Financial planners working at independent firms are likely to receive better pay rises than their counterparts working for the major banks and institutions, according to the latest analysis released by The Dawson Partnership.
The financial services executive search firm’s latest remuneration survey found while salaried financial planners employed by institutions received consumer price index (CPI) increases or marginally below or above this level, those employed by independent firms fared better.
This was found in particular for those who contributed to the firm’s revenue growth with increases upward of five per cent.
The survey said this year 25 per cent of employers would increase employee remuneration, 63 per cent would maintain employee remuneration, six per cent would decrease remuneration, and six per cent were unsure.
Of the 25 per cent intending to increase remuneration, 56 per cent said the increase was for employees who met or exceeded their key performance indicator (KPI), 31 per cent as part of a retention strategy, and 13 per cent for employees who were not being paid market remuneration.
The Dawson Partnership principal, Peter Dawson, said there was an upward trend in recruitment activity and awareness by financial planning businesses that to retain employees they needed to ensure they were remunerated in line with the market or would face the possibility of losing them.
“It was clearly evident that there is more emphasis being placed on employees having high level technological skills and experience as financial planning practices refine their client communications strategies,” Dawson said.
“Employees and candidates with requisite skills and experience will be the beneficiaries of higher level remuneration.”
The survey also found 67 per cent of those employers increasing remuneration sought to offer market based remuneration to employees who had performed well and had demonstrated loyalty to them.
In recruitment activity, 56 of employers stated that salaried financial planners with high level technical knowledge and strong communication skills were in particular demand, as well as paraplanners and support staff.
One-third of recruiting employees were also interested across digital technology.
