CFP BOARD INVESTS IN EXPANDING THE FINANCIAL PLANNING WORKFORCE

Financial planning offers everything that many people want in a career: autonomy, limitless room for growth, the potential to own their own businesses and a compelling social mission.

All those virtues remain theoretical if college students and new graduates can’t envision themselves as a financial planner. And unfortunately, financial planning is a career that many students know little about…and that is all but absent in popular culture.

Developing a sustainable and diverse workforce is one of CFP Board’s strategic priorities, and strengthening the talent pipeline is a long-term play. Introducing college students to the financial planning profession is the first step. From there, the payoff arrives incrementally, with more students enrolling in financial planning programs, passing the CFP® exam, and taking entry-level jobs.

In 2023, CFP Board strengthened the foundational fulcrums of the profession’s early talent pipeline and made first steps to building a midcareer talent pipeline.

A two-pronged strategy — raise awareness and offer corresponding resources to support those who want to move purposefully into the profession — has accelerated momentum and is expected to increase in coming years.

CFP Board’s enhanced focus on expanding the talent pipeline has played out in a variety of program areas and initiatives. Recognizing that financial planning jobs occupy a “sweet spot” in pay, long-term growth potential and personal autonomy that is especially attractive to midlife career transitioners, CFP Board supported legislation that aids in the pursuit of CFP® certification.

Specifically, CFP Board encouraged Congress to pass the “Freedom to Invest in Tomorrow’s Workforce Act.” The Act would allow adults to use savings in education-intended 529 plans to pursue new career credentials. At year-end, the act had 101 co-sponsors in the House and 14 in the Senate. CFP Board’s certification program would qualify under the Act in its current form.

INVESTING IN YOUNG TALENT

The number of scholarship programs administered by CFP Board Center for Financial Planning and the amounts distributed through those programs have steadily gained traction since the first was established in 2016. Scholarships provide funds that support individuals on their path to CFP® certification, covering costs such as college tuition and CFP® exam fees.

“This year brought a big milestone in CFP Board’s ability to generate scholarships to support future advisors,” said Jason Gudenius, CFP Board Managing Director, Workforce. The 176 scholarships awarded in 2023 represent a 54% jump from 2022.

In March, CFP Board announced the launch of the WIN Endowed Scholarship intended to assist women with up to $5,000 per student working to complete an undergraduate or certificate-level CFP Board Registered Program. The dedicated fund translates CFP Board’s longstanding commitment to women to targeted financial help. Currently, 23.6% of CFP® certificants are women, though women comprise almost 30% of the latest crop of newly minted professionals.

Industry experts commented in the media throughout 2023 on both CFP Board’s demonstrated commitment to paving the way for women into the profession, and about the appeal of the profession to women, who often navigate numerous interruptions to their career progress and ability to build financial stability.

A FOOT IN THE DOOR

All the preparation in the world doesn’t alleviate the need for initial and next-step positions within the financial planning ecosystem. “We realized we needed a more action-oriented approach,” says Gudenius of the on-ramp that links degrees to first jobs.

So, CFP Board doubled down on its Career Center, with record-breaking results. Twice as many jobs — 2,415 — were posted at CFP Board’s Career Center in 2023 than 2022.

“Many of those are entry-level, which opens doors for those just starting careers,” says Gudenius, explaining CFP Board’s intention to be the lifelong go-to spot for career advancement.

In April 2023, CFP Board hosted a virtual career fair to foster connections between employers and qualified job candidates, including CFP® professionals, those pursuing CFP® certification and students aspiring for careers in financial planning.

Employers had a field day at the “Superbowl of career fairs,” Gudenius added, with 30% more attendees than the prior year meeting potential bosses. “People were making offers on the spot,” he said.

A second career fair focused on job seekers who are women and people of color was held in conjunction with the sixth annual Diversity Summit hosted by CFP Board Center for Financial Planning in November 2023.

As CFP Board builds a continuum of investment in new talent, those new hires will be in a perfect position to use CFP Board career resources to make hires of their own. The career life cycle that CFP Board cemented in 2023 is now positioned to welcome more college students, interns, credential-seeking candidates and newly minted planners, all to furnish employers — and clients — with professionals qualified to help them grow.