Resources: Occupation Profiles: Brokerage clerks and statement clerks

Nature | Conditions | Employment | Training | Outlook | Earnings | Related | Sources | Significant Points |

Nature

Brokerage clerks perform a number of different jobs with wide ranging responsibilities, but all involve computing and recording data on securities transactions. Brokerage clerks may also contact customers, take orders, and inform clients of changes to their accounts. Some of these jobs are more clerical and require only a high school diploma, while others are considered entry-level positions for which a bachelor’s degree is needed. Brokerage clerks, who work in the operations departments of securities firms, on trading floors, and in branch offices, are also called margin clerks, dividend clerks, transfer clerks, and broker’s assistants.

The broker’s assistant, also called sales assistant, is the most common type of brokerage clerk. These workers typically assist two brokers, for whom they take calls from clients, write up order tickets, process the paperwork for opening and closing accounts, record a client’s purchases and sales, and inform clients of changes in their accounts. All brokers’ assistants must be knowledgeable about investment products so they can clearly communicate with clients. Those with a "Series 7" license can make recommendations to clients at the instruction of the broker. The Series 7 license is issued to securities and commodities sales representatives by the National Association of Securities Dealers and allows them to provide advice on securities to the public.

Brokerage clerks in the operations areas of securities firms perform many duties to facilitate the sale and purchase of stocks, bonds, commodities, and other kinds of investments. These clerks produce the necessary records of all transactions that occur in their area of the business. Job titles for many of these clerks depend upon the type of work they perform. Purchase-and-sale clerks, for example, match orders to buy with orders to sell. They balance and verify stock trades by comparing the records of the selling firm to those of the buying firm. Dividend clerks ensure timely payments of stock or cash dividends to clients of a particular brokerage firm. Transfer clerks execute customer requests for changes to security registration and examine stock certificates for adherence to banking regulations. Receive-and-deliver clerks facilitate the receipt and delivery of securities among firms and institutions. Margin clerks post accounts and monitor activity in customers’ accounts to ensure that clients make payments and stay within legal boundaries concerning stock purchases.

Technology is changing the nature of many of these workers’ jobs. A significant and growing number of brokerage clerks use custom-designed software programs to process transactions more quickly. Only a few customized accounts are still handled manually.

Statement clerks assemble, verify, and send bank statements every month. In many banks, statement clerks are called statement operators because they spend much of their workday running sophisticated, high-speed machines. These machines fold computer-printed statements, collate those longer than one page, insert statements and canceled checks into envelopes, and seal and weigh them for postage. Statement clerks load the machine with statements, canceled checks, and envelopes. They then monitor the equipment and correct minor problems. For more serious problems, they call repair personnel.

In banks that do not have such machines, statement clerks perform all operations manually. They may also be responsible for verifying signatures and checking for missing information on checks, placing canceled checks into trays, and retrieving them to send with the statements. In a growing number of banks, only the statement is printed and sent to the account holder. The canceled checks are not returned; this is known as check truncation.

Statement clerks are employed primarily by large banks. In smaller banks, a teller or bookkeeping clerk, who performs other duties during the rest of the month, usually handles the statement clerks’ function. Some small banks send their statement information to larger banks for processing, printing, and mailing.

Conditions

With the exception of library assistants and bookmobile drivers, records processing clerks typically are employed in an office environment. Most work alongside other clerical workers, but some records processing clerks work in centralized units away from the front office.

Because the majority of records processing clerks use computers on a daily basis, these workers may experience eye and muscle strain, backaches, headaches, and repetitive motion injuries. Also, clerks who review detailed data may have to sit for extended periods of time. Although the work does not require heavy lifting, file clerks and library assistants spend a lot of time on their feet and frequently stoop, bend, and reach. Finally, bookmobile drivers must maneuver large vehicles in all kinds of traffic and weather conditions, and may also be responsible for the maintenance of the bookmobile.

Most records processing clerks work regular business hours. Library assistants may work evenings and weekends, but those employed in school libraries usually work only during the school year. Accounting clerks may work longer hours to meet deadlines at the end of the fiscal year, during tax time, or when monthly and yearly accounting audits are performed. Billing, bookkeeping, and accounting clerks in hotels, restaurants, and stores may work overtime during peak holiday and vacation seasons. Similarly, order clerks in retail establishments typically work overtime during these seasons. Brokerage clerks may also have to work overtime if there is a high volume of activity in the stock or bond markets.

Employment

Brokerage clerks held about 77,000 jobs in 1998, and statement clerks held about 16,000 jobs. Brokerage clerks work in firms that sell securities and commodities. Banking institutions employed almost all statement clerks.

Training

Employers typically require applicants to have at least a high school diploma or its equivalent. Although many employers prefer to hire record clerks with a higher level of education, it is only required in a few records processing occupations. For example, brokerage firms usually seek college graduates for brokerage clerk jobs, and order clerks in high-technology firms often need to understand scientific and mechanical processes, which may require some college education. Regardless of the type of work, most employers prefer workers who are computer-literate. Knowledge of word processing and spreadsheet software is especially valuable, as are experience working in an office and good interpersonal skills.

Records processing clerks often learn the skills they need in high schools, business schools, and community colleges. Business education programs offered by these institutions typically include courses in typing, word processing, shorthand, business communications, records management, and office systems and procedures. Specialized order clerks in technical positions obtain their training from technical institutes and 2- and 4-year colleges.

Some entrants into records processing occupations are college graduates with degrees in business, finance, or liberal arts. Although a degree is rarely required, many graduates accept entry-level clerical positions to get into a particular company or to enter the finance or accounting field with the hope of being promoted to professional or managerial positions. Some companies, such as brokerage and accounting firms, have a set plan of advancement that tracks college graduates from entry-level clerical jobs into managerial positions. Workers with college degrees are likely to start at higher salaries and advance more easily than those without degrees.

Once hired, records processing clerks usually receive on-the-job training. Under the guidance of a supervisor or other senior worker, new employees learn company procedures. Some formal classroom training may also be necessary, such as training in specific computer software.

Records processing clerks must be careful, orderly, and detail-oriented in order to avoid making errors and recognize errors made by others. These workers should also be discreet and trustworthy, because they frequently come in contact with confidential material. Additionally, payroll clerks, billing clerks, and bookkeeping, accounting, and auditing clerks should have a strong aptitude for numbers. Because statement clerks have access to confidential financial information, these workers must be bonded. Many bookmobile drivers are now required to have a commercial driver’s license.

Records processing clerks usually advance by taking on more duties in the same occupation for higher pay or transferring to a closely related occupation. For example, some order clerks use their experience to move into sales positions. Most companies fill office and administrative support supervisory and managerial positions by promoting individuals from within their organization, so information clerks who acquire additional skills, experience, and training improve their advancement opportunities. With appropriate experience and education, some clerks may become accountants; personnel specialists; securities, commodities, and financial services sales representatives; or librarians.

Outlook

Employment of brokerage clerks is expected to increase faster than the average for all occupations, while employment of statement clerks should decline. With people increasingly investing in securities, demand for brokerage clerks will climb to meet the needs of processing larger volumes of transactions. Because most back office operations are now computerized, employment growth among brokerage clerks is not expected to keep pace with overall employment growth in the securities and commodities industry; however, brokerage clerks will still be needed to update records, enter changes to customer’s accounts, and verify securities transfers.

Broker’s assistants will also increase in number along with the number of full-service brokers. Because these clerks spend much of their day answering telephone calls, placing orders, and often running the office, their jobs are not readily subject to automation.

The number of statement clerks is declining rapidly due to increasing technology in the Nation’s banks. With the job of producing statements almost completely automated, the mailing of checks and statements is now done mostly by machine. In addition, the further spread of check truncation and the increased use of automated teller machines and other electronic money transfers should result in significantly fewer checks being written and processed.

(See the introductory statement on records processing occupations for information on working conditions, training requirements, and earnings.)

Earnings

Salaries of records processing clerks vary considerably. The region of the country, size of city, and type and size of establishment all influence salary levels. The level of industry or technical expertise required and the complexity and uniqueness of a clerk’s responsibilities may also affect earnings. Median annual earnings of full-time records processing clerks in 1998 are shown in the following tabulation:

In the Federal Government, records processing clerks with a high school diploma or clerical experience typically started at $18,400 a year in 1999. Beginning salaries were slightly higher in areas where the prevailing local pay level was higher. The average salary for all human resources clerks employed by the Federal Government was $29,500 in 1999.

Related

Today, most records processing clerks enter data into a computer system and perform basic analysis of the data. Other clerical workers who enter and manipulate data include bank tellers, statistical clerks, receiving clerks, medical record clerks, hotel and motel clerks, credit clerks, and reservation and transportation ticket agents.

Sources

State employment service offices can provide information about job openings for records processing occupations.

Selected industries employing brokerage clerks and statement clerks that appear in the 2000-01 Career Guide to Industries:

• Securities and commodities
• Banking

An industry employing order clerks that appears in the 2000-01 Career Guide to Industries: Wholesale trade