Many advice firms lack a pay structure or formal pay review for theirparaplanners with the majority of paraplanners having to negotiate their pay on an individual basis, our recent Parameters survey discovers. But paraplanners also say the money isn’t everything.
The subject of pay in the workplace can be an awkward one. Many employees may feel uncomfortable raising the topic and, in many cases, remuneration is made on a person-by-person basis, which can make navigating pay difficult.
According to Professional Paraplanner’s recent Parameters Survey, only 4% of paraplanners said their firm offers a defined and published pay grade structure. In stark contrast, 84% of paraplanners said pay is negotiated on an individual basis.
One paraplanner told Professional Paraplanner: “There is a ‘behind the scenes’ defined pay grade structure but this is not published and salary is then discussed and negotiated on an individual basis within the salary bands.”
Another said the size of the firm dictated their approach to pay.
“As we are a small company, it’s very much flexible depending on the work that has been done, the profits for the year and the responsibilities that we have each adopted,” they explained. “Although we have defined job titles, the job role can vary greatly from day-to-day as we pitch in as a team to make things happen.”
One paraplanner admitted that a request by their firm to keep their salary private makes it hard to know if they’re receiving a fair rate compared to their colleagues.
The survey also revealed that a third (33%) of paraplanners believe their current salary is below what they feel they should be paid, while 65% felt their salary was “about right.” Just 1% said they are receiving a salary above what they feel they should be paid.
One respondent who said they were underpaid said their salary is currently around £5,000 below their expected pay with experience and qualifications and pointed out that their additional responsibilities are not fully accounted for in their salary.
However, a number of respondents said money was not their sole driver and many enjoyed the work/life balance their firm offers.
“I know that my salary is below what I could achieve elsewhere, however I have been in workplaces where the pay was the driving force rather than work/life balance and mental health. I have flexibility in my role, I’m able to have days out the office to attend CPD events and I have the full support of my adviser and my team. I rate my overall happiness over the pay in this role,” one commented.
More than two thirds (68%) said their current salary adequately reflects their level of skill and experience, and 74% said their salary adequately reflects their technical ability. However, just 58% said their salary adequately reflects the volume of work they undertake, with 42% saying it does not.
One told Professional Paraplanner: “In comparison to other firms my salary is good but we are always short-staffed and I am often swamped with work.”
Another echoed the sentiment: “All client work is different and as an experienced paraplanner I am frequently passed more difficult/ lengthy pieces of work yet receive no financial recognition for this.”
However, one paraplanner who said their firm was “extremely busy and understaffed” said they are being paid overtime at double rate to reflect the additional work they are having to take on until the issue is resolved.
Pay rises
Half of firms (51%) do not have a formal process in place for salary reviews.
One paraplanner said pay rises are dictated by senior management, with little individual involvement.
“The annual appraisal appears to bear no resemblance to the salary review which is conducted at a higher level and then passed down, as is any bonus award, although that is broadly predicated on company results rather than personal achievement,” they explained.
This approach was shared by a fellow respondent, who said that while the firm operates an annual review, “it is not bespoke to the individual and usually results in the same percentage increase across all employees.”
Another said: “Our salary reviews are carried out every February and are based on our annual appraisal results but there is no guidance as to what sort of appraisal will achieve what sort of salary increase, if any.”
However, among the 41% of firms who do have a formal salary review process, the majority appear to carry out annual reviews.
The results of the survey also highlighted a trend among paraplanners to shy away from negotiating a pay rise.
Nearly seven in 10 (68%) respondents said they had not negotiated a pay rise in the past year, more than double the 32% who said they had.
One paraplanner said: “Every year I have generally had a review and been advised of a bonus and pay increase. Some years it is a bit more and some years a bit less. There might be scope to negotiate more but in reality, if I don’t have to bring it up and it’s more a matter of ‘next month’s salary will go up to X and the bonus will be Y’ I’m usually just grateful for something extra.”
Another admitted they “probably should have” but it’s “an awkward topic to broach.”
However, while most respondents said they had not negotiated a pay rise, the vast majority had been awarded a company-wide increase.
“I have had a pay increase but it was an inflationary pay increase across the board that applied to all staff members. I have not negotiated a pay rise for myself individually and don’t intend to,” one paraplanner commented.
Confidence to negotiate a pay rise
When asked whether they feel able to negotiate a pay rise at their firm, the results were fairly equal. Just over two thirds (36%) said yes, while 30% said no and a further 34% said they were unsure.
Among the cohort who said they would ask for a pay rise, one said they had done so twice successfully and described it as a case of “don’t ask – don’t get.”
Another said: “The manager is approachable and typically would look to give as much of a pay rise as possible within the company budget.”
However, another said that despite asking, they were unsuccessful.
“I was told I am worth the higher salary but they don’t have the funds and that was it. No negotiation or any further discussions.”
The overwhelming majority of paraplanners said they are aware of industry salary levels for paraplanners, with 21% stating they check regularly and 66% describing themselves as “roughly aware.”
One said: “I am currently looking into new opportunities so have been making sure I know what the salary expectations are for my skills and experience.”
Another said that job adverts often generally give an idea of what other paraplanners are potentially achieving in different firms.
However, one respondent pointed out that it was difficult to compare roles on a salary basis, with benefits and other aspects of the role also needing to be taken into account.
