What are the benefits of using a contract paraplanner?
With the dramatic rise in acceptance of outsourcing as a viable alternative to hiring on-site employee, we'll take at look at the benefits that outsourcing provides your business.
Cost Savings - An Example
In order to consider the cost savings for your business, we will have a look at a typical scenario that we encounter.
Tom is an adviser in Sydney who works in partnership with one other adviser. They have hired one full-time administration staff member and are deciding whether to hire a paraplanner or consider an outsourced paraplanner for the role. Their only other point of reference when considering freelance paraplanning is a colleague who had tried hiring a local trainee paraplanner to "work part-time, after hours on his plans". The experience was terrible as the trainee, although charging a low hourly rate, would often send Statement of Advice documents back half-completed & several days late.
When looking at the typical paraplanner salary, they saw that they would need to offer a salary of $70,000 per annum in order to ensure they hired a paraplanner with relevant experience. When factoring in superannuation, sick leave & holiday entitlements, ongoing paraplanner training costs, software license costs, office furniture etc, they were looking at an additional 25% cost, bringing the total cost for an in-house paraplanner to $87,500 per annum (or $7,290 per month).
Let's now compare this cost to that of a contract paraplanner for this Sydney adviser. You will need to keep in mind the following tasks that an outsourced paraplanner cannot perform:
For the cost of paraplanning using a contract paraplanner, we will assume the following about Tom and his partner:
Flexibility & Scalability
The biggest problem that we hear from advisers is what to do when they need 1.5 paraplanners or 0.5 paraplanners. You may not need to take on another full-time employee but your choices would be:
Contract paraplanning provides the following advantages in terms of flexibility and scalability: