Financial advice practices in Australia are facing the most competitive talent market in a decade, with new research revealing sharp increases in remuneration, surging bonus payments, and a structural shift in how firms attract and retain staff.
The Business Health and Advisely For What It’s Worth report shows an industry under pressure from adviser shortages, rising client demand, and changing workplace expectations. With 68% of firms planning to hire in the next 12 months, staffing has emerged as the advice profession’s new strategic battleground.
The Australian report also states that salaries for almost every key role have jumped sharply since 2023.
- Experienced advisers now command an average package of A$198,157 (up 23%)
- Client service managers are up 20% to A$91,878
- Admin/support staff have climbed 17% to A$69,604
- Only senior paraplanner pay has softened, falling 2% as firms reassess paraplanning models amid advancing AI tools
The report’s authors also conclude that bonus payments have risen by up to 98% on average across all roles, yet nearly one-third of firms admit their incentive plans are ineffective or poorly structured.
Outsourcing pressures
The report also states that contrary to industry predictions, outsourcing is not absorbing capacity gaps, and that just:
- 13% of firms use offshore paraplanning
- 12% outsource paraplanning onshore
- Almost none outsource advisers, GMs, or professional support roles
However, administration outsourcing is widespread (40%), but firms overwhelmingly prefer to keep higher-value roles in-house.
Hybrid work
Despite earlier enthusiasm for remote work, the share of firms offering work-from-home options has slipped from 92% to 88%, with the steepest decline in regional practices.
Many firms still lack basic remote-work infrastructure:
- 32% do not provide dedicated IT hardware
- Only 13% offer ergonomic equipment
- Just 4% pay for home internet
The report states that with Australian adviser numbers still historically low (15,458 at the last count) and demand for retirement advice rising, the competition for quality staff is intensifying, noting:
- Rising labour costs
- Ineffective bonus frameworks, and
- Stagnating outsourcing mean practice profitability will come under further pressure
For firms seeking growth, the report’s key message is that people strategy is now core business strategy.
