IFA jobs shifting to commission basis
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IFA firms are shifting away from hiring staff on a salary basis, preferring to employ advisers on a commission-based package, according to Recruitment Connection.
Managing director Simon Bean estimates there is now an even split between salary and commission jobs. He says this time last year, 75 per cent of the jobs were salaried and only 25 per cent were offered on a commission basis.
Bean says advisers working on commission often earn more than those on a salary despite the tough economic conditions.
He says: “Usually, the margins are better. Those earning commission can take anywhere from 40 to 75 per cent of the business they write and some firms pay as much as 95 per cent.”
Clark James partner Paul Hulance has observed similar changes among employers. He says: “Over the year, salaries have remained static but some companies have changed their packages to a commission base, rather than paying salaries.”
Tower Hill Associates director John Lang says: “I would have thought that commission-only packages would have a negative impact on the quality of graduate advisers coming into the profession. I cannot believe that a bright young graduate coming out of university and into the industry would be attracted to commission.”
BWD Search & Selection director Alistair Brownlee says the recruitment firm has seen a marked increase in IFA roles on offer over the past two months. He says: “I would say the number of roles has more than doubled since the start of the year.”
But he says employers are being more careful about salaries. He says: “They are becoming more savvy and offering remuneration in line with the competition in the market rather than offering large increases on what the adviser earned in their previous role.”
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