It would be an overstatement to say brokers are a universally happy group this year, but if the results of Investment Executive‘s 12th annual Brokerage Report Card survey are any indication, spirits certainly are lifting.
About 400 brokers from 11 national investment dealers told IE researchers they were generally more satisfied with their firms this year. They underlined this with improved ratings in sales support, training and both Canadian and U.S. research. With the exception of those at First Associates Investments Inc. and the rebranded TD Waterhouse Investment Advice — both firms were pummelled in the ratings — brokers’ contentment translated into a slight jump in overall scores at seven firms, an upswing that appears to be following the improving markets.
Among this year’s happy brokers are some standouts. Winnipeg-based Wellington West Capital Inc. marked its Report Card début by knocking Edward Jones from its five-year reign at the top of the standings with a score of 9.6. Mississauga-based Edward Jones placed second with a rating of 8.3, down from last year’s top score of 9.2.
But perhaps the biggest success story is CIBC Wood Gundy. The Toronto-based firm moved from last place in 2003 to a ninth-place finish this year. It showed marked improvement in 15 categories, including significantly higher ratings in corporate culture, ongoing training, advertising and client account statements.
Tom Monahan, the head of CIBC Wood Gundy, credits the surge in broker morale to improved market conditions, and also to the many improvements the firm has made since 2003’s meagre Report Card results.
Much of last year’s dissatisfaction was fallout from the 2002 integration, which saw brokers from Merrill Lynch Canada Inc.
absorbed by CIBC World Markets Inc.’s retail division, a transition that didn’t sit well with former Merrill employees.
The first step in shoring up employee satisfaction was doing a little research. CIBC Wood Gundy issued two internal surveys — one in 2002 and another in 2003 — that uncovered what brokers wanted: they demanded better technology, improved branding and a unified corporate culture.
Monahan says the firm followed up on the suggestions. Since then, it has added enhancements to its equity, bond and mutual fund order system and has made improvements to its advisor Web builder, which helps brokers build and maintain individual Web sites. On the training front, CIBC Wood Gundy launched a high net-worth certification program to help brokers better serve affluent clients. In November 2003, the firm released its “vision and guiding principles” statement to help solidify its corporate culture.
“We listened, we identified concerns and we made sure we had appropriate measures in place to rectify those concerns,” Monahan says.
The changes paid off in the ratings. Scores in back-office and front-office technology jumped by 0.8 and 1.0 points, respectively. Client account statements went up by more than a point, as did corporate culture and ongoing training.
More technology investments are on the way in 2004, Monahan adds. The firm is taking steps to integrate Merrill’s front-office technology with that of CIBC Wood Gundy (two separate platforms are currently in place), and plans are underway to make further improvements to client account statements, both online and on paper.
The firm’s efforts haven’t gone unnoticed. “It’s responsive to change, and committed to goals and visions,” says a CIBC Wood Gundy broker from the Prairies.
Similar contentment is being felt by brokers at several other firms, most notably at fourth-place RBC Dominion Securities Inc. (up from a seventh-place ranking last year), and sixth-place Raymond James Ltd. (up from a 11th-place ranking).
RBC DS’s national director, David Agnew, credits improving markets for the surge in broker morale, but adds the enthusiasm he’s witnessed at various branches is a sign the firm is headed in the right direction.”They like the management, they like the vision and they like the fact that in bad markets we were spending a tonne of money to give them the tools to get ready for the next era,” he says.
RBC DS’s scores improved in 19 categories, with top ratings in client account statements (8.4) and corporate finance (8.0). Despite higher marks in these categories, countless brokers cited the bank’s name as its single best asset.
“We’ve had a solid reputation since 1901,” says a British Columbia broker.
At Raymond James, national sales manager Terry Hetherington credits the firm’s commitment to its employees as a key factor for the improved ratings. “We view investment advisors as our clients, as well,” he says. “Our ability to serve them properly is what makes [Raymond James] a good place to be.”