No investment in young talent
Despite many financial services organisations claiming to have invested in young talent, latest analysis from Hays Recruitment shows that hasn't been the case.
There has been a shortage in experienced financial planners for a long time, but the recruitment company is starting to notice a shortage in experienced assistant financial planners and paraplanners.
"Due to a lack of investment in the development of entry-level staff there are few candidates with experience in the industry," said Hays Banking Hotspots report.
Hays Recruitment, which usually acts on behalf of large industry organisations, said the number of financial planning candidates has decreased due to the new Future of Financial Advice regulations and the knock-on effect of the grandfathering agreement.
"This quarter, work flow and hiring will increase in wealth management, but candidates are required to be qualified or have at least 12-18 months industry experience," the Hotspots report read.
"In fact, across the board candidate levels decreased last quarter, causing a shortage in some areas as vacancy activity has increased."
Hays Recruitment regional director Nick Murphy recently said hiring activity in the wealth management sector was at its highest levels in two years.
While recruitment usually slowed down in the December-January period, hiring activity in financial services — including financial planning — had experienced a massive boost in the lead-up to Christmas.
"Increased hiring started after the election, continued growing towards Christmas and it just did not stop," Murphy said.
AUTHOR
Milana Pokrajac
Recommended for you
Minister for Financial Services, Stephen Jones, has said he did not expect backlash to changes around advice fee deduction and believes the second tranche will have greater impact, committing to enact it by May 2025.
Financial adviser numbers are “back in black” for the year to date, thanks to 50 new entrants joining the industry over the last four weeks.
An equity partner firm of Count has purchased a Brisbane-based accounting business for nearly $1 million, as Count drives forward its inorganic growth momentum.
Australia’s looming intergenerational wealth transfer remains a crucial opportunity for financial advisers, with 14 per cent of consumers looking to transfer $1 million or more.
