One of the major challenges facing the financial planning industry is a talent shortage and this is primarily due to its ageing workforce approaching retirement.
The average age of financial planners currently stands at 59, with data from the Financial Conduct Authority indicating that around a third are between the ages of 50 and 59. Only one in six financial advisers are under the age of 30.
This disparity is partly attributed to the fact that most clients in the sector are older and expect their advisers to be seasoned and closer to their age.
To address this issue and promote diversity, equity, and inclusion (DE&I), especially age diversity, financial advice firms can place flexible working at the forefront of their strategies.
By embracing flexible work arrangements firms can achieve the best of both worlds and retain the knowledge and experience of older workers, while making it a more appealing career option for younger professionals.
Flexible working as a solution
Flexible working should be a cornerstone of all DE&I initiatives, with age diversity being no exception.
Implementing flexible work arrangements can be a catalyst for retaining older employees who are nearing retirement.
This retention ensures that valuable knowledge and experience remain within the industry, ultimately making it more attractive to younger workers.
Introducing flexible working arrangements provides numerous advantages. It enables employees at all career stages to balance their work commitments with personal life, including childcare or caring for elderly parents.
By creating a flexible working structure that accommodates everyone, firms can tap into a more extensive talent pool.
From a geographical point of view, flexible working can bring in more diverse talent, expanding the reach of the business.
It also can play a crucial role in retaining women who may leave the workforce when starting a family, as well as retaining older workers who wish to slow down but not retire.
These professionals can still contribute significantly to succession planning and business development and at the same time act as mentors for the younger generation in the firm.
Retaining and transitioning
Flexible working allows firms to transition older workers into different roles that align with the company's evolving needs.
For instance, at Punter Southall we successfully created a business development role for a senior employee, enabling them to work compressed hours. This individual used their expertise to attract new clients and mentor younger team members, ensuring knowledge transfer to the next generation of financial planners.
Flexible working also plays a crucial role in training and development. It benefits not only younger employees working toward their professional qualifications, but also older workers who may want to retrain and acquire new skills.
This continuous learning, growth, and skills development is essential for unlocking the potential of every generation and for retaining dedicated and talented staff.
Variety in flexible working
There are different kinds of flexible working and one of the most successful we have found is offering employees compressed hours. Compressed hours can be an ideal arrangement for employees with young families, enabling them to work longer days and have a day off periodically.
