Bonus Benchmarking For Financial Advisers 

Our recent survey asked, "What validation multiples are you encountering for your bonus?" and the results are in! Here’s how financial advisers are currently navigating validation multiples:

• 2x: 17%
• 3x: 43%
• 4x: 29%
• 5x and above: 11%

Thank you to everyone who participated in the poll. Your insights are invaluable for our market research and help us understand current trends in the financial services industry.

Key Takeaways 

• 83% of advisory firms have set their validation target at 3 times salary and above before their financial advisers start to earn bonuses.
• The majority of financial advice firms have a validation target of 3 times salary, accounting for 43% of the vote.

Considerations for Setting Validation Targets: 

• Cost Factors: Consider the cost of servicing the client portfolio, including back office and technical support, as well as marketing and lead generation.
• Business Mix: Firms are setting different percentage takings from existing business and new business written, as bonus percentages can affect the validation targets.

Strategic Insight:

If you are looking to create a market-leading bonus structure that is appealing from day one, the data shows that adopting a 2 times model would place you above the average market rate. This strategy could attract more financial advisers to your proposition.

To discuss your talent attraction strategy contact james@ortuspsr.co.uk