Insights - 01 November, 2022
Why They Leave: 10 Reasons Financial Advisors Quit Their Jobs
Dealing with the loss of a valuable employee is never easy, especially considering the time and resources it takes to find a suitable replacement, and educate, train, and adapt them to do the job right. Of course, nobody knows for sure whether the replacement hire will take root and thrive within the organization. And if top talent leaves? You may see a wave of resignations from staff members who perceive your company as being a sinking ship. Not to mention the customers whose loyalty to your organization may start to waver as they see your advisors exodus.
Last year was extremely difficult for financial services employers and workers. While there were large numbers of layoffs and furloughs, every fourth dismissal was voluntarily, according to a CNBC report. The Bureau of Labor Statistics estimates that more than 4.4 million workers left their jobs by the end of February 2022.
Financial associates may leave for various reasons regardless of the company's state and actions. Some stay at home to care for children or follow their loved ones to another point in the world. In contrast, others pursue different professional paths, such as starting their own business or working independently.
Oftentimes however, many of the reasons why advisors leave come directly as a result of the employer. A financial services organization significantly impacts every aspect of an employee's experience at work, including the workplace environment, the company's culture, and the worker's perception of his own role and promotion perspectives. Whatever the reason, employers need to be aware of the common reasons that cause employees to leave so they can work to prevent them.
In today’s article, we will outline 10 of the most common reasons financial advisors quit their jobs.
1) Toxic Company Culture
Flexjobs surveyed 2,202 people in 2022 and found that a toxic company culture holds the first place in our anti-employer rating (62% of respondents). In most working environments, corporate bullying, as well as forms of cliquish behavior, are carefully watched and handled when they arise.
However, they are not always obvious and can sometimes be deceptive. When associates are leaving the company due to its poisonous culture, the most typical cause is that they have trouble reporting the offensive actions to their management or their superiors themselves are the reason for the bullying of a particular worker.
What to do: Your most powerful weapon against a toxic environment that depresses the emotional state of your workforce is to ensure your team members can talk to their leaders and colleagues freely and with privacy guarantees. Don't forget to create opportunities for team building, socialization, and the promotion of an open, cheerful, and respectful environment. It will not only increase your employees’ job satisfaction but also boost the overall morale of your staff, recognition level, and retention rate.
2) Low Salary
Today, the majority of employers believe that salary is the main lever for attracting the best employees. And they are partially right! A study by Consumer Affairs reported that 47% of workers named seeking higher pay as the top reason to take the leap.
It has always been the heart of the matter and always will be since competition for top talent in the corporate world is fierce. Incredible offices, dozens of perks, and an extensive social package mean nothing when a associate’s wage falls below what your competitor pays their people. And high-performers, as well as the best players in the financial services ecosystem, are never cheap.
What to do: If low pay is why your employee is packing his stuff, you'd better start a bargain. Of course, you can't offer more than the company's current assets. But it may happen that a worker's wage remains unchanged for a long time. For example, some successful companies review the compensation every three months to prevent personnel's outflow due to irrelevant payments.
3) Bad boss
The BusinesSolver discovered an astonishing fact: 92% of personnel say they would be less motivated to resign if their managers demonstrated more empathy. A toxic partnership between staff and supervisors damages employees' enthusiasm, confidence, and determination. According to several reports, a lousy supervisor is also the leading cause of employee turnover.
Employees are not supposed to be best buddies to their employer. But they definitely must have a connection based on subordination, humanity, and mutual respect. In fact, 84% of CEOs agree that displaying empathy improves corporate results, and 72% of workers confirm that it motivates them (BusinesSolver).
What to do: The boss is too crucial to their everyday work life for an awkward incomprehensible relationship to exist. The financial services company supervisor must give guidance and comments, spend time with the employee in one-on-one sessions, and serve as a conduit to the upper and broader organization layers.
4)Lack of the career opportunities
The ANCOR statistics 2021 show that 59% of managers leave the company due to a lack of career and professional growth prospects. Employees no longer feel comfortable remaining in one position for many years without the possibility of horizontal (from one department to another) or vertical (up the career ladder) promotion. Now young people, especially the Z-generation, are looking for a meaningful, satisfying job where they are valued and can grow as a person and develop their skills as a professional.
What to do: Give your financial advisors more authority. You can involve them in a new project as a leader responsible for essential processes. When a person feels that you trust the accountable role and expect a positive result, he will put in the best effort to maximize his efficiency to achieve the goals.
5) No Flexibility
Professionals worldwide are struggling to balance their work commitments with their family obligations. In fact, 49% of respondents claimed they would quit their job because of the lack of healthy work-life boundaries. And 43% can't see their future in the company if there are no remote work opportunities (Flexjobs, 2022). Numerous employees leave their positions because the schedules are inconvenient or unsociable, their managers load them with an urgent task in the last working minutes, or they simply need more freedom in their daily routine.
What to do: More discussions regarding flexibility and the option to work from home can assist in tackling this issue. It can be advantageous when attempting to reduce the number of employee absences or sick days. Also, every manager must remember the right to privacy personnel has. Regular boundary trespassing will likely result in employees looking for new jobs elsewhere.
6) Lack of recognition
According to Office Team research, 66% of workers would leave their positions if they didn't feel appreciated. In addition, if their superiors or coworkers didn't value them, 4/5th of millennials would act the same way. A lack of recognition can harm dozens of aspects, including business culture, workplace morale, employer-employee relations, performance level, desire to expand one's talents, and general trust and commitment to the company.
What to do: Complimenting someone for a job well done is a matter of a minute, but it goes a long way in appreciating and motivating your workforce. Recognition is significant for those who put all their energy into company projects. In some cases, praise alone is not enough, and the organization should consider more valuable ways of rewarding employees: bonuses, gift cards, corporate vacations, promotion opportunities, and so on.
7) Too much stress
CNBC spotted that half of the workers consider permanent stress as the central aspect in their decision to leave. Unfortunately, a large part of the workforce still feels overwhelmed despite the fact that many businesses prioritize mental health.
Occupational stress makes people moody and irritable. This state is not the best way to affect the quality of work and overall productivity. Professional stress worsens relationships with the manager and colleagues. And being under prolonged pressure, employees burn out emotionally: motivation, efficiency, and empathy are lost, and they suffer more and more from the physical manifestations of this condition.
As a result, a person either changes companies in the hope of improving his condition or takes an extended break to fulfill personal resources.
What to do: The cure, in this case, will be a flexible schedule and more freedom for the financial advisor’s creativity as well as establishing closer communication with the staff and providing non-working team events.
8) Total burnout
42% of employees named burnout the most decisive factor in looking for a better place, FlexJobs found out. Most occupations include some degree of stress or feeling overwhelmed. Burnout, though, is a different beast entirely. The most dedicated workers might be worn out by too much effort.
Having an excellent team specialist does not mean he needs to be overburdened with assignments. The TalentSmart director Travis Bradbury argues that the best employees don't deserve to be choked with a huge number of tasks. If employees work more than 50 hours a week, their efficiency drops sharply.
What to do: An exhausted worker is one who no longer has any energy, interest, or enthusiasm for their job. How can he help your financial services business then? Managers and employers should protect workers from burnout by allowing and pushing them to take time off and recharge. Equipping a special relaxation zone would be an excellent idea.
9) Routine and uninteresting tasks
Some employees are comfortable doing the same tasks day after day. And for others, monotony is truly torture. By giving dull routine work to such employees, employers force them to hate it. And what self-respecting talent with great potential will agree to endure a hateful job instead of looking for a fascinating one?
Modern candidates are searching for not only a high stable salary but also meanings, challenges, growth, and a sense of their value as a professional.
What to do: Diversify the work as much as possible and expand your workforce powers in some issues. You can let your advisors tackle different tasks in tandem with other field financial specialists and learn new workflows. It will not make your staff bored and help them evolve inside the office.
10) Lack of or poor benefits
These days, most company owners offer their employees some sort of benefits package. But not all benefits packages are created equal. Advanced employers provide comprehensive packages that include health insurance, retirement savings plans, and other tasty perks, while others offer primary benefits, such as vacation days and sick leave.
Compensation that is not competitive is a real deal-breaker for 31% of respondents due to the FlexJobs review. Lack or poor benefits, including health insurance or 401(k), makes the staff feel they are not receiving the appreciation they deserve or are being misled about the perks they were supposed to receive.
What to do: If the financial services firm is young, small, and still developing, it has no assets to offer highly competitive benefits packages. But it can consider alternatives. Non-monetary incentives and rewards can be provided through reward and recognition programs that use cost-effective solutions.
Society has changed, and a positive business culture and healthy work environment lined up in a row with competitive wages and a full social package. Moreover, since we have open access to information online, it is much simpler to leave a job you hate and look for a lighter future.
Employers must recognize that their workers are not machines. They are individuals who deserve to feel valued and be treated properly. Eventually, happy staff is more efficient and less intent to quit the organization, resulting in a notable gain in income.
If you want to understand all the intricacies of finding and retaining top talent avoiding numerous mistakes many financial services companies do, don't hesitate to book a conversation with Provision People. Our goal is to make your staff happy and the hiring process smooth and easy.