Advice business owners want to increase employee remuneration as a strategy to stop employees looking to move, new research has found.
A study by financial services consultancy The Dawson Partnership found 23 per cent of institutional and non-aligned financial advice businesses owners would seek to boost employee packages in 2015.
Of the business owners who said they would increase remuneration, 31 per cent said it would be "primarily targeted at valued employees" as part of a retention strategy.
"[Respondents] believed that recruitment activity had increased in the first six months of the year and that they were aware their best employees were being approached by competitors," The Dawson Partnership partner and director Sally Humphris said.
"Recruitment activity and a trend in remuneration increases were most notable in compliance/governance roles within advice businesses," Ms Humphris said.
The Dawson Partnership also found that 55 per cent of businesses said increases in employee remuneration would be for staff who had met or exceeded their key performance indicators.
Of the respondents who said they would maintain existing employee remuneration, 67 per cent they would do so to "meet current and projected business targets".
However, when asked if they would increase remuneration levels if business conditions improved, 27 per cent said they would consider it but only if it were sustainable.
Also commenting on the results, The Dawson Partnership principal Peter Dawson said while there currently "isn't a war" for talent, there is an "upward trend" in recruitment activity between advice businesses.
"[There is an] awareness by financial planning businesses that to retain their employees, they need ensure they are remunerated in line with the market or they will face the possibility of losing them," Mr Dawson said.
The survey was completed by 632 non-aligned and insitutionally-aligned financial advice practices.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 23 Jan 2019Adelaide adviser permanently banned from industryBy Eliot Hastie
- 23 Jan 2019Bowen slams ‘woeful’ handling of royal commissionBy James Mitchell
- 23 Jan 2019Gender super gap lower but still at 34%By Adrian Flores
- 22 Jan 2019Advice issues stem from writing of SOAs, says RafteryBy Adrian Flores
- 21 Jan 2019Federal Court winds up CFS Private WealthBy Eliot Hastie
- 22 Jan 20192.44m Aussies suffer from financial stressBy Sarah Simpkins
- view all