The Personal Finance Society’s (PFS) seventh annual survey, conducted among 1,498 members, found that 63% of respondents believe the UK education system does not adequately serve the needs of the advice profession.
Participants said they want recruits with better literacy and numeracy skills, and not to have to ‘top-up’ these basics.
The survey offers up an ‘amber warning’ on the future of the advisory profession, the PFS said.
Going forwards, advisory firms will increasingly find themselves competing to secure new hires from a diminishing talent pool, according to the results.
Advisers are more confident on current hires than at any other time since the survey began, however. When asked if they were experiencing a shortage of technical skills in key areas, 37% said yes – the lowest proportion since the survey was launched in 2007.
PFS public affairs manager Daniel Pedley said: “As a profession, we need to work to develop new and varied talent pipelines. Future advisers might be waiting for us in schools, colleges, universities or elsewhere in the labour market.
“Collective action can help advises access talent pools that have been relatively untouched in the past. If we can show what an attractive prospect financial planning can be then more and more of the top talent from education and high quality career changers will consider a career in advice.”
PFS president David Ingram said: “The results of this year’s Skills Survey are very positive but there is also a timely reminder that the financial advice profession needs to work to ensure its future strength.
“Clearly it is harder for smaller businesses, which most advisory firms are, to be proactive in the race for attracting talent. That is why it is crucial that our profession works collaboratively to help create future talent pipelines.”
Almost half, 46%, of respondents still expect to increase headcount in their organisation over the next 12 months, perhaps in response to signs of a UK economy recovery, said the PFS.
