Two million Australians are “very likely” to quit their jobs this year, as the global economic trend known as the Great Resignation catches up with us here.
According to research by Allianz Australia, employees are increasingly willing to quit their jobs, despite having nothing lined up, in search of greater job satisfaction, fulfilment, and physical and mental well-being.
For many businesses, that’s a scary thought. They are already struggling to find candidates for existing roles and face the prospect for losing more staff.
But the Great Resignation also spells opportunity, particularly for the financial advice sector.
A career in financial advice can be extremely rewarding, both personally and financially.
Advice is about helping people to plan for the future, make smart financial decisions, and achieve their goals.
Advisers work closely with clients from diverse backgrounds, facing different challenges. They see first-hand the positive impact they have on peoples’ lives.
New research by Western Sydney University (WSU) has found the primary motivation for becoming an adviser is to help others.
The WSU study, titled Factors influencing the motivation to pursue a career in financial planning, concluded financial planning is unique in that it attracts people with life experience who want to make a difference.
Across the board, few jobs offer the same level of meaning, variety and autonomy.
With millions on the hunt for more interesting and satisfying work, there has never been a better time to promote the benefits of being a financial adviser.
There has also never been a more urgent time.
In the past two years, 5406 advisers have exited the industry, leaving just at the end last year, according to Wealth Data’s analysis of the ASIC Financial Adviser Register.
For every financial adviser entering the industry, roughly six leave, due to a combination of higher education and professional standards, natural attrition and ailing student enrolment numbers.
Over time, as financial advice becomes recognised as a bona fide profession and more universities and education providers offer financial planning courses, enrolments and completions will naturally pick up.
But that process is long and slow. The industry needs to attract and retain talent quickly to meet demand for professional advice.
Treasury’s review of Financial Adviser Education Standards, which includes a proposed experienced adviser pathway, may help stem the loss of senior advisers as the industry transitions to a profession but retention alone isn’t enough to plug the gap.
The key to solving the industry’s skills shortage lies in attracting talent from other fields and professions.
An obvious source is Australia’s burgeoning pool of accountants and bookkeepers.
For many people, their accountant is their most trusted adviser.
Accountants are intimately involved in their clients’ affairs. They intrinsically understand their situation, needs and objectives.
Historically, the advice industry has been relatively successful at luring accountants.
The growth of superannuation and, in particular, self-managed superannuation funds (SMSFs), has seen a large number of accountants dip their toe in advice. Some have become fully immersed.
While mounting regulation has curbed the number of accountants entering advice, this trend is likely to pick up again as Australia’s ageing baby boomers turn in droves to their trusted advisers for advice on retirement income, aged care, estate planning and tax-effective intergenerational wealth transfer.
More accommodative policy, flowing from Treasury’s Quality of Advice Review, would also support this move.
In addition to accountants, financial specialists like stockbrokers, mortgage brokers and private bankers are increasingly seeking opportunities in financial advice.
Many possess relevant, transferrable skills and meaningful life experience.
The convergence of stockbroking and financial advice in recent years has been an interesting development.
The rise of the self-directed investor has led more financial advice businesses to focus on investment advice including direct shares.
At the same time, brokers are moving to provide holistic advice on strategic asset allocation and portfolio construction, in addition to traditional trade and execution services.
By expanding their value proposition, brokers are deepening their client relationships, diversifying their revenue and future-proofing their business.
While the Great Resignation and changing workplace trends present opportunities for the advice industry, the biggest opportunity lies in a more accommodative regulatory regime because attracting talent shouldn’t be dependent on people disliking their jobs.
A principles-based, professional advice framework opens the door for people who love their jobs to enter too because they want to better serve their clients’ needs.
