Money management facing recruitment 'crisis'

The UK's financial advice industry is facing a looming recruitment "crisis", according to a new report.

Female financial advisor talks with a couple
A survey of the industry by Octopus Investments found that staff shortages could have a major impact on the sector in the coming years, "making it harder for people to manage their money and plan for their future".

Financial advisors are retiring faster than new advisors can be recruited

The research found that almost a third of financial advisers (29%) planned to retire over the next five years, with the figure rising to 58% in the coming decade."That is the equivalent to more than 15,000 financial advisers leaving the profession out of a current total of over 26,600. The industry would need to recruit around 1,500 people a year to maintain its current level," said Octopus.These upcoming departures from the industry follow the publication of data earlier this year from the Financial Conduct Authority, which showed 5,898 advisers had left the profession since 2013.

Lack of younger staff and an industry that is too male dominated

The research also revealed the chronic lack of younger staff currently employed with 69% of companies admitting they did not employ a single money manager under the age of 30. The sector also remains male dominated with only 14% of current financial advisers being women.Almost half of respondents said recruiting new entrants was a problem, mainly because of the lack of suitable skills, the lack of a structured pathway for students to join the profession and the high cost of recruitment.

Financial services industry urged to tackle the crisis

"In 2017, average earnings (salary and bonus) for a financial adviser were £78,000. The rewards combined with flexible working, and helping to make a significant difference in people's lives should make it an appealing career choice," said Octopus."Yet the research into younger people's attitudes revealed just 9% would consider a career as a financial adviser, with roughly a third (36%) stating that they didn't know anything about what a financial adviser does."Octopus Investments is calling on the financial services industry and other stakeholders to act on some of the solutions suggested by people currently working in the profession to tackle the recruitment crisis.These include encouraging better public awareness of the role played by financial advice in society, better financial education in schools and further introduction of training programmes with universities.Subscribe to Relocate Extra, our monthly newsletter, to get all the latest international assignments and global mobility news.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Global Mobility Toolkit download factsheets resource centreAccess hundreds of global services and suppliers in our Online DirectoryClick to get to the Relocate Global Online Directory