According to FinancialPlanning, RIAs are moving past complex pay grids to recruit and retain top financial advisors. Increasingly, RIA firms are offering creative perks like employee fitness benefits and pet insurance, according to experts at this week's Future Proof conference.

Other examples include coaching. For example, Alison Burkett of Snowden Lane Partners highlighted the value of sharing growth stories among teams, offering incentives tied to new client acquisitions, and fostering an alignment of interests across advisors, partners, and equity holders.

Likewise, Mark Bruno of Emigrant Partners told Financial Planning that the firm's RIA clients have implemented policies that cap lead advisors' client relationships, incentivizing the transition of smaller accounts to younger advisors. This structure allows senior advisors to pursue larger clients while junior advisors grow their books, promoting collaboration and mentorship.

Equity incentives also play a critical role. Shannon Spotswood of RFG Advisory emphasized the importance of offering equity-like profit-sharing plans to incentivize long-term growth and employee engagement. These programs provide a way to share in the firm's success without immediate equity ownership, creating a balance between short-term rewards and long-term alignment.

As the competition for top advisors intensifies, RIA firms are finding success with those tailored approaches to compensation, helping them build stronger teams and ensure their future growth.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.