5 Reasons outsourcing paraplanning can be better than bringing it in-house

You may be surprised to hear that only 8% of paraplanning is outsourced. This is mostly because smaller financial practices use outsourced services to save time, allowing them to concentrate on developing and writing business. Larger multi-adviser practices, on the other hand, tend to have in-house paraplanning.

Tony, our founder and director, believes multi-adviser firms who do not outsource may be missing an opportunity to reduce costs and increase admin efficiency. In addition, if you run a multi-adviser practice, outsourcing could free up your time to concentrate on business generation instead of managing a larger team of people.

Here, Tony shares his thoughts on why outsourcing to a professional paraplanning company might provide a better solution than having an in-house paraplanning team.

5 Reasons outsourcing paraplanning can be better than bringing it in-house

Not all multi-adviser companies opt for in-house paraplanning

I was recently talking to a client who I’ve worked with for several years. In that time, I have seen him grow from a single-adviser practice to a multi-adviser practice.

We were discussing our service levels, which he’s extremely happy with, and I asked him whether he intended to continue outsourcing. Without skipping a heartbeat, the client said he did, which led to a conversation about in-house paraplanning.

While I know first-hand what benefits outsourcing can provide, many larger companies bring paraplanning in-house for quality control. Yet, as my client said to me, if you have the right outsourced paraplanner this shouldn’t be an issue.

Here are the other reasons he gave for outsourcing, so read on to see if they might benefit your business too.


1. Recruiting and keeping paraplanners is not an issue

In our recent blog we looked at issues around recruitment. One problem discussed in the blog was how advice companies use paraplanning as an entry point into financial advice, which by default can mean there is a high turnover of staff.

I have heard several directors say how fed up they are of spending money and time recruiting, managing, and training paraplanners, only to see them leave to become an adviser – potentially with another firm.

This was something my client discussed with me at length, explaining he did not want this to happen to him.

In addition, not having to manage another team within his business frees him up to concentrate on business generation, which means money is coming into the company, not leaving it.


2. Outsourcing provides levels of experience that can demand a high salary

Another factor for my client is the level of expertise he gets by outsourcing. The Paraplanning Hub team has an enviable level of experience and knowledge that many advice companies may struggle to find within their own practice.

This is thanks to us having two Chartered-level managers and other highly experienced staff members. Whatever experience each member of the team has, we all take our chosen profession extremely seriously and take every opportunity to develop and enhance our skillset.

We handle many different cases every week, so have a wide knowledge base ranging from straightforward ISA top-ups to complex pension transfers. While this is a positive for our clients, if a company were to offer some members of my team an in-house role, they could find themselves paying a significant salary that could weigh heavily on a company’s bottom line.

Outsourcing means you have access to extensive experience and knowledge without the expense of a sizable wage. It also means that if business takes a downturn for whatever reason – such as an unexpected global pandemic! – you’re not left with the ongoing expense of a paraplanning team.


3. As a minimum, quality will be as high as an in-house team

While I can only vouch for my team, I can tell you we’re a company of paraplanners that are proud of our profession and the work we do.

Because we like what we do and the people we work with, our staff turnover remains low, which ensures you’ll receive constantly high levels of service now and in the future. As such you’ll enjoy peace of mind that the work we produce is, and will continue to be, of the highest quality, standing up to scrutiny by business assurance teams and the FCA.


4. It’s not just about paraplanning – we can offer other services too

If you read our recent case study, you’ll know that part of our role can be to help streamline systems.

This not only helps reduce costs and improve efficiency, but it also means the advice provided and administration around it is likely to be more robust against complaints and FCA investigations.

In addition, we provide feedback to our clients, whether that’s the firm’s directors, compliance officer, administrator, or adviser. This has proven to be extremely helpful as it’s highlighted areas that need to be strengthened, helping streamline the client’s systems.


5. Holiday and illness cover is never an issue

With an outsourced paraplanner, you will never need to worry about members of the in-house team taking holidays during a busy period, covering illness, or replacing team members who leave.

With 12 members of staff, we can deal with high volumes of work. There is never a situation where an influx of complex cases slows the production of other casework and delays all-important presentation meetings.

No matter how busy you are, the work that needs to be done will be carried out in a timely fashion.

Get in Touch

Working with us can provide many benefits for your business. If you’d like to discuss this further, please contact us online or call on 01472 728 030.