How to Compete with Large Wealth Management Firms for Top Talent

The wealth management industry is currently experiencing an unprecedented demand for talent, with firms of all sizes struggling to find skilled professionals. The candidate market, particularly in financial services, is becoming saturated as firms scramble to fill positions in a shrinking talent pool. As a result, wealth management firms are being forced to change their hiring strategies to attract candidates better than their competition.

For large, well-established firms, this can be a bit easier.

They often have name recognition, extensive resources, and attractive benefits packages that attract potential candidates. The UK's leading wealth managers, for instance, can offer access to innovative financial technology, expansive client networks, and impressive bonus structures. They’re also able to highlight a wide range of career progression opportunities in fields like Paraplanning, Financial Advising, or Chartered Wealth Management, which can be extremely appealing for ambitious candidates.

But for smaller firms, the challenge feels even greater. Not only are they contending with a limited talent market, but they’re also having to compete with firms that seemingly offer more. This can make it feel like they’re fighting an uphill battle, with less budget, fewer resources, and limited public recognition to work with.

However, the reality is that 74% of people say they’d prefer to work in a small company, according to a 2023 survey (UKG Workforce Institute). Smaller wealth management firms have plenty to offer, and many candidates actively seek out roles in smaller environments. The key for these firms is to understand what makes them attractive and to showcase those strengths to potential hires.

Here’s how smaller firms can stand out and compete with the big players in the wealth management hiring market:

Closer Collaboration with Senior Management

One of the most attractive qualities of smaller firms is the opportunity for employees to work directly with senior management. In larger firms, the hierarchy can be extensive, and gaining access to the top decision-makers can be difficult for employees. In a smaller firm, Junior Advisers, Paraplanners, or Trainee Financial Planners are more likely to have regular contact with senior leaders.

This level of collaboration can accelerate career development. Working closely with seasoned professionals offers invaluable learning opportunities, especially for those working towards qualifications like the Diploma in Regulated Financial Planning (DipPFS) or Chartered Financial Planner status. Candidates often appreciate the mentorship and hands-on guidance that a smaller firm can offer, and this should be highlighted in your hiring process.

Clear and Rapid Progression Paths

Many wealth management professionals leave larger firms because they hit a ceiling in terms of career progression. In some cases, the sheer size of large firms can slow down career development, with too many layers of bureaucracy or long waits for promotion to roles such as Senior Paraplanner or Financial Planner.

Smaller firms, on the other hand, can offer quicker progression and clearer career pathways. If you’re a small firm, make it a point to communicate the benefits of a leaner structure to potential hires. Show how your employees can quickly move up the ranks, whether it’s through becoming a Chartered Financial Planner, transitioning into a Wealth Manager role, or leading their own client portfolios sooner than they might in a larger organisation.

Offer continuous professional development opportunities, including support for exams like the Advanced Diploma in Financial Planning (APFS), to demonstrate your commitment to employee growth - helping to not just attract, but retain.

Flexibility in Roles and Responsibilities

In smaller wealth management firms, employees often enjoy more flexibility in their roles. Rather than being pigeonholed into a narrow set of responsibilities, professionals in smaller firms may get the chance to wear many hats. This can be especially appealing to candidates who want to broaden their skill set and gain exposure to multiple areas of financial planning and wealth management.

For example, a Paraplanner in a smaller firm might also be involved in client meetings, cash flow modelling, and developing financial strategies alongside Financial Advisers. This versatility can make the role more dynamic and fulfilling, allowing professionals to grow and diversify their experience faster than they would in a larger firm where roles are more compartmentalised.

Focus on Work-Life Balance and Flexibility

While larger firms often attract candidates with high salaries and prestigious benefits packages, they may not always offer the work-life balance that today’s professionals crave. Smaller firms can take advantage of this by promoting their ability to provide flexible working arrangements.

Wealth management professionals, especially those in mid-level roles like Paraplanners and Financial Planners, are increasingly seeking out firms that support remote or hybrid working models. Smaller firms can be more agile in implementing these policies, allowing employees to work from home part-time or offering flexible hours that accommodate personal commitments, such as school runs or studying for qualifications.

This flexibility can be a game-changer in attracting talent. In a 2024 survey by the Chartered Institute of Personnel and Development (CIPD), 40% of employees listed flexibility as one of the top factors influencing their choice of employer.

Emphasise Culture and Values

Company culture is a big deal, and smaller firms often have an edge here. While larger firms may struggle to create a cohesive, close-knit team due to their size, smaller firms can foster a more personal, values-driven environment. Candidates in wealth management are increasingly looking for companies that share their values, whether that’s a focus on sustainability, diversity, or client-centric service.

Firms can stand out by highlighting their commitment to personalised client relationships, ethical investing practices, and a collaborative team atmosphere. A smaller firm can often feel more like a community, where each individual’s contributions are recognised and valued. In an industry where relationship-building is at the heart of success, showcasing a strong, supportive internal culture can be a huge draw for candidates.

Competing on Compensation Packages

Although smaller firms may not always be able to match the salary offers of larger competitors, there are other ways to create compelling compensation packages. One example is offering equity or profit-sharing schemes, which can make employees feel more invested in the success of the company.

Additionally, small firms can offer unique benefits such as study support, wellness programs, or even extra annual leave days. By getting creative with non-salary benefits, smaller firms can offer a more holistic and appealing package that emphasises work-life balance, personal growth, and long-term financial incentives.

- Written by Dan Butler & Eloise Adams

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