The wealth management industry is an integral pillar of the financial sector. With billions of dollars in assets under management, the industry has become increasingly competitive, with players constantly looking for ways to remain ahead of the curve. In recent years, one such way to remain competitive that has been highlighted is attracting and retaining new talent. But why does this give organisations a competitive edge and what steps can wealth and investment organisations take to attract new talent?
Meeting the changing demands of clients
Like with many industries, the wealth and investment industry is evolving rapidly due to technological advancements, changing client demands and changing geopolitical circumstances. In the past decade, clients have begun to seek customised investment solutions and therefore, in order to remain relevant and successful, organisations need to be able to adapt to these demands. Therefore, it is essential to onboard talent that not only recognises these changing demands but also understands the latest technological advancements and trends. New talent, additionally, brings in fresh ideas, innovation and an understanding of the latest investment strategies. Organisations that remain stuck in the old ways by not bringing in new talent risk losing their clients to competitors who can meet their needs.
Addressing the talent shortage
It is no secret that the wealth and investment industry has been facing a talent shortage for many years. An Accenture survey found that 70% of respondents agreed that the shortage of talent and skills will have a significant impact on the industry as a whole and therefore, many organisations may have to deal with skill gaps. This shortage is in part due to the aging workforce of the industry as many established and experiences professionals are retiring, leaving gaps in talent that need to be filled.
Diversity and inclusion
The financial sector has been notoriously lacking in diversity and inclusion. Not only is this an issue from a social justice and equality point of view but also from a business perspective. Studies have shown that having a more diverse team leads to more innovation, better decision making and increased financial performance. Therefore, attracting new talent from diverse backgrounds will help to improve the overall performance of an organisation and the industry as a whole.
Steps to attracting new talent
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Develop a strong employer brand
Your brand is essential not just for attracting new business but also for communicating to future talent why they should want to be apart of the organisation. A strong employer brand communicates the values, culture and mission of the company and therefore, helps potential employees to understand what it’s like to work at the company and whether they would be a good fit. Social media, networking events and employee testimonials are invaluable ways that organisations can effectively build a strong employer brand and promote their culture and values.
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Offer competitive benefits and compensation
Offering potential employee’s competitive salaries and benefit packages can make or break an organisation’s ability to attract new talent. Due to the facts that investment professionals are in high demand, companies that offer competitive benefits as well as a competitive salary are more likely to attract top talent. To ensure that the packages and salaries offered remain competitive within industry standards, it is important for companies to conduct regular compensation surveys.
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Offer and emphasise professional development opportunities
Career progression is the main focus for the vast majority of talent entering the job market and is the reason that many people move to new companies. Therefore, in order to ensure that organisations attract the top talent, they need to ensure they have robust professional development opportunities. This can include training programs, mentorships, and tuition reimbursement.
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Improve diversity and inclusion
To attract more diverse talent, organisations need to first improve their D&I efforts. There are many ways to do this, from implementing diversity and inclusion training programs, creating diversity and inclusion committees to partnering with organisations who uplift and empower underrepresented groups.
