Financial Advisor Success Podcast Episode 464
Hiring a Director of Talent To Shape the Development Of Next Generation Advisors (And The Lead Advisors Who Train Them) with Katie Kalaghi
Host: Michael Kitces
Guest: Katie Kalaghi, Owner of Katie Kalaghi Consulting
Date: November 18, 2025

Episode Overview

This episode of the Financial Advisor Success podcast dives deeply into the evolving dynamics of talent development in advisory firms. Michael Kitces is joined by Katie Kalaghi, an expert on people operations and talent consulting in the financial advisory industry. Together, they explore both the strategic and tactical approaches required to attract, train, and retain next-generation advisors—and the crucial role a specialized Director of Talent can play in driving firm success. They also confront the cultural, technological, and interpersonal challenges that often hinder effective people development, offering rich anecdotes and actionable advice for leaders, advisors, and early-career professionals alike.

Key Discussion Points & Insights

1. The Role and Impact of a Director of Talent

• Why Invest in Talent Development Roles:
  Katie emphasizes the need for a dedicated function focused on people development, distinct from operational HR. Firms scale only by growing people, not just processes or tech (09:09, 16:32).
• Early Adoption and Results:
  At Hewins Financial, Katie helped professionalize employee experience, which contributed to significant firm growth: doubling staff from 30 to ~100 in five years (13:48).
• Distinct Functions:
  "There's HR, and then there's your people strategy and your people development... our people are our biggest growth strategy.” — Katie (48:17).

2. The Human Factor in Advisory Firms

• Challenges of 'People Stuff':
  Michael comments on the tension between wanting to serve clients vs. managing people, calling out the "service business full of humans" dynamic (02:51).
• Emotional Load and Burnout:
  Katie spotlights burnout and the invisible load (especially for women), urging leaders to facilitate support and flexibility (84:03).

3. Creating a Culture of Growth and Collaboration

• Real Executive Teams:
  A high functioning exec team isn't founder-controlled, but operates collaboratively with experienced leaders working autonomously within their expertise (16:34).
• Building an Internal Talent Engine:
  Hewins Financial’s proactive strategy included recruiting from university programs, mentorship, clear career pathways, and promoting quickly (17:24, 23:24).
• Notable Firm Culture:
  “We had a culture where we’d go out, we’d find great talent, train them, and let them do their job.” — Katie (18:24).
• Transparency and Support:
  Advisors were made aware of new expectations: they’d be developing others and given direct coaching support, not left to figure it out alone (22:07, 29:19).

4. Measuring Success in Talent Development

• Multiple Metrics:
  Advisor performance tracked by client and people outcomes: client retention, revenue growth, staff retention, promotions, comp increases, engagement (22:36, 23:48, 39:13).
• People Outcomes Matter:
  Even high producers weren’t forced into management if it wasn’t a fit; strengths-based placement trumped a one-size-fits-all approach (25:25, 26:19).
• Pipeline Planning:
  On ratio of people developers to advisors: “Probably maybe 10 to 20%... are better focused on not running a team. The rest need to get pretty good at it.” — Katie (45:11).

5. Coaching, Training, and Manager Development

• Coaching as Primary Tool:
  Leadership and people development often starts with 1:1 or group coaching, supplemented by external leadership consultants, internal mentorship, and study groups (29:19, 31:57).
• Offsites and Formal Learning:
  Regular team off-sites and annual retreats help with both skill building and cultural cohesion (33:29).
• Performance Management Redefined:
  It’s about clear expectations, continual feedback, visible career paths—not just annual reviews (54:47).

6. Adapting to Technological Change

• AI & Intern/Associate Roles:
  Some firms are tempted to shrink entry-level hiring because of AI automations (note-taking, workflows) (61:26).
• Katie’s Perspective:
  “Don’t slow down your talent growth... if AI can take notes, great, because we can get our associates doing more meaningful work sooner.” (63:08, 63:20)
• Critical Thinking Still Key:
  Reviewing cases, writing emails, mastering planning—these learning experiences shouldn’t be automated away (64:19, 64:54).

7. Helping Advisors Grow—Without Losing Them

• The Retention Fear:
  Many firms worry about “training people just to leave.” Katie’s not concerned:
  “If you’re a great place to work, people won’t leave... make sure you’re truly living your values… and investing both time and financially in the development of your people.” (67:52, 68:30)
• What Makes a Great Place to Work:
  • Feeling part of a family
  • Being valued and seen
  • Open communication and respect
  • Good systems, fair compensation, and manageable workloads (69:36, 69:46)

Notable Quotes & Memorable Moments

• On the Myth of a Talent Shortage:
  “Our industry says we have a talent shortage... There’s 300 million people in the country! At worst, we have a shortage of training of the talent.” — Michael Kitces (04:57)
• On Collaboration vs. Founder Control:
  “It’s not like a command and control type of leadership. It’s a collaborative team that leads together.” — Katie (16:34)
• On Coaching’s Power:
  “The biggest lift you get… is one-on-one coaching. It’s super, super powerful when you have a space to really unpack situations you’re facing as a leader.” — Katie (30:40)
• On AI and Pipeline Risk:
  “I feel a ton of caution bells...do not want to blow up your talent pipeline. If AI can take notes, that’s great, because we can get our associates doing more meaningful work sooner.” — Katie (63:07)
• On Measuring Advisor Team Success:
  “Are you retaining your people? Are your people happy?... Are they growing and being promoted? Are we giving compensation increases?” — Katie (22:36)
• On Retention Fears:
  “Most people don’t want to go start their own business... Focus on being a great place to work. Make sure you’re really, truly living your values...” — Katie (67:52)
• On Culture’s Real Test:
  “Our biggest goal was... when people are playing to their strengths and they enjoy the work they’re doing, they’re happier and productive wherever they are. And when you’re happy and productive, you’re going to grow your career.” — Katie (41:53)

Timestamps for Key Segments

• Katie’s Background & Path into Talent Management: 05:13–14:35
• Building an Effective Executive/Leadership Team: 16:32–18:24
• The Talent Engine & Recruiting Practices: 17:24–24:59
• Measuring Success for Advisors as Developers: 22:17–25:25
• Coaching & Professional Development for Managers: 29:19–35:00
• Centralized vs. Team-Based Training Approaches: 43:05–44:48
• Director of Talent Role: Scope & When to Hire: 46:24–51:48
• Talent Challenges in AI/Tech-Enhanced Firms: 61:26–65:09
• Advice on Retention & Creating a Great Place to Work: 67:52–72:41
• Career Paths & Performance Management for Advisors: 54:47–60:14
• Compensation/Title Pathways for Team Nurturers vs. Soloists: 38:41–41:29
• What Makes a “Great Place to Work”: 69:36–72:41
• Katie’s Consulting Coaching Framework & Pricing: 73:05–77:12
• Closing Thoughts & Reflecting on Success: 88:31–89:15

For New and Growing Firms

• When to Consider a Director of Talent:
  Typically when reaching 30–40+ employees or ~$10M+ revenue (46:24).
• What That Role Includes:
  Both HR operations and all aspects of culture, employee experience, leadership development, feedback systems, and performance management (50:24).
• If You’re Still Small:
  Outsource HR operations, focus on fractional or part-time coaches/consultants for people development until full-time makes sense (54:22).

Practical Advice for Advisors and Firm Leaders

• Clarify Expectations Early & Consistently:
  “70% if not more of breakdowns...are because of lack of clear expectations.” — Katie (55:09)
• Play to Strengths, Not Roles:
  Not everyone should be forced into people management – let the natural developers rise (26:19, 41:29).
• Proactive Talent Pipeline is Critical:
  AI can enhance, not replace, the critical thinking and relational skills built through traditional pathways (63:28).

Conclusion

Katie Kalaghi encourages the advisory profession to see people strategy and development as central enablers of growth—not afterthoughts. Building, training, and empowering a next generation of advisors is a leadership imperative, requiring commitment, vulnerability, clarity, and a willingness to continually improve firm culture. The decision to elevate a Director of Talent or equivalent signals a maturity that not only fuels business expansion, but also positions the firm as “a great place to work” where everyone can thrive.

For further resources, visit Nerd’s Eye View at Kitces.com

(For detailed segment navigation, see timestamps above.)