The recruitment and retention of staff is one of the biggest challenges faced by expanding firms, according to Financial Planners.

Lumin Wealth told Financial Planning Today that one of its biggest challenges has been the recruitment of advisers and Paraplanners.

Progeny UK managing director Caroline Hawkesley said that recruitment remains a key focus for the firm due to a competitive market.

She added that “companies looking to grow need to be willing to be clear about what they stand for” if they are to recruit the best advisers and support staff.

Concerns around staffing have also put some Financial Planners off from expanding beyond a one-man band.

Ian Else, founder of 4 Financial Planning, said recruitment challenges is one of the reasons he has chosen not to expand his firm.

He said: “My biggest concern on expansion is staff retention, especially RIs (registered individuals). If you employ someone and they don’t have equity you are exposed to the risk they leave and take their clients with them, regardless of what their restrictive covenant says.

“The option is to give some equity, but it feels like the wrong direction. Personally I’d rather employ a really strong Paraplanner who can take on the role of operations director and give them a piece of the cake.”

• This article is a sample from a wider feature on business growth for Financial Planners which appeared in Financial Planning Today magazine. You can subscribe to the magazine to read the full article by registering for this website and then checking subscription options in 'My Account.'

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