Strategies for attracting the right talent at the family office

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Talent serves as the lifeblood of every family office. Many grapple with similar challenges, however – how do you secure and retain the right top-tier talent?

Here are some best practices and recruiting strategies that family offices can employ to make this year’s recruiting seamless and even more successful than the year before.

Money, money, money

Exceptional candidates may struggle to have their salary expectations met when contemplating positions at family offices.

They might compare the compensation packages offered to those in more visible and uniform sectors such as pensions, private equity, professional services and banking. These sectors often serve as primary talent sources for family office roles, but they also contribute to the discrepancy in compensation expectations. This challenge not only hampers the attraction of suitable talent but contributes to the struggle of retaining those professionals over the candidate’s tenure.

Further complicating matters are equity expectations, as candidates often seek ownership stakes that may not align with family office structures. To bridge this gap, a holistic compensation approach balancing internal equity, hiring budgets and the market’s talent is recommended.

Accordingly, it is crucial for hiring leaders and recruiters to both transparently educate candidates on the reasons equity might not be feasible while emphasizing other benefits, including career growth, unique opportunities, flexible work arrangements and continuous learning.

Compensation can be tailored to motivate leaders, such as creating a synthetic structure with equity-like features without providing actual equity, to ensure everyone is driven toward common goals without necessarily sharing in traditional ownership. Family offices have previously intertwined these incentives with other perks such as co-investing opportunities, paid time off for volunteering, donation matching programs and organizing employee-led charitable initiatives.

Genuine attraction over superficial allure

Candidates might be attracted to what they see as a growing and promising industry to which they seek positions that bolster their resumes. A CFO from a prominent family office recently highlighted the challenge of attracting candidates who may not genuinely care or have a deep interest in the opportunity.

To ensure a candidate has a genuine interest, it is crucial to make comprehensive evaluations during interviews as well as conduct behavioral assessments and discuss cultural alignment. Assessing candidates’ non-verbal cues and consistency across answers helps to ensure a more cohesive and committed work force.

Opposingly, reasons candidates might be scarce

Prospective candidates can also exhibit a reluctance to engage with family offices due to a lack of understanding and misconceptions about these entities. This is exacerbated by the absence of online visibility given the private and confidential nature of the family and their affairs.

Additionally, economic uncertainties and job market instability sometimes lead to apprehension among candidates regarding employment security, particularly in smaller family offices, amplifying the preference for larger, more established institutions.

Lastly, the ambiguity surrounding the required skill set and the multifaceted nature of roles within family offices present a significant hurdle, demanding a delicate balance between specialized expertise and adaptability.

Addressing these challenges necessitates efforts to offer role clarity and communicate the dynamic nature of these positions. A focused external recruitment partner can help, as they provide an objective view of the market and are dedicated to taking the time for education that this type of hire often requires.

Navigating nepotism

At times, families want to hire members of their own family or other close contacts. Nepotism can stifle the recruitment process even before it starts.

While nepotism is a personal and complex challenge, direct discussion presents the best solution. Talk about the role with family and non-family leadership to clearly define the professional experience required. The discussion will support a clear choice regarding the right candidate for the role.

Remember, family offices are not for everyone. What’s needed is a flexible candidate with a growth mindset who can fill gaps and grow with the organization.

A limited supply of unicorns

The expansive qualities needed in a family office professional are more than those of an average applicant – it’s like seeking a unicorn or purple squirrel. But let’s be real, finding someone who ticks all those boxes and has extensive previous family office experience (where supply is already limited) can be a real challenge.

One way to resolve this issue is by growing talent from within the organization with robust succession plans. If that’s not an option, then consider keeping an extensive and solid network from which to draw talent, or secure professionals who are not only technically skilled but are willing and able to learn and grow in the role.

Where is my mentor?

Navigating candidate expectations regarding having a manager or mentor in a family office role can be difficult. Families aren’t typically structured to offer mentorship like traditional organizations.

Recruiters and hiring managers can assist by helping candidates understand this relationship and its unique aspects. It is often valuable to encourage candidates to seek external mentors, highlighting the family’s nature as akin to more of a client relationship.

Summary

In the world of family offices, challenges come in all shapes and sizes. Some things never change – qualities such as trust, curiosity and passion will always be in demand. Finding talent is a journey, from addressing compensation disparities to ferreting out authentic interest to defining the ideal candidate. As an executive recruiter specializing in this field, the goal is to expertly navigate these challenges, aligning the right talent with the unique needs of each family.

Above all, I would like to extend my gratitude to each of the contributors to this article. I want to emphasize that by involving an experienced recruitment professional specializing in family offices and implementing these strategies, we can significantly expedite a positive outcome for 2024.

Amanda Bassin, CPA, CA is the founder and owner of Persuit Group Inc., a Toronto-based firm specializing in executive recruitment for North American family offices. With more than 25 years of talent leadership, Amanda’s commitment to delivering tailored recruitment solutions has established Persuit Group as a reliable partner for families and professionals navigating the unique challenges of family office operations.

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