We asked our Parameters survey respondents whether the pay structure for paraplanners needed to be reviewed in their firm. Fiona Bond looks at your responses and how pay scales should be measured to ensure they are fair.
More than four out of 10 (46%) paraplanners would like to have the pay structure within their advice firm reviewed, according to the findings from Professional Paraplanner’s Parameters Survey.
A lack of clear job definition and career path appeared to be the driving force behind lower or inconsistent salaries.
One paraplanner said: “Currently, there is no proper definition between average report writers and excellent paraplanners that carry the team. There should be a clear career path and each should be paid according to their individual skills not in line with the team.”
Another paraplanner said their firm currently bases its pay structure on qualifications rather than ability, which can lead to skewed remuneration.
“Its currently based on what qualification you have reached and not on quality of output/effectiveness or ability. We have a lesser qualified paraplanner being paid less but is by far more integral to the smooth running of the firm than another chartered qualified paraplanner.”
A failure to clarify how different salaries are benchmarked was also raised by respondents, with one paraplanner who works for a large national, noting a discrepancy between overpaid paraplanners and those who are underpaid for the level of work they complete.
However, nearly two fifths (38%) of those surveyed said they did not feel their firm needed to carry out a pay review.
One said: “My employer’s salary package and subsequent improvements are in line with my expectations.”
Another said: “We pay as much as we can possibly afford to pay our team, while being prudent about our cash flow and trying to keep back enough to make our business viable for the long-term future.”
However, there was common agreement that beyond salary, a firm bonus structure would be a good way to incentivise paraplanners and reflect the scope of work they do.
“I feel that the salary is reasonable, especially looking at the adviser package. But the bonus structure should be reflective of all work undertaken, and not just the production of reports,” one paraplanner added.
