By Dorothy Hinchcliff/ Financial Advisor
Female financial advisors at broker-dealers are generally more satisfied and loyal to their firm than their male counterparts, but they still represent just 16 percent of all advisors, says a new study from J.D. Power.
The J.D. Power 2018 U.S. Financial Advisor Satisfaction Study ranked Edward Jones, Raymond James & Associates and Stifel, Nicolaus & Co. in the top three positions, respectively, for overall satisfaction among advisors at employee broker-dealers. Meanwhile, Commonwealth Financial, Raymond James Financial Services and Cambridge Investment Research captured the top three spots among advisors at independent b-ds.
The report spotlighted the dearth of women in the business. Women are now estimated to control 51 percent of total U.S. wealth, and despite the significant attention that fact has received within the industry, women still represent just 16 percent of all financial advisors, the report said.
“The wealth management industry clearly recognizes that aligning the gender mix of advisors with the shifting demographics of investors is critical for their success,” said Mike Foy, director of the wealth management practice at J.D. Power.
Firms that want to be leaders in attracting and retaining top female talent need to address what’s important to women advisors and how that may differ from what men advisors think is important, he added.
For example, women are significantly more likely than men to say they do not have an appropriate work/life balance (30 percent vs. 22 percent, respectively). Nine of 10 (90 percent) women who do have that balance say they “definitely will” recommend their firm, compared with 68 percent of those who do not.
Also, women are less likely than men to say they “completely” understand their compensation (60 percent vs. 66 percent, respectively) and less likely to believe it reflects their job performance (60 percent vs. 68 percent), the report said.
Women also are less likely than men to believe mentoring programs are effective (44 percent vs. 53 percent, respectively).