Australian financial planning practice principals have outperformed most of their global counterparts in profits gained from employee performance, new data has shown.
Profits of Australian principals have risen up to 125 per cent by providing staff with accurate job descriptions and objectives, and valid performance reviews.
Research firm Business Health, which has offices in Sydney and Boston, complied the data from information collected from over 5000 practices.
South Africa demonstrated the greatest profit gain, 567 per cent, by investing well in their employees, and United States boutiques gained 28 per cent.
The data also showed a global comparison of the health of boutiques in terms of ability to invest in staff to boost profits.
Around 63 per cent of Australian practices are considered “healthy” while 23 per cent are in the “fit” category, and 14 per cent of Australian practices had “poor health”.
The United States had 22 per cent fit practices and 59 per cent of boutiques in poor health.
South Africa and New Zealand had 37 per cent and 44 per cent of fit practices, respectively.
The firm said to retain the best talent, financial planning principals need to offer more than just competitive remuneration packages.
Principals need to have more “flexible packages” as these attract younger people and can include plans where employees acquire a stake in the practice.
