What's it like to recruit people? How do you recruit the best people for you?

I have a question for you. I want to leave my current firm, been in the business for 3 1/2 years. However, I have gone through a divorce and I have discovered my credit rating has taken a hit because of unpaid credit cards issued in my name but I did not control. Is this going to prevent a new firm from taking me or is it just going to be an embarrasing situation for me to have to explain?

[quote=Rycruiter]

Who am I? I'm a recruiter who lurks on these forums from time to time. Every once in a while I make one of these threads to address any questions you may have about the recruiting business or just on the unique point of view on the industry that I hold.

A little about me: I am head of business development for a national, independent recruiting firm based in the Midwest. Independent because we choose who we work with. Over the past year, I have worked very close with a number of financial advisors across various platforms and with various IBDs (independent broker-dealers), Wirehouses and Regional Firms. We have found the most success, in the past year, working with advisors from Edward Jones, Morgan Stanley Smith Barney, Securities America, Woodbury and NEXT Financial.

While my firm works in pretty much every avenue of the financial industry (bank, wire, independent) I mainly focus my efforts in the independent space.

With that being said, if you have any questions please feel free to ask and I will do my best to answer!

[/quote]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[quote=lobstar63]

What's it like to recruit people? How do you recruit the best people for you?

[/quote]

Recruiting is a pretty laid back job. It's mostly about fostering professional relationships. Most of the time it's rewarding and stimulating. Sometimes it can feel quite a bit like babysitting.

As fasr as recruiting the best people... well... the thing about the financial industry is that, if you have a pulse and a book, chances are someone will want you. While I do screen my candidates and make sure they meet production/LoS/U4 requirements and goals, the firms are usually the ones who make judgement calls based upon prior histories, credit reports, etc. I try to keep myself unbiased and give every candidate of mine a fair chance.

[quote=DoggieDaddy]

I have a question for you. I want to leave my current firm, been in the business for 3 1/2 years. However, I have gone through a divorce and I have discovered my credit rating has taken a hit because of unpaid credit cards issued in my name but I did not control. Is this going to prevent a new firm from taking me or is it just going to be an embarrasing situation for me to have to explain?

[/quote]

It truly depends on your circumstance and where you are looking to move. As you're fairly new to the business, I would assume you're not looking to go down the indy route. Most IBDs are very stringent on their credit rating requirements. If your score is below... say... 600, most IBDs wont touch you without special approval.

However, many of the regionals and wirehouses are much less stringent. It could definately prevent you from joining a new firm, but it's not completely out of the question.

Many firms will allow you a grace period of say... six months or so to improve your credit score, as well. In your circumstance, because it was a divorce and not a foreclosure or something avoidable, they would be more likely to work with you.

[quote=ZwingDing]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[/quote]

Yes and no.

I can break it down, I suppose. 

Edward Jones: Great firm to start a career with. Horrible firm to retire with. A lot of EdJones guys just simply don't know that the grass is greener at virtually every other firm out there. EJ doesn't do succession planning. When you retire, they say "Thanks! Here's your watch. Have a nice life." I honestly think EJ will have to re-evaluate their business model unless they are happy with just hireing brand new FA's

MSSB: I've found that most SB guys are still not happy with MSSB and are even less happy about the upcomign name change. (FYI, they're dropping Smith Barney from the company name) While MSSB can be a greta firm to work for, it can also turn you into "just another number." In my experience, BM's at MSSB rarely give two shits about their FA's. Most will enter into the position, spend a few years recruiting hard and then cut a deal and go somewhere else after they've scalped as many accounts as possible. (nothing against Branch managers, it's just my experience)

SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general.

[quote=Rycruiter]

[quote=ZwingDing]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[/quote]

Yes and no.

MSSB: I've found that most SB guys are still not happy with MSSB and are even less happy about the upcomign name change. (FYI, they're dropping Smith Barney from the company name) While MSSB can be a greta firm to work for, it can also turn you into "just another number." In my experience, BM's at MSSB rarely give two shits about their FA's. Most will enter into the position, spend a few years recruiting hard and then cut a deal and go somewhere else after they've scalped as many accounts as possible. (nothing against Branch managers, it's just my experience)

[/quote]

Your response is interesting to me. I'm a raw noob with the bull in a smallish office in fly-over country. A career changer.

My interest is the fact that three of the larger books in the branch have spent time as a BM here or elsewhere. I'm less than one year into my tenure but I've had a strong intuition that some of their success has roots in the exact behavior you mention. I've been wondering if one of the reasons people take the BM position is to be able to snarf up the best of the scalpable accounts.

Interesting stuff.

"SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general."

Rycruiter, what are you considering to be "toxic" products? Woodbury has zero exposure to the "toxic" products that SA and NEXT have on the books.  Take a look at who was selling Provident and Medical Capital.  Woodbury has no exposure to any of the problematic products.  Please be careful when making slanderous posts like this.

If I'm wrong, by all means, please correct me.  If not, please offer your retraction.

[quote=Rycruiter]

[quote=ZwingDing]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[/quote]

Yes and no.

I can break it down, I suppose. 

Edward Jones: Great firm to start a career with. Horrible firm to retire with. A lot of EdJones guys just simply don't know that the grass is greener at virtually every other firm out there. EJ doesn't do succession planning. When you retire, they say "Thanks! Here's your watch. Have a nice life." I honestly think EJ will have to re-evaluate their business model unless they are happy with just hireing brand new FA's

MSSB: I've found that most SB guys are still not happy with MSSB and are even less happy about the upcomign name change. (FYI, they're dropping Smith Barney from the company name) While MSSB can be a greta firm to work for, it can also turn you into "just another number." In my experience, BM's at MSSB rarely give two shits about their FA's. Most will enter into the position, spend a few years recruiting hard and then cut a deal and go somewhere else after they've scalped as many accounts as possible. (nothing against Branch managers, it's just my experience)

SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general.

[/quote]

As a former Edward Jones FA, I would suggest you get your story straight. I am not saying Jones is the "place to be" (or I never would have left). But their Succession Plan is very similar that of Merrill Lynch's (the least time I compared them). Essentially, you get a buyout over a period of 4 years (75/50/25/10), including all benefits the first 3 years.

[quote=B24]

[quote=Rycruiter]

[quote=ZwingDing]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[/quote]

Yes and no.

I can break it down, I suppose. 

Edward Jones: Great firm to start a career with. Horrible firm to retire with. A lot of EdJones guys just simply don't know that the grass is greener at virtually every other firm out there. EJ doesn't do succession planning. When you retire, they say "Thanks! Here's your watch. Have a nice life." I honestly think EJ will have to re-evaluate their business model unless they are happy with just hireing brand new FA's

MSSB: I've found that most SB guys are still not happy with MSSB and are even less happy about the upcomign name change. (FYI, they're dropping Smith Barney from the company name) While MSSB can be a greta firm to work for, it can also turn you into "just another number." In my experience, BM's at MSSB rarely give two shits about their FA's. Most will enter into the position, spend a few years recruiting hard and then cut a deal and go somewhere else after they've scalped as many accounts as possible. (nothing against Branch managers, it's just my experience)

SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general.

[/quote]

As a former Edward Jones FA, I would suggest you get your story straight. I am not saying Jones is the "place to be" (or I never would have left). But their Succession Plan is very similar that of Merrill Lynch's (the least time I compared them). Essentially, you get a buyout over a period of 4 years (75/50/25/10), including all benefits the first 3 years.

[/quote]

Really? The ammount you are suggesting I know to be off base. Are you saying they get a grand total of 160% of the value of their book? I know that can't be true.

Either way, compare the alternative: Going into an independent broker dealer either by plugging into an existing office or hanging your own shingle. Stay there for your last few years and sell your book for 2-3x yearly revenues.

Or, stay at a wirehouse/regional and continue to pay 60% of your revenues out each year and then be happy when they offer you a paltry buy out?

I'm not buying it.

[quote=IndyBDguy]

"SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general."

Rycruiter, what are you considering to be "toxic" products? Woodbury has zero exposure to the "toxic" products that SA and NEXT have on the books.  Take a look at who was selling Provident and Medical Capital.  Woodbury has no exposure to any of the problematic products.  Please be careful when making slanderous posts like this.

If I'm wrong, by all means, please correct me.  If not, please offer your retraction.

[/quote]

It was innapropriate for me to have lumped Woodbury with NEXT/SA. 

[quote=Rycruiter]

[quote=B24]

[quote=Rycruiter]

[quote=ZwingDing]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[/quote]

Yes and no.

I can break it down, I suppose. 

Edward Jones: Great firm to start a career with. Horrible firm to retire with. A lot of EdJones guys just simply don't know that the grass is greener at virtually every other firm out there. EJ doesn't do succession planning. When you retire, they say "Thanks! Here's your watch. Have a nice life." I honestly think EJ will have to re-evaluate their business model unless they are happy with just hireing brand new FA's

MSSB: I've found that most SB guys are still not happy with MSSB and are even less happy about the upcomign name change. (FYI, they're dropping Smith Barney from the company name) While MSSB can be a greta firm to work for, it can also turn you into "just another number." In my experience, BM's at MSSB rarely give two shits about their FA's. Most will enter into the position, spend a few years recruiting hard and then cut a deal and go somewhere else after they've scalped as many accounts as possible. (nothing against Branch managers, it's just my experience)

SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general.

[/quote]

As a former Edward Jones FA, I would suggest you get your story straight. I am not saying Jones is the "place to be" (or I never would have left). But their Succession Plan is very similar that of Merrill Lynch's (the least time I compared them). Essentially, you get a buyout over a period of 4 years (75/50/25/10), including all benefits the first 3 years.

[/quote]

Really? The ammount you are suggesting I know to be off base. Are you saying they get a grand total of 160% of the value of their book? I know that can't be true.

Either way, compare the alternative: Going into an independent broker dealer either by plugging into an existing office or hanging your own shingle. Stay there for your last few years and sell your book for 2-3x yearly revenues.

Or, stay at a wirehouse/regional and continue to pay 60% of your revenues out each year and then be happy when they offer you a paltry buy out?

I'm not buying it.

[/quote]

You must be a new recruiter since you have no idea what you are talking about...

The guy was right about the EDJ retirement plan..

Wirehouses offer a similar plan but I don't think it is as much.

Next, no one sells their book for 3x revenue.. commission books go for .75-1x revenue and fee books go from 1.25-2x revenue if you can find a buyer(normally you can't, who has the upfront money to do it).

Also I think saying you pay 60% for nothing is very misleading considering you don't pay for real estate or technology and both or normally way better than what the indys offer..

There is a reason your are a recruiter, you have no idea what you are talking about..

[quote=squash2]

[quote=Rycruiter]

[quote=B24]

[quote=Rycruiter]

[quote=ZwingDing]

Are you saying FA's from those firms are the most unhappy and most likely to be looking to move on?

[/quote]

Yes and no.

I can break it down, I suppose. 

Edward Jones: Great firm to start a career with. Horrible firm to retire with. A lot of EdJones guys just simply don't know that the grass is greener at virtually every other firm out there. EJ doesn't do succession planning. When you retire, they say "Thanks! Here's your watch. Have a nice life." I honestly think EJ will have to re-evaluate their business model unless they are happy with just hireing brand new FA's

MSSB: I've found that most SB guys are still not happy with MSSB and are even less happy about the upcomign name change. (FYI, they're dropping Smith Barney from the company name) While MSSB can be a greta firm to work for, it can also turn you into "just another number." In my experience, BM's at MSSB rarely give two shits about their FA's. Most will enter into the position, spend a few years recruiting hard and then cut a deal and go somewhere else after they've scalped as many accounts as possible. (nothing against Branch managers, it's just my experience)

SA/Woodbury/NEXT: I just feel there's much better choices for these individuals. THere are IBDs out there with much less exposure to "toxic" product and much more to offer, in general.

[/quote]

As a former Edward Jones FA, I would suggest you get your story straight. I am not saying Jones is the "place to be" (or I never would have left). But their Succession Plan is very similar that of Merrill Lynch's (the least time I compared them). Essentially, you get a buyout over a period of 4 years (75/50/25/10), including all benefits the first 3 years.

[/quote]

Really? The ammount you are suggesting I know to be off base. Are you saying they get a grand total of 160% of the value of their book? I know that can't be true.

Either way, compare the alternative: Going into an independent broker dealer either by plugging into an existing office or hanging your own shingle. Stay there for your last few years and sell your book for 2-3x yearly revenues.

Or, stay at a wirehouse/regional and continue to pay 60% of your revenues out each year and then be happy when they offer you a paltry buy out?

I'm not buying it.

[/quote]

You must be a new recruiter since you have no idea what you are talking about...

The guy was right about the EDJ retirement plan..

Wirehouses offer a similar plan but I don't think it is as much.

Next, no one sells their book for 3x revenue.. commission books go for .75-1x revenue and fee books go from 1.25-2x revenue if you can find a buyer(normally you can't, who has the upfront money to do it).

Also I think saying you pay 60% for nothing is very misleading considering you don't pay for real estate or technology and both or normally way better than what the indys offer..

[/quote]

Ease off the caffeine