FA-IQ, FPA Release In-Depth Advisor Comp Report
For advisors who run a practice, few issues are more problematic than what to pay team members. The fight for fresh talent in the industry has never been fiercer, thanks to simple supply and demand: The vast cohort of retiring boomers needs financial advice — but as advisors themselves reach retirement, their ranks are dwindling. How to attract and retain the best practitioners?
Answering that question is the purpose of the 2015 Trends in Adviser Compensation and Benefits study, the product of a partnership between Financial Advisor IQ and the Financial Planning Association’s Research and Practice Institute. Nearly 700 advisors, from all regions of the U.S. and in a broad range of professional roles, responded to a highly detailed survey conducted online in February by Julie Littlechild of If Not Now Research. The results will, we hope, help readers benchmark their firm’s practices against peers’ and make more informed decisions about compensation, benefits, incentives, training and hiring.
Among the study’s takeaways:
- Median compensation ranges from $50,000 to $244,000, depending on the role.
- Only 26% of respondents are very satisfied with their compensation, and just 27% are very satisfied with their benefits packages.
- More than half of firms plan on hiring within the next 12 months, with RIAs driving most of the activity — yet a quarter of firms say their hiring process leaves something to be desired.
- The average firm spends almost $15,000 a year on team development. However, most training and mentoring is done informally.
Over the next few days, FA-IQ will be running a series of articles analyzing the survey results, focusing on compensation structure, job satisfaction, outsourcing and training. Meanwhile, please click here to download the complete report for free.