While the effects of the 2009 financial crisis have dampened and most industries have bounced back there’s still one area, which often goes under the radar, which hasn’t: recruitment.
Something I’ve noticed, having been in this business for quite some time, is that the advisers I’m dealing with today are the same as ones from 15 years ago. That got me thinking where are all the new brokers gone?
When it comes to IFAs there’s an obvious demographic skew. If you’re reading this articles you’re more than likely to be in the later stages of life and been an adviser for most of your career. I think everyone can agree there’s an obvious lack of younger advisers coming through or those with a few years of experience. (And it’s not just me, according to Ernest Young only 5% of IFA’s are under 30!)
Why is this? In my opinion, it’s an after effect of the financial crisis that hasn’t yet be rectified. When the crisis hit, it had a two-fold effect on recruitment. Firstly, firms weren’t looking to recruit or grow, many were just trying to survive so there were fewer opportunities for new advisers. Secondly, the negativity towards the financial sector made it an unappealing prospect for younger professionals so fewer people wanted to become advisers. With fewer opportunities and less demand, there was always going to be a skills shortage at some point.
If you’re thinking how does this affect me or why should I be bothered? While those missing millennials didn’t turn into future advisers they did turn into future clients and the future is now.
There are 16 million millennials in the UK, the largest generation to date, and just ask yourself where are they getting their advice from? It’s certainly not their peers. They’re getting their advice from search engines, cuddly computer generated characters and anyone with a blog that’s who.
At Y3S, we’ve got a good core of our young advisers who have been with us for quite a few years. Having weathered the storm, as such, they’ve got plenty of experience but they also know how to navigate today’s changing landscape.
They know how to use social media to market themselves. How clients will check out sites like FeeFo and Trust Pilot before dealing with us. And just as importantly, they know how to deal with a generation of clients who want everything done at the click of a button and prefer to get their advice from men in heels than suits.
And it’s not just advisers, the financial sector as a whole is feeling the impact of this missing generation. While other sectors have been quick to innovate and adopt new technologies ours hasn’t. Those missing millennials have been too busy building your Ubers and Airbnbs to disrupt our sector and it needs disruption.