Family offices are scheduled to grow at a rapid pace, looking for services dedicated to dealing with their wealth. But they are struggling to find money managers.
As of last September, there were 8030 family offices running $ 3.1 trillion of assets, according to the recent DELOTTE statistics. By 2030, the number of family offices is expected to grow to 10,720 with $ 5.4 trillion of assets under its management.
McKinsey said that it will decline to the point where the industry faces a shortage of about 100,000 consultants “in 2034, in the current advisor’s productivity levels, the workforce, the advisor (wealth) will decrease to the extent that the industry faces a shortage of about 100,000 advisers.” February.
According to North America’s family office report By RBC and Campden Wealth, which was released last September, a large number of family offices reported how to employ “great challenge” and expressed difficulties in recruiting and preserving employees. The same applies to European family offices.
Meanwhile, family offices are increasingly turned on Asian wealth centers, such as Singapore, to automating the workflow and using external sources Lack of talents in the city of the city.
Family offices also have to compete with banks, private stock companies and hedge funds for the highest talent.
Nevertheless, the talent crisis is not only due to the lack of qualified candidates – it is also selective by family offices.
Confidence issues
While potential candidates find it difficult to enter the family office, some family offices can be especially when it comes to choosing the perfect suitability. Main standards: confidence.
“Why did the president give the accountant money? Because they have a lifelong relationship,” said Tobias Bristel, the administrative director of the Family Office.
“In the area of the family office, it is often not the best person for this position to get the job but the trusted person,” CNBC told CNBC. “If you have $ 500 million, who do you trust? Who do you give the key to everything? It is not an easy decision,” said Prestle, who organizes a special discussion of family offices around the world.
If you have $ 500 million, then who do you trust? Who do you give the key to everything? It is not an easy decision.
Tobias Bristel
Family Office Conferences Bristel and a partner
Reto Joach, a SZ & J partner, said that some families tend to focus greatly on the confidence factor on other criteria. He added that this might be a good thing, but it may be harmful to the job.
Family offices They often look to combine roles such as CFO, as they hope to find an ideal right -wing man, said Iris Show, founder of the Jenga Accounting Services and Services Company, who rents full -time professionals and contractors for family offices in Singapore.
“This is tall. Or very few professionals ready and able to cover all these areas,” she said.
However, the wealthy ascend their game to follow the talent they want. Sometimes, this means that you are ready to pay “Delta trust”, or salary premium, especially if the family wants a person to work for, especially, in particular In a climate, family offices are ready to pay up to $ 190,000 a year for CEOs.
European family offices raise compensation packages to maintain and attract talents by providing other rewards and incentives such as joint investment opportunities and a share in investment management profits, a A separate report from Campden Wealth and HSBC showed.
A “risky” relationship
Industry experts told CNBC that young employees are hesitating to work in family offices for reasons that include the absence of a clear company structure, as well as how it is widely seen as a “retirement function.”
Xu of Jenga said that family offices can appear “risky” for potential employees, given their relatively informal structure, unclear reports preparation lines and unspecified job progress.
Shaw added that the roles related to investment in family offices tend to be more difficult to fill in other roles, with a large rate of rotation between two years and years.
“In the world of companies, at the end of the day, everything is authorized, including CEO,” said Jauch of Sz & J.
There is a different type of character that works well in such an environment: you have to keep your ego checking to work in the family office environment.
He explained that this differs from work in the family office, where the family is central and fixed, which is the employment and caliphate planning for the family offices. Work for Beck and Call of One Family requires a complex balance that is not always easy to strike.
“There is a different type of character that works well in such an environment: you have to keep your ego checking work in the family office environment, but you also have to be sure enough to make your opinion on the foreground,” explained Jauch.
He added: “It is a balance between the ability to speak to the family as a consultant, in your role with the family, but also understand that in the end, the family’s decision will always be. This will not go away.”
That is why John, the lawyer in the mid -1940s who did not want to share his real name, and refused to take a job offer as a general advisor in the family office in Singapore, and said that he is closer to “laying all your eggs in one basket.”
“It may be in line with this person, you may not do it. But for a person in my career (then), with a different family and obligations, that was just a personal danger … where one person can only decide to shoot me.”
John has also referred to a possible lack of transparency and practical about compensation and promotion discussions, as is the case in other reasons to reduce the role.
The lawyer, who was working on an investment bank at that time stage, had fears that he would take the job of the family office in a relatively early stage of his career to make it difficult to return to the world of companies.
“You need to be part of something. You are fine if your progress is more on the content and perhaps on the quality and professional side, but not necessarily in terms of job steps,” said Guach.
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