Advisor Tenure Study

Advisor Tenure Study (July 2015)

Benchmarking Key Business Metrics of Advisors Throughout Their Career

For years the industry has used a single number—the average production of an Advisor in a Financial Institution—to assess an Advisor’s performance. All Advisors in a firm are measured against that single benchmark. But what about an Advisor with 2 years of experience with the firm? Is that single industry benchmark useful? How about the Advisor with 15 years tenure?

The Kehrer Bielan Advisor Tenure Study enlightens that situation by giving Sales Managers and Senior Management the information necessary to compare the performance of each Advisor to a benchmark of Advisors with similar tenure. It increases management’s effectiveness because they are able to uniquely manage each Advisor relative to how much the Advisor should be producing because of experience with the firm, instead of one broad average.

The Advisor Tenure Study provides tenure specific performance benchmarks for each of these important measures of success:

  • Annual production
  • Revenue mix by commission, advisory and trails
  • Size of book in total assets
  • Size of book in commission versus advisory assets
  • Production ranges for different years of tenure
  • Revenue on an Advisor’s book of assets (ROA)
  • Lifetime production contribution of an Advisor

Each of these metrics and analyses are detailed for Advisors with 1 year to 20 years of experience.