John Pierce is Head of Business Development at Cetera Financial Group, driving Cetera’s financial professional recruiting strategy.
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The Italians have a saying, “la vita è bella,” which means "life is beautiful." During my recent birthday trip to Italy, nowhere was this more clear to me than soaking up the Mediterranean sun by the Trevi Fountain in Rome and savoring lasagna made from scratch, imbued with the love in recipes passed down from generation to generation.
Many of us in the financial industry, especially, live a work-hard, play-hard ethos and are always looking to up our game.
"They are giving me more money," is a phrase I often hear from financial professionals who are looking to change firms. It is easy, and at times understandable, to be lured by the optics of a superficially attractive headline transition compensation number or a contrived affiliation model to increase how much you may be offered to move. But in the long run, weighing either of those too heavily can deteriorate the relationship with your clients and team.
Money does matter—but life is not just about money. Is the culture right for you? Is the fit right? Is the service model a match?
Regardless of your industry, here are five pro tips to ensure you don't fixate on money and end up missing out on the total experience of creating your life—and, ultimately, contributing to your happiness.
1. Start By Doing Your Due Diligence
Before you ever join a new firm, do your own critical fact-based due diligence versus relying upon a third party who is being paid to place you, or the target firm. Speak with current employees or affiliates who have a practice like yours. Speak with influential people who work with that firm but who are not influenced by money for your decision.
An organization's reputation matters. While at industry events or trainings, speak with colleagues who know the firm. Ask them what they think of it and whether they themselves would or have considered joining. You’ve spent years building your business. Invest in your due diligence before you go through the life-changing process of a move.
2. Research External Data Surveys
"Wait a minute—you say you have the best service in the industry but in industry surveys, you are 18th or 20th every year for the past five years—what gives?" This is a verbatim quote from someone initially swayed by up-front money at another firm. She did her due diligence by looking at various respected industry surveys and asked the in-house recruiter to justify industry reality versus slick marketing. Third-party validation may not tell the entire story, but it matters and should be on your essentials list.
3. Ask Yourself, What Has History Shown
The past is always not an accurate predictive indicator of the future, but it could provide insight into the service experience you may receive. I think back to the early days and uncertainty of Covid-19. I reflect with pride on how my firm handled the global pandemic. We rolled out an industry-leading Resiliency Pack with more than 140 technology, written and service-driven solutions to aid our financial professionals. As you consider changing firms, study what your target firms did in the past with these "black swan" events.
In addition, probe the annual investment your target firms invest in their service and, more importantly, the results. The bulge bracket "Walmart-like firms" in our industry can always outspend us because of their scale. Saying "we spend 2x" is irrelevant if you don't deliver service and process improvements every single year to help your team grow and become more efficient. Investment in service matters so you can focus on what is critical to you. History matters.
4. Determine How Your Success Will Be Supported
Making a move is disruptive. Whenever a financial professional moves in our industry and joins us here at Cetera, we focus on a surround-sound approach to service that is team-based. When considering a change, be sure to ask about the team that will support and surround you in a move. You are dependent on the new firm to affirm all the promises they gave you during the relationship-building process. Don't neglect the teams that will serve you.
Before you agree to join a firm you should know if they provide robust onboarding support or access to boots on the ground. Check to see if they provide technology advancements that allow you to restart faster and thus generate revenue quicker. What experience and knowledge can they offer to help you move and grow?
Many firms want a forced affiliation model because it drives profitability. A firm’s profitability should not drive affiliation models—what's in your best interests should be the key factor for deciding to make a change.
That change starts with familiarizing yourself with the teams that will serve you now and for the rest of your career.
5. Don't Be Afraid To Ask Probing Questions
I had a recent experience with a candidate who was swayed by the optics of an offer. She started her onboarding process at another firm. As she started to transition, everything the acquiring firm told her, as well as the third-party search firm that was receiving a high payment to direct candidates to a specific firm, was inaccurate.
This advisor wisely pivoted, stopped the process and re-evaluated her options. Given that we were up-front and transparent, she decided to U-turn and make her home with Cetera Advisor Networks. While it was a costly experience for her, as she spent $15,000 on the services of a third party, ultimately, the story ended well when she joined Cetera.
This example certainly demonstrates the importance of asking probing questions when a third party is presenting you with an offer.
Service, honesty and transparency will win in the long run. Please remember these five tips before you move to a new firm. Because joining a firm you love? Now, that’s amore.
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