Salary Survey - Basic Salaries Rise as Bonuses Continue to Fall

The 2012 Salary Survey from Paul Harper Search & Selection indicates that Broker Consultant basic salaries have risen by 5% in the last two years despite that fact that overall earnings have continued to fall.

The 2012 Salary Survey which reflects 2011 salaries shows that mean total earnings for life office broker consultants now stand at £68,521, 17% below their peak in 2007. Commenting on this, Paul Harper said “the demand for good intermediary sales professionals remains strong and the rise in basic salary reflects the need for continually improving professionalism and a higher standard of qualification”.

As the distributor market is moved away from pure sales to a more advice led model, life offices have reflected this in their remuneration packages, recognising those that have good technical skills and strong relationship management skills are more greatly appreciated by the community they serve. Total earnings have also reflected the economy. We can track our Salary Surveys back to 2000 and there was a steady increase in total earnings until the recession took hold in 2008, and our bi-annual studies of the market since has indicated a continual decline in total earnings.

We also look at regional variations to salaries and this year the highest earners are quite interestingly, in Scotland and the North, West Midlands and London while the lowest earners are on the South Coast. This may reflect the lifestyle choice. It is also interesting to note that London salaries have remained steady over the past ten years with total incomes only increasing by £2k in the last eleven years (a 2% increase) whereas, even after a reduction last year, there has been a 52% increase in West Midlands salaries in the last eleven years and now West Midlands salaries are within 2% of London total earnings.

Finally, we have seen a coming together of salaries as the spread between 1st and 4th quartile has reduced again. Over the past two years, despite a continual reduction in overall earnings and upper quartile and medium earnings, we have actually seen an increase in total earnings for lower quartile earners.  This may reflect natural selection whereby most of the lower quartile earners will have left the company either through their own or someone else’s choice.

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