Households per Advisor

Firms that have too few advisors to serve their clients tend to provide lower service and have trouble retaining their clients, particularly in the event of the loss of an advisor. The number of households an advisor can effectively manage is approximately 100-150. If you're reaching capacity, you may need to consider adding staff. Conversely, if you have excess capacity with advisors not serving enough clients, you may need to determine why - have you increased staff to support future growth? Under either scenario, determine if you're providing the proper level of service to your clients and if staffing expenses are appropriately impacting your profitability.