The effects of Covid-19 on BDM operations
During pre Covid-19 times, most retail Business Development Managers (BDMs) were expected to undertake 10 to 12 face-to-face client meetings per week. Since Covid-19 restrictions were introduced in March 2020, most financial services professionals started working from home, therefore, BDMs have had to change their way of engagement to digital correspondence and virtual events. 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.
The effects of Covid-19 on BDM employment opportunities
Most fund managers and investment platforms have placed a hiring freeze on all distribution roles with a select number of distribution roles being made redundant. Some of the reasons cited for the redundancies include future market uncertainty, reduction of revenue resulting from lower assets under management and no in-person industry events to organise.
BDM Salary Guide
We are yet to see funds management and platform distribution salaries materially change in the last 6 months, although, given there is now an increased number of skilled people looking for new opportunities, we expect salaries to decrease slightly over the next 6 – 12 months. On the contrary, BDMs with strong client relationships and strong investment knowledge, will continue to demand and receive a premium to the industry’s average salary.
*Regional Sales Manager and Senior BDM titles may be used interchangeably depending on the size of the organisation and distribution team.
BDM bonuses have remained steady to date, although, we expect bonuses to reduce by ~10% – 15% over the next 12 months because of Covid-19. Current bonuses can range substantially across different organisations. Majority of funds management BDM bonuses range between 30% – 50% of base salary with a few exceptional BDMs receiving more than 75% of their base salary as a bonus. Business Development Associate’s (BDAs) bonuses normally range between 10% – 20% of their base salary.
RIVA Recruitment specialises in financial services recruitment across financial planning, funds management and superannuation. We are based in Melbourne at 3/162 Collins Street