Times are changing in the wealth management, private banking and family office sectors in the wake of Covid and with Brexit looming on the horizon. We are experiencing unforeseen changes to customer and employee behaviour and with many firms forced to make fundamental changes to their business model, we urge employers to consider harnessing the power of ‘Compound Talent’ to propel your business into the future and give you a competitive advantage.
Einstein believed that compound interest was the most powerful force in the universe, and is often quoted as saying “Compound interest is the 8th wonder of the world…”
“…He who understands it, earns it; he who doesn’t, pays it.”Albert Einstein
But at the Somers Partnership, we humbly disagree. Instead, we believe in the power of Compound Talent and that attracting and investing in talent early is a key way to get ahead of your competitors and secure the professionals who will drive your business forward.
Highly ambitious individuals who thrive at being self-led and self-made are the employees your firm needs to get you through these turbulent times and ensure you emerge stronger, more adaptable and future-proof as we brace ourselves for the aftermath of Covid.
Goldman Sachs selected Mark Somers to attend their ‘Reimagining Business’ course which was open to graduates of their GS10ksb program. The course was run by Said Business School of the University of Oxford and enabled participants to examine all aspects of their business and explore opportunities to adapt and pivot their businesses in response to the current external influences including Covid and Brexit. One of the key components of the course was team dynamics and assessing whether your team are ideally placed to help your business to weather the current storm, or if there are skills gaps that need to be filled in order to serve your clients to the highest possible standards.
We are entering the best recruitment market since the credit crunch in 2008. Talented individuals are actively seeking progressive, forward-thinking firms where their talents will be appreciated and where they will have the freedom to spread their wings. But be warned, wait too long and they will be working for your competitors. It is essential to hire these scarce professionals as early as possible to avoid being left with the middling, lawn mowing crowd. If you want exceptional individuals on your team, you need to find them before your competitors do.
Here we will look at the effects of Compound Talent on the successful growth of your business, exploring how investing in key individuals can increase your earnings year on year.
Investing in talent early
When making hiring decisions, there can be a tendency to apply the flaw of averages and aim for the experienced but middling professionals who know the business well and have an average track record. These are the safe candidates. They are reliable and they get the job done but how much real value do they add to your firm?
At Somers Partnership, we call these individuals ‘the Lawnmowers’. They show up to work and keep everything running smoothly but they never innovate. They are not the ones to push the boundaries to see how well they can perform for their clients or their employers. They maintain the status quo. These are the candidates who only do what is needed to stay steady. There is no doubt that they are important members of any team but they are not the individuals you need to grow and get ahead of your competitors.
Now consider the alternative – extremely ambitious, highly motivated Rainmaker candidates who set themselves high standards and go the extra mile, who have more to prove and more to strive for. They may have less experience but if you invest in them early, you can incentivise them, mould them to your company culture and reap the benefits for years to come. These Rainmakers offer what we call Compound Talent.
The upwards curve
Just like compound interest, the earlier you can hire high level talent, the better. Investing in future Rainmakers in the early stages of their career is a crucial way to gain the upper hand over your competitors. If you can attract fresh talent then you can make the most of their enthusiasm and drive, inspiring your existing team, attracting other Rainmakers and shaping your business into the market leader.
Consider a graph with time on the x-axis and profit on the y-axis. A Lawnmower hire can be pictured as a shallow upwards linear increase, steadily plateauing over time. In contrast, investing in Rainmaker talent early in their career will show as a strong upwards curve. These individuals work hard, continue to grow and maximise profits long into the future. Now imagine the graph again with both lines plotted: the gap in between is the competitive advantage that we deliver to our clients and what we call the Somers effect of Compound Talent.
The Somers effect
There is a strong, positive correlation between hiring top talent early and their profitability over time. The accumulated value of investing in ambitious professionals and embedding their drive and innovation cannot be understated. When you work with a dedicated, specialist recruitment consultancy who understands the needs of your firm, finding and retaining these key individuals becomes more possible.
Thanks to our 20 years of experience as one of the leading recruiters for the Wealth Management, Family Office and Private Banking sectors, we excel at matching individuals to firms. We focus on finding the perfect pairing between career goals and business goals. Our reputation in the industry means that you can trust we will always operate with the highest level of professionalism and dedication.
We specialise in connecting our clients with the limited talent pool of the top 10% of candidates in the industry. This gives firms access to the best talent in the industry, before the industry and their competitors realise. It is this level of service that keeps clients coming back to us time and time again. ROI is exceptionally high on good recruitment and we firmly believe that our services have the power to change the trajectory of the businesses we work with.
Take a second look at your process
Before making any hiring decisions, it is crucial that you consider the long-term prospects of each candidate. It is worth taking the time to seek out lesser known candidates in order to feel the full force of the Somers effect. The less obvious choices might be the game-changers for your business.
With this in mind, take another look at your recruitment approach and process. If you consistently opt for the easy route, rejecting high performing candidates because they are demanding or expensive, it might be time to look again. Our method takes the guesswork out of hiring, centred on finding the individuals who hold the maximum potential and profitability.
Thanks to our extensive, bespoke database and comprehensive understanding of the industry, we can help connect you to the power of Compound Talent before the rest of the market. Our rigorous selection process rejects individuals who are anything less than the best in their field. We do this through intensive interviews, 360 degree reference taking, psychometric profiling and third-party candidate vetting. The end result is a candidate list that contains the most dynamic individuals who are ready to push the boundaries to achieve and exceed your firm’s goals.
We believe in long-term investment in individuals as a way to ensure consistently high, cumulative returns. Our method has been proven to increase profitability for firms who hire our hand-picked professionals over all the others. We know what it takes to succeed in the business and where the talent gaps are. We’re committed to the power of Compound talent and the competitive advantage for our clients for many years to come.