Financial planning jobs falling, job losses expected

After recovering strongly through most of the year, employment demand within the financial planning industry appears to have tapered off and there is a danger it could be the start of a trend.

eJobs Recruitment Specialists has noted a 5.5 per cent drop in national advertised roles in the financial planning industry in the three months to October 31, with job losses expected.

eJobs manager of financial planning recruitment Trevor Punnett stated that while jobs were up 25 per cent from last year, the last month had seen a drop of 15.5 per cent in advertised roles. He said that while the drop was too early to attribute to the traditional “Summer adjustment”, it could have been a result of various challenges faced by the industry in recent months including the election result and the new Minister for Financial Services and Superannuation Bill Shorten’s pledge to follow through with the Future of Financial Advice Reforms.

Shorten said the job numbers may have been further affected by negative client sentiment, financial planner ‘bashing’ by the industry super funds, and questions about the viability of dealer groups (especially those without their own platform). Punnett stated that the job numbers may have also been affected by advisers retiring and selling up after having delayed their retirement plans during the global financial crisis, a perceived lack of industry educational qualifications, and clients turning to accountants or investing directly.

Queensland experienced the greatest drop in advertised roles over the last month, down 33 per cent, followed by South Australia (-25 per cent) and Victoria/Tasmania (-21.5 per cent). Western Australia was faring much better, with a 2.3 per cent drop in numbers last month following a 47.4 per cent increase in job numbers over the last three months. New South Wales job numbers were down 3.5 per cent in the last three months and down 4.8 per cent in October.

“Whilst our research certainly shows higher demand compared to last year, the October result certainly shows this demand declining,” said Punnett. “We certainly have anecdotal evidence gained from our clients and our candidates that all is not going swimmingly, with upcoming job losses expected. Some institutions have already announced job losses (Macquarie and PIS), but several boutiques are set to follow, all under the radar.”

Punnett stated that some good news from the eJobs research was a strong demand for those with Certified Financial Planner (CFPs) accreditation, institutional demand for advisers (especially those in the regional areas), a high demand for paraplanners, and an increasing demand for outsourced paraplanning services. Benchmark paraplanning salaries had strengthened, he stated, up to $65,000-$75,000 plus super for those with over two years of experience. Some 92 per cent of the financial planning roles advertised were offering $60,000-$120,000, with the average salary at $85,000.