Because You're Worth It
Because You’re Worth It
As a specialist in financial services recruitment, candidates looking for IFA jobs, Financial Adviser jobs and paraplanning jobs will often ask us about the salary they can expect to receive from a new employer.
“What am I worth in the current employment climate?”
In reality this can be a very difficult question to answer. Think for a moment about footballers. Is Cristiano Ronaldo worth £217,000 per week? Is Lionel Messi worth £175,000 per week? Although this income stratosphere defies comprehension for most of us, the simple answer must be ‘yes’. Why? Because that is what Real Madrid and Barcelona were prepared to pay for their services.
A key equation in this complex problem is supply and demand. When demand for certain skills and experience is high but the pool of candidates with this experience and skill set is low, one way an employer may compete for their services is by making the remuneration package as attractive as possible. Equally, when the demand is low (as many people have found through 2009) and candidates are competing for a small number of vacancies, they will often find that lowering their salary requirements makes them more attractive to employers.
“Consider the paraplanner”
Traditionally paraplanning jobs have been difficult to fill as many paraplanners use the role as a stepping stone before moving in to IFA jobs or financial adviser jobs rendering the candidate pool relatively small. As a result, salaries increased year on year and in 2007 the average income for a paraplanner with over 2 years experience in the role was approximately £28,000. In 2009, with business levels dropping and reduced costs high on many financial services firm’s agendas, a number of paraplanning jobs were made redundant and few IFA jobs or financial adviser jobs were created. While a number of experienced paraplanners were left searching for employment in a market with low demand, the average income reduced to £25,383.
Average salary for paraplanning jobs across the UK = £25,383
Highest average salary by region = £31,048 in London
Lowest average salary by region = £18,517 in Wales
On a positive note, as the country emerges from recession and confidence continues to grow in 2010, it is easy to see from the number of paraplanning jobs Exchange Street is currently recruiting for that demand is once again on the rise.
While supply and demand remains a significant factor in the financial services job market, the equation becomes even more complicated when it comes to those who salary can be equated to performance. When it comes to IFA jobs and financial adviser jobs, salaries have always held some correlation to business generated in previous years.
“Consider the IFA”
Most employed IFAs will earn around a third of the revenue they generate. This of course fluctuates from business to business as factors such as lead supply and level of support become involved, however to keep things simple, most firms work to a validation level of 3 times salary with c33% bonus paid on revenues generated thereafter. With this in mind the basic salary level is often less important than overall earnings potential.
When deciding on an appropriate salary offer, employers will usually look at an adviser’s production from previous years to set a validation level that is realistically attainable while also making sure the adviser is motivated by the prospect of additional bonus. For example:
Wayne is an adviser who has generated fees at around £120,000 for the previous 2 years. Based on the prospect that he will generate at least this level again in a similar environment, we can safely assume that if we give him a salary of £35,000 he should comfortably achieve a £105,000 validation level while remaining incentivised to earn further bonus.
Average salary for IFA jobs across the UK = £37,142
Highest average salary by region = £44,654 in London
Lowest average salary by region = £31,302 in the North East
Once again, many of our clients are reporting a significant increase in business production in 2010 and are confident that the trend will continue throughout the year.
For further information regarding salary levels tailored to your individual circumstances whether you are searching for IFA jobs, financial adviser jobs or paraplanner jobs, please give one of our experienced consultants a call on 0161 973 6900.