Among independents — those affiliated with a broker-dealer but operating independently — satisfaction averages 755; that’s down 18 points from last year’s average of 773.

Retirement and going independent are main factors

The study pointed to several impending changes that will have far-reaching changes for the field. First is the potential for retirement among advisors on a large scale.

Nearly a third (31 percent) are poised to retire in the next 10 years. Between 2014 and 2016, the number of advisors indicating they plan to retire in the next 1–2 years has risen to 3 percent from 2 percent.

Then there’s the trend for advisors to jump ship, or to strike out as independents.

The percentage of employee advisors, in particular, who indicate that they’re likely to go independent in the next 1–2 years has doubled since 2014, when it was 6 percent. Now it’s 12 percent. And another 12 percent of advisors say they’re likely to join or start an independent registered investment advisor practice in the next 1–2 years, up from 7 percent.

Retain advisors, retain profits

Between retirements and other departures, firms could stand to lose billions, according to the study.

At the current expected rate of attrition due to retirement and firm switching, it said, a firm with 10,000 financial advisors could have more than half a billion (approximately $585 million) in annual revenue at risk during the next 1–2 years. That emphasizes how critical it can be to retain top producers and to effectively manage succession planning to transition assets to newer advisors.

Keeping advisors happy could be the key; the study found that among employee advisors who are highly satisfied (overall satisfaction scores of 900 and above), only 1 percent say they “definitely will” or “probably will” leave their firm in the next 1–2 years, compared with 46 percent of dissatisfied employee advisors (scores of 600 and below) who say the same. The same trend holds true for independent advisors (2 percent and 45 percent, respectively).