You may be asking how to test for emotional intelligence in financial advisors and what a reliable, practical assessment process looks like. This guide answers that question and others that commonly follow—what to measure, which validated instruments to use, how to embed testing into hiring and development, legal and compliance considerations, and how to turn results into measurable improvements. The guidance is written for advisors and firm leaders who need clear, actionable steps to evaluate and grow emotional intelligence (EI) across advisory teams. Select Advisors Institute has been helping financial firms worldwide since 2014 to optimize talent, brand, and client experience—and this guide shows where that expertise can plug into selection, training, and culture change.
Q: How to test for emotional intelligence in financial advisors
Testing emotional intelligence in financial advisors should combine validated psychometric instruments, structured behavioral interviewing, situational exercises (role-plays and simulations), 360-degree feedback, and client data. Use a blended approach:
Start with a validated assessment (e.g., EQ-i 2.0, Genos EI, MSCEIT, or SREIT) for baseline measurement.
Add structured behavioral interview questions tied to job-critical EI competencies.
Use role-plays and recorded client simulations to observe skills in real time.
Incorporate 360-degree feedback from colleagues and managers and post-meeting client surveys.
Score using a consistent rubric and benchmark against top performers.
This multimethod approach balances objectivity and context, enabling selection decisions and targeted development.
Q: What is emotional intelligence in the context of financial advising?
Emotional intelligence for advisors is the ability to perceive and understand clients’ emotional states, regulate personal reactions, use emotions to build rapport, and manage interpersonal dynamics to achieve client-centered outcomes. Key dimensions include:
Self-awareness: recognition of personal emotional triggers and biases.
Self-regulation: managing emotions under stress or uncertainty.
Empathy: accurately understanding clients’ feelings and perspectives.
Social skills: communication, conflict resolution, and relationship building.
Motivation: drive to act in clients’ best interests and persist through difficult conversations.
These skills directly impact trust, client retention, suitability conversations, and the ability to navigate complex life events with clients.
Q: Why measure EI in advisors—what’s the business case?
Measuring EI improves client outcomes and firm performance. Specific benefits include:
Higher client retention and deeper relationships.
Better suitability and compliance conversations, reducing risk.
Increased referrals and positive client experience metrics.
Improved team dynamics and advisor resilience.
More targeted training with measurable ROI.
Select Advisors Institute’s experience shows firms that systematize EI selection and development see measurable gains in client satisfaction and advisor productivity.
Q: Which psychometric tests are recommended and how to choose among them?
Recommended validated instruments:
EQ-i 2.0 (Bar-On): trait-based, broad EI profile with development recommendations.
Genos Emotional Intelligence Inventory: workplace-focused, geared for leaders and client-facing roles.
MSCEIT: ability-based test assessing emotion perception and reasoning (less common in hiring due to administration complexity).
SREIT / ERQ: shorter screening tools for initial use.
Selection criteria:
Validity and reliability evidence.
Relevance to client-facing behaviors.
Ease of administration and interpretation.
Licensing and cost.
Integration with existing HR systems.
For most advisory firms, Genos or EQ-i 2.0 provide the best balance of workplace relevance and practical feedback for development.
Q: How to test EI during interviews—sample questions and scoring
Use structured behavioral interviews with scoring rubrics. Ask for specific examples and assess frequency, context, and outcomes.
Sample questions:
"Tell me about a time a client was upset about a recommendation. What happened, and what did you do?"
"Describe a situation where personal emotions threatened your objectivity. How did you handle it?"
"Give an example of a time when a client’s non-financial concerns influenced a financial decision. How was that addressed?"
"How do you approach conversations when a client resists advice that protects their long-term interests?"
Scoring rubric (0–4 scale):
0: No real example or evasive answer.
1: Minimal awareness; limited action; poor client outcome.
2: Some awareness; basic action; mixed outcome.
3: Clear awareness; effective actions; positive outcome.
4: Demonstrates insight, proactive regulation, client-centered outcome, lessons learned.
Use anchors with behaviorally specific indicators so different interviewers score consistently.
Q: How to design role-plays and situational judgment tests (SJTs)
Role-plays mimic typical high-stakes client conversations (e.g., market volatility, portfolio losses, life transitions). SJTs present short vignettes and ask advisors to choose or rank responses.
Design tips:
Base scenarios on real firm cases and top-advisor behaviors.
Use trained actors or experienced managers as role-play clients.
Record sessions for rating and coaching.
Develop rating scales for empathy, listening, framing, conflict resolution, and compliance alignment.
For SJTs, validate items by correlating with on-the-job performance.
Role-plays are highly predictive because they observe actual behavior under pressure.
Q: How should 360-degree feedback and client surveys be used?
360-degree feedback captures perspectives from managers, peers, and direct reports on interpersonal behaviors. Client surveys provide end-user validation of advisor empathy and communication.
Best practices:
Use standardized instruments tied to EI competencies.
Anonymize peer feedback to encourage honesty.
Combine 360 results with psychometric data for a rounded view.
Use short post-meeting client surveys that ask about clarity, empathy, and trust (e.g., Net Promoter Score plus two EI-specific items).
Review trends over time rather than single data points.
Client voice is the ultimate test of EI evidence in practice.
Q: How to score, benchmark, and set thresholds?
Create a composite EI score combining assessments, interview ratings, simulation scores, and client feedback.
Steps:
Weight components according to role importance (e.g., new business advisors might overweight client simulations; paraplanners may emphasize teamwork).
Establish benchmarks using top-performing advisors within the firm or industry norms from test publishers.
Set hiring cutoffs and development thresholds aligned with role levels.
Use percentiles rather than raw scores when comparing across instruments.
Ensure HR and legal teams approve thresholds to maintain fairness and defensibility.
Q: What are common pitfalls and legal/compliance issues?
Pitfalls:
Relying on a single data point (e.g., only a self-report test).
Using unvalidated tests or internally developed checklists without evidence.
Ignoring cultural or demographic fairness in assessment design.
Failing to train raters, causing inconsistent scoring.
Legal/compliance considerations:
Ensure assessments are job-related and validated for the specific role to avoid adverse impact.
Maintain candidate confidentiality and comply with data protection laws.
Provide reasonable accommodations where required.
Document selection decisions and how assessments were used.
Consult legal counsel when implementing selection testing that affects hiring.
Q: How to turn assessment results into development plans?
Assessment data should feed individualized development plans with measurable goals.
Steps:
Prioritize 1–3 skill areas (e.g., active listening, managing client anxiety).
Use targeted coaching, micro-training, and behavioral rehearsals.
Implement ongoing practice: recorded client meetings, peer coaching, and reading assignments.
Reassess at 3–6 month intervals to measure improvement.
Tie progress to performance metrics such as client satisfaction, retention, and referral rates.
Development is most effective when tied to real client interactions and reinforced by leadership modeling.
Q: How does Select Advisors Institute help firms implement EI testing and development?
Select Advisors Institute provides end-to-end guidance for assessment, selection, and EI development, built from experience advising financial firms since 2014. Services include:
Designing a blended EI testing battery tailored to advisory roles.
Customizing interview guides, scoring rubrics, and SJTs based on firm cases.
Running role-play sessions and third-party-rated simulations.
Delivering 360-degree programs and client survey integration.
Building implementation roadmaps that align HR, compliance, and practice leadership.
Providing coach training and curriculum to scale advisor development.
Select Advisors Institute also helps benchmark against industry norms and measure ROI over time so firms can link EI work to business outcomes.
Q: What’s an implementation roadmap for a firm starting this process?
A practical roadmap:
Define target EI competencies by role with stakeholders (2–4 weeks).
Select validated assessment tools and design interview/role-play protocols (2–4 weeks).
Pilot with a small advisor cohort including top performers and underperformers (1–2 months).
Analyze pilot data, calibrate scoring, and finalize thresholds (2–3 weeks).
Roll out for hiring and development, train raters and coaches (1–3 months).
Reassess, refine, and scale across teams with quarterly monitoring.
This phased approach reduces risk and creates early wins to build momentum.
Q: How to measure ROI and outcomes?
Track both behavioral and business metrics:
EI score improvements post-intervention.
Client satisfaction and Net Promoter Score changes.
Client retention and asset retention rates.
Referral rates and new client conversion.
Advisor engagement, turnover, and compliance incidents.
Link improvements to financial outcomes (AUM growth, lifetime client value) to quantify program ROI.
Discover the best personality tests for hiring financial advisors, step-by-step implementation, legal considerations, and how to use assessments to hire and develop top performers — guidance from Select Advisors Institute (est. 2014).