Stitch Market Update - Wealth & Financial Advice
It has definitely been an interesting few months. One that has seen many businesses have to dramatically re-think the way they operate.
As we ease out of restrictions in the coming days, I thought I would share a market update on the trends and successes we have seen at Stitch Recruitment within the Financial Advice industry since the COVID-19 pandemic turned our lives upside down.
1. Businesses with strong technology adoption have transitioned the strongest through this period, some even finding new novel ways to improve efficiencies and productivity. Candidates with solid Xplan or myprosperity experience remain in demand as businesses look to evolve their work-flows and how they can support their clients.
2. The flow on from strong technology is agility. These clients were able to move their teams to remote working environments quickly, with limited business disruption. Some are now reviewing their whole business operation and even considering downsizing office space permanently in favour of a mixed WFH/ Office model. Which can contribute to huge cost savings.
3. Fixed and Hybrid Fee structures have provided the safest playing ground and allowed for limited financial impact through this pandemic. This business model has allowed many businesses to retain their staff. Apart from having to make physical changes to how they work, they have managed to retain business as usual, in regard to revenue and staff levels.
4. Recruitment for business-critical roles has continued with a combination of complete remote onboarding or a limited face to face period, as long as their offices could accommodate strict social distancing measures. Interestingly, no clients or candidates have felt that remote onboarding has hindered them in getting up to speed and settled in their new roles. We saw businesses that took the extra time to create a team dynamic remotely are those that have seen the most success. Remote team lunches or Zoom Drinks on a Friday afternoon have helped increase this sense of inclusion.
5. High calibre candidates are still in demand! In the last 3 weeks, we have been engaged on five separate searches, for roles where clients have found it hard to engage the level of talent they are seeking directly, despite being inundated by applications. This has been particularly true across Financial Advisor, Compliance, and Paraplanning roles. The fact is there is still a shortage of good talent out there and for many, it now takes even longer to sift through and find the gold.
6. There has been a leveling in salary expectations for many senior positions- particularly within PDM, Paraplanning, Compliance, and Head of Roles. Businesses are reviewing how these positions function, can elements of roles be outsourced for a better return? And those looking to now return from Remediation, are being faced with the reality that they will have to greatly lower their salary expectations.
As with the effects of the GFC and the Royal Commission, this challenging time has once again highlighted that those practices with a solid business model, that are fundamentally client-centric, who embrace the modern world of Advice - are actually coming out of this stronger than ever.
Should you need further insights or assistance transiting you and your team through the next stage of our “new normal” then contact The Stitch Team on 02 9188 3030
