Talent management resources aimed at established RIAs and "breakaway" reps. Fidelity is out with a consulting program to help independent investment advisors get and keep productive staffers. "Fidelity Advisor HR Solutions," which was put together with help from Boston-based HR consultancy Veritude, is also meant to help "breakaway" brokers establish effective HR policies and procedures in their own businesses.

Help wanted

With margins coming under pressure from declining investment-asset markets , "RIAs need to make sure they are getting the most out of their employees," says Ronald Fiske Jr. of Fidelity's Institutional Wealth Services (FIWS) division. "Our new program can help advisors more effectively manage HR by providing access to the high quality resources they may need to help motivate employees and maximize their productivity."

But then talent management is a priority in good times as well as bad. In 2007 when Fidelity surveyed decision makers at RIAs with between $25 million and $1 billion in assets under management, 40% of them cited "training staff" as a major challenge for the next two years. A 2006 study by New York-based consultancy HNW and a 2005 report out of Oaks Pa.-based manager of managers SEI came to similar conclusions.

And the need for far-sighted staff management is heightened by an apparent shortage of next-generation advisors. A mere 3% of the existing advisor force is under 30, and more than 40% of them over 50, according to a recent study by Boston-based market-research firm Cerulli Associates.

Fidelity Advisor HR Solutions includes web-based tools and resources such as sample employment applications, performance-review tips, and other talent-management topics, roundtables and webinars, and custom-tailored advice from Veritude on matters such as organizational design and workforce plans to sales training and executive coaching.

Better, faster, cheaper

Clearing firm Pershing's Advisors Solutions RIA-custody arm launched a similar program called "Talent Connect" as an extension of its "Ideas Without Limits" practice-management service suite in 2007. Other FIWS competitors like Schwab Institutional and TD Ameritrade Institutional provide advice and referrals to help new and established RIAs attract and retain productive employees as well.

"To compete effectively and build their businesses, advisors need to look for better, faster and cheaper ways to manage all aspects of their practices, including HR," says Fidelity's Fiske. "That's why we continue to expand our practice-management platform, drawing upon [our] in-house professionals and experienced third-party providers."

Crestwood Advisors, a Boston-based investment advisory to high-net-worth clients with about $35 million in assets under management (according to its very recent ADV filing), has had first-hand experience with Veritude.

"Our people are by far our most meaningful asset, so we want to promote an environment where they are eager to stay and build their skills," says the Crestwood's managing partner Michael Eckton. "Veritude's on-site consulting validated some of our key HR practices, such as making sure that our employees are regularly providing feedback on the tools and resources they need to succeed in their jobs."

At the end of 2008, FIWS had more than $290 billion in end-client assets in custody on behalf of over 3,500 institutional clients. -FWR

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