Based on the most recent report from the Bureau of Labor Statistics, the US job market is in pretty good shape.
But what about in the financial advisory arena? Is hiring as rosy for RIAs as it is for the rest of the economy?
And what exactly are RIAs looking for in new hires in 2025, especially the younger ones just getting into the business?
Payrolls increased by 143,000 in January after upward revisions to the prior two months, according to the BLS employment report earlier this month. Moreover, other revisions only carried out once a year proved to be less severe as previously thought, with job gains averaging 166,000 a month last year.
Putting it all together, the unemployment rate came in at 4 percent last month. And while that rate is not directly comparable to prior months because of population adjustments, BLS confirmed that excluding those effects, the unemployment rate dropped from December.
The positive hiring news seemingly extends to the RIA industry based on an informal survey performed by InvestmentNews. Derek Wittjohann, chief operating officer at Premier Path Wealth Partners, for example, said his firm is on a growth trajectory and he resultingly has ambitious hiring goals for this year. Right now, he has multiple open job postings, ranging from client service roles to experienced advisors.
Similarly, Andrew Arnold, CEO of Centerline Wealth Advisors, said his plans for 2025 are to hire additional advisor talent and possibly a marketing coordinator to assist with outreach programs via a combination of traditional and new media channels. He also has an internship program that is designed to both “identify potential new talent at the beginning stages of a career in financial planning" and to give back to the community "by helping young and aspiring students learn more about our industry and the potential for long-term engagement.”
Meanwhile, Mason Salit, chief talent officer at Dynasty Financial Partners, said the firm will be hiring approximately 40 people across the organization which currently employs over 150. As to what he is looking for in the ideal candidate, Salit said the most important trait is the “capacity to grow from day one.”
“Our company is growing so rapidly that people who just want to do just their job tend not to thrive at Dynasty. We want to hire people who are all-in and who want to go above and beyond,” Salit said.
He added that digital fluency is important, and that adaptability is also very high on his list, especially when it comes to younger employees due to the often overwhelming amount of information shared at all levels.
“Most organizations do not share that much, especially at the more junior levels,” Salit said. “We also provide professional development dollars annually for each person at the firm. We have an internal group called Dynastars, comprised of more junior employees. Participation in the Dynastars Program provides training, professional development opportunities, and exposure to more senior team members.”
When it comes to employee development, Premier’s Wittjohann has found that next-gen professionals are looking to find a role they find fulfilling and challenging, and will sometimes pass on the highest paying jobs to chase "culture and purpose."
“We tell prospective team members that if they wanted, they have the opportunities to start and end their career here. We offer and expect that each member of the team continues to develop, whether we support industry designations such as the CFP, mentorship, or other opportunities for professional development,” Wittjohann said. “This is not only a benefit we offer our employees, but an expectation of continued growth.”
As for new employee skill sets, Centerline’s Arnold said they are able to teach much of what a new team member will need in the long run, so they look for more intangible skills and abilities that are not easily teachable at this point in a career. For example, they test potential new hires on their ability to write a cohesive paragraph, a client thank-you note, and other writing samples.
“Writing is becoming a lost art but remains critically important when working to instill confidence in a new client or prospect,” Arnold said.
On the more "intangible" side, Arnold said he looks for a new team member’s ability to earn client trust over time. To do that, he observes their listening skills to ensure they have an “empathy gene.”
“An appropriate interpersonal communication style is key, as clients often find themselves in challenging situations such as divorce, loss of a loved one, career challenges, or complex family dynamics, where a deft communicator and listener can make a significant impact,” Arnold said, adding that he finds candidates with degrees in communication or psychology often proving to be excellent team members.
As for the biggest hurdles when it comes to bring on next-gen employees, Dynasty’s Salit admitted they have had the occasional misfit, but nothing too dramatic. The biggest hiring problem he has confronted is having people relocate to the firm’s headquarters in St. Petersburg, Florida.
“We cannot understand why as it is a wonderful place to live and to do business,” Salit said, adding that the problem might be due to the fact that the team works five days a week in the office.
Centerline’s Arnold also finds that some younger employees can be less transparent in one-on-one development meetings.
“Instead of accurately expressing any frustrations they may have, they tend to simply apply for another job rather than working through challenges. We are seeing this pattern in many of the applications we receive as well, and we tend to look for candidates who do not exhibit the ‘grass is greener’ mentality,” Arnold said.
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