The Path to Improving Retention
The four-year retention of financial professionals (FPs) is a standard field performance metric among companies operating an agency-building distribution channel. In 2020, 15 percent of full-time FPs remained with their hiring company after four years. Historically, the number has never been higher than 20 percent. When measured on a contract-year basis,1 a more accurate metric, the retention rate is even lower (Figure 1). Averages have a way of masking important details, however. For instance, four-year retention rates among individual companies vary widely, ranging from 4 percent to 41 percent.2 This suggests that certain practices do produce better (or worse) outcomes.
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