investors are looking for, and helping to ensure your firm's long-term success.
Enhancing your talent development strategy.
Here are some tactics to help you develop talent at your firm:
- Create clearly defined career paths with well-defined expectations.
- Develop a mentorship or sponsorship program that matches senior leaders with junior staff.
- Invite junior staff to join senior leaders at networking events.
- Cultivate an "open door" policy to encourage junior staff to share their ideas and have one-on-one discussions with senior leaders.
- Hire external coaches to serve as safe and reliable sources of feedback.
- Invite junior staff to client meetings and hold debriefings afterward.
- Build accountability into partner behaviors by linking compensation to talent development.
“Create an environment within your firm where the next generation feels like they are part of the momentum, part of the vision, part of building out new initiatives, and where they can actually have a say.4
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Additional resources
Check out Events and Education under News & Resources on Schwab Advisor Center® for a list of events and educational programs, including online learning opportunities, conferences, regional workshops, and best practices.
$35.8 trillion
Of high-net-worth and ultra-high-net-worth will be transferred to the next generation over the next 20 years.5
White Paper: Establishing a firm's legacy through a cycle of opportunity
Learn how to attract, develop, and retain key talent to ensure the continuity of a firm's people, culture, and values.
1. Schwab advisors reported that nearly 70% of their RIA clients had retired or expected to retire within the next 10 years. Of those RIA clients who had already retired, 63% were drawing down their portfolios, including principal. Independent Advisor Outlook Study, conducted for Schwab Advisor Services by Koski Research, June 2014.
2. Cerulli Associates, Cerulli Report, 2023.
3. "Accelerate Recruiting: Achieving Quality at Speed," CEB Recruiting Leadership Council, 2015.
4. Schwab's RIA Firm of the Future Study, conducted for Schwab Advisor Services by Koski Research, June 2015.
5. U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2023.
The RIA Talent Advantage® Program supports advisors with tools, resources, and networking opportunities to attract, develop, and retain diverse talent to serve investors.
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