Ronald J. Adams believes that now is the perfect time for young advisors of color to begin working toward becoming leaders in the industry.
That’s not an obvious conclusion looking at an industry in which the vast majority of advisors are white males. But diversity-focused recruitment efforts, greater access to development programs and acknowledgment of the
But he warns that there is still work to be done, and what you get out of the journey is predicated by the dedication and commitment you put into it.
“This is definitely a career. I would go out on a limb and say that if you’re looking for a job, the financial advisor position is probably not something that you are going to excel in. This is an opportunity to create your own,” said Adams, vice president of field diversity and inclusion for Northwestern Mutual.
He cited three criteria for moving into leadership in wealth management: “You have to have the power of attraction because recruiting is a key element of success for leading in this business. You have to have passion for developing others … And you have to be a good financial steward.”
That insight was among the gems dropped by a panel of industry professionals on day one of the
Adams was joined by Michelle Balatero, assistant vice president of advisor diversity and inclusion for LPL Financial; JoDee Klinker, director of talent acquisition for Carson Group; and Danielle Swancey, financial advisor development program manager for Vanguard.
The conversation was moderated by industry leader Mark Tibergien, chair of the CFP Board Center for Financial Planning Workforce Development Committee.
The four panelists discussed how recruiting is done, the soft skills needed to sustain a successful business, compensation models and the appeal of entering the industry undergoing so much change.
While most major wealth management firms have made public commitments to diversity in hiring, retention and promotion over the past few years, the industry remains overwhelmingly white and most advisors are men. According to a study released by research firm Cerulli Associates earlier this year, fewer than 3% of financial advisors are Black, and only 1.7% of CFPs are Black.
The problem isn’t limited to wealth management, but can be seen across the knowledge-work professions. McKinsey’s latest Women in the Workplace report, published last month, shows that women ascend the corporate ladder slower than their male counterparts, and women of color are especially underrepresented at every level above entry-level.
More than half of the employees in entry-level positions at the beginning of 2021 were women, but only 27% of C-suite executives were women, according to the survey. Women of color account for 21% of entry-level employees but only 4% of C-suite executives.
To improve conditions for advisors and employees of color in wealth management, those in positions of power have to put the excuses to the side and do more than talk about making things better. She said Carson has recently created a
The effort, launched in partnership with the Association of African American Financial Advisors (AAAA) Foundation, supports initiatives at Historically Black Colleges and Universities to help more Black students enter the financial planning profession.
“That doesn’t happen overnight, as we all know. But how do we start planting the seed early on?” Klinker said. She added that beyond connecting with students fresh out of college, there are opportunities for career changers with diverse backgrounds to make waves.
Panelists also spoke extensively about the skills seemingly unrelated to money management that can help a budding advisor push their career to the next level. Swancey said a large number of people, including herself, became financial planners after trying other things.
While she was always “pretty decent” with numbers, she said, it wasn’t a requirement for her to enter the business. Computers could aid with formulas and analysis, but the interpersonal skills she brought to the table couldn’t be automated.
“The computer could not talk to somebody who was facing the one point in their life where they had to make the decision to retire or not. That’s where the caring comes in,” Swancey said. “Are you somebody who cares about people? When they make a big decision in their life, does it feel like a big decision that you’re making in partnership? Are you willing to take the time to listen to them?”
In closing the discussion, Balatero touched on the appeal of considering a career in financial planning. Much like Adams, she spoke of taking ownership of your path, and working to uplift the people and communities in need of a boost.
Lack of diversity among the advisor ranks means clients of color end up working with firms who may not completely understand them or their challenges. The next generation, however, can bridge that gap, she said.
“Not only are you working on your professional development, but you’re working on your personal development. It’s something that you can do where you’re constantly helping people and making a substantial impact on the trajectory of their life,” Balatero said. “Now of course, it takes a lot of work in the beginning. But at the end of the day, you can help the people you want to help.”
