ATTRACTING TALENT
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Attracting CFP® Professionals and Candidates for CFP® Certification to Your Firm
By Rachel L. Sheedy, CFP®
As you look to grow your team, how do you make your firm an attractive spot to land, whether the job opening is for a CFP® professional with years of financial planning experience or someone who is just getting started on earning CFP® certification? While hiring is both an art and a science, CFP Board data on financial planning as a career choice can offer some ideas for how to position your firm to rise to the top of any job applicant’s list of top prospective employers.
The CFP Board 2024 Compensation Study provides insights that can help firms better understand the opportunities and rewards that attract employees and make financial planning a well-rounded and fulfilling career choice that benefits the worker, the firm, and the client. The research team at CFP Board collaborated with research firm Industry Insights in 2024 to analyze compensation data from 1,455 CFP® professionals and financial planners who do not hold CFP® certification across the U.S.
Financial planning stands out as a profession that offers people the chance to positively influence the lives of their clients while providing rewarding compensation, generous benefits, and career flexibility. Firms that provide CFP® professionals these opportunities are more likely to attract top job applicants.
“CFP® professionals enter the financial planning profession to better the lives of their clients,” said CFP Board CEO Kevin R. Keller, CAE. “Firms that support their employees so they can focus on supporting their clients are particularly attractive to today’s job seekers.”
Compensation Landscape
CFP® professionals bring value to their employers. Prior research by Aite Group shows they are more productive and more satisfied in their careers and at their firms than advisors without CFP® certification. CFP® professionals tend to generate higher revenue, according to Aite Group, bringing in annual median revenue that is 46% higher than that of planners without CFP® certification.
That increased productivity and revenue is reflected in the median total compensation CFP® professionals receive. The compensation study found the median total compensation for financial planners in 2023 was $192,000. Financial planners were likely to earn more money if they have more experience and supervise staff.
CFP® professionals earn 10% more than other financial planners, according to the study, even after accounting for other factors such as job experience and company size. CFP® professionals have met extensive training and experience requirements and commit to CFP Board’s ethical standards, which require them to put their clients’ interests first. That extensive training and experience may cost a firm more but the dividends are worth it.
Companies that retain CFP® professionals benefit from highly qualified employees, and 9 in 10 CFP® professionals say they plan to stay at their current employer for the next two years, according to the compensation study. Those who intend to stay at a company have a growth mentality, reports the study, with nearly three-fourths planning to grow their client base or responsibilities.
Benefits Beyond Salary
Compensation goes beyond salaries and cash bonuses. The study found CFP® professionals receive generous benefits, ranging from health insurance and quality retirement plans to professional development opportunities, including covering fees associated with designations and professional memberships.
Some benefits are more common than others. While 98% of CFP® professionals receive defined retirement account contributions, including 401(k) contributions, only 42% of CFP® professionals report receiving employer profit sharing and 17% have access to stock options, according to the study. Offering a unique benefits package may set your firm apart and make it stand out to job applicants.
The study found 86% of CFP® professionals have access to professional education and funding. Employer support, both in time and money, is appealing to job seekers who are pursuing CFP® certification.
“Having support from an employer makes a big difference for those employees who are juggling studying for the CFP® exam with their duties at work,” said Liz Miller, CFP®, CFA®, CFP Board Chair, and founder of Summit Place Financial Advisors LLC. “That support can help lead to success in earning CFP® certification.”
Financial planners often enjoy a strong work/life balance that promotes overall health and wellness, job satisfaction, and productivity. Consider benefits, such as paid leave, that help create a favorable work/life balance so your firm can attract top applicants. Planners have a median 21 days of paid leave and 10 paid holidays a year, according to the study. Nearly 80% of planners have access to family medical leave while 27% have unlimited paid time off.
Environment to Give Back
CFP® professionals are mission-driven and prioritize serving their communities beyond their daily tasks, as illustrated by another CFP Board study. Firms that have this ethos are more likely to attract CFP® professionals.
According to the 2024 CFP Board Certificant Survey Results, two in three CFP® professionals engage in volunteer work to give back to their communities. The survey, conducted by independent research firm Heart+Mind Strategies, generated responses from 1,900 CFP® professionals. Popular ways CFP® professionals give back to their communities include serving on a board or as an advisor for a charitable organization (31%), establishing or helping organize a fundraiser for people or groups in need (21%), and participating in workshops to help people deal with financial difficulties (15%).
To appeal to CFP® professionals and candidates for CFP® certification, firms can offer their employees opportunities to engage with the community and encourage pro bono financial planning, which provides free advice for underserved individuals in need. In fact, 51% of CFP® professionals in the certificant survey said they would be more likely to offer pro bono services if their employer actively supported pro bono work by allowing a financial planner to offer pro bono opportunities during work hours.
CFP Board’s survey results offer a roadmap to firms as to what their potential employees are looking for when job searching. By positioning your firm with strong benefits that appeal to CFP® professionals and those pursuing CFP® certification, you can attract star employees who can help you build a powerhouse business.
Rachel L. Sheedy, CFP®, senior communications manager/editor at CFP Board, is a former senior editor at Military Officer magazine and former editor of Kiplinger’s Retirement Report. She has edited and written extensively on personal finance topics for two decades.
image credit: Adobe Stock Images
