Retail Brokerage FA and Branch Benchmarking

Our retail brokerage FA and branch benchmarking capabilities help firms build performance-driven cultures. Working with leading industry brokerage firms, we enable our clients to track their performance relative to the competition with holistic, yet granular, benchmarks that support business improvement plans at all firm levels.

Comprehensive Coverage and Analyses

Our business model is based on creating and expanding long-term partnerships with our clients, and our brokerage experts have nearly 60 years combined experience at McLagan doing just that.  Quarterly and semi-annual reports cover market share of production, assets, advisor headcount, average productivity, branch costs and profitability, advisor experience and production profiles, and recruitment activity all in a competitive context. Annual compensation surveys cover important client facing positions as well as a range of Home Office and Middle Office roles.

Financial Advisors with Performance Data

Geographic Markets Represented

Brokerage Incumbents with Compensation Data

Years Benchmarking Brokerage FIrms

Brokerage Performance Benchmarking

We provide performance benchmarking expertise to leading U.S. retail brokerage organizations to measure their relative growth, productivity, recruitment, and profitability against competitors. Several aspects of our approach enhance our reports and differentiate us from others in the industry:

  • Granular data collection at the branch and FA levels enables reporting by local market, creating relevant benchmarks and identifying actionable opportunities
  • Incorporating each firm’s branch hierarchy matches results to respective field structures, facilitating report distribution to Regional, Complex, and Branch Managers in the field
  • Quarterly and semi-annual reporting provides more frequent and timely performance gauges compared to targets and to the competition

Our survey suite not only tracks progress compared to the broader market, but provides a full set of performance diagnostics that helps clients understand the underlying factors that contributed to the end results.  A sample of performance metrics from our core reports is as follows:

  • Market share of production, assets, and Financial Advisors, trended on a quarterly basis
  • Quarterly and annual growth in production, assets, FAs, and FA productivity
  • FA productivity profile by years of experience and by production level
  • Individual FA Rankings on production and assets by market and experience category
  • Share of production and average productivity across eight major product categories
  • For experienced FA recruits: share, production and experience profile, and deal size
  • Branch costs in 10 expense categories, and profitability, per FA and as a % of production

The vast array of competitive benchmarks, combined with additional insights we bring to Senior Management review meetings, highlight areas of strength and opportunity, helping firms answer key business questions such as:

  • In each of our markets and branches, does our growth outperform, match, or lag local peers?
  • Which products offer the best opportunity for growth, and how do we compare on fee-based?
  • What are appropriate production goals for each of our FAs based on market and experience?
  • What is our share of $1 million producers, and what are reasonable recruitment targets?
  • Is the firm capturing a reasonable share of experienced recruits, offering a competitive recruitment package, and doing a good job of ramping up performance of recent hires?
  • How much of our growth variance is driven by recruitment vs. organic growth?
  • Where can we reduce costs to improve branch profitability, or where might we prioritize investments to extend our competitive advantage?
  • What does “good” look like on any or all of these measures, and in each market where we compete or may consider expanding?

Brokerage Compensation Benchmarking

Our brokerage consultants also conduct several annual compensation surveys which benchmark base salary, cash bonuses, commissions, long-term incentives, and total pay for a vast array of positions across a wide swath of participating firms.  The annual surveys include:

  • Financial Advisor payout plans, which gauges the competitiveness of the plans themselves across a wide range of production levels
  • Branch Management and Branch Support
  • Retail Brokerage Home Office
  • Retail Brokerage Call Center
  • Investor Center
  • Brokerage / Investment Advisory

Combining our compensation intelligence with that on performance equips us with both sides of the important pay for performance equation.  This powerful combination enables us to more closely partner with our clients on consulting engagements often focusing on incentive plan design.

Connecting Performance to Client Experience: Scorpio Partnership

Together, McLagan and Scorpio Partnership use their market leading performance and customer insight databases to build propositions that respond to the evolving challenges of a modern wealth manager. We focus on assessing the impact of client experience on a range of wealth manager key performance indicators at both a market and advisor level. We help you connect the dots between customers, advisors, and business results.

For more information on our partnership with Scorpio Partnership and how we can help you connect rewards, performance, and client experience data in your firm, please click here.