Women Advisors are Happier and More Loyal Than their Male Colleagues
Female financial advisors are more likely to be satisfied with their firm and to recommend it to other advisors than their male counterparts, according to J.D. Power’s latest advisor satisfaction survey cited by ThinkAdvisor. But advice firms can do far more to demonstrate that they recognize the differences between women’s goals and perceptions and men’s, according to the survey.
The average satisfaction score among female employee advisors was 786, or 59 points higher than among male employee advisors, according J.D. Power, which polled more than 3,225 financial advisors, ThinkAdvisor writes.
Among advisors working in the independent space, women’s average satisfaction score was 793, or 39 points higher than men’s, according to the survey cited by the publication.
Furthermore, 60% of female advisors say they “definitely will” stay on with the same firm over the next one to two years, while only 56% of male advisors say so, according to J.D. Power.
And 60% of female advisors would definitely recommend their company to other advisors, compared to 50% of male advisors, the survey found, according to the publication.
Nonetheless, only 60% of female advisors say they completely understand how they’re compensated, compared to 66% of male advisors. And 60% believe their compensation is tied to their performance on the job, compared to 68% of men who do, according the survey. Just under a third of female advisors say they lack an adequate work-life balance, compared to 22% of male advisors, according to J.D. Power. Ensuring a work-life balance may be imperative for advice firms that want to attract and retain talent, meanwhile: among female advisors who say they’re happy with their work-life balance, 90% say they would recommend the firm to others advisors, according to the survey, ThinkAdvisor writes.
“The wealth management industry clearly recognizes that aligning the gender mix of advisors with the shifting demographics of investors is critical for their success,” says Mike Foy, director of the wealth management practice at J.D. Power, according to the publication. “But firms that want to be leaders in attracting and retaining top female talent need to differentiate on recognizing and addressing those areas that women’s perceptions and priorities may differ from men’s.”