Relationship Managers (RMs) are the core of independent wealth management. But leading them is complex. They face pressure from clients, management, and regulation. So, how do you lead them well? And what really works – carrot, stick, or something else?
⚖️ Freedom vs. control
Most Independent firms promise freedom, which is why many RMs leave banks. However, too much freedom creates risk, and too much control kills motivation. Striking the right balance takes skill, trust, structure, and honest dialogue.
💸 Clear KPIs and transparent payout
RMs want to know where they stand. Clear goals and simple payout models create focus. If an RM performs well, they should see it on paper and in their pay. Many banks still avoid transparent ratios, but independents often lead the way, which gives them an edge.
🤝 Lead like a partner, not a boss
Independent firms work best when RMs feel like entrepreneurs. That means leadership must shift. No micro-management. No old-school sales pressure. Instead, coaching, clarity, and shared ambition.
🧑🤝🧑 Real partnership beats hierarchy
The best independent firms offer more than salary. They offer ownership—being part of something. That mindset builds loyalty. It turns RMs into stakeholders, not just staff.
Here’s the big idea:
While compensation matters, most RMs don’t leave banks primarily for more money. Instead, they seek greater meaning in their work, more control over client relationships, and a more profound sense of trust from leadership. They see the carrot or stick game.
Therefore, independent firms consistently delivering these values are far more likely to attract and retain top talent.
So ask yourself the carrot or stick:
Are you being managed?
Or are you being led?
