Financial Advisor Satisfaction Study Highlights Opportunities
According to a 2023 U.S. Financial Advisor Satisfaction Study by J.D. Power, “U.S. wealth management firms have an advisor engagement problem,” citing a few major concerns:
28% of financial advisors don't feel they have enough time to spend with clients, citing compliance and administrative tasks as the primary reasons.
20% are within five years of retiring, and nearly a third of advisors now say they'll "likely" stay at their current firm for 1-2 more years, unlike their prior "definitely will" stance.
Satisfaction scores were significantly lower for advisors who felt they did not have enough time for clients.
But the news wasn’t all bad:
The top reasons given by advisors who said they were likely to stay for the long term included: a strong culture, company leadership, professional support, training, and development.
Among employee advisors, female advisors were significantly more satisfied in their careers than their male counterparts but still accounted for less than a quarter of the advisor population surveyed.
For firms, a few lessons seem clear:
Offering administrative leverage and helping to remove compliance friction points gives advisors more time with clients and improves advisor satisfaction.
An aging advisor population requires immediate and significant investment in the next generation of client-centric advisor talent.
Satisfaction matters for retention: “93% of advisors who felt their firm cares about them say they will definitely still be there in 1-2 years.”
The most appreciated investments include providing strong leadership, creating a strong culture, and ensuring advisors are supported with personalized professional development training.
Christy Charise, Founder & CEO of Strategic Advisor