'Flexible working is at the heart of any good diversity strategy'

The average age of financial planners currently stands at 59, with data from the Financial Conduct Authority indicating that around a third are between the ages of 50 and 59. Only one in six financial advisers are under the age of 30.

This disparity is partly attributed to the fact that most clients in the sector are older and expect their advisers to be seasoned and closer to their age.

To address this issue and promote diversity, equity, and inclusion (DE&I), especially age diversity, financial advice firms can place flexible working at the forefront of their strategies.

By embracing flexible work arrangements firms can achieve the best of both worlds and retain the knowledge and experience of older workers, while making it a more appealing career option for younger professionals.

Flexible working as a solution

Flexible working should be a cornerstone of all DE&I initiatives, with age diversity being no exception.

Implementing flexible work arrangements can be a catalyst for retaining older employees who are nearing retirement.

This retention ensures that valuable knowledge and experience remain within the industry, ultimately making it more attractive to younger workers.

Introducing flexible working arrangements provides numerous advantages. It enables employees at all career stages to balance their work commitments with personal life, including childcare or caring for elderly parents.

Creating a structure that works for all and is embedded in the culture of the firm is vital for success.

By creating a flexible working structure that accommodates everyone, firms can tap into a more extensive talent pool.

From a geographical point of view, flexible working can bring in more diverse talent, expanding the reach of the business.

It also can play a crucial role in retaining women who may leave the workforce when starting a family, as well as retaining older workers who wish to slow down but not retire.

These professionals can still contribute significantly to succession planning and business development and at the same time act as mentors for the younger generation in the firm.

Retaining and transitioning

Flexible working allows firms to transition older workers into different roles that align with the company's evolving needs.

For instance, at Punter Southall we successfully created a business development role for a senior employee, enabling them to work compressed hours. This individual used their expertise to attract new clients and mentor younger team members, ensuring knowledge transfer to the next generation of financial planners.

Flexible working also plays a crucial role in training and development. It benefits not only younger employees working toward their professional qualifications, but also older workers who may want to retrain and acquire new skills.

This continuous learning, growth, and skills development is essential for unlocking the potential of every generation and for retaining dedicated and talented staff.

Variety in flexible working

There are different kinds of flexible working and one of the most successful we have found is offering employees compressed hours. Compressed hours can be an ideal arrangement for employees with young families, enabling them to work longer days and have a day off periodically.

We found that a nine-day fortnight, with employee taking every second Friday off, works well in terms of providing the right balance of flexibility and support for employee mental wellbeing.

It allows both men and women to participate in childcare responsibilities and provides those without families with a better work-life balance.

Another innovative flexible working arrangement is term-time contracts, allowing employees to take extended breaks during the summer holidays.

While it can pose challenges for HR due to potential staffing shortages during peak business periods, it has proved to be a beneficial arrangement in terms of operational efficiency for many firms.

Embracing hybrid working also works well as it encourages employees, both young and old, to spend time in the office a few days a week while working remotely on other days. This flexible arrangement has been well-received by employees.

Sabbaticals for professional growth

Finally, we also offer sabbaticals that older workers can find attractive. After decades of service, it can give them the chance to recharge or have new experiences that enables both personal and professional growth. 

It could prevent older workers heading off into early retirement and allow time to figure out a new way of working once they return.  

We have a senior employee who came back after sabbatical to a reduced hour’s role as mentor and ambassador for the firm, for example. Equally we have had an employee who took six months off to share childcare with his wife after their first baby. 

Flexible working is at the heart of DE&I, and creating a structure that works for all and is embedded in the culture of the firm is vital for success. It keeps talent in the firm, and at the same time attracts younger people who can see a clear career path.

In our experience supporting employees at all stages of their life and career to work how they choose has led to a happier and more productive workforce, and better results for the business. 

Steve Butler is chief executive of Punter Southall