Hayley Knight, director of Contract Paraplanning Services, has explained that over the last 18 months, she has observed an increase in the number of advisers seeking contract paraplanning work.
“We’ve experienced an increase in advisers seeking contract work mainly due to them either leaving the advising profession but wanting to remain in the industry or they’re starting their own business and are seeking work to assist in cashflow while they grow their book,” she said.
Speaking to ifa, Ms Knight explained that another observable trend is a noticeable surge in demand from established advisers looking to utilise outsourced paraplanner services.
“Over the last few years, we’ve seen the market for experienced paraplanners really narrow due to the huge remediation projects – as a result of the royal commission,” she noted.
Working remotely has also become more commonplace, with more experienced paraplanners consequently moving into the outsourcing space. This, Ms Knight noted, has created further difficulties when seeking to employ an in-house paraplanner.
“Advisers are overcoming this by outsourcing their advice documents and getting access to great paraplanners without the stress of HR, and this is one of the main contributors to the increase in demand for outsourcing services,” she said.
As such, Ms Knight underscored the importance of advisers and contract paraplanners establishing a strong mutual understanding from the outset of their relationship.
“I think this really comes down to, firstly, having an in-depth understanding of your own strengths and weaknesses and what you need from your paraplanner/adviser to compliment that,” she explained.
“It is essential to define the boundaries, be clear on the scope of the service, and set mutually agreed standards. The adviser will only ‘get out what they put in’.”
Ms Knight has previously emphasised that, when choosing an outsourcing partner, advisers should be as discerning as they would be when hiring a permanent employee.
“Not every outsourcer is suitable and not every adviser is suited to outsourcing YET,” she wrote on a LinkedIn post last week.
“Outsourcing is a long-term partnership.
“Selecting the right outsourcer needs to be seen the same way as employing a new team mate … invest the time and the rewards will come.”
Regarding fostering a fruitful relationship with paraplanners, Ms Knight believes that the key for advisers is to understand the difference between constructive feedback and critique.
“Paraplanners are so incredibly technically skilled and also want the best for the client so lean into that to get the most out of the relationship,” she concluded.
Not building any depth of future talent in business or industry by outsourcing vital talent. Reminds me of sporting clubs which forget the importance of junior pathways. Generally end up on the bottom of the ladder for a very long time. No thanks.