The demand for associate advisers in the financial planning industry is on the rise as firms are reverting to the pre-Hayne royal commission model of mentorship and development plans for new entrants. This shift aims to address the increasing need for capacity to handle client referrals and new demands in the sector. Recruit 2 Advice, a financial planning recruitment and management consultant, highlights limited demand for graduates in the private sector despite industry efforts to attract more talent.
According to Recruit 2 Advice, the supply side shows a high demand for associate roles, with three distinct profiles of candidates available in the market: those with strong client service and paraplanning skills, career changers with industry experience, and advisers returning from hiatus due to reasons like caregiving during the pandemic. The firm’s overview for Q3 2023 indicates a robust demand for experienced financial advisers, especially those with strong relationship-building skills to meet the growing client base.
While some firms struggle with the challenges of running professional year (PY) programs and supervising candidates, others are experiencing a surge in client referrals that exceed their capacity. This trend has led to discussions about creating new roles for senior or associate financial advisers to manage the influx of clients. The industry’s mid-range adviser salaries typically range from $130,000 to $140,000, with additional bonuses tied to client retention and revenue targets.
Business Health research reveals that advisers with over five years of experience earn an average salary close to $150,000, while junior advisers with less experience earn significantly less. The article also points out the scarcity of mid-level client service roles in the industry, attributing it to the diminishing supply of new entrants following the exit of banks and institutions from the market.
Industry professionals share personal experiences highlighting the challenges and obstacles faced by new entrants in the financial planning sector. Some express frustration at the lack of support and opportunities for career progression, while others advise considering alternative paths such as transitioning to accounting for broader career prospects.
Overall, the financial planning industry is grappling with the dilemma of balancing demand for experienced advisers with the need to nurture and support new talent. As the landscape evolves post-royal commission, firms are adapting their recruitment and development strategies to ensure a sustainable pipeline of advisers to meet the growing client base and industry demands.
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