A Hiring Manager's Guide to Selecting Relevant Financial Advisor Skills

Thirty-seven percent of financial advisors are projected to retire in the next 10 years. This should signal to hiring managers that now is the time to be laser-focused on the new set of financial advisors coming in on the heels of their predecessors. 

Not just because an entire generation is walking out the door, but because how and who they hire has changed. To state it succinctly: former financial advisors are being replaced, but they are not being replicated.

Just like other sectors, the financial industry has experienced quite a transformation over the last few years. While the financial advisor’s end goal remains the same (providing advice and creating plans that meet their client’s financial needs), how they get there has become much more holistic. 

Emotionless transactions have progressed to relationship-based collaboration. And pitching a product or selling a strategy have become much more about solving clients needs. In other words, an interactive, dynamic, personal approach matters just as much as data and dollar signs.

As the current number of financial advisors is set to increase by almost 51,000 by 2031, it’s critical that hiring managers learn how to select financial advisor skills and competencies that drive business growth.

Skills and qualifications to look for in top financial advisors

Not all financial advisors are equipped with the same education, background, or skills.

However, the best financial advisors have the right balance of technical and soft skills. 

So what’s the difference? And why do both skill sets matter?

Technical skills have always been a priority on the hiring manager’s must-have list. Think investment management, financial services, or wealth management. It’s industry knowledge gained through education and training.

Soft skills, on the other hand, are newer to the hiring world but just as important. These are personal attributes that allow the financial advisor to do well at work.

In today’s world, an advisor will never excel with just one or the other. They need both. So how do hiring managers recruit for financial education and experience while also adopting a skills-based approach to hiring?

Financial Advisor Education, Licenses, & Certificates

We’ll answer that question in a minute. But first, let’s begin with some common technical skills to look for in financial advisor candidates:

• Understanding of sales, planning, and management
• Experience with financial planning software and tools
• Knowledge of financial concepts and how to apply them to real-world situations

What gives financial advisors credibility in these areas? Many hiring managers look for a combination of degrees, licenses, and certificates.

While it’s not legally required to have a college degree, many firms require at least a bachelor’s degree. Licenses, however, are required in order for the advisor to perform certain tasks. Some common licenses include FCA, CII, DipFA, CISI, FINRA Series 7, and 63 securities registration.

To further establish credibility, many financial advisors obtain certificates. Like licenses, they are not legally required, but many firms seek them out.

Financial Advisor Skills

At one time, the mark of a perfect resume in the financial world was certificates, licenses, and experience. And while these still matter to some degree, they are no longer the only predictors of success.

A candidate’s soft skills are equally important (and often a more successful identifier of success). Why? Because these are the candidate attributes that will build client relationships, communicate effectively, and become a solid team player. Without these soft skills, technical skills are a wash.

Training & Development

What if a candidate’s soft skills are on point, but they don’t have all the financial training a company requires?

Consider hiring — then training them.

From new technology to changing regulations, the financial world is always evolving. So, it’s critical to have training and development in place to remain competitive.

This also gives financial advisors an edge, allowing them to adapt to changing environments, learn new skills, and advance in their education. And companies benefit as well. When they invest time and effort into their existing employees, everything from candidate attraction to employee satisfaction and retention will rise.

Here are just a few of the ways companies can encourage financial advisors to grow in their careers:

• Offer internal training programs
• Offer on-the-job training & mentoring
• Provide professional development
• Reimburse license, exam, and certificate expenses