Nurturing the Next Generation of Financial Advisers

Nurturing the Next Generation of Financial Advisers

By Fiona Ettles, Partner at FinConnect

Is there a staff member in your business that aspires to be an adviser, but isn’t yet?

In today’s climate, where more advisers are retiring than entering the industry, recruitment is tough, and finding time to train emerging talent is even tougher.

Recently, at the FAAA Roadshow in Hobart, a quick poll of attendees revealed that only 1 in 30 had an aspiring adviser on their team. That’s a concerning figure and highlights an urgent need to address how we nurture and develop new talent. 

Hesitation to Invest

One of the biggest barriers to training aspiring advisers is the time investment. It’s daunting to dedicate time to developing a Professional Year student, particularly if past experiences have shown that just as they become genuinely useful, they leave. This risk makes businesses reluctant to commit, despite knowing that the industry’s future hinges on growing adviser numbers.

But what if we reframed the risk? Rather than viewing it as a gamble, let’s consider how to reduce the risk and create a mutually beneficial path forward.

The Case for Developing from Within

Hiring externally can seem like the safer choice, but developing talent from within your business has significant advantages:

• Cost-Effectiveness: According to HR Path, internal recruitment often proves more economical than external hiring. It helps avoid costs tied to advertising, recruitment agency fees, and onboarding, while also benefiting from a shorter learning curve thanks to existing knowledge of the business's systems and culture.

  
  

• Employee Morale and Retention: When staff see a clear path to progression, it lifts morale and strengthens retention. Promoting from within gives team members a reason to stay and invest in the business long-term (Training Magazine).

  
  

• Speed and Efficiency: Internal candidates can step into new roles faster, requiring less time to onboard and train because they already understand how your business works (HR Executive).

  
  

• Stronger Client Relationships: Clients value consistency and trust. Promoting someone they already know helps preserve these relationships, which are often hard-won and deeply personal.

  
  

• Succession Planning: Developing future advisers internally gives you the opportunity to plan for leadership and potential equity succession in a measured and deliberate way.

  
  

• Cultural Alignment: Internal hires already reflect your firm’s values and behaviours, reducing the risk of a poor cultural fit.

Building Commitment

Firstly, we need to focus on building confidence in aspiring advisers. Often, self-doubt is a bigger barrier than capability. If your team member genuinely believes they can do it—and you believe they can too—they’re far more likely to succeed. It’s about empowering them with the mindset that they belong in the adviser role, not just training them with technical skills. 

Next, let’s look at the long-term vision. Is this the person we want to see grow with our clients and our team? If the answer is yes, it’s worth investing in their development. One way to reduce the risk of losing them just as they become valuable is by offering a clear, transparent career pathway. This should include: 

• Adviser Pathways that outline each step towards full qualification and progression. 

• Regular Career Reviews to keep progress on track and provide a sense of momentum. 

• Bonus Schemes and Equity Options to make staying more attractive than leaving. 

While not every aspiring adviser is at a point to discuss equity, including it as a future option in career pathway conversations can help establish a long-term mindset. It also separates you from many in the industry who focus solely on immediate output rather than sustainable growth. 

Culture and The Bigger Picture

Building a great workplace culture and offering market-competitive remuneration are essential elements of retaining emerging talent. If they feel valued, supported, and see a genuine path forward, they’re more likely to commit to the journey.

Bodies like the FAAA are working on models to increase adviser numbers and provide support to Professional Year supervisors, but the reality is that much of the burden still falls on individual businesses. It’s essential to see this as a long-term investment rather than a short-term inconvenience.

Ultimately, we need to acknowledge that growing our industry requires more than wishful thinking—it demands investment, mentorship, and a willingness to take on some risk. If we don’t take responsibility for fostering the next generation, who will be there to look after our clients when we retire?

If you’d like to discuss how to develop adviser pathways in your business, reach out to our team at FinConnect. We’re passionate about helping you build a sustainable future for your practice.

Get in touch if you want to chat.