According to a new Business Health report, Business Ready IV, almost two-thirds (64 per cent) of practice and business development managers (BDMs) are looking for a change of role or responsibility in the next three years.
The report added that 45 per cent have already been directly approached by a competitor about moving into a new development role.
Business Health pointed to a number of factors that could be driving this “potentially alarming level of discontent”, with increased workload without improved pay being at the top of the list.
The report found that two-thirds of managers have had an increased workload in the last 12 months, while 81 per cent said their compensation has remained static.
Additionally, 38 per cent of managers said they don’t have the tools and training they need to do their job properly.
According to the firm, there is also a disconnect between managers and advisers, with many not providing support in the areas they recognise as of most concern to advisers.
Regulation and compliance topped the list of concerns, but just 22 per cent of managers offered support for this area. Similarly, only 46 per cent of managers help with attraction and retention of quality staff despite it ranking second in terms of concerns.
Managers provided slightly more support in terms of the third ranking area of concern, pressure on margins and developing profitable businesses, with 55 per cent providing assistance with business/strategic planning and around half offering business coaching advice/support.
“As licensees, product manufacturers and investment platforms think through their optimal adviser proposition for the future, it will be absolutely essential that their managers are skilled and supported to deliver services and solutions that advisers want and need,” Business Health said.
“The value they add must be real and tangible and can only, in truth, be adjudged by the adviser.”
Other factors impacting the relationship between managers and advisers are the number of advisers each manager services. According to the report, this is largely dictated by whether they are a PDM working for a licensee or a BDM representing an institution, with PDMs generally servicing between 51 and 100 advisers while 40 per cent of BDMs have a panel of between 101 and 200 advisers and 43 per cent service more than 200 advisers.
“While this is obviously a function of the types of services offered along with the time taken to deliver, it was interesting to note that both cohorts thought the number of advisers in their panel should be reduced,” Business Health said.
“While two-thirds (64 per cent) of managers now conduct virtual meetings with their advisers on a monthly or quarterly basis, there remains a strong in-person component nevertheless, with 92 per cent holding at least two adviser group functions per year.”
The Business Ready report also found that 72 per cent of managers provide a “distinctly different” level of service and support to their top tier advisers.
“Generally speaking, the differentiated high value services offered to ‘A’ class advisers include helping practices recruit staff, assistance with business/strategic planning and succession planning, training and professional development, business coaching,” it said.
You think BDMs are frustrated!? Try being an adviser trying to get a hold of a BDM!
I know – why is that though ? 16 weeks leave PA ? Seems like it.
good luck getting your PDS’s now, advisers
I am not sure that many advisers would have free time to see BDM’s at present…… As a practice we get 4-5 BDM meeting requests a week and decline, but with the current demand for advice from new clients, client ‘bums on seats’ over BDM’s is the priority. Whilst some add value from time to time, most, whilst often nice people, add no value with the information they ‘bring’ being able to be sourced by advisers off their own backs. I would rather see the investment managers review the large salaries they pay most of them and pass on the cost savings to clients invested in their products.
As an adviser, having a BDM call and ask for a meeting for no real reason is areal turn off. It’s like you are a number and the outcome is the BDM gets to meet their ‘meetings per month’ KPI. Now times that for the many many different products out there with BDMs looking for that meeting.
Do it over lunch, at their expense.
Much more time efficient.
Need to provide demographics data with this….may explain the level of “discontent”.