Session Sponsored by:

2013 CFP Board Registered Program Conference

Tracking Degree to Certification Success: An Analysis of Student Histories

Dr. Charles ChaffinCFP Board

Dr. Tom WarschauerSan Diego State University

August 8, 2013

Rationale

■ Although visions of educational missions vary, most professionally-related programs’ missions include preparing our students for successful careers

■ In that case, we must measure our success in meeting our mission one way or another.

■ This should be an inherent part of both: Program assessment Accreditation

■ This is equally true for both degree and certificate programs

4

Benefits of Aftercare

■ Building relationships Employer Relations – “induction” into the

profession creates opportunities for students and alumni

Professional Association relations (having a strong relationship with Professional association aids your academic strength )

Alumni relations (students having received help in placement are much stronger alumni)

Advisory Board (particularly at beginning) helps create credibility and awareness

5

SDSU Aftercare Initiatives

■ Employers often contact the Program Director and individual Faculty with jobs and internship opportunities. We respond by explaining that the position will automatically be referred to the Career center, to the President of the student Chapter of FPA and to the President of the Student Chapter of the Finance Society (finance majors). Each posts the opening and responds to the employer.

■ Upon program completion students get a congratulatory letter from the P.D. asking that they keep us posted with their career developments and CFP Board exam status.

6

■ Active student chapter of FPA has employer seminars at least once a semester.

■ In capstone class, alumni practitioners are asked to aid in evaluating final plan presentations.

■ Students are encouraged to go to city FPA chapter meetings, and when possible national FPA, NAPFA, and firm meetings (TD Ameritrade, Schwab, etc)

■ For the first ten years of our program an advisory board was vital

■ CFP® certified Alumni listing on financial planning webpage with contact information

■ Preferred employer program

7

Indirect Outcome Measurement

■ Proportion of matriculated students completing program

■ Proportion of graduates working in the field as defined by your mission statement

■ Proportion of graduates taking licensing examinations

■ Pass rate on certification exams Pass rates on certification examination Pass rate on other exams (insurance, securities,

IA, etc)

■ Certification Rates (eventual pass rates)

8

Aftercare

■ Results of Aftercare Enhanced recruiting prospective students Enhanced employment opportunities Enhanced Institutional Support

■ Career Guidance Suggestions Programs need to be aware of which employers

encourage the CFP® certification and which do not

Students need to understand various career paths

Students need to understand how to measure job quality

9

Typical Career Paths

Professional Planning

Firms

Para-planner

Planner

Partner

Financial Services Firm

Bank = LendingInsurance = sales agentBrokerage = account

assistant

Financial Advising

Financial Planning

National Financial

Planning Firm

Sales assistant

Planner

Manager

10

Job Quality

■ Appropriate Training - Some firms focus on similar content because they want new employees to focus on sales licensing (FINRA, Insurance) . . .Does the firm hire from all disciplines?

■ If sales-based, does the career have a sustainable marketing plan? Or is it cannibalistic (e.g. friends and family-based)

■ Does the firm offer advice that allows for some professional judgment on planners part and does every client get the same advice

11

Who gives this advice to Students?

■ Senior faculty, particularly those with experience in the field (can get this experience by attending professional association meetings over time)

■ Career Centers – with training from above

■ Practitioner faculty

■ FPA student Chapter Events

■ Certificate programs often have designated marketing director who can lead in this effort, but should be supported by faculty and other staff

12

Conceptualization of the Project

■ There was a general recognition by the authors that the proportion of program graduates taking the CFP® Certification Exam was smaller than what might be expected.

■ But we just didn’t know. . . .

■ So we investigated all program graduates from three schools over a five year period and asked the CFP Board to investigate their status

13

Methodology - Study Schools

■ Large state flagship university in the Southeast Program housed in Department of Family and

Consumer Sciences Reflects baccalaureate and masters programs

■ Large Public institution in Eastern U.S. Program housed in Department of Agricultural

Economics and in College of Business Reflects baccalaureate program only

■ Large state institution on the West Coast Program housed in AACSB accredited business

school Reflects baccalaureate and masters programs

14

Methodology

15

Study Results

Number % of total 3 SchoolRange (%)

BS

3 SchoolRange (%)

MSLapsed 1 0.20 0 -1 0

Certified 69 13.64 1 - 14 3 - 36

Passed 40 7.91 1 - 15 2 - 5

Failed 39 7.71 6 - 9 5 - 9

Registered 6 1.19 0 - 2 1 - 2

No Exam 351 69.37 43 - 63 52 - 84

506

16

Study ResultsLapsed

0%

Certified14%

Passed8%

Failed8%

Registered1%

No Exam69%

17

Why are graduates not sitting? Survey

■ We conducted a survey, but had limited results

■ Select which of these most applies to your current position of employment: I am working as a personal financial planner, writing

or presenting financial plans I am involved in giving individuals or families

financial advice, but not comprehensive financial planning

I work in the financial services field but do not give financial advice

I have worked in financial planning or financial services but no longer do so

I have never worked in financial services or financial planning – this may be a systemic failure of the industry or profession to provide clear career tracks

18

Survey (continued)

■ You have apparently not sought the CFP®

certification. Please explain why: I plan on becoming a CFP® professional in the

future I didn’t have time to prepare for the exam I didn’t think I’d pass the exam I didn’t think I would be able to meet the

experience requirement I didn’t think CFP ® certification was worth the

effort - this may be ultimately a counseling failure

I had a different reason

19

Survey Results

■ Respondent #1 never worked in financial services or financial planning Plans to retire from current field in 3-5 years and may

pursue financial planning then

■ Respondent #2 left the field for better opportunities Became a public adjuster

■ Respondent #3 left the financial planning field but plans to return Left practice for graduate school but plans to pursue

CFP® certification after graduation

■ Respondent #4 is involved in giving individuals or families financial advice Is planning to pursue CFP® certification after completing

experience requirement

20

Survey Results

■ Respondent #5 left the field to build a startup Wants to pursue the CFP® certification in the

future

■ Respondent #6 works in the field but does not offer financial advice Decided to pursue the CFA, but has not ruled out

obtaining CFP® certification

■ Respondent #7 involved in giving financial advice, but not developing comprehensive plans Believed obtaining Series 7, 66 to be better early

career decisions. May pursue CFP® certification in the future.

21

Implications

■ We, as a group, have a great opportunity to increase the number of graduates obtaining CFP® certification

■ Schools can benefit a number of ways from tracking student placement and alumni standing with the CFP Board

■ Both explaining career tracking (induction into the profession) and developing ties that smooth school to profession transition are vital

22

Implications

■ “Pathway to certification” is an important notion for all program types and delivery formats

■ Knowledge is power

■ Sharing is encouraged

23

This presentation is available at www.CFP.net/RegisteredPrograms

24