Next-Gen Advisors Want Clear Path to Promotion: DeVoe
Failing to properly guide the next generation could lead to many practices losing their competitive edge.
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Today’s young financial advisors are lost. If only they had a map or a guide.
Many next-gen planners feel adrift in their roles, uncertain of career paths, skill development goals or their managers’ succession plans, according to a recent study from consultancy DeVoe & Co. With plenty of older advisors nearing retirement and talent already scarce, firms risk losing their competitive edge if they fail to support the next generation.
“Clients feel it first,” said CEO David DeVoe. “Service weakens, leadership gaps grow and growth stalls. Neglecting people strategy is the fastest path to decline.”
It’s All Fuzzy
The study shows next-gen advisors crave clarity most of all. Their top requests include defined career paths, transparency around equity opportunities and stronger coaching. But despite the expertise and institutional knowledge at their fingertips, firms are falling short. Fewer than 40% of training programs are considered adequate. About half are only lightly structured, while the rest lack organization altogether. Succession planning is improving, yet nearly two-thirds of firms say their next-gen talent isn’t ready to take over. Pay is another sore spot. Incentive compensation plans across the industry earned a net promoter score of -31, a strikingly poor rating.
“What’s different now is transparency,” DeVoe told Advisor Upside. “Next-gen expects clarity and structure, not vague promises.”
Even when younger advisors are progressing, they may not realize it. Just under half of RIAs offer annual reviews, which DeVoe calls “the bare minimum.” Semi-annual reviews occur at only 22% of firms, and quarterly reviews at 17%, both lower than in previous years. “Too many leaders treat reviews as paperwork instead of coaching,” DeVoe said.
Where’d You Go? For several years, RIAs enjoyed low turnover, but 2025 has reversed the trend. This year, 58% of firms reported no undesired attrition, down from 68% in 2024. Meanwhile, 9% reported much higher attrition, up from 2% the prior year.
DeVoe said the industry’s recent focus on growth and mergers has sidelined advisor development. “Without talent, those strategies don’t stick,” he said. “People are the engine behind every other priority.”
