Kaizen Recruitment’s new Financial Adviser Salary Guide for Australia reveals some interest changes in how salaried advisers will be getting paid in the future.
Of course, the insights in the guide were produced in the backdrop of the Royal Commission final report, which found that instances of misconduct in financial services were driven “not only by the relevant entity’s pursuit of profit but also by individuals’ pursuit of gain, whether in the form of remuneration for the individual or profit for the individual’s business.”
Hayne said this led to a situation where “providing a service to customers was relegated to second place. Sales became all important Those who dealt with customers became sellers. And the confusion of roles extended well beyond front line service staff. Advisers became sellers and sellers became advisers.”
Given the above concerns, are planning groups changing the way they incentivise advisers? First, let’s look at the topline figures.
Adviser salaries
The guide includes benchmark salaries “for wealth management professionals in Melbourne and Sydney.” Here they are in detail:
- Client services officer (1-3 years’ experience, 1-3 years in the role): $50-75,000
- Paraplanner (1-4 years’ experience, 1-2 years in the role): $65-90,000
- Senior paraplanner (3-5 years’ experience, 3 or more years in the role): $90-110,000
- Associate adviser (1-5 years’ experience, 1-3 years in the role): $75-95,000
- Financial adviser (5-10 years’ experience, 1-5 years in the role): $90-120,000
- Senior financial adviser (10 or more years’ experience, 1-5 years in the role): $120-160,000
The research also notes that recruiters are expecting advisers to have “tertiary qualifications in financial planning or a related degree with a sound understanding of investment markets, superannuation and tax legislation within Australia.”
Changes to bonus structures
More revealing, the guide says there’s been a clear shift away from revenue-only linked bonuses. Firms are now preferring a “balanced scorecard method which involves advisers being assessed on both financial and non-financial performance metrics, which is likely to include compliance ratings, teamwork, new revenue, client satisfaction and client retention.”
“The change in bonus structure,” the guide continues, “is attributed to the Royal Commission, as firms are ensuring the clients are serviced in a compliant manner mitigating risk to the firm to ensure they don’t come under ASIC’s radar.”
How can companies capture business in this new environment?
In order to survive and thrive, the guide recommends keeping the needs of different generations in mind. “Baby boomers are more likely to look for stability and security in a workplace,” it says, “whereas millennials are searching for work-life balance and personal development.”
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