2020 was about survival, 2021 was about revival and now, 2022 will be all about growth. Stealth mode if you like.
The new normal has been in town for quite some time, so when we focus less on economic, political or social reform, we can start planning for real success and with people being the key to that success, I thought. That I’ll share the top hiring trends I expect to see in the family office world this year.
Here’s a hint: This does not include furlough.
We founded Agreus after the 2008 economic crash. When the world was in turmoil, affluent families began to take control of their destinies, became disillusioned with banks and suspicious of service providers, and this led to the birth of family offices as we know them today. , We saw an opportunity in the fall and saw big growth together with Family Office.
We are seeing tremendous growth post-pandemic in some of the world’s major financial centers today and once again, family offices are at the heart of that growth.
In 2021, the Family Office community experienced considerable change. We saw an increase in private equity allocation, an increase in private investment in new and good asset classes, a push for IPOs and a record number of inter-generational wealth transfers.
All of these factors, along with economic growth after the pandemic, led to the creation of more wealth and, as a result, more family offices. It also means that as a community, we need more talented family office professionals than ever before. We needed more investment analysts to oversee new asset classes, accounting professionals to manage these transactions, trust professionals to navigate talk of increased regulation, and leaders to lead the way. .
What was becoming an increasingly candidate-small market coupled with increased demand for talented family office professionals and as the shortage of skilled professionals continues into 2022, I anticipate this will be a year of attraction.
Leaders will do everything possible to attract the right talent to their family offices.
This would mean:
– Attractive starting salary as per market standards
– Offering long-term incentives such as co-investment opportunities
– Commitment of resources to achieve social impact.
As Family Office ramps up its hiring efforts to attract the best employees, they will also focus heavily on retention. Retaining the exceptional staff they already have.
The pandemic serves as a wake-up call for professionals, offering a platform for greater family office development. Work-life balance has always become more important and so timing, flexibility and workplace culture all become important elements of any potential role. Working remotely as well as traditional work, professionals thought deeply about where they worked with state taxes, accommodations and work environments pushing many professionals away from those financial centers. of all factors in which they once thrived.
This led to what many called the Great Resignation. In November 2021 alone, 4.5M professionals resigned in the US according to the US government. Highest monthly records in more than 20 years and a similar pattern has been followed in the family office world, with wrongdoing not returning to the office after the pandemic.
With more opportunities than candidates and professionals looking to advance to improve their work-life balance, family office leaders will do everything they can to retain top talent.
This would mean:
– Upskilling through regular training
– rewarding long term incentive plans
– Offering balance – both in terms of where you work and how you work
– Development. Mapping not only earning potential but also potential growth within the organization.
3) Discretionary bonus with strings attached.
Discretionary bonuses have always been the most popular performance bonus in family offices. In fact, according to a survey we conducted in 2020, 78% of family offices in the UK and 74% of family offices in the US choose them as a way to reward their employees, but until recently, they didn’t work alone Is. 17% of UK-based and 20% of US-based family offices also offered formulaic bonuses which are more structured, data-driven bonuses awarded for performance over a certain threshold and are typically given to investment professionals. Huh.
However in 2021, due to the rise in private equity investments and the popularity of niche asset classes such as crypto, Family Office leaders opted to use discretionary bonuses for the first time. Even for their investment professionals. Ultimately, these individuals are responsible for a wide range of assets, each of which requires a unique set of requirements by length of time, commitment and contribution, skill-set and expertise required, and level of risk. All of these features make managing valuable assets a personal and painstaking task, but it’s nearly impossible to award bonuses based on those appraisals.
Discretionary bonuses allow family office leaders to encourage their employees to further improve the process without navigating a complicated bonus structure, I believe in 2022, we will move from financial targets to deliverables. Will see a move to incorporate all-in-one metrics into discretionary bonuses.
This would mean:
Instead of investment professionals with non-objective appreciation formulas and operational staff, all professionals within the family office environment will have an exhaustive list of deliverables, goals and objectives and will be rewarded accordingly. It will also help in aligning talent over the long term, consolidating the Family Office Retention initiative this year.
4) doing things right.
2021, in the Family Office community, was a year riddled with its own ethics, regulation and risk-taking and so I believe 2022 will be about doing things right.
From tightening up online security to improving their reputation and hiring the right people the first time around, FamilyOffice is bringing this mission to life right in the hiring process. The leaders will focus on hiring credible, loyal and admirable professionals who are deeply aligned with the family office vision for a long time.
This would mean:
– In-depth screening of potential candidates
– Attention to properly structuring resources to allow greater scrutiny of resources
– Recruiting for cultural fit, for the first time and
Don’t be afraid to take the time to make the right decisions.
These are my top predictions for the family office world of recruiting in 2022. what is yours