Research conducted by RIVA Recruitment has found that increased restrictions and decreased opportunities are going to hit sales and business development specialists in the pocketbook.
Worse, there may be fewer sales opportunities in the near future.
BDM Salary Guide
The good news is there doesn’t appear to be a material change, at least in the last few months, according to Fabian Ruggieri, director at RIVA Recruitment. And, as the majority of bonuses are discretionary, he doesn't believe there will be a structural change to remuneration - unless markets happen to fall again.
That said, due to the increased number of skilled people looking for new opportunities, salaries may decrease slightly over the next year. "Hiring freeze means there will be limited new opportunities, therefore, most BDMs will remain in their current role until more opportunities become available," says Ruggieri. "In summary, refer to the demand/ supply equation - increased demand for new BDMs, means an increase in salaries."
Those with strong investment knowledge and client relationships, however, will continue to be in demand and receive a premium to the industry’s average salary.
So, how much should sales managers and BDMs expect to make? This is what RIVA found (before bonuses):
SOURCE: RIVA Recruitment
The COVID effect
Many employers, including fund managers and investment platforms, are on a hiring freeze including distribution roles.
Several organisations surveyed by RIVA were forced to make redundancies in distribution roles, citing future market uncertainty and revenue reductions due to lower assets under management. The lack of in-person industry events has also weighed on the industry.
Before the pandemic, retail BDMs were expected to make 10-12 face-to-face client meetings per week. Remote working and restrictions mean that the way sales professionals operate has necessarily had to change. Now, engagement is via digital correspondence and virtual events like Skype and Zoom.
"Speaking to BDMs on a daily basis, they are eager for business to return to the pre-Covid so they can see clients face-to-face and build a strong personal relationship", RIVA reported.