Advisors across all channels are teaming up rather than working solo, according to research firm Cerulli Associates.
In 2012, almost seven in ten advisors (69%) operated in a team-oriented structure, up from 61% in 2011. Among bank advisors, more than half (53%) worked in teams, according to the research.
Teaming is gaining traction because it allows advisors to specialize in their areas of individual strength, broadening the entire offering as a practice, said Sean Daly, an analyst with Cerulli, in a telephone interview.
Working in teams also helps in the hiring and training of new advisors and in succession planning. Newly hired advisors attached to a team are given time to develop their skills prior to being thrust into the primary business development role, Cerulli writes in its latest issue of The Cerulli Edge Advisor Edition.
Having a team in place also streamlines the difficult task of succession planning in independent practices. Advisors have the opportunity to choose a young advisor, train them as desired, and groom their successor during a long-term time period, Cerulli writes.
Teaming up, of course, is not a good idea if the personality fit isnt right. Cerulli points out that without personality fit and advisor acceptance, the benefits of teaming are minimized.