Advisors view themselves as successful, but still want support

A large percentage of financial advisors view themselves as successful, suggesting a high level of confidence within the sector overall. However, a recent study by The American College of Financial Services found notable differences in how male and female advisors view success and address challenges they encounter in building and maintaining their business.

The findings are part of the Advisors’ Perceptions of Success Survey, which explores the traits and characteristics of successful financial advisors, including the challenges they face and strengths that lead to success, to better understand the current state of advisor performance. More than 800 advisors across the United States responded to the survey, with 70% grading themselves as successful in their careers.

That perception of success was strongly tied to whether or not the advisors were meeting business objectives, with 90% of those who were meeting objectives defining themselves as successful, while only 28% of those who were not meeting business objectives saying they were successful. A follow-up question revealed advisors who were not meeting their objectives were struggling with business development, COVID-19 disruptions and systemization.

What defines success in the financial services sector, and ultimately leads to career happiness, is complex, the study says. Typically success is measured by metrics including increased production numbers, higher premiums and assets under management (AUM). However, these metrics are only a small part of the equation and understanding what advisors think about success and how these views differ between men and women can help firms better align their recruitment, training and business models for increased growth.

A large percentage of advisors surveyed (60%) say they entered the industry to serve others and across demographics, respondents value trust, individual effort and specialized knowledge as important influencers to achieving success. More than three-quarters of advisors who viewed themselves as successful, for example, had obtained a designation, and knowledge and use of technology to communicate with younger clients was highlighted as a factor in success by many respondents. Nearly three-quarters of advisors who identified themselves as successful say they use social media to actively market their business.

However, the survey also discovers some differences among male and female advisors in how they view success and approach their business. For example, women tend to favor fee-based and independent registered investment advisor business models while men gravitate toward affiliated and multiline agent models. Women largely prefer working with smaller teams that operate on a more personal level, while men appear to derive a sense of success from the challenges of working in a larger and more competitive environment.

More women (34%) than men (22%) self-identify as less successful professionals despite meeting established employer business goals. Women frequently attribute their success to external factors such as communication, community support and marketing, while men point to individual effort as a key factor in their success more often than women. Women also are more likely to identify interpersonal professional relationships and experiences as foundational to their career success, and those who identify as less successful say they want additional mentoring and study group opportunities. Men, however, more often view these relationships as a reinforcement of success they have already achieved through individual effort.

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The survey’s respondents agree on many of the challenges they face as advisors that could limit their success, including finding new clients, hiring qualified staff and increasing productivity. Female advisors are more likely to identify hiring qualified staff as a significant challenge when compared to male advisors (77% vs. 68%) while men are more likely to view finding new clients as a bigger challenge than women (68% vs. 52%). Those advisors who identified as less successful cite finding new clients most frequently as their biggest challenge, and across genders, advisors say help with client acquisition would be most useful to them at their current career stage.

In a tight labor market and within a sector that experiences as many exits per year as it does new entrants, providing the kind of support advisors need could help bolster the perception of success among advisors. Women, for instance, cite the desire for additional formal education or credentialing (43%) and technology support (40%), and among women identifying as less successful advisors, more than half (52%) cite mentoring and study group opportunities when asked what support/resources they desire. Interestingly, individual female advisors without support have a much higher rate of success than their male counterparts despite their focus on individual success, which the study says could suggest that male advisors may also need the same support systems women in the industry prize.

Women are much more likely to view themselves as successful in the first 4 to 10 years of their practice when compared to men. Understanding the differences that men and women experience in the early years of their practices and the reasons women seem more comfortable with perceptions of early success could be useful in improving retention overall in the industry, the study says.

“These insights highlight an opportunity for the industry to deliver the necessary resources, guidance and support advisors need to succeed,” says Kaylee Ranck, research director of the Center for Women in Financial Services. “The financial services industry has room for continued growth and expansion of professional development programs such as specialized knowledge, mentorship and study groups – primarily for female advisors – to support their individual needs on the path to success.”