Striver founder and chief executive Alisdair Barr said the current business environment presented a unique opportunity for advice groups to recruit gifted graduates who would usually go to high-profile firms such as KPMG or PwC into their businesses.
“Right now we’re in the unexpected position of having an abundance of great graduate talent – it might be a once in a lifetime opportunity to secure graduates that smaller privately owned businesses have never had the opportunity to access before,” Mr Barr said.
Following a number of recent redundancy rounds, including the sacking of 700 staff at Deloitte and 250 consultants at KPMG, Mr Barr added that a number of graduates had approached the mentoring organisation after having previous job offers from the big four accounting firms fall through.
“Without any announcement, the big four seem to be quietly retreating from their graduate programs, and the once keen new talent they would normally secure is now turning their backs on them,” he said.
“We’re also seeing many more graduates knock on our door, keen to pursue opportunities and career paths beyond the big four. The idea of being one of hundreds to face redundancy in an economic downturn has caused many to substantially re-think who they actually want to work for and develop their careers with.”
With the economic turmoil of the coronavirus crisis having increased financial advisers’ workloads, Mr Barr said many practices were keen to bring on new hires.
“Firms with a 10 year-plus growth plan are definitely investing in graduates to grow their own talent,” he said.
“The pathway for a graduate into the professional year is normally a couple of years, so there is plenty of time to meet the educational requirements.”
Mr Barr added that while the professional year requirements were a hurdle towards getting more graduates into financial planning, firms could work towards getting new recruits into an advice role over time.
“The professional year means they need to invest in that time and program, but if they have a longer-term plan then it is a fantastic way to grow great talent,” he said.
“[Graduates] may start in administration, client services and para-planning roles before entering the professional year.”
I think this is exactly what the FP Profession needs right now and I hope alot of the young talent finds its way into the advice profession. With some many retiring the profession needs to regenerate itself. Of course the rate of change has been ridiculous in recent times which is largely the fault of the big 4 banks and AMP given what transpired during the royal commission. There are alot of smart boutique firms that deliver really great advice. These businesses remain the shining lights of the profession.
If a hotshot accounting graduate wants to work for me for free I’d consider it. If they want to pay me the tens of thousands of dollars in extra costs associated with PY supervision and compliance overhead I’d think about that too.
But like many other financial practice owners I’m actually getting rid of trained staff, due to increased regulatory costs. Paying for a PY candidate is the last thing on my mind.
I don’t think after just finishing a Bachelor of Commerce, Finance, Business or Accounting degree, the first thing on a young graduates mind is enrolling in a Graduate Diploma of Financial Planning and paying for 8 units at $3,000 a pop….versus going straight into the Accounting profession. Even if it is, or they work in the back office in admin how many advice firms would pay them a comparable salary? Many expect to graduate one day and the next be called an Accountant. Further, regional and non metro firms are not in the position to pay salaries these graduates are demanding. This strategy has a long way to play out. I feel it will, because it’s a good job, it’s just how we fill the gap.
The 2 financial planning practices in Australia looking to expand must be licking their lips at the quality talent which is available. We may have 10 graduates join the industry this year to make up for the thousand’s leaving.