Why your salary could (and should) rise this year

Stephen Hagues, of headhunting consultancy Foundation Resourcing, discusses how 2011 could be the year for top quality advisers to achieve a step change in their careers.

The industry is obviously starting to react and prepare for the changes of the RDR, although from my conversations it is clear that some firms are far more advanced than others.

In the jobs and careers arena we are already seeing significant demand for RDR-ready, level 4 qualified advisers and this demand will only grow as January 2013 approaches.

Previous production history and comparative peer performance have long been the key things to look for in terms of selection across the industry – always presuming the candidate has been signed off as a competent individual.

However, these qualities are no longer so important with ‘RDR-ready’ now being the first hiring necessity. How effective the candidate has been in previous roles is, of course, still a factor but we are now seeing that fully RDR-ready advisers are in significant demand across all areas of the UK.

Demand outstripping supply

Employment is always a lagging indicator in terms of economic recovery. While the headline rates of unemployment in the news remain high, there are already several areas of the economy where demand significantly outstrips supply and the retail financial services sector is certainly one of them.

It is fair to say that not all of those currently successful advisers who meet the required outgoing and personable profile type will do particularly well with the advanced qualifications. This will just put an increased premium on those that do excel.

Significant movement of ‘in-demand’ personnel has always followed previous recessions. Losing key business writers is the last thing a growing IFA firm needs if it comes just as the business is picking up and serious growth is possible. This movement is due to a ‘push and pull’ force.

The push being that recessions frustrate the usual jobs market. People who would normally move jobs do not do so due to their fears of joblessness and worries about being ‘last in, first out’.

Once the economic doom and gloom lifts, there is usually a pent up demand for movement created by people in search of new opportunities.

While the pull will come from fast growth firms emerging from the recession and determined to seize the opportunity to grow with the market. Their primary growth limiting factor will be a lack of level 4 managers and advisers, for which they will pay handsomely and recruit aggressively.

Experienced and well-drilled executive search or headhunting teams are akin to mercenary raiding parties and usually leave slower growth, lower paying firms subdued and weakened through prolonged and repeated campaigns to entice their best people to leave.