Advisors regularly get calls from recruiters, consultants, branch managers, complex directors and business development officers. In each case, it seems like everyone has a solution (read: “firm”) to sell.
Yet there are certain realities that every advisor needs to be aware of. Moving is a hassle; it’s not without risk; and it’s certainly not right for every advisor at any given time.
So, I challenge advisors to turn the traditional thinking on its head. Don’t fall victim to the “grass is greener” mindset. Instead, think critically about why you should decide to stay put.
Here are four factors to consider:
1. Stay because you get equitable value from your firm.
There are many ways to define “equitable value.” For some, it means a payout that is as high as possible. For others, it means the greatest amount of support and resources. At the end of the day, advisors want to feel they are getting what they paid for. For wirehouse advisors, this is often a fairly simple equation since the firm keeps approximately 50-55% of revenue in most cases. And the wirehouses provide a great degree of support and service. Think about the various costs they bear on your behalf, such as asset custody, branding, technology, HR, compliance, investment products, etc. But this question is a fair one, especially in light of UBS’s recent move to cut base pay for some advisors: Are the big firms delivering value commensurate with what they are charging?
2. Stay because you have the ability to serve clients without limitation.
Ultimately, advisors have agency over where and how they choose to serve clients. But that also comes with the responsibility to deliver as a true fiduciary. And one of the first and most essential questions advisors should ask themselves, whether considering change or not, is, do they have the tools, resources, support, and products to service their client base? For most advisors, the answer is not black and white. They may have the financial planning tools they need to service their mass affluent clients but not their high-net-worth clients. Or they may have access to SMAs/UMAs but not sophisticated alternative investments. So long as you can service your clients without limitation, you may consider other factors like compensation and growth—but client service rightfully should come first and foremost.
3. Stay because your firm is helping you grow.
In a bull market like the one we have enjoyed over the past several years, growth often gets obscured. Many advisors experienced record years in 2023 and 2024. In these times, it’s critical to ask this difficult question: Are you growing because of your firm or despite it? While not all advisors are concerned with organic growth, most are. Regardless, advisors often point to the fact that they are achieving tremendous success as a reason for not wanting to “upset the apple cart,” but if you could be achieving even more success elsewhere, you may be leaving chips on the table.
4. Stay because there truly is nothing “better enough” out there.
New firms and models enter the landscape virtually every single week. It can be head-spinning to keep track of. And most advisors dislike the process of exploration and due diligence. So how can advisors ensure they are in the best possible place? One low-stakes option is via periodic passive due diligence: researching online, networking with colleagues, having discussions with industry recruiters and consultants, etc. Commit to catching up on the latest industry trends yearly (or at least every other year). This approach doesn’t require a single meeting with external firms or managers (hence “passive”). In short, stay because you can rightfully say that your firm is the best possible place for you, not because your firm is all you know.
It may sound difficult to evaluate each of these factors collectively and faithfully arrive at a stay vs. go decision. But it boils down to a very simple calculus: Stay because your firm serves you, your team, and your clients. Don’t stay because you are stuck or because of inertia or fear. That’s a goal all advisors can aspire to in this new year and beyond.
Jason Diamond is Vice President, Senior Consultant of Diamond Consultants—a nationally-recognized recruiting and consulting firm based in Morristown, N.J. that focuses on serving financial advisors, independent business owners and financial services firms.
