How Mergers & Acquisitions Are Impacting Wealth Management Hiring

The wealth management sector is going through a significant transformation, driven by increased mergers and acquisitions (M&A). With larger firms acquiring smaller practices, we are seeing an industry consolidation that is changing hiring trends and career opportunities.

For candidates, this presents new pathways to professional growth but also calls for adaptability. Employers, on the other hand, must reconsider their hiring strategies to attract and retain top talent in this shifting environment.

Why Bigger Firms Are Growing

The surge in M&A activity is primarily a result of two key factors:

The ageing workforce

Many smaller firms are owned by advisors nearing retirement.

As they step away from the industry, their practices are being acquired by larger firms that are better equipped to manage succession and maintain client relationships.

Investment Influx

Larger firms are attracting substantial capital, enabling them to purchase smaller practices and expand their market share. This financial strength also positions them to afford better resources, have streamlined processes, etc. making their offer more attractive.

For professionals, this means larger firms are naturally the hubs of opportunity because they offer stability and resources that smaller firms often can't match.

What This Means for Career Opportunities

As larger firms take over smaller practices, new roles emerge, particularly for financial advisors and paraplanners.

These larger organisations often introduce roles in desk-based advice, quality assurance, and technology implementation to meet regulatory requirements and service clients more efficiently.

For professionals who want further progression, this environment offers pathways to senior advisory positions or specialised roles in operations and compliance. However, these opportunities often demand a strong understanding of technology, client relationship management, and the broader wealth management process.

For those seeking a more hands-on, relationship-focused career, smaller firms may still appeal, but these positions can be harder to find and secure due to intense competition.

Challenges for Smaller Firms

While larger firms thrive, smaller practices face increasing difficulties.

Retaining talent is a huge challenge, especially when candidates are drawn to the higher salaries, better benefits, and advanced tools offered by their larger competitors. Smaller firms often struggle to match these offerings, which can lead to staff turnover and challenges in delivering consistent client service.

Additionally, candidates seeking career progression or specialist roles may feel their aspirations are better supported in larger organisations. Smaller firms must find unique selling points to compete for top talent.

How Professionals Can Use This Changing Landscape for Growth

Professionals in wealth management should view this shifting landscape as an opportunity to refine their career goals.

Understand your market value

Stay informed about the salaries, benefits, and progression opportunities available within larger firms and compare them to what your current role offers.

Upskill for in-demand roles

Whether you’re looking at desk-based advisory positions, paraplanning, or compliance, invest in skills that align with emerging trends in the industry.

Assess your career aspirations

Decide whether you prefer the resources and stability of a larger firm or the personalised, relationship-driven environment of a smaller practice.

How Employers Can Attract Top Talent Regardless of This Changing Landscape

To attract and retain the best talent, firms of all sizes need to adapt their recruitment strategies:

Offer competitive packages

Ensure your salaries, benefits, and bonuses align with market expectations. Smaller firms, in particular, may need to get creative with non-monetary benefits such as flexible working arrangements or tailored career development plans.

Highlight career development

Professionals are seeking clear progression opportunities. As an employer, you should be offering structured pathways for growth, including extensive training, and leadership opportunities.

Streamline hiring processes

Prolonged interview processes are a significant deterrent in a candidate-driven market. Firms that can move quickly to engage and secure talent will have a distinct advantage.

Promote your culture

Smaller firms should leverage their personalised work environments and focus on building strong, collaborative teams. Highlighting your firm’s values and culture can make you stand out in a competitive hiring landscape.

- Written by Dan Butler & Eloise Adams

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