For many firm owners, hiring a new financial planner feels harder than ever. The common explanation is that there simply “aren’t enough candidates.” But in many cases, the issue is not supply, as there are many candidates trying to enter the profession as the number of CFP educational programs continues to rise, plus many more candidates in play that are seeking to leave PE-backed firms. 

Instead, the hard reality is that sometimes the issue is simply that there aren't many out there who want to work for you, because what you’re offering might not be compelling enough for them compared to other advisory firms that are also hiring.  

Everyone knows that Gen Z and Gen Y are not just looking for a job. They are looking for a mission, a philosophy, fulfillment, and a clear sense of who a firm serves, why it exists, and where it is going. Firms that cannot articulate those things often struggle to attract top early- and mid-career talent.

Why Identity Matters to New Planners

Today’s new planners have grown up in an industry that increasingly emphasizes purpose, specialization, and planning-first advice. They have seen firms that focus on teachers, business owners, physicians, tech employees, retirees, or young accumulators.

When candidates evaluate potential employers, they ask questions like:

• Who does this firm serve best?
• What kind of planning philosophy do they follow?
• What makes this firm different from every other firm?

If the answer is vague (we work with affluent clients) or includes everyone (we work with pre-retirees and retirees and entrepreneurs and business owners and institutions), it can send a signal that the firm may not have a clear strategic direction. Top candidates want to join organizations that know where they are going.

Identity Signals Professional Maturity

A strong firm identity also communicates maturity and leadership. When a firm clearly defines its niche, values, approach to advice, and client service, it signals that the leadership team has thought deeply about the business they are building.

From a recruit’s perspective, this matters because they are evaluating more than compensation or benefits. They are evaluating:

• Whether they can build a long-term career there
• Whether the firm’s philosophy aligns with their own
• Whether the firm has a sustainable growth strategy
• Whether they would be comfortable referring family and friends

A firm with a defined identity feels intentional. A firm without one feels reactive. New planners, especially ambitious ones, prefer to attach their careers to organizations with a clear and intentional vision. Sometimes, firm owners don’t themselves have a clear vision of where they want to go, which is not necessarily wrong, but might have to lower expectations on who you can attract until you can create that clarity for yourself (and then communicate it to your team and hiring candidates). 

Identity Attracts the Right Candidates 

One of the biggest recruiting mistakes firms make is trying to appeal to everyone. Ironically, this approach often attracts no one.  When a firm clearly states its identity, whether that’s serving physicians, retirees with $2M+, or dual-income tech professionals, it creates a powerful filtering mechanism for prospective clients and job applicants. As we have mentioned many times over the years, recruiting is not about maximizing the number of applicants. It’s about attracting the right candidates. 

Identity Improves Retention

Getting the candidate in the door is only half the battle; retaining them for the long term is the other half and arguably much more difficult. New planners who join firms with a clear identity tend to stay longer because they understand how their role fits into the firm’s mission. They see the bigger picture. By contrast, planners who join firms without a clear direction often experience confusion around questions like:

• What kind of clients are we trying to attract? Why does it change every few years?
• What does success look like here?
• What kind of planner am I becoming?

When those questions go unanswered, planners eventually leave for firms that can provide clarity.

How to Build a Clear Firm Identity

The good news is that identity is not something reserved for large firms or well-known brands. Any organization can build one. Here are a few steps to consider. 

1. Define Your Ideal Client

Start by identifying the clients you serve best, and it is okay if they are not the largest AUM or most profitable. Look at your existing client base and ask:

• Who do we enjoy working with most?
• Who benefits most from our expertise?
• Who refers the most people like themselves?

2. Clarify Your Planning Philosophy

Every firm has an underlying philosophy about how to serve clients and deliver advice. The problem is that many firms never articulate it.

Ask yourself:

• What is our definition of financial planning?
• What do we believe about financial planning?
• How do we define success for our clients?
• What makes our advice different from the industry norm?

At the end of the day, if the answer is, “we aren't that different than everyone else,” you may have to lower your expectations for what type of candidate you can realistically attract. 

3. Document Your Mission

A mission statement does not need to be complicated. In fact, the best ones are simple and clear. Strategic Coach and all of the other coaching programs do a good job of assisting your thinking here by posing the words and phrases like “And,” “so,” or my favorite, “so what.”

For example:

“We help first-generation physicians build wealth without sacrificing their lifestyle so they can live a fabulous life and take care of their patients for many years and lower the probability they will burn out.”

4. Communicate It Everywhere

Once your identity is clear, it must show up everywhere:

• Your website
• Your job descriptions
• Your recruiting conversations
• Your onboarding process

James Conole and the team at Root Financial Partners have done a solid job developing their identity, communicating it, and attracting people. That’s how they have been able to go from 1 person and $35MM AUM 5 years ago to $2.4B AUM and 70 team members now. Firms contact us and ask us how to become the next Root, but every firm has to have its own identity. Job seekers will see through firms trying to become Root 2.0, but the essence of what they represent - a firm with a clear mission and identity - is worth emulating, as demonstrated by their track record of attracting talent.

The Bottom Line

The next generation of planners is not looking for a generic firm. They are looking for a place where their work has meaning, where the firm knows who it serves, and where they can develop into a specific kind of advisor. In today’s talent market, identity isn’t a marketing exercise. It’s a recruiting strategy that, if you are growing, you should never let up on.

Contact us at info@newplannerrecruiting.com if you have any questions or would like us to help with your next financial planner hire.  

 

Caleb and the New Planner Recruiting Team*

*AI-assisted