Financial advisory firms are crumbling under the pressure of a dwindling talent pool and a shortage of specialist skills as competition heats up, according to new research from EY.

The retirement of the baby boomer generation has driven the need for wealth management, with the industry expected to expand by 32 per cent over the coming decade.

However, according to EY, in order to gain the edge over industry rivals, advisory firms need to take a proactive approach to recruitment, and give “top talent a reason to leave the security of their current role for pastures new”.

The firm has recommended that advisory firms “get under the skin” and discover what makes their “target candidate tick”, as this is essential in making an offer that appeals to them on both a personal and professional level, creating a compelling proposition for prospective candidates.

Despite this, EY argues that building an attractive offer for top IFA talent is only “half the battle”, citing that, as the employer, it is advisory firms job to make the recruitment process as seamless, simple and smooth as possible.

“Force your candidates to jump through unnecessary hoops and they’ll likely lose interest, and fast,” the organisation said.

EY concluded that pairing a tailored proposition with an engaging experience will put wealth management firms in the best place to recruit and incentivise talented IFAs and keep “ahead of the competition”.

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