A lack of qualified junior staff threatens the growth of many independent asset managers. Most firms are often far from adopting modern recruiting methods, observes Constanze Thomas of Cinerius Financial Partners.
Over the next 30 years, the baby boomer generation will bequeath up to 68 trillion Swiss francs ($71.2 trillion) worldwide, «Private Banking Magazin» (in German) recently reported. «The Great Wealth Transfer,» is creating a new generation of young wealthy clients for asset managers.
Some 80 percent of millennials plan to seek a new bank or wealth manager upon receiving their inheritance. Their dissatisfaction with digital services in particular should give pause for thought.
Employer Expectations on the Rise
To remain competitive in the face of the impending generational shift of clients and keep pace with the growth of the market, recruiters need to prepare for a new way of doing things.
Independent asset managers in particular are still a long way from modern recruiting methods, while expectations of them as employers are inexorably rising. For some time already, it has not been enough just to offer the standard industry salary, says Constanze Thomas.
Urgent Considerations
Thomas joined Zug-based asset manager Cinerius Financial Partners as HR manager in April 2022. In order not to emerge as losers from the battle for the best talent, she believes asset managers must urgently consider the following factors:
1. Corporate Culture and Communication Changes
Now, at the latest, is the time to transform away from the work and corporate culture of the 1990s and toward a modern, innovative and competitive workplace - and to communicate this change to the outside world.
2. Holistic Approach to Employer Branding
Wealth managers no longer communicate only with potential or existing clients. A clear image as an attractive employer must become a mandatory component of all external and internal communications, even for small and medium-sized asset managers. Employer branding is indispensable in the highly competitive labor market.
3. Create and Highlight Career Opportunities
Small teams often represent limited opportunities for advancement. This reservation must be actively addressed and transparently dispelled. What development opportunities are there? How can a career path in the company look exemplary and how can professional development also take place in the interests of the employer?
4. Further Training and Personal Focus
Individuality, independence, and expertise are the greatest competitive advantages of independent asset managers. Through regular, self-selected further training and individually set focal points, this promise to candidates and clients alike can be fulfilled.
5. Work-life Balance and Compatibility
The days when young professionals trying to impress each other with overtime hours accounts are over. Work-life balance, part-time and remote models, and flexible working are becoming increasingly important. Those who do not act in time or fail to create opportunities through digital processes without losing sight of the needs and expectations of customers will face additional challenges in their recruitment efforts over the long term.
The sheer number of construction sites shows that asset managers should not take this task lightly if they want to survive in the challenging market environment, emphasizes Constanze Thomas. One thing must be clear to them, however: such a change can only succeed with the appropriate corporate culture.
A longer version of this article first appeared in «Private Banking Magazin.»
