Two financial advice professionals have shared their tips for success when building an effective Professional Year (PY) program as more advisers look to bring on junior staff.
The latest financial advice exam in November saw the highest pass mark since ASIC took over its administration, with 77 per cent (225 candidates) passing the exam. Aspiring advisers and PY candidates will be looking to sit the first exam of 2025 on 6 March, with the booking period for this exam closing on 21 February.
To help guide the next generation of advisers, Jenny Brown, founder and CEO of JBS Financial Strategists, shared her top recommendations for building an effective PY program in an advice practice.
Secondly, academic and consultant Dr Katherine Hunt recently spoke on the podcast of Money Management’s sister brand ifa and encouraged advice practices to communicate the value of a PY candidate to the client.
Below are their recommendations:
Set clear expectations and goals
Clearly outlining the requirements and expectations for PY advisers is the first critical step, Brown said, as well as to existing staff and clients.
“This includes a structured plan and a pathway that shows them how they can progress from client services to becoming fully qualified advisers. Knowing what they need to achieve and how they will be rewarded helps keep them focused and motivated.”
Hunt added: “The leading firms, regardless of whether they’ve got PYs or not, but even with their junior staff, make sure that every client understands that we work here as a team. So even in every meeting there might be a couple of staff, maybe two or three even.”
Promote exposure to real-world scenarios
Involving PY advisers in client meetings from the beginning where they can observe real-world client interactions is critical, Brown said. This forms the groundwork for the third and fourth quarters of the program where candidates take on greater client engagement and advice preparation.
She explained: “This hands-on experience is invaluable and helps them understand the practical aspects of the profession. Each of our three senior advisers have different styles and approaches, which teaches the PY adviser a variety of ways to work with clients.”
Provide regular check-ins and support
To ensure that PY candidates receive support and feedback throughout their 1,600 hours of training, the founder encouraged advice leaders to implement consistent check-in meetings.
“One of our partners is responsible for supervising the PY advisers and overseeing fortnightly catch-ups to ensure they are on track and addressing any challenges they may face,” Brown said.
Value recognition and rewards
At JBS Financial Strategists, Brown said the firm offers a clear remuneration structure that states what PY advisers need to achieve during each quarter and what reward they will receive, Brown explained.
Hunt said this could look like offering a path to equity ownership as well, ensuring that PYs see a long-term future and career progression within the business.
Speaking with Money Management last year, Viridian Advisory’s co-founder and general manager of advice, Brett Arnol, emphasised the importance of providing long-term opportunities to new advisers.
He said: “We’re just not losing these people because of that career pathway development that we’re giving them. Career development is the key. With our PY program, we are looking three to five years ahead on that. The magic of it is the security of a five-year plan for that individual. You start here, you move here, then you move here – and it’s on us to deliver on that plan.”
Foster a positive work environment
Finally, creating a positive work environment where PY advisers have a clear purpose and feel they are part of the team is vital, Brown added.
“This includes recognising their achievements and providing opportunities for growth and development,” she said.
Likewise, Hunt commented: “If there’s any kind of hesitation that [a PY candidate] might leave, there might be a good opportunity to reflect on how we’re crafting a context for those people to thrive and stick with us. So it might be that maybe our communication could be reinforced.”
