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 isn’t right. Cerulli points out that without personality fit and advisor acceptance, the benefits of teaming are minimized.