Preparing the next generation of planners with “soft skills”

By Kimberly Watkins

What must we accomplish in preparing the next generation of financial planners? I believe that focusing on “soft skills” is an essential, if not most important, component of future planners’ success.

As an assistant professor in the department of financial planning, housing, and consumer economics at the University of Georgia, I have the wonderful task of preparing students to enter the financial planning profession. Our program, like many, has been built on the foundation of goals-based financial planning and being client-centered. However, I occasionally encounter some students who forget to place the client’s needs—not their expertise—at the center. I chalk much of this up to their inexperience because I remember those lovely brains are still developing.

Yes, you can become the next great financial planning expert, but you won’t be able to gain this level of influence if you can’t coach clients through difficult circumstances, recognize biases that affect your recommendations and implementation, and use the power of empathy so clients are comfortable being financially vulnerable. Additionally, how can you connect with someone else’s money story and understand their biases if you are not aware of your own story and biases?

Introspection must be required for students and new hires to increase their ability to empathize and connect with clients. Those “soft skills” turn out to be the incredibly hard skills that future planners must develop to excel in their craft. It is imperative that universities and employers of new advisors train the next generations of planners to be competent, empathetic, and culturally responsive to help clients reach their financial goals. This will build a better profession, too.

Yet, it would be disingenuous of me to say that I fully understand all of the ways to prepare students to enter the profession. I relied on our department’s dedicated alumni and other planners to inform me on how to prepare students, their future employees. Here are six areas of essential skills based on the thoughts they shared as new planners and hiring managers for their firms, coupled with my own.

1. Networking skills

Students must be able to build connections and relationships. One of the things that I love most about the financial planning community is that many planners are great at forging connections. Financial planning programs and firms must find ways to help students and new hires to continue to build on these skills and learn to network.

Firms can encourage new hires to join chambers of commerce, financial planning professional organizations, alumni groups, and nonprofits. At the same time, managers should remember that networking isn’t second nature for everyone nor will all planners have access to clients who meet your firm’s AUM levels. It is a skill that can be cultivated over time, especially through formal and intentional mentorship and sponsorship provided by firms.

2. Self-of-the-therapist work

Self-of-the-therapist work is a great recommendation from Melissa Visbal, CFP^®, a financial planning associate with Narwhal Capital. Self-of-the-therapist work has been used by mental health professionals for decades to help them improve their therapeutic practice with clients. Self-of-the therapist work is the willingness of a therapist to engage in introspection regarding issues that could affect the process of therapy, both positively and negatively. For advisors, this is a powerful process of uncovering how an advisor’s values, morals, relationship with money, competency levels, and training all affect their relationships with clients.

Financial therapy isn’t just for clients; planners may find that they need to work with a financial therapist for themselves.

3. Fintech/tech skills

The ability to use fintech is essential. New hires will receive training on a firm’s specific software, but universities should ensure they help future planners develop solid proficiency in fintech applications as students. At the 2022 Excell Conference, NAPFA member Lazetta Braxton, CFP^®, spoke of how her firm’s fintech adoption has helped its planners be more efficient, which has given them more time to forge stronger relationships with their clients. Fintech efficiency frees time to engage in deeper conversations with clients about their goals and the legacies they want to leave, in addition to uncovering unspoken issues clients may have.

Also, the effective use of email can help planners to become better at managing their correspondence with clients and team members. Email best practices and shortcuts, as well as understanding email compliance for financial advisors, will provide years of benefits.

4. DEI and cultural responsiveness

How is it that a profession focused on helping people is missing so many women and people of color who are often overrepresented in other helping professions? Beginning in their education programs and continuing throughout their careers, we must ensure that planners are able to help shape work environments that are welcoming to all and guide clients across various identities. We cannot increase representation of historically excluded groups (or even retain those who join our ranks) until work environments are changed to cultivate inclusion and belonging.

Financial planning educational programs, firms, and professional organizations should make diversity, equity, and inclusion (DEI) a required component of their training and education curricula. Many organizations, like NAPFA, have created DEI training to help firms facilitate this process. Understand what your firms’ needs are and begin the process of building inclusive environments where all planners and clients can thrive.

5. Professionalism and etiquette

You don’t get a second chance to make a first impression. That’s why universities should help job candidates understand what a professional dress code is, avoid distracting professional backgrounds for virtual interviews, use good lighting, and learn how to navigate these virtual spaces, according to alumni board member Ryan Pope, CFP^®, a NAPFA member.

Also, schools can remind students that they must not forget their manners. Job candidates may overlook the simple yet powerful benefit of saying “thank you.” It appears this basic etiquette standard is becoming less common for some interviewees. This shows there is a need to make sure that basic etiquette is adhered to as a part of students’ interview preparation and client interactions.

6. Strong communication skills

Whether it’s presenting recommendations to the client, engaging in small talk, or writing an email, effective communication will always be an essential skill. While students may have done some presentations in the classroom, they will benefit from ongoing practice, such as through Toastmasters or speaking workshops within your firm.

Additionally, stress the importance of saying “I don’t know,” an excellent point made by Victoria Santini, CFP^®, an associate planner at SignatureFD. No one wants to not have the answers, but sometimes … you just don’t know! We have to teach new planners to be comfortable with admitting this in a professional way that demonstrates honesty; this will lead to greater trust from clients. Let’s get comfortable not knowing and then effectively educating clients once we do know.

The ability to write will always be necessary as well. The tendency to use jargon to come across as a financial planning smarty is not nearly effective as the ability to use language that leaves a client feeling educated and empowered.

Firms must prepare for these new planners

Gen Zers—individuals born between 1997 and 2012—know they want to work at firms that value DEI, embrace social change, invest in philanthropy, and value the human in human capital. Like students need to prepare for exams, firms must also prepare for this new generation of planners. Are you ready?

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Dr. Kimberly Watkins is an assistant professor in the department of financial planning, housing, and consumer economics at the University of Georgia. Dr. Watkins teaches and conducts research related to financial planning and well-being.

image credit: istock.com/Charday Penn