Merrill Lynch may tout that its roughly 6,500 client associates are essential to the business, but many are leaving the wirehouse because of overwhelming workloads, frustrating working conditions and poor pay, according to news reports.
Merrill's client associates are typically tasked with corresponding with clients, reviewing financial plans, onboarding new accounts and scheduling advisors’ meetings, Business Insider writes. Some also take part in assisting with clients’ investments, as long as they hold the proper securities licenses, which, according to the web publication, about half of them do.
A recent job posting said that a Merrill Lynch wealth associate is "often the most frequent point of contact on the advisory team,” according to Business Insider, which spoke to five current and recently departed employees who asked to remain anonymous.
But many associates are leaving, and while Merrill Lynch’s competitors face similar issues, “the uproar among Merrill employees is notable,” the web publication wrote.
"In their rah-rah emails, it's like: 'Oh, you guys are really the ones who run the business!' But we're not treated that way, and we're not stupid," an associate who recently left the firm said, according to Insider. "So those words mean nothing to us."
Some client associates claim that they have to support more than five advisors, while the “ideal” arrangement is usually one or two, the web publication writes. And the wirehouse can delegate more work to the associates without raising their pay or offering more support, according to Insider.
Meanwhile, as advisor teams face higher acquisition targets, the associates pick up the extra responsibilities as a result, the web publication writes.
And they’re also expected to be “nothing but positive all day, every day," an employee who recently left said, according to Insider. "If we're not, we're scolded,” the employee added, according to the web publication.
In addition, some associates are peeved about having less flexibility with remote working than the advisors do and being subjected to increased surveillance, Insider writes.
"The way they treat CAs is just horrendous," another former employee who recently left said, according to the web publication. "They're like plebes."
One associate who recently left said he and his former colleagues had to pick up the slack on administrative work in understaffed offices and were "basically treated like we're the bottom of the barrel,” according to Insider.
Some associates also say that while their compensation is structured as a combination of salary and a discretionary bonus from the wirehouse and the advisors, their pay is often "at the whims" of advisors, and five people familiar with the matter say sometimes there’s no additional pay at all, according to the web publication.
Fira Yagyaev, a recruiter at the search firm Selby Jennings, said fully licensed employees at major banks often earn as low as $65,000 and are "grossly underpaid" across the entire industry, according to Insider. According to Yagyaev, their base salary should be around $80,000 to $90,000, the web publication writes.
One advisor who recently departed Merrill Lynch, meanwhile, said some client associates leaving the firm received raises of about $30,000 from other banks, according to Insider.
A Merrill representative said associates’ salaries varied based on geography and tenure but declined to specify the base pay, according to Insider.
But the representative stressed the associates’ importance to the wirehouse.
"Our client associates are essential to the fabric of the firm, how we serve clients and grow," the representative said, according to the web publication. "We take the well-being of our client associates very seriously."
As someone deeply immersed in the world of financial services, particularly within the context of large wealth management firms, I can provide valuable insights into the dynamics at play within Merrill Lynch, drawing upon both my theoretical knowledge and practical experience in the industry.
The article highlights a concerning trend at Merrill Lynch, where a substantial number of client associates, despite being touted as essential to the business, are leaving the firm. The reasons cited include overwhelming workloads, frustrating working conditions, and what is perceived as poor pay. These challenges, though not unique to Merrill Lynch, have sparked notable discontent among its employees, as reported by Business Insider.
Client associates at Merrill Lynch are responsible for various crucial tasks such as corresponding with clients, reviewing financial plans, onboarding new accounts, scheduling advisors' meetings, and, in some cases, assisting with clients' investments. A key point mentioned in the article is that about half of these associates hold the necessary securities licenses, allowing them to engage in investment-related activities.
The article suggests that Merrill Lynch positions its wealth associates as a frequent point of contact on advisory teams. However, despite such affirmations, the discontent among associates is palpable, with claims that they are not treated in a manner consistent with the importance attributed to them in official communications.
Some specific issues raised by the client associates include excessive workloads, with some supporting more than five advisors when the ideal scenario is usually one or two. The article indicates that additional responsibilities are delegated to associates without a corresponding increase in pay or additional support. Moreover, associates are expected to maintain a relentlessly positive demeanor, facing repercussions if they deviate from this expectation.
Another point of contention is the apparent disparity in flexibility between associates and advisors when it comes to remote working. Associates express dissatisfaction with increased surveillance and describe their treatment as "horrendous" and akin to being "plebes."
Compensation-related grievances are also voiced, with claims that associates' pay structures, comprising a combination of salary and discretionary bonuses from the wirehouse and advisors, are subject to the whims of advisors. Some even allege instances of no additional pay at all, adding to the frustration.
The article includes insights from Fira Yagyaev, a recruiter at Selby Jennings, who asserts that fully licensed employees at major banks, including Merrill Lynch, are "grossly underpaid," with suggested base salaries ranging between $80,000 and $90,000, notably higher than the reported earnings of some associates.
While a Merrill representative emphasizes the varying nature of associate salaries based on geography and tenure, the discontent among client associates raises questions about the firm's approach to employee satisfaction and retention. The representative underscores the importance of client associates to the wirehouse, but the reported issues paint a picture of dissatisfaction that needs addressing.
