Title: The Industry’s
Diversity Challenge
Speakers: Dave Giertz,
Amanda Smith and Sam
Guerrieri
Location: Diplomat
Ballroom 4
Time: 1:00 – 2:00 p.m
The Industry’s Talent
Diversity Challenge
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Does your firm have strong,
robust processes in place to
build a diverse and inclusive
organization?
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Why build a diverse workforce?
•
A Diverse Workforce Drives Economic Growth
– McKinsey Study: Women grew from 37% to 47% in the workforce in 40 years. This
accounts for a Quarter of Current GDP.*
•
•
•
A diverse workforce increases market share
Recruiting from a diverse pool of candidates means a more qualified
workforce
Diversity fosters more creative and innovative teams.
– Forbes Study: 321 Global Enterprises surveyed, 85% strongly
agreed that diversity is crucial in fostering Innovation
*http://www.mckinsey.com/client_service/organization/latest_thinking/unlocking_the_full_potential
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Why build a diverse workforce?
• A diverse workforce may help to capture a greater share of the
consumer market*
• Businesses need to adapt to our changing nation to be
competitive in the economic market
– Census data tell us that by 2050 there will be no racial or
ethnic majority in our country.
• Racial minorities make up one-third of the labor force and women
47%
*http://www.bls.gov/cps/cpsrace2012.pdf
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National Financial
Amanda Smith, head of marketing
National Financial does not provide advice of any kind. You should conduct your own due diligence and analysis based on your specific needs.
We Believe the Delivery of Advice Is Evolving
Advisor 1.0
Advisor 2.0
Focuses on
relationships
Leads with
financial planning
Embraces
technology
Works with
a team
• Solo practitioner
• Focused on stock picking
and commissions
• 1:1 advice and
communication
7
National Financial does not provide advice of any kind. You should conduct your own due diligence and analysis based on your specific needs.
Female Advisors
Higher AUM, as satisfied as male peers
AUM ($Millions)
$63
Women
Men
66%
65%
$200k
$245k
$62
Career
Satisfaction
(Top 3 box)
Average
Compensation
Women
Men
Source: Fidelity Advisor Insights Study, 2013
8
The 2013 Fidelity Advisor Insights Study was an online, blind survey (Fidelity not identified) fielded during the period of August 8-21, 2013. Participants
included 813 advisors from across multiple firm types who work primarily with individual investors and manage a minimum of $10M in individual or
household investable assets. Firm types included a mix of large and small IBDs, regional broker-dealers, RIAs, insurance companies, wirehouses and
banks with findings weighted to reflect industry composition. Among the total sample 86 respondents were bank advisors. Bellomy Research, an
independent third-party research firm not affiliated with Fidelity Investments, conducted the study.
What Did Female Advisors Do Differently?
Deeper, more collaborative relationships
Men
Knows everything about a client’s
financial AND personal life
35%
Aligns products/services with
female investors’ needs
38%
Source: Fidelity Advisor Insights Study, 2013
Difference
65%
56%
Makes it a point to
collaborate with younger clients
Selects investments
without client input
9
Women
44%
46%
55%
28%
16%
31%
45%
36%
A Potential Opportunity for Female AND Male Advisors
90%
3 in 4
of married and single
women don’t have a
preference for the
gender of their advisor1
divorcees and widows
do not feel strongly
about the gender of
their advisor1
The majority of women look for good
1“Women
10
2
of Wealth: Why Does the Financial Services Industry Still Not Hear Them,” Family Wealth Advisors Council, 2011.
“How to give financial advice to women,“ Kathleen Burns Kingsbury, 2012
chemistry.2
Do Female Clients Prefer Female Advisors?
“How does your client base break down in terms of gender?”
Male Advisors
56%
male
clients
11
Source: Fidelity Advisor Insights Study, 2013
44%
female
clients
Female Advisors
53%
male
clients
47%
female
clients
Female Advisors Are Targeting Female Clients
Top Investor Attributes
Targeted by Male Advisors
1) Upper level of investable
assets ($500k to $1M)
2) Baby Boomers
1) Professional occupation
2)
Female investors
3) Professional occupation
3) Medium level of investable
assets ($100k to $500k)
4) High net worth ($1M+)
4) Baby Boomers
5) Medium level of investable
assets ($100k to $500k)
5) Career stage
13) Female investors
12
Top Investor Attributes
Targeted by Female Advisors
Source: Fidelity Advisor Insights Study, 2013
Recruiting: Female Advisors Are In Demand
Despite demand, female advisors see barriers to entry
70%
of female advisors believed there is
high demand for female advisors
“Why do you feel it is difficult for women
to enter the financial advisor business?”
It’s a boy’s club
BUT
53%
of female advisors felt it is difficult
for women to enter the profession
13
Source: Fidelity Advisor Insights Study, 2013
Family demands
14%
60%
Factors Influencing Decision to Enter Profession
Female advisors were motivated by professional interest
Female advisors were
most likely
to have entered the
profession because of
interest in the
industry
14
Source: Fidelity Advisor Insights Study, 2013
Other key factors:
#2
Freedom/flexibility of
schedule
#3
Income potential
#4
Opportunity to help
people
Banks Are Leading the Industry with Hiring Female Advisors
Banks had the highest composition of female advisors
Percent of Advisor Force,
by Gender
Bank
17%
83%
Insurance
17%
83%
Regional
13%
87%
Wirehouse
12%
88%
IBD
10%
90%
RIA
9%
91%
Female
15
Source: Fidelity Advisor Insights Study, 2013
Male
What is the #1 action banks could
take to encourage the success of
female financial advisors?
Offer education,
workshops,
support just for
women
Case Study: SunTrust Women Advisors Program
SunTrust’s female advisors’ books are
growing 13.2% more per year than the firm’s average advisor
Playbook
Percentage of Female Advisors
Industry Average
SunTrust Bank Average
Leadership commitment
Organizationally integrated,
strategically & technically
17%
30%
Culturally engrained
training, education, events
National platform with
grassroots engagement
Sources: 2013 Fidelity Advisor Insights Study and SunTrust proprietary data. The firm represented is an independent company and is not affiliated with National Financial. This example
represents their unique experience. Their business needs and results may not reflect the experience of other National Financial clients.
16
“SunTrust Advisors" may be officers and/or associated persons of the following affiliates of SunTrust Banks, Inc.: SunTrust Bank, a commercial bank, which provides banking, trust and
asset management services; SunTrust Investment Services, Inc., an SEC registered investment adviser and broker-dealer, which is a member of FINRA and SIPC, and a licensed
insurance agency, and which provides securities, annuities and life insurance products, and other investment services.
For broker-dealer or investment professional use only.
National Financial and Fidelity Investments does not provide advice of any kind. You should conduct your own analysis,
review, and due diligence based on your specific situation.
You are responsible for evaluating your own specific needs and making appropriate decisions. Those decisions may be
based on these and other factors you deem relevant. The information provided herein is not meant to be exhaustive of all
possible options you may consider.
The 2013 Fidelity Advisor Insights Study was an online, blind survey (Fidelity not identified) fielded during the period of
August 8-21, 2013. Participants included 813 advisors from across multiple firm types who work primarily with individual
investors and manage a minimum of $10M in individual or household investable assets. Firm types included a mix of
large and small IBDs, regional broker-dealers, RIAs, insurance companies, wirehouses and banks with findings weighted
to reflect industry composition. Among the total sample 86 respondents were bank advisors. Bellomy Research, an
independent third-party research firm not affiliated with Fidelity Investments, conducted the study.
The registered trademarks and service marks appearing herein are the property of FMR LLC.
National Financial is a division of National Financial Services LLC.
National Financial Services LLC, Member NYSE, SIPC
200 Seaport Boulevard, Boston, MA 02210
© 2013 FMR LLC. All rights reserved.
638052.8.0
17
M&T Securities, Inc.
Sam Guerrieri, Senior Vice President at M&T Bank & CEO of M&T Securities, Inc
Nationwide Financial Services
Dave Giertz, president, Nationwide Financial Services Distributors, Inc.
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NFM-12661AO(02.14)
“Diversity
is an opportunity
to be
leveraged.”
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NFM-12661AO(02.14)
Success Share
• Military Veterans: 1,000 + in 5 years
• Internal Sales and Service = Diversity
Recruitment=>Development Feeder Pool=>Career Path
• National Black MBA Sponsorship: Career Fairs
• Internships: Top University Partnerships (e.g., University of
Houston, UC Berkley, MMI)
• National Hispanic Society Partnership: Career Fair
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Success Share
•
•
•
•
Diversity Learning Partners
HR Partnership and Specialty Recruitment Firms
Leverage Relationships: “Everyone is a Talent Scout”
“ABR” Always Be Recruiting
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“Building” A Diverse Team =
higher engagement, higher
productivity, robust
discussions, more ideas,
innovation, and more fun.
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NFM-12661AO(02.14)
QUESTIONS?
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NFM-12661AO(02.14)