Continuing our report on paraplanner remuneration from our recent Parameter survey, we asked if paraplanners would move job to secure a better pay deal. Fiona Bond writes.
More than a third (35%) of paraplanners would consider moving jobs for better pay, with the majority blaming a lack of transparency and clarity around job levels and pay grades within the industry.
The figure was just marginally higher than the 32% who said they would not move jobs and 33% who felt unsure.
The findings are part of Professional Paraplanner’s latest Parameters Survey delving into the subject of pay within the industry.
Among those paraplanners who said they would pursue a better paid job, most agreed that a stark variation in roles and responsibilities among firms had prevented the paraplanning industry from setting a ‘standard’ salary.
As one paraplanner told Professional Paraplanner: “There is a wide disparity in paraplanner roles from basic report writers to very technical specialists. Paraplanners of very differing skills are being banded together in same pay brackets.”
Others shared the view that newer paraplanners to the industry were demanding higher salaries, creating a cap for those with more experience and skewing the value of paraplanners.
To help paraplanners feel more valued and fairly paid, one respondent called for a clear pay structure outlining what paraplanners should be earning at different points in their career.
“Pay and benefits need to be market aligned to reflect skill, experience and qualifications of paraplanners. Due to such wide ranging definitions of paraplanner, it’s important to understand at what level paraplanners operate at when determining pay structure,” they said.
The issue of inequality between adviser and paraplanner remuneration also emerged as a bone of contention among respondents.
“As with much of society the profits a company generates are spread unequally, concentrated across a few at the top and I would argue this is unfair and at levels causing distress. This is echoed amongst many of my demographic in several industries,” one respondent said.
Another echoed the sentiment: “Advisers get paid well and rightfully so but it’s demoralising how low paraplanners or business assurance/quality checkers get paid given they are such important roles in the financial advice process.”
However, others defended the difference in pay, noting the level of risk that an adviser role entails.
“We need to remember that we’re not taking the same risks as advisers, so although we’re highly competent and well qualified, we are not generally putting our own necks on the line if something goes wrong. It is only right and fair that advisers get paid more than paraplanners for this reason,” one paraplanner commented.
For those paraplanners who said they would not move job in pursuit of a pay rise, several other factors such as working-from-home, flexible working, employee benefits, a supportive team and work culture were cited as key considerations beyond salary.
Reasons for staying put
Meanwhile, 33% of respondents said they were unsure whether they would move job for more money, noting that firms also faced difficulty in providing higher salaries in a challenging economic environment.
One said firms are in a “state of flux,” as they seek to balance their own costs with growing demand for paraplanning support.
“Cost pressures are affecting IFAs and it’s no surprise they want to bear down on salary increases and I’ve heard of redundancies being made. However, the fact remains that paraplanners are still in short supply, regulatory demands are increasing so it’s a false economy for IFAs to try to cut back on paraplanning resource. It’s a difficult economic period but this shouldn’t mean that paraplanners should accept salaries lower than they rightly should command,” they said.
Indeed, the survey revealed that many paraplanners believe that change would need to be driven by paraplanners themselves.
“Paraplanners and administrators need the courage to ask for a pay rise and explain why they are entitled to that. It’s in their power to raise the average pay in the profession. If you are really good at what you do, don’t let yourself be fooled or deceived by the average pay because you are not average,” one noted.
Another said if that a paraplanner feels like they are being underpaid, they should compile a list of all their achievements, both personally and professionally, that would justify a pay rise.
“It is unusual to get a pay rise for simply doing your job. When starting any role it is important to know how the pay structure works and if performance related pay is available. Appraisals are a really important part of any role as these will highlight any areas that the employee has overperformed but it also shows areas for improvement which is just as important,” they added.
