Edward Jones is on track to roughly double the number of experienced advisors it pulls in from rival firms, moving closer to its goal of fielding the biggest brokerage force in the industry.
The St. Louis-based brokerage firm expects to hire about 250 veteran advisors this year, twice what it previously brought in, according to Katherine Mauzy, principal of financial advisor talent acquisition at Edward Jones.
The firm's biggest source of head-count growth remains its training program, stocked with college graduates, military veterans and other career-changers. Still, the increase in experienced advisor recruiting is notable as Edward Jones has not traditionally sought to source talent from rival companies.
Edward Jones currently fields more than 16,000 U.S.-based advisors. LPL Financial, the nation's biggest independent broker-dealer, also has more than
At wirehouses and regional BDs, branch managers have traditionally been tasked with recruiting new talent. Edward Jones, not having those positions, relies on newly-appointed regional recruiters as well as transition specialists.
"They act as the quarterback during the whole process," Mauzy says, adding that the transition specialists remain available to new hires long after their start date.
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The firm achieved a record 7,719 independent and employee advisors in the second quarter.
July 26 -
Compensation related to financial advisor recruiting fell 22% for the second quarter.
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Wirehouse policy changes are bearing fruit and leaving advisor career options in flux.
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Total broker head count dropped by 173 from the prior quarter, according to the wirehouse.
July 13
Like rival firms, Edward Jones also brings prospective hires to St. Louis for due diligence visits, Mauzy says. Jim Weddle, head of the firm, has dinner with these recruits and answers any questions they have.
Recruiting challenges, however, remain in part due to Edward Jones being outside of the Broker Protocol, an industrywide accord that permits advisors who switch firms to take basic client contact information with them.
That can be an obstacle to having a conversation with potential hires, Mauzy acknowledges. "It would be easier if we were in [the protocol], but honestly if someone is a fit for Edward Jones, that wouldn't be a hurdle."
The company also operates a unique model of one broker per office at a time when wirehouse and regional BDs have long gravitated toward a team-based approach. Solo producers, however, can thrive at the firm, Mauzy says. The largest producer at Edward Jones generates more than $6 million.
"Our biggest challenge is getting people to sit down and take the time to really look at our model," Mauzy says.
Once brokers do, they are pleasantly surprised, she says.
The company will hire teams, but with the intention that they will eventually split their practices.
--With additional reporting from Amanda Schiavo.
