Bluerating | May 2021
Remuneration is crucial for two reasons. The first and most common reason is that money is necessary to live and satisfy needs, which tend to evolve throughout life.
In 1954, the psychologist Abraham Maslow introduced a motivational theory comprising a five-tier model of human needs. Needs lower down in the hierarchy (health, safety, home, family) must be satisfied before progressing on to needs higher up (belonging, esteem and self-actualization).
The second reason is linked to Marlow’s pyramid: once satisfied, fundamental needs tend to disappear; on the other hand, social and relational needs continue to be felt and tend to become stronger and more ambitious.
As a consequence, dissatisfaction at work and with the quality of life, both private a social, is quite common. Failure to live up to one’s potential, which is often represented by salary/revenue, can explain widespread dissatisfaction.
The data collected by FINER every year on a sample of over 7.000 financial professionals (Financial Advisors, Private Bankers and Bank Managers) suggest some interesting points which help framing motivational dynamics.
30% of financial advisors are fully satisfied with their salary – among them, Top FAs, that is professionals whose portfolio is worth over 50 million, reach 45%.
As for employees, figures tend to be significantly lower: only 19% of Private Bankers and 13% of bank employees claim to be fully satisfied with their salary.
The level of satisfaction with variable remuneration is equally low: 15% of private bankers and 8% of bank managers.
Among bank employees, 44% claims to be ready to give up part of their fixed remuneration in view of a proportional increase of the variable part.
This percentage coincides with the number of bankers who would consider the possibility of becoming financial advisor (45%).
In fact, the job of financial advisor – when done well – can guarantee a higher level of economic satisfaction; however, this is connected to a higher business risk which comes with the loss of a fixed salary.
The banking sector and the financial consultancy sector represent two possible options for any financial professional and an opportunity for dissatisfied bankers ready to stop moaning in favour of questioning themselves.