Advice firms need to prioritise flexibility to attract new talent

In its new report, Swimming at the Deep End of the Talent Pool, Business Health examined the key issues of strategic importance for advisory firms when hiring staff.

The report found that 50 per cent of firms plan to add additional client service managers to their business in the next 12 months.

“While traditionally advisers have held the ‘glamour role’ in the business and are often seen as the rock stars of the profession, there is now a growing acknowledgment that they can only be as good as the back-office team that supports them,” the report said.

“As more firms awaken to this realisation, the demand for quality client-service staff will only intensify.

However, with the quest for professional service-oriented support staff becoming one of the key business issues in 2023, the report pointed out that firms wishing to be considered an employer of choice may need to review the benefits package they offer to their non-advisory personnel.

Among the most common areas where advice firms offer accommodation is the ability to negotiate flexible working hours, which is offered by 71 per cent of firms. Unsurprisingly given the impact of the pandemic, 92 per cent of businesses offered the ability to work from home.

However, Business Health found that as many as 78 per cent did not offer any type of paid parental leave, while 94 per cent did not offer the opportunity to acquire equity in the firm. Moreover, the research revealed a half of the almost 100 practices it surveyed did not provide non-advisory staff with education support, while 75 per cent did not pay time off to participate in charity causes.

“Regardless of the various elements that may be offered, we strongly recommend that practice principals focus heavily on continually reinforcing the totality of their package, not just the headline salary component,” the report said.

“In an overheated marketplace, there will always be a competitor willing to throw more money at a targeted recruit. And for some employees, this will be a lure they are unable to resist.”

Business Health added that this can create a challenge for smaller businesses, which need to differentiate their offering from that of larger competitors.

The report found that larger businesses (those with more than three employees) reported higher salaries, larger bonuses, and more ancillary benefits. But, according to Business Health, this doesn’t necessarily mean smaller firms can’t attract quality staff.

“While a competitive salary is a prerequisite, smaller practices may, for example, be able to offer a warmer/more familial culture, direct access to the owners/leaders of the business, more engagement with clients and fast-tracked equity opportunities,” the report added.

“Moving forward, these attributes will be highly sought after by some employees, and when positioned correctly, can help clearly differentiate smaller firms from their larger competitors and enhance their standing as an employer of choice.”