Where are advice firms finding new hires?
With advice firms thinking about scaling up in 2025, research has detailed the main avenues for successful advice recruitment.
As the cost to deliver advice climbs higher, many advisers are rethinking their business efficiencies and cost-effectiveness which can include hiring additional advisers or support staff.
This is particularly the case for sole advisers who have shared they feel constrained and unable to step away from their business, or that their clients typically prefer to only deal with them as their financial adviser.
The ‘magic number’ of advice practice staff has previously been identified as four to six advisers to achieve maximum efficiency and greater work/life balance.
But with adviser numbers sitting at around 15,500, it can be challenging to recruit in a tight marketplace when advisers have ample choice to take on a role.
Research by BT found recruitment is one of the top priorities for the industry, cited in a survey by 76 per cent of respondents.
Matthew Rady, BT chief executive, said: “One of the top concerns for advisers is finding and recruiting staff. We know we have a shortage of financial advisers in Australia. While we are seeing new entrants choosing careers in financial advice, they do not make up the number of experienced advisers who have left the industry.”
The need for active recruitment can also come from the loss of staff, making retention a key priority. Losing a valued team member could end up costing 150 per cent of an annual salary in addition to the risk of poor hiring decisions due to the urgency created by losing a valued employee, according to Advisely.
The Financial Advice Association Australia (FAAA) surveyed its membership and said, rather than recruitment services or vacancy adverts, there are five channels that members are using successfully.
These are:
- Existing networks
- Word of mouth
- Profession-specific online forums
- FAAA careers board
- Education providers
Research by recruitment firm Hays earlier this year surveyed the average pay across the states for key financial advice roles in the 2024–25 financial year. The highest was seen in NSW with an average salary of $120,000, followed by Victoria and Western Australia at $110,000.
For senior roles, this jumped to $150,000 in NSW and Western Australia, and $130,00 in Victoria.
In the support space, paraplanners earned $95,000 in Western Australia and NSW, and $90,000 in the ACT and Victoria.
AUTHOR
Laura Dew
Recommended for you
Money Management examines the share price of financial advice licensees over one year to 31 March, with M&A actions in the final quarter having a positive effect for two licensees.
A $3.5 million settlement for victims of Melissa Caddick has been approved by the Federal Court following an initial agreement last December.
The Reserve Bank of Australia has delivered its first rate decision since the introduction of a new board structure last month.
Digital advice provider Otivo has launched an interactive tool, powered by artificial intelligence and Otivo’s own advice engine, to help answer client questions.
