Navigating Recruitment Challenges in Family Offices: Insights from the 2024 Compensation and Talent Planning Report

Recruiting top talent is a cornerstone of success for family offices worldwide. However, the landscape of talent acquisition is not without its challenges, as highlighted in the 2024 Compensation and Talent Planning Report by Botoff Consulting and Somers Partnership. The report reveals a significant trend across regions, with 36% of family offices in the U.S. and North America, and a staggering 45% in Europe and other regions, reporting difficulties in recruiting new staff over the past year.

Understanding the Family Office Recruitment Landscape

The recruitment challenges faced by family offices are multifaceted and influenced by various factors. In today's competitive job market, attracting and retaining skilled professionals demands more than traditional recruitment methods. Family offices must contend with evolving workforce dynamics, changing candidate preferences, and the increasing demand for specialised skills in wealth management and family governance.

The 2024 Compensation and Talent Planning Report presents insights gathered from a comprehensive survey of 347 family offices and family investment firms spanning 25 countries. This extensive dataset offers a panoramic view of recruitment trends, compensation structures, and talent management practices within the global family office ecosystem. By capturing responses from diverse geographic regions and organisational structures, the report provides invaluable benchmarks and actionable insights for family offices seeking to navigate the complexities of talent acquisition and retention in an ever-evolving landscape. 

With input from a broad spectrum of industry stakeholders, the report serves as a trusted resource for informed decision-making and strategic planning in the realm of human capital management within family offices worldwide. 

Factors Contributing to Recruitment Challenges for Family Offices

Several factors contribute to the recruitment challenges outlined in the report:

Talent Shortages: The demand for skilled professionals in the financial services sector continues to outstrip supply. Family offices seeking candidates with expertise in wealth management, investment strategies, and client relations face fierce competition for the best talent, with 77% of family offices surveyed in the US and 75% in the UK, citing talent shortages as their number one recruitment challenge.

Changing Workforce Dynamics: The preferences and expectations of job seekers have evolved, with an increasing emphasis on work-life balance, flexible work arrangements, and career advancement opportunities. Family offices must adapt their recruitment strategies to align with these changing preferences if they are to attract the right talent, as 33% of family offices surveyed in the US  and 18% in the UK, said that they operate a mandatory office policy and don’t allow employees to opt for home working.

Global Talent Pool: Economic fluctuations and geopolitical events can impact recruitment trends, influencing candidate perceptions of job security and organisational stability. Family offices operating in regions experiencing economic volatility may encounter additional challenges in attracting and retaining talent. There is also concern over the location of talent globally for family offices, with 36% of US based family offices citing location as a recruitment challenge and 30% of UK based family offices agreeing. 

Navigating Recruitment Challenges: Strategies for Success

While recruitment challenges are pervasive, family offices can adopt proactive strategies to overcome obstacles, improve your Employer Value Proposition (EVP) and compete for the best professionals:

Utilise Family Office Recruitment Specialists: Engage experienced family office executive search specialists to source talent from a diverse range of sources. At the Somers Partnership, we possess industry-specific expertise and extensive networks, allowing us to identify and attract qualified candidates who may not be accessible through ordinary contingency recruiters. By leveraging our insights and connections, family offices can tap into a rich pool of talent and secure individuals with the skills and expertise required.

Bridge talent gaps with interim solutions: Interim talent presents a strategic solution for family offices navigating transitional periods or addressing short-term staffing needs. Interim professionals bring a wealth of experience and expertise to the table, offering immediate support and flexibility to adapt to evolving demands. Whether filling temporary vacancies, managing special projects, or implementing strategic initiatives, interim talent offers a cost-effective and efficient solution for maintaining business continuity and driving organisational growth. By leveraging interim professionals, family offices can access specialised skills on-demand, mitigate operational disruptions, and capitalise on opportunities for innovation and transformation. Embracing interim talent allows family offices to remain agile, responsive, and resilient in the face of dynamic market conditions and changing business requirements.

Flexible Work Arrangements: Offer flexible work arrangements, including remote work options, flexible hours, and compressed workweeks, to accommodate the changing preferences of candidates. Emphasise work-life balance and well-being initiatives to create a supportive and inclusive work environment. This will help you attract and retain the best talent as increasingly candidates are looking for more than just compensation when they assess a job proposition. 

Promote Career Advancement: Develop clear pathways for career advancement and professional development within the organisation. Implement mentorship programs, leadership training, and opportunities for skill enhancement to empower employees and foster long-term loyalty. Offering opportunities for professional growth and advancement can attract motivated individuals seeking career progression.

Diversify Recruitment Strategies Internationally: Explore international recruitment strategies to access a broader talent pool beyond local boundaries and connect with qualified candidates from diverse geographic regions. Address concerns about location upfront, highlight the benefits of working for the family office, including career growth opportunities, professional development, and organisational stability to enhance your EVP. Consider additional perks such as relocation assistance and housing allowances to attract candidates from different locations. In the past, we have helped prospective candidate’s spouses find employment in the family office’s location, to aid in the smooth transition for the whole family.

Offer Competitive Compensation Packages: Enhance the attractiveness of employment opportunities by offering competitive compensation packages, including salary, benefits, and incentives. To find out what other family offices are paying their employees, request a copy of the latest compensation report conducted in partnership with Botoff Consulting. 

By implementing these proactive solutions, family offices can effectively navigate recruitment challenges, attract the best professionals, and build high-performing teams capable of driving success and innovation to protect the long term needs of the family.

Overcome recruitment challenges in 2024

The findings of the 2024 Compensation and Talent Planning Report underscore the importance of proactive recruitment strategies in addressing the challenges faced by family offices in attracting and retaining top talent. By understanding the evolving dynamics of the talent landscape and implementing strategic initiatives to enhance recruitment effectiveness, family offices can position themselves for long-term success and sustainable growth in an increasingly competitive market.

As family offices navigate the complexities of talent acquisition, investing in recruitment solutions that prioritise innovation, adaptability, and strategic alignment will be key to overcoming challenges and driving the family office forward in the years to come. We offer a confidential recruitment consultation service to advise family offices on talent acquisition and retention strategies, email mark.somers@somerspartnership.com or call +44 (0) 203 137 3275.

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