Marvin OnumonuResearch from ValidPath found succession planning was the top reason independent financial advisers (IFAs) hire more advisers.
Supporting succession planning was ranked highest at 16%, with attracting new clients at 11%.
One in five (20%) IFAs said hiring more advisers was central to their growth strategy this year.
Over half (51%) said they would need greater revenue certainty before taking on new hires, while 50% want to see solid growth in funds under management first.
55% said having an onboarding framework would make hiring easier, showing how networks can help IFAs grow.
With the end of the financial year approaching, 12% of IFAs said they bring in temporary staff to help manage workloads during the client review season.
Tim Riseborough, group operations director at ValidPath, said: “It is encouraging to see that many IFAs prioritise succession planning when taking on new advisers.
“IFAs who adopt a proactive approach to succession planning are best placed to ensure a seamless transition for clients and staff, whilst also achieving the best possible valuation for the business.
“We have seen many IFAs in our network hire younger advisers with the intention of handing over the reins further down the line.”
Riseborough added: “This allows relationships and trust to develop organically over time, providing reassurance for clients.
“ValidPath offers IFAs end-to-end support, from due diligence to transition planning, allowing firms to plan for the future and maximise the value of their business.”
