Many small practices simply cannot afford the fixed costs of having even one fulltime paraplanner employed within their business. It is not merely a matter of funding a paraplanner's direct wages - other costs can include:
- Direct salary/wages
- Payroll tax
- Management costs
- Rent and utilities on additional office space
- Training costs
- Equipment purchase / lease costs
- Software costs
- Telephone costs, etc
Most practices employ paraplanners to generate Statement of Advice and other documents to present to clients. Typically, "in-house" paraplanners are not fully productive in that area and spend only a portion of their time exclusively on SOA preparation.
Their unproductive time is spent in:
- Answering client phone calls
- Obtaining product research
- Completing training to maintain their skill levels
Additional time is lost (and therefore cost incurred) in:
- Annual Leave
- Public Holidays
- Sick/Personal/Parental Leave, etc
Our experience indicates that a paraplanner within a financial planning practice can spend a little as only 60% of their time on their primary duty - preparation of Statements of Advice.
Utilising a paraplanning and back-office administration support partner such as Plans Plus can significantly reduce or completely eliminate many of these productivity losses for your business.
Additionally, many paraplanners enter their role with their future in mind - which is to transition to a financial planner role once they have gained more experience. This can place a significant burden on a planning practice, as replacing a competent paraplanner can be an extremely difficult, if not impossible task, particularly in the short term.
Plans Plus can assist your business through the completion of both administration and paraplanning functions. Alternative, we can assist with overflow during busy periods, when your existing staff are on leave, or otherwise unable to cope with your workload. By using our services you can not only focus on getting more clients and growing your business without additional capital investment - you also don't need to worry about managing additional staff.
Why Choose Plans Plus as your Paraplanning & Administration Partner?
- Significant cost savings in areas such as:
- Annual leave,
- Sick leave,
- Public holidays,
- Payroll tax,
- Office space, etc.
- Reduced effort/costs in managing in-house staff
- Exceptional quality work
- Fast turnaround
- More effective workflow management
- The ability for you to service a larger client base without the need for further capital investment
- Personally-assigned Paraplanners/SoAs Writers that work as part of your team.
Comparative Cost Calculator
Employing a fulltime staff member (either paraplanner or administration worker) can be deceptively expensive when you examine the cost closely from an “effective hourly rate” perspective.
When you factor in the above costs (eg: super, payroll tax, etc), the effective hourly rate that you pay your employees can be surprisingly high.
The below tool will provide a comparison between the estimated effective hourly cost of employing a fulltime/part-time worker in your business compared to using Plans Plus Back-Office or Plans Plus Lite services:
|Staff Salary (pa)|
|Direct Employee Costs|
|Management Costs (apportioned)|
|Total Employee Cost (FTE)|
|Effective Hourly Rate|
|Potential Annual Saving Per Employee|
|Payroll Tax||5.0% salary|
|Office Space||6.0 sqm used per employee|
|Manager Assumptions||SGC/Payroll Tax/Office space same assumptions as staff member. Manager supervises XX employees in total|