The average basic salary for supervisor-type roles at financial advice businesses has reached £86,131, a survey from Paul Harper Search has revealed.
The data, derived from headhunted professionals, revealed that the average basic salary for first line roles stands at £86,131 while the average salary for second line roles stands at £138,000.
Paul Harper Search said first line roles are defined as a supervisor who directly manages a team of employees whereas a second line manager oversees multiple first line managers and is responsible for coordinating and aligning their teams.
The survey found that the average total earnings are £107,002 and £94,722 for the respective roles, while the average bonus payouts are £19,616 and £55,611.
The data also included a breakdown salary for advice firms of various sizes, revealing that the average basic salary in large firms (those with more than 30 advisers) is £85,065 for first line roles and £150,000 for second line roles.
This compared to £76,600 for first line roles and £133,125 for second line roles for small-medium advice firms (those firms with less than 30 advisers).
Average total earnings were found to be more for larger firms, with £106,071 and £190,000 for first and second line roles respectively compared to £97,869 and £183,125 at smaller firms.
This was in contrast to the pattern among average bonus payments as it was reported that large advice firms paid out bonuses of £17,705 and £30,000 whilst small-medium firms paid out £20,000 and £50,000.
The data also revealed that, for individuals employed as first or second line managers for a private equity-backed advice consolidator, the average basic salaries are £96,250 and £139,833, respectively.
It further detailed that the average total earnings are £120,833 and £213,333, while the average bonus payouts are £22,500 and £73,500.
Commenting on the findings, Paul Harper Search managing director, Paul Harper, said: “We are excited to share these insightful findings, which can be a strategic tool for financial advice businesses in making informed decisions about their compensation packages.
“It’s clear that understanding the dynamics of pay in the industry is crucial for attracting and retaining top talent.”
This data followed similar findings from the recent BWD census which found that the average adviser salary had increased by almost 15 per cent, rising from £83,000 to £96,000.
The census found that over the past year, while salaries for advisers have increased by 12.5 per cent, there was a bigger change in bonuses which have increased by more than 23 per cent, resulting in increased earnings of 14.9 per cent.
There are a number of factors which determine adviser earnings, this includes:
- Qualifications
- Age
- Location
- Gender
- Type of authorisation/ network membership
- Organisation size
- Type of firm: restricted or independent
tom.dunstan@ft.com
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