Independent financial advisers (IFAs) believe succession planning is the biggest benefit that hiring an adviser can bring to their business, according to new research from ValidPath.

A poll of the IFA network’s member firms found that when asked to rank the top benefit hiring advisers brings to their firms, the most cited benefit was supporting succession planning (16%), followed by the ability to attract new clients (11%).

ValidPath’s findings also showed that one in five (20%) IFAs see hiring one or more financial advisers as a key part of their growth strategy this year.

When asked what would make hiring feel more viable, over half of those surveyed (51%) said they require greater revenue certainty before committing to hire new advisers, while 50% want to see significant growth in the amount of funds under management.

The study also found that 55% of respondents said they believe that having access to an onboarding framework would make the hiring process easier, or more attractive, demonstrating the crucial role modern networks can play in helping IFAs power growth.

Group operations director at ValidPath, Tim Riseborough, 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. This allows relationships and trust to develop organically over time, providing reassurance for clients.”

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