How to retain HNW advisers amid talent shortage

Financial advisers in private wealth management companies are one of the most in-demand roles currently, this recruitment firm has said.

According to recruitment agency Keegan Adams, which specialises in financial services recruitment, the demand for private wealth advisers has continued to spike in an increasingly competitive market.

Given the adviser exodus has slowed to a current total of approximately 15,600 – from a high of 28,000 in 2018 – wealth managers are often battling it out to hire experienced advisers from a relatively small talent pool.

“In the private wealth space – because that is growing – we’re seeing a lot of relationship managers and advisers being added to private wealth firms,” Jack Brown, director at Keegan Adams, said to Money Management.

“The most common role in wealth management at the moment is a private wealth adviser that has a book of clients that they can bring across. Once that person is locked in, then you need the support functions, because you need to get the associate advisers and the relationship managers to help them effectively service their portfolio of clients. So there is high demand in that space.”

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Private wealth managers are also looking to meet client demand for alternative and private markets investment, Brown acknowledged, particularly for high-net-worth investors and family office clients.

Evidenced in a recent Natixis Investment Managers research, nearly half (48 per cent) of wealth managers in Australia said meeting client demand for unlisted assets would be a “critical factor” in their growth plans.

This, in turn, is further driving demand for private adviser talent as wealth managers double down on their growth plans.

The Keegan Adams director continued: “What we’re seeing is private wealth management firms, as they’re being allocated more money and they’re trying to look at alternatives, they need more coverage to grow their client books essentially. How that is done is either by acquiring another firm or by bringing on some senior partners that can bring in a book of business.”

Keegan Adams’ 2025 annual report shows financial advisers in wealth management can expect an annual base salary of $130,000 on the lower end and $150,000 on the higher end (excluding superannuation and bonuses).

This rises to a range of $150,000–$200,000 for senior advisers and $160,000–$190,000 for practice managers and operations managers.

In terms of attracting and retaining talent in the space, Brown said offering an equity partnership model is one critical way to keep staff over the long term.

“[Retaining talent is] something that we’re dealing with at the moment. It’s generally through some sort of equity partnership. The conversations do take quite a long process, because why would they leave? What’s the kicker? It’s generally that equity partnership, or they go and start their own business,” he explained.

“This is a big thing because Australia is such a small market, and there’s only a few firms that dominate the private wealth space. How do you actually retain your staff at the senior level? How do you retain your top performers?

“Is it an equity lock-in? Is there a long-term incentive over a three-, five- and 10-year period? That is one of the most common conversations we’re having at the moment.”

An EY report released earlier this year tipped professional development as another key focus for financial advice and wealth management employees in 2025.

The company urged practices to remain focused on the attraction and retention of key talent, which includes offering opportunities for professional development and upskilling.

“Empower talent with the right technology tools, such as portfolio and customer relationship management and AI co-pilots. Upskill staff to encourage adoption. Retain top talent through meaningful rewards and recognitions, and allow greater degrees of internal talent mobility. Allow for upskilling key talent to power and lead firms of the future,” it stated.