The latest salary survey from recruitment firm Robert Walters revealed that salaries for financial planners with between one and five years industry experience were predicted to rise by 23 per cent in 2021.
This put financial advice as one of the most in demand professions included in the survey, with salaries expected to be flat across most industries this year.
Existing advisers were also confident about their job prospects according to the survey data, with 65 per cent of those in the advice sector saying they felt confident about their job prospects this year, and 33 per cent expecting a pay rise.
In line with this data, many advisers said they were interested in taking their skills elsewhere in 2021, with 65 per cent of those surveyed saying they were open to moving jobs.
Prospects for business profitability and growth in the sector also looked relatively strong, with one in four advice businesses saying they would give staff a pay rise this year.
This again compared favourably with the general business environment, where 32 per cent of all businesses said they would freeze headcounts in 2021, while 25 per cent said they would make further staff redundancies.
Unsurprisingly, the survey revealed risk and compliance staff were also in hot demand across financial services more broadly in 2021, while investment analysts and specialists were also highly sought after.
The only truth in this article lies between the detail. Think about it, the only people who will be receiving a 20% increased income are the practice owners who take on orphaned clients from those other advisers who are ditching the industry. Obviously less supply and increased demand from experienced advisers staying in the industry will force financial advice costs upwards.
20% increase on nothing is still nothing! 🙂
Clearly this article was written by someone at ASIC who has no idea what they are talking about.
Fake news!
That was a good laugh! I shall go out the my money tree in the back garden and give myself an increase.
I took a moment to explain to my staff that this was fake news and then to monitor their emails so they didn’t form a Union. Fun times
Well you sound like a barrel of laughs to work for… perhaps your staff should be looking for greener pastures.
What a load of bs
Boys and girls, those will be the provisional financial planners you put time, money and effort in to get all their boxes ticked just to turn around and say: “thanks mate, the AFSL down the road is offering more money. Ciao”. Not sure how long term this article is thinking. If we talk experienced advisers then the median age of those exiting will be pretty close to the experienced ones who are probably just looking to top up their super for another couple of years. We have substituted education for experience and have yet to see how this pans out, any prediction would be highly speculative at best..
Who would be crazy enough to take on a provisional financial planner? The costs and risks seem to strongly outweigh any potential benefits. Not only that, you will have to endure their smug self righteous lecturing about how they are the “new breed” and you are a relic of the “bad old days” who they have come to save.
Spot on Anonymous.
Your view says a lot more about you and your business than anything else. The upside to bringing someone through your business is obvious, particularly as the need to harmonise advise strategy amongst a firm becomes more pressing. As someone who has 2 provisional planners in their business, your assumption is far from the case. Best of luck though.
Best of luck hanging onto those provisionals once they complete their PY and go elsewhere for bigger bucks and more freedom to implement their own “advice strategy”.
What ‘advice strategy’ do you mean? It’s not the wild west anymore circa 1995 – licensees have business rules and policies and operate in a way to serve their clients and manage risk. It’s not as if you can pick and choose a place to do your own thing…aside from obtaining your own AFSL. Pay people fairly, treat them well, they stay. Simple. Pay below market rates and treat people badly, they leave. Actually, advisers with strong experience are gold in this industry with new advisers/PY candidates. Shame so many older advisers on these forums seem to have such a chip on their shoulder. Could be making a fortune monetising their immense knowledge as a consultant but cannot see the opportunity.
This is not a new phenomenon though. This has been happening forever and is the risk you always take with employees.
I think that what’s changed is the huge difference in net value between a provisional and a fully qualified adviser. The net value of a provisional is close to zero, because of the limits on what they can do, and all the extra compliance and supervisory costs involved. That was never the case in the past. Conversely the value for a newly qualified adviser is much higher than in the past due to limited supply, and the inability of most practices to endure the losses associated with provisionals.
Perhaps the solution is to make provisional roles unpaid internships, and incorporate them into an additional year of university courses. The FASEA exam should also be incorporated into that extra university year, once the deadline for existing planners to pass it expires.
Net value is 0? What are you talking about. A provisional planner can contribute in the same role they were in prior to being a provisional planner. I.e a paraplanner. There is no reason they have to stop contributing. The provisional planner year is hardly different to what any competent practice would do regardless when bringing someone up through the ranks. You sound like a one man band who has never brought someone in at the bottom and taken them to the top.
Or simply defer their income for a year or three so that they return the value you had to put in training and mentoring them on the skills they never learned at uni.
Really? So you think someone should work for free, for some income that *may* be available in three years time? Who can afford that, or would take the risk? My experience as a grad paraplanner in boutiques was that regularly I didn’t get paid on time because the Principal’s kids school fees were due or they went on an expensive trip in school holidays. Didn’t care that their staff got paid at all. And the way some practices are run, there’s no guarantee they will produce income anyway in three years time anyway. You sound like the old-school advisers in the 90s who refused to provide any learning assistance or even on the job training to newbies because ‘we’d leave and get better coin elsewhere’. Guess what – it made us have zero loyalty to you, and yes, we did leave as soon as that offer inevitably came along. Understand what a PY candidate may want as their future and provide a solid and genuine career path and they will be incentivised to stay. Yes – I am in the industry at the coal-face, and this is reality. PS. You do know a clawback period of that length is most likely unenforceable, yes?