One in five independent financial advisers (20%) see hiring one or more financial advisers as a key part of their growth strategy this year, according to a new report.
The poll of Validpath member firms found that the most cited reason for hiring was to support succession planning (16%), followed closely by the ability to attract new clients (11%).
However, over half (51%) of the network’s advisers said they require greater revenue certainty before committing to hire new advisers, with 50% wanting to see significant growth in the amount of funds under management.
The stresses of onboarding new staff was also putting some advisers off hiring. Over half (55%) of the network’s advisers said that having access to an onboarding framework would make the hiring process easier, or more attractive.
Some advisers planned on employing temporary staff to help with the end of the financial year rush. Over one in ten (12%) of the advisers surveyed said they typically employ temporary staff to support other areas of the business to help manage workload during client review season.
Tim Riseborough, group operations director at ValidPath said it is encouraging to see that many IFAs prioritise succession planning when taking on new advisers.
He said: “IFAs who adopt a proactive approach to succession planning are best placed to ensure a seamless transition for clients and staff, whilst also achieving the best possible valuation for the business.
“We have seen many IFAs in our network hire younger advisers with the intention of handing over the reins further down the line. This allows relationships and trust to develop organically over time, providing reassurance for clients.”
Validpath surveyed 74 member IFAs between 9 and 19 December.