Financial advisors feel hungry for time with clients, reports JD Power

Financial Advisors

According to JD Power’s 2023 U.S. Financial Advisor Satisfaction Survey, nearly one in four financial advisors report not spending enough time working with clients.

Of the more than 4,000 financial advisors surveyed by the research firm, 28% said they don’t have enough time to spend with their clients, and 41% of them spend more time each month on non-value added tasks like compliance. I answered yes. I have more administrative obligations than my colleagues.

“At present, many advisors struggle to find the time to deliver the level of hands-on service they recognize as essential to growing their business,” said JD Power executive managing director. Craig Martin, also head of wealth and loan intelligence, said. statement. “They are spending more time on administrative and compliance-oriented tasks and often begin to question whether they are serious about providing the support and resources their company needs to be successful. I have.”

As retirement planning advice and wealth management converge, more financial advisors are in demand to supplement workplace retirement planning advice, industry insiders say. But a lack of time for clients and the impending retirement of many advisors could further weigh on the industry’s long-term success, according to a JD Power report. It is said that there is

According to JD Power, 20% of advisors surveyed, with an average age of 56, report that they are within five years of retirement. A significant portion of Employee Advisors (30%) and Independent Advisors (28%) said they “will probably” rather than “definitely” work for their current company in the next year or two.

“This suggests that many may become apathetic about their situation, even if the advisor is not considering leaving the industry or company,” the researchers said. writing.

Advisors most likely to stay with the firm for the long term reported that strong culture and corporate leadership were the top reasons for staying with the company. Other key elements include professional development support, training and technology.

Notably, female employee advisors’ overall satisfaction (637) and net promoter score (59) were significantly higher than male advisors’ satisfaction (578) and NPS (36). Overall satisfaction is measured out of 1000 and Net Promoter Score is measured out of 100.

In terms of employers, Stifel Financial Corporation (777), Raymond James and Associates (711) and Edward Jones (672) are in the top three according to the Overall Advisor Satisfaction Ranking results. These companies include RBC Wealth Management (669 companies), Ameriprise Financial (660 companies), Bank of America’s Merrill (610 companies), Morgan Stanley (580 companies), Wells Fargo subsidiary Wells & Co. Fargo Advisors followed. and Company (407).

The Net Promoter Score measures an advisor’s advocacy on a scale of -100 to 100. Among advisors who said they did not spend enough time with their clients, employee advisors scored 27 points lower NPS than advisors, and independent advisors scored 30 points lower. Those who said they had enough time.

The JD Power survey is based on responses from 4,183 employees and independent financial advisors. It was implemented from December 2022 to April 2023.

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