In the financial services industry, the idea of culture is often used to disguise a high turnover rate. Often firms proclaim, if you can’t make it here you can’t make it anywhere. In many cases, this mantra is repeated until advisors are willing to set aside their values and principles to meet the firm’s quotas.

Before we discuss a great culture, let us look at what often leads to a bad culture. Under Contract we covered being underpaid, costs passed through to advisors, and not having a say in what happens to your client data. Under Training we looked at sales tactics replacing thorough and meaningful training. A bad culture is created when advisors realize that they joined a company that over-expenses them, underpays them, and fails to properly train them.

In this environment advisors often get frustrated and bitter. If the advisor wants additional training or education, they may be forced to pay for it themselves, or simply may not be allowed. The advisor may also recognize that their model of financial services is just sales. And then it hits them, the compensation and client data belong to the firm. This means that if the advisor quits, the firm may profit by keeping the compensation that is paid to the advisor and dumping the clients into a call center. The phrase I hear far too often is, “I want to leave, but if I do, I will lose everything.”

After years of recruiting, training, and coaching financial services professionals, I've realized that many are not financial advisors at all. Through no fault of their own, they are salespeople. I have come across far too many advisors that joined a firm, were given a few clients and a sales quota, and told to double the assets under management or they were terminated. Upon termination, those old clients and new clients were given to the next salesperson with a higher quota. Now, while I must believe that there are good people stuck in tough situations, most financial professionals have come to realize that this is not advising, it is selling.

Most advisors would agree that this type of culture is not something you aim to be a part of. In fact, if you want to be a great advisor, you should learn to recognize this outcome and avoid it.

Now, what does the right training and culture look like? People, in general, want to be intellectually stimulated. Intellectual stimulation is coming to mathematical conclusions on your own instead of relying on misleading marketing material. It is acquiring additional certifications and industry designations. I have found that financial professionals who are accomplishing their goals and coming to conclusions on their own are as valuable to a culture as any amount of money or compensation. Yes, financial services is a hard industry, but if you are properly contracted, educated, and motivated, it does not have to be.

When it comes to culture - you have a choice. When looking for a financial services firm to be a part of, remember that this is also the firm you intend to introduce to your friends, your family, and your community. Do your best to investigate. Do not let a recruiter tell you about their great culture. Ask- what does the contract look like? Then ask, what does the training program look like?

Remember, without the right contract and training, the right culture is impossible.