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The next generation of advisors are not asking for a job. They’re asking for a future they can envision.
As a result, it requires a very different conversation than you’re probably used to.
Most founders and senior leaders came up in a different era. You worked hard. You waited your turn. You proved yourself and you hoped an opportunity would come about at some point down the road.
Unfortunately (or fortunately) it’s a model that doesn’t work as well today – and not because the next generation is lazy or lacks drive. That’s just a knee-jerk interpretation that’s based on generational stereotypes.
A much better read on the situation is that next generation advisors want to fully understand the deal. They want to know:
- What they will be learning;
- Who will be developing them;
- Where and how far they can go;
- How their work will matter and make a difference;
- What kind of leader they can become; and
- How AI will affect their role and whether the firm will help them grow with it.
Deloitte’s 2025 Gen Z and Millennial Survey found that only 6% of Gen Z and Millennial respondents say their primary career goal is to reach a leadership position. This doesn’t, however, mean the younger generations lack ambition. Instead, Deloitte’s findings point to a broader and more nuanced definition of ambition – one that encompasses growth, meaning, money, well-being, and a more thoughtful pace of development.
It’s an important data point and distinction which should get the attention of every advisory firm that’s focused on sustainable growth. Because if your next generation talent doesn’t see a future within your firm, they’ll start imagining one elsewhere.
Why Career Pathing Is Your Most Effective Retention Strategy
Career pathing is not a ‘nice to have.’ It’s a critical retention strategy.
Recent Schwab research shows that 77% of advisory firms provide career pathing opportunities and 67% offer some sort of coaching or mentorship programs. That’s a pretty clear indication that this industry is moving in the right direction. But it’s also a warning signal to firms without clear development paths: they’re not just standing still, they’re falling behind.
If you haven’t already started, now’s the time to begin building visible career paths for EVERY role in your organization that matters. You don’t have to build some incredibly complex model. Just begin focusing on developing clarity role by role.
Step 1: Define the roles. For advisory staff, this might include client service associates, planning associates, associate advisors, servicing advisors, lead advisors, partners, and team leaders or enterprise leaders. For operations, consider defining roles for specialists, managers, directors, and enterprise operators. For leadership, think about the role of people managers, team leaders, market leaders, and executive leaders.
Each role should have a clear purpose. Each role should have well-defined and measurable expectations. And each role should articulate the exact skills needed to succeed.
Step 2: Define the progression. Your team members need to know what it takes to move from one role to the next. This will likely include technical, client, and leadership skills, accreditations, business development expectations, decision rights, and cultural behaviors.
The key is to be specific. Don’t just say the individual “needs to demonstrate leadership.” Instead, describe what leadership should look like in that role. Does it mean mentoring newer employees? Leading client meetings? Running a planning process? Managing a workflow? Giving performance feedback? Solving problems without escalation? Helping to develop other people?
The more specificity you’re able to provide, the greater the degree of trust you will be able to establish.
Step 3: Connect career pathing to development. A career path without development is just a diagram. Each employee should have a development objective – not a vague hope but an actual, tangible objective.
One person may need to improve his or her client presence. Another may need to learn how to lead meetings or develop deeper planning expertise. Still another may need to build confidence with business owners or learn how to manage other people.
Your job is to find opportunities to better connect today’s work to tomorrow’s opportunity.
Step 4: Explain how AI will change some paths. Like it or not, AI is now an integral part of career development. More and more, people are now asking, “Will AI make my role less valuable?” Don’t merely dismiss the questions. As a leader, it’s important to answer them as honestly as possible.
For each role, identify which tasks AI may potentially change, which skills will become more valuable, and how your firm will proactively train people to use AI responsibly.
While AI may certainly reduce the need for certain administrative tasks, it can also increase the value of judgment, empathy, planning, communication, client strategy, and relationship leadership – and it will never foster the level of trust that comes from the personal relationships you build.
Say that plainly.
Step 5: Make ownership expectations clear. In advisory firms, ambiguity about ownership breeds frustration. Some people think partnership is a title. Some view it as equity or think it should be part of their compensation. Some see it as influence, while others think of it is a promise.
Don’t force your team members to guess. Clearly define the passage to partnership (if one exists). Define what ownership means, what it requires, and how business development, leadership, client retention, cultural contribution, and enterprise thinking all factor into it.
The future should not be a hallway with locked doors.
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Looking for a straight-forward way to get started? Ask each of your managers to hold a career pathing conversation with each of their direct reports within the next sixty days. These conversations should address four foundational questions:
- Where are you now?
- Where do you want to grow?
- What skills will you need to develop to get there?
- What new experiences can we create for you in the next twelve months to help start you on that path?
That one conversation can dramatically and positively impact your firm’s retention. Not because it solves everything, but because it tells your employees something important: we see you, we are willing to invest in you, and there is a future here worth building.
The next generation does not need false promises. They need honest visibility. And the firms that provide it will keep more talent, develop better leaders, and build more durable businesses.
Coaching Questions From This Article
- Can every high-potential employee at your firm see a future worth working toward?
- Where are career paths clearly defined, and where are they implied but not documented?
- Which roles will AI reshape first, and how are you preparing people for that shift?
- Who needs a development conversation before they start taking calls from another firm?
