In the ever-evolving landscape of the financial services industry, flexibility has emerged as the most coveted benefit among employees and job seekers. According to Herbers & Company’s June 2024 Employee Survey, which included 1,053 respondents, an overwhelming 40% of employees identified flexibility as the top priority when evaluating potential employers and determine whether to seek a new job in the financial services industry. The survey included entry-level financial advisors, seasoned financial advisors, and tax professionals. This finding underscores a critical shift in workforce expectations, one that firms must address to attract and retain top talent while maintaining a high level of client service and satisfaction.

Flexibility Beyond Remote Work

However, it’s important to note that flexibility didn’t necessarily equate to remote work. While remote work has been a significant trend, particularly in the wake of the COVID-19 pandemic, the concept of flexibility is broader and more nuanced. For many employees, flexibility meant having the autonomy to work in a way that suits their personal productivity to deliver results. This approach requires firms to rethink traditional work models and focus on outcomes rather than rigid schedules or locations.

The survey's results highlight that employees and job seekers are not simply looking for the ability to work from home. Instead, they are seeking and staying at cultures that allows them to integrate their professional responsibilities with their personal lives. This can include flexible hours, a hybrid work model, or even the freedom to choose preferred technology. The key is to provide employees with the tools and trust they need to work in a manner that optimizes their performance.

For example, a financial advisor whose spouse also works might prefer to work in the office three days a week and from home for the remainder of the time, allowing them to share the personal responsibilities with their partner. Another advisor might thrive in a results-oriented environment where they are evaluated on their ability to meet client needs and deliver advice effectively, rather than the number of hours they spend at their desk. The demand for such flexibility reflects a broader need for firms to better define their cultures and the flexibility that is allowed or not.

The Implications for Financial Advisory Firms

For financial advisory firms, these survey findings carry significant implications. To remain competitive in the talent market, firms must move beyond offering standard benefit packages and instead focus on creating work environments that align with these evolving expectations. This could mean reevaluating office policies, investing in technology options that support better employee performance, and most important, defining a culture of trust and accountability.

Firms that embrace flexibility are likely to see numerous benefits. Not only can they attract a broader pool of candidates, but they may also see higher levels of employee satisfaction and retention. When employees feel that their work environment supports their personal responsibilities, they are more engaged, productive, and loyal.

Moreover, flexibility can lead to improved client service. Financial advisors or tax professionals who have the autonomy to manage their schedules and workloads are better positioned to respond to client needs in a timely and effective manner. This, in turn, can enhance the firm’s reputation, drive more client referrals, and contribute to longer-term organic growth.

Rethinking Performance Evaluations

One of the key challenges implementing flexible work policies is ensuring that performance is effectively measured and monitored. In a traditional office setting, performance might have been judged in part by the number of hours worked equating to how hard an employee worked. This effort in the past was perceived as high-performance. However, in a flexible work environment, these metrics are less relevant, and results achieved become paramount over hours worked. In other words, employees seeking jobs today want the ability and the flexibility to work smarter.

Firms who adapt to results-oriented approach to performance will need to shift their focus to outcomes rather than inputs. This means setting capacity and service metrics along the career track, and rewarding through incentives that encourage individual achievement whenever it’s realized, rather than fiscal, quarterly, or monthly (think: arbitrary) deadlines. In other words, if an employee can achieve the result more productivity and faster by working smarter, why would leadership stop them? This requires leadership to be more engaged, proactive and encouraging of employees who are excelling in a the culture. And it requires harder conversations, and time management and self-leadership training with employees who aren’t performing under the expanded autonomy.

The Future of Work in Financial Advisory

As the financial advisory industry continues to evolve, the concept and definition of flexibility will increasingly play an important role in shaping the future of work. The findings from Herbers & Company’s June 2024 Employee Survey highlights the growing importance of this trend and the need for firms to evolve and adapt accordingly to gain growth advantages.

Firms that successfully build and integrate flexible working cultures into their existing firms will be better positioned to attract and retain top talent, improve employee satisfaction, and expand client service. This shift represents not just a change in workplace policies, but a fundamental rethinking of how work gets done with wealth management and financial services.

In conclusion, flexibility is no longer a nice-to-have benefit—it’s a necessity for firms that want to stay competitive in today’s talent-driven market. By understanding and responding to these desires, financial advisory and tax firms can build a more resilient and dynamic workforce, capable of thriving in the challenges and opportunities that lie ahead.