By: Philip Palaveev

While the market slows and the “great resignation” impacts staffing, financial advisory firms continue to
invest in their people and work to increase their client base. These findings and more can be found in
Pulse of the Industry 2022: Mid-Year Survey.

Every six months, we reach out to participants and alumni of the G2 Leadership Institute to complete
the Pulse of the Industry survey. Pulse is a biannual benchmarking survey designed to capture industry
trends without the usual lag time between data collection and results. The snapshot of the first half of
the year allows firms to check how they are doing relative to their industry peers.

Here are some key takeaways from the first half of this year:

  • Firms continue to invest in themselves in 2022: Despite declining markets and slower growth in
    the number of new clients, firms still say their priority is to grow and invest in their people.
  • New business development is slow – perhaps too slow: Firms added fewer clients in 2022 than
    in 2021. The typical firm added 27 new clients representing a 4.7% growth in its client base but
    lost 13 clients (-2.3%). The net increase in clients was only 2.4%, putting firms behind their
    growth targets, with some firms even shrinking. For comparison, the net increase in the first six
    months of 2021 was 6.0%.
  • New hires require a premium: Sixty-seven percent of firms in the survey report that new hires
    come at a compensation premium of 15% (median), meaning that if a $100,000 salary was
    enough to make a hire previously, now firms need to pay $115,000.
  • Resignations will continue: 70% of large advisory firms experienced resignations in 2022.
    Overall, 32% of firms report resignations of employees with mid-sized and smaller firms being
    much less affected but also mathematically less likely to experience employee departures.

You can register to receive the full findings here: