A Business Health survey of 115 BDMs and practice development managers (PDMs) found almost one third of respondents believed their team culture had deteriorated in the past 12 months, 81 per cent reported an increased workload over that period and just five per cent noticed a significant increase in pay or bonuses in that time. On average, respondents worked 52.5 hours per week including travel, often interstate.
Business Health partner Rod Bertino said of particular concern was that 78 per cent of respondents said they would not be in the same role in three years, with most of those tipping a move away from the BDM role and the remainder planning a move to a similar role in a different organisation. Almost half of those looking to move were eyeing more senior management roles.
“If more than three quarters of BDMs won’t be there in three years, are adviser relationships under threat?” Mr Bertino asked.
He said he was also surprised by how many different tasks BDMs are expected to perform. More than 9 in 10 said they are expected to provide sales and marketing assistance to advisers, 85 per cent provide strategic business planning help and three quarters help with product training and professional development.
Many were also expected to provide assistance with referral partners, client presentations, lead generation and succession planning.
But more surprisingly, more than one third said they provided help reviewing statements of advice (SOAs) and more than one fifth provided direct compliance assistance. Mr Bertino questioned whether having a person representing a product manufacturer reviewing SOAs amounted to a conflict of interest.
“BDMs are very much the front line,” Mr Bertino said.
“It is a leadership role,” added Business Health partner Terry Bell.
“It’s a very hard role and there’s not a lot of support out there.”
He also said the survey didn’t find any evidence of the huge salaries BDMs supposedly earn.
Almost two thirds earned between $100,000 and $150,000, with around one quarter between $150,000 and $200,000. Less than 10 per cent earned less than $100,000 and just four per cent earned over $200,000 in base salary.
BDMs from non-aligned groups tended to earn higher base salaries with smaller bonuses. Around one sixth of respondents received a bonus between $50,000 and $100,000, while almost half received a bonus between $10,000 and $50,000.
Half of the BDMs also outlined regulatory change as the top concern facing advisers, with client acquisition coming in second at 15 per cent, and 13 per cent tipping the articulation of value as the primary concern.
According to Business Health, BDMs are facing many of the issues advisers are facing. Mr Bell queried whether there is a disconnect in the industry between the services offered and what advisers really need. There are also doubts over whether the independent space will be able to compete for the best talent going forward, he said.
Mr Bertino said one of the major concerns was how much BDMs are expected to do. “We’re just asking so much of them,” he said. “This role has to change.”
