The majority of advice firms do not have a defined career path for paraplanners, the results of our Parameters Survey have shown.
Only 26% of respondents said their firm had a defined career path, compared to 62% who said their firm did not have one in place.
The survey showed that smaller companies tend not to implement a defined structure.
One paraplanner told Professional Paraplanner: “Due to the size of the firm we don’t. A trainee paraplanner was employed a couple of years ago but in reality, there was no one to train up that individual and the role does not fit with our structure.”
Another said that progression was down to the desire of individual employees, rather than a set path.
“It’s down to the individual, if you’re ambitious and want to progress the company is supportive but if you’re happy to remain at the same level then that’s fine too. There’s no pressure for either,” they explained.
Aram Kupelian, paraplanning director at Holden Partners, said that with paraplanning duties differing quite widely between firms, a one-size-fits-all approach across individual firms may not be appropriate and career progression calls for a degree of flexibility.
“There are many routes for a paraplanner to follow in their career. A great thing about the paraplanning role is that it often provides exposure to other areas of the business; administration, compliance, investments, operations and managing client relationships with the adviser, and this can spark an interest in pursuing a different career path or specialise in a specific area,” he said.
Kupelian believes that while having a “clear direction” and knowing the steps and skills needed for progression can motivate paraplanners and help them focus their development, firms that provide an internal career pathway should ensure it is tailored to the individual’s career by pursuing specific specialisations or interests, not limited by a pre-defined path.
“Paraplanners should learn about different career paths not just in paraplanning, but in the wider industry and discuss career goals with manager and seek mentorship. This proactivity can help paraplanners navigate their careers effectively even in a less defined system,” he added.
Andrew Masson at Acumen Financial Planning, agrees that a defined career path can offer clarity of focus and a sense of what they are working towards.
Masson said: “It’s all very well smashing your KPI’s and achieving your targets, getting thank-yous and pats on the back, but what is it all for? Having a defined career path gives you some certainty to grab onto, that if you can achieve x,y and z, achieve these metrics and show what you’re capable of, then you will reach your goal. Otherwise it can feel like wheel-spinning. What is the point of going a million miles an hour when you don’t know where you actually want to go?”
Masson said that his own career path has been guided by the financial planner he is aligned to, who has provided guidance and explained the highs and lows of the financial planner role.
“He has pointed out exactly where he thinks my strengths are and where I might need more support. This is not a universal experience, however, and it shouldn’t be down to being lucky in who you work for or who you know to be able to get a career path fashioned,” he added.
Among advice firms that have a structure in place, the most common approach is to start in an admin role before progressing to paraplanner before moving to an adviser role.
One respondent said employees follow the route from academy for trainees to admin, paraplanner and finally adviser.
“Pathway appears to be clearly defined but guide salaries have disappeared from central documents and now seem to be negotiable locally with individual office principles,” they explained.
Another explained that candidates start with a role in the firm’s admin department, before moving onto the tech team once all admin roles and responsibilities are mastered. After they have gained their Diploma, there is a discussion surrounding movement to an adviser role or whether they wish to remain within the tech team.
For many firms, the decision to follow a set path is guided by employees, whether that is to become an adviser, a more senior technical member of the team or a move to management.
Another paraplanner said their firm operates a path which starts with trainee paraplanner, followed by paraplanner, to team leader/manager or paraplanner specialist, with the option to pursue a career as an adviser.
“A defined level of experience, knowledge and competency is required, along with professional qualifications required top move up the rung of the career ladder. You can also verge off into the adviser pathway if you would prefer to do so,” they said.
However, Masson said that the future progression of paraplanners may also depend on the development of AI, with many businesses keen to cut overheads by utilising the technology.
“AI may still be in its infancy as far as adviser firm use is concerned, but there is an undercurrent that whoever can crack it first will steal a march on all other firms and it does make me concerned about the future of the paraplanning role. A more defined carer path would certainly be useful, particularly if at some point the paraplanning role were to disappear and we needed to move into another role in the advice business,” he added.
