At Count and Viridian Advisory, providing a structured career pathway for Professional Year candidates (PY) is critical to ensure greater retention of new entrants.
Count is Australia’s second-largest licensee owner with more than 600 advisers. In a conversation with Money Management, the firm’s chief executive Hugh Humphrey said Count has 45 candidates currently undergoing its PY program.
Humphrey observed that many advice firms, particularly on the smaller end, are fearful they will spend several months and years training up a PY candidate just for them to depart once they have completed the program.
While this is a potential and legitimate risk, the CEO said it is critical to demonstrate the value of the firm’s proposition beyond the PY to retain such individuals.
“It’s about the whole value proposition offered by the firm, not just the PY program. We offer them a structured approach which plugs them into the Count business. We want them to progress to CFP qualification and we recommend equity participation in the business they are working in,” he said.
“It’s not just about getting them through the program but looking at their skills and capabilities and what they need to succeed as a financial planner long term, such as business development and pricing.”
In addition to delivering long-term career opportunities, Count also encourages PY candidates to seek out guidance from mentors through live events.
Humphrey added: “We also bring them along to our conferences so they can network and get mentors which opens them up to the world of Count, which energises them, and it’s good to see them connecting with the business.”
Last week, Viridian Advisory’s co-founder and general manager of advice, Brett Arnol, unpacked how its own PY program operates and its focus on creating client-ready advisers. Viridian has seen 10 individuals finish the program, with eight currently completing it and another 11 waiting to start their PY.
Echoing Humphrey, Arnol recognised the anxiety around a freshly qualified adviser leaving a practice once they finished their training.
“The fear that we had, which we don’t have anymore, was we’ll put all these advisers through a program that we’re running and we’ll become like the banks used to be. Banks would train advisers up and then they lose them after two years,” he said.
However, the co-founder said that thankfully this has not been the case at Viridian due to the long-term opportunities and certainty it offers new advisers.
“We’re just not losing these people because of that career pathway development that we’re giving them. Career development is the key,” Arnol remarked.
“With our PY program, we are looking three to five years ahead on that. The magic of it is the security of a five-year plan for that individual. You start here, you move here, then you move here – and it’s on us to deliver on that plan.”
A typical timeline at Viridian includes six to 12 months spent in the associate role, two years as a PY candidate and provisional adviser, followed by another two years determining what type of advice they enjoy delivering as a fully qualified adviser.
“[We] give them the ability to branch out in that fourth and fifth year. The important part is that we show them the path and that we deliver on it.”
Money Management also spoke with two commentators in August who indicated that improved PY programs overall and flexible working arrangements were leading to higher retention of new advice entrants.
“When the new education requirements and PY requirement was introduced, candidates faced an arduous few years of hard work and at the same time, advice firms had to develop the systems, processes and supervision to deliver the PY program,” said Andrew Dunbar, director and senior financial adviser at Apt Wealth Partners.
“Now that we’ve all had some time to develop these programs (and I’m sure many firms continue to perfect them), hopefully this is helping give PY candidates a better preparation, deeper skills, and an improved understanding of the role of adviser and the life full of satisfaction that the hard work brings.”
Meanwhile, Robert Rich, director and financial adviser at Unite Wealth, said that workplaces have become more in tune with younger demographics, which means providing flexible working environments and work-from-home offerings.
