Recruiting advisers to a dealer group or practice must be a “hands-on” process, and not simply passed to a human resources department, acquisitions specialist Paul Tynan says.

“Human resources recruiters don’t have hands-on financial services industry knowledge, insight and experience,” Mr Tynan, the CEO of Connect Financial Service Brokers says.

“I acknowledge human resources and the recruitment process seek to connect and align people and businesses, but unfortunately it is still the same old focus on placement for the sake of placement.”

Mr Tynan says a recruiter must understand that work practices and conventions of the past have gone.

“The financial services industry is very complex, and experience, especially knowledge in relation to ‘who’s who’ in the marketplace… can be the difference between a successful recruitment and an outcome that causes serious business disruption, with major business losses.”

Mr Tynan says some advisers leave dealer groups, only to be disappointed in their new jobs.

“The reasons for this differ with each scenario… some of the more disturbing outcomes include advisers not being able to adapt to the operating model of the new practice and not understanding the fundamental difference between an institutionally aligned business model and a non-institutional practice.”

He says some advisers are “unable to find the best practice or bridge as they move from a salaried position into a self-employed role”.