Recruiters
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Do you tap universities for candidates? Like job fairs, interview bidding, etc.? What has been your results with students straight out of school?
[quote=Breaston15]
Do you tap universities for candidates? Like job fairs, interview bidding, etc.? What has been your results with students straight out of school?
[/quote]Sorry, we only work with experienced candidates. I’ve gotten some good referrals through my Alma Mata (Baylor), but that’s only been with established FAs.
When we work with transition (‘no book’) candidates, our job is to bring in candidates that have a better shot than kids straight out of school. There are lots of experienced, capable advisors that either have no portable book or have left a book behind. We also work with trainees in current programs that want to move to a better program.
Think about it: as a branch manager would you rather have ONE experienced proven candidate or TWO kids straight out of college?
I'll add a couple of points to the discussion:
First, don't feed the troll (i.e. don't respond to Put Trade/Big Easy Flood/Nasd Newbie). No matter how many times he gets booted out of here, he continues to come back under a new screen name. The only way will ever be rid of him is if we stop responding to him.
Second, I do know quite a bit about the legal side of the head hunter business. Much like in this business, they are paid a percentage of the candidates income - back in the salad days of the late 90's they were paid 50% of salary, which meant anywhere from $60,000 to $150,000 for placing a single associate, and significantly more for placing partners. Not a bad gig. The good news was that a recruiter could get your resume past HR and into the hands of a hiring partner. The bad news was that using a recruiter might lower your signing bonus.
Choosing to use a recruiter is no different than choosing to use a professional or do it yourself in any other business (ours included). If they are good, they can help you immensely, but there is a cost, even if you don't pay it directly out of your pocket.
This seems to be an interesting business. My observation is that like alot of FAs, recruiters are paid for gathering assets. Both transfer of experienced reps and newbies.
While one of the recruiters on here mentioned getting high salaries for trainees 70-100k..I can only assume that these candidates (placements) had high AUM potential in their "business plans".
Is this a correct assessment? Nothing wrong with this model and I could see how the firms are smart in utilizing outside recruiters...Any comments?
[quote=JCadieux]
I've gotten some good referrals through my Alma Mata (Baylor), but that's only been with established FAs.
[/quote]
You'll find this amazing--there is another poster on this forum from Baylor. BaylorJoyce1 is the name they use.
You should look them up. What do you think the odds are that two people from Baylor would both be posting on an obscure forum like this?
Wait, could it be? Jeff, are you also BaylorJoyce1?
Would you guys please stop calling me. I am not interested. Sorry, I heard those damn sirens again.
“It is the mark of an educated mind to be able to entertain a thought without accepting it.” Aristotle
Honestly, we would all be better off not to REPLY IN ANY WAY TO : Put Trader, NASD Newbie, and Incredible Hulk. Who may just be the same person. Let them rant and rave. Call names, whatever. Just do not respond IN ANY WAY TO THEM.
Broker Recruit, you are well liked and well respected. Your fee is similar to our fees. If you provide the client with value (as I am sure you do) the fee is worth it.
Don't let the idiots get you down.
[quote=Rugby]
This seems to be an interesting business. My observation is that like alot of FAs, recruiters are paid for gathering assets. Both transfer of experienced reps and newbies.
While one of the recruiters on here mentioned getting high salaries for trainees 70-100k..I can only assume that these candidates (placements) had high AUM potential in their "business plans".
Is this a correct assessment? Nothing wrong with this model and I could see how the firms are smart in utilizing outside recruiters...Any comments?
Rugby-
You are absolutely correct. No experienced trainee gets hired by a top firm without a good business plan. And nobody gets to the top of the salary range without a great plan.
"Trainee" is a very loose term here. Some of these people are so experienced they could TEACH classes.
Some examples of salaried FAs that we have placed include:
High potential trainees that want to upgrade to a better program. Top producers at "B" and "C" quality firms that can not move their books. This is especially true at banks and proprietary firms. FAs at family offices and hedge funds that can not move their books. Independents who have sold their book and want to start over in a new market (such as Hawaii).
Wholesalers, compliance managers, analysts, and even some branch managers who want to get back into production.
Underappreciated, overworked sales assistants that are way overdue for a promotion to full FA. For many of these candidates, "Training" means primarily filling in the gaps in product knowledge (not everybody has worked with commodities, for example).
My favorite candidates are the "out of the box" candidates that do not have financial services experience. I've run into licensed CPAs, trust attorneys, former elected officials, "C" level executives, retiring athletes and even a former runway model (married to a Hollywood producer) that want to break into the business. Unfortunately, not all of my clients will take unlicensed candidates.
Jeff-
Can you give us your assessment of current market conditions for a career changer's entry into FA? What do you tell your clients?
[quote=Rugby]
Jeff-
Can you give us your assessment of current market conditions for a career changer's entry into FA? What do you tell your clients?
[/quote]Well, I can't tell you everything without knowing the particulars of your situation, but here are some key points.
I'ts a great time to be an FA. Demand is going up with the retirement of the boomers. People are recognizing the need for help in a complex financial world. This is also a very competetive time to be an FA. Most new FAs fail during their first two years. This is not a career for the faint of heart. However, if you can survive the first years and build a book of loyal, long-term clients then it is a very rewarding career.
This is not a place to escape. If you've been unsuccssful in other sales roles then you'll be unsuccessful here. If you can sell, then you're half way there. Good salespeople can see early success but a higher than average client turnover will limit your earnings. The best FAs have exceptional sales AND money management skills. They are also willing to work hard to build a stronger long-term practice.
The best transitions are exceptional people. It's hard to describe, but you know it when you see it. If you want to be "just another advisor" then you probably won't make it. The best transitions also have natural markets. I'm not talking about a rich uncle here. I'm talking about some natural advantage when working with a particular target market. I've seen career changes use race, religion, gender, ethnicity, previous job experience, personal contacts, investment styles, hobbies, charities, and civic organizations to define their target markets. Charities and civic organizations only make good target markets if you've been an established member for some time. Nobody welcomes "yet another" financial advisor joining an organization just weeks after getting a job.
Sell your successes. Be specific. Bring numbers. "I sold $XXX,XXX last year, which is XXX% of quota. I have consistently made between XXX% and XXX% of quota throughout my career." Other good things to mention on a resume are sales awards, prospecting techniques and the kinds of people that you deal with. Sales awards shows performance relative to your peers. Prospecting techniques shows that you went out to find new clients, rather than having warm prospects delivered to you. And the level of client shows your familiarity with building relationships (presumably with HNW consumers or executives).
Nobody is going to "give" you this job. You've got to prove your worth. But don't be too eager. Over-excitement is a true sign of a novice salesperson.
Go into the interview with a business plan. A two page summary is arguably the best format. But don't show it off until they ask the right questions.
Jeff,
You seem to be ignoring some the dark trends in the industry. This is a downsizing industry both in head counts and risk. Like never before brokers and production are targets of regulatory and firm scapegoating working in concert. Since these "supervision" roles are for the "public good" and in the scandal fallout age we live in it has given dealers (ironically) even more power over production than ever before. You might be making more or less than the past based on your particulars but your risks and controls have declined dramatically regardless of your production. There is some relief for those who escape to the RIA world but they work night and day on ruining that option as well.
It's hardly a "job" for most producers. More like a deck hand on a pirate ship that will gladly throw you to the sharks at the drop of a hat. Brokers takes the risks, get more than their share of blame and live with a crew of know-it-all non-producers in the wings at all times. I've never scene this dolt head count higher or with more arrogance and hostility than today as a side note. It's all in the ticket charges somewhere and/or the grid. Reasonable due process is at an all-time low for disputes. You need a lawyer on retainer in the background at all times today.
It would be a better industry if brokers had their own license away from dealers at this point. They get little protection for the money kicked upstairs in this new world. As for recruiters it's important to remember they generally work for firms and are not like sports agents working for brokers or even middle men. There are regulatory mandates that maintain this structure and role, it's better than nothing but..... So most recruiters are simply moving production from location "A" to location "B" with little real improvement for the general production population and working standards that have declined greatly. The independent movement is another issue on closer study; again there is more reward but with greater risks and costs that most independent producers can't control or comment on. All the dealers act as a union through the NASD or SIA or both much of the time in the background. They certainly have an ax to grind against producers much of the time.
I would tell most newer people or the young to leave this segment if they have the chance. Leave this all to the crusty old people who have enough to endure this trend line. I realize this isn't the only industry to suffer this track but this is more honest and balanced then the puff usually found here. It would be better with a general value lift in equities but the trend line is clear, it's all about less for production, lower margins, fewer choices for production. As the "fee" system becomes the norm expect even larger commodization attacks on existing production by most firms. Top-line production will become purely institutionally priced and suffer that same fate as the once former fat-cat sales people have scene before.
And who are you seeker? So this industry is doomed for us low AUM’ers $20-30 mill ??
[quote=ezmoney]And who are you seeker? So this industry is doomed for us low AUM'ers $20-30 mill ??[/quote]
In the shakeout that occured in the 1970s just about everybody who was registered in 1975 was gone by 1982. There were wirehouse offices with two or three brokers--being kept open by the firms because they felt they needed a presence in that town.
I said it the other day, but it's worth repeating. If you consider yourself to be on thin ice when it comes to the chances of you being a long timer you're going to wash out when the Bear arrives--and for all we know he is in the house.
You’re a big fat bear who made a moderate income throughout your career. What do you do now newbie?
[quote=ezmoney]You're a big fat bear who made a moderate income throughout your career. What do you do now newbie?[/quote]
Trade Google options and go out of town for a month at a time four or five times a year.
[quote=NASD Newbie]
[quote=ezmoney]You're a big fat bear who made a moderate income throughout your career. What do you do now newbie?[/quote]
Trade Google options and go out of town for a month at a time four or five times a year.
[/quote]
Obviously there are many others who can't stand to have you around.