Staffing issues plague wealth managers
Only one in four executives expect to be able to hire enough quality wealth managers in the next three years, as the war for top talent in the industry becomes fierce, according to a new survey.
Qualified relationship managers and wealth managers are in short supply, according to a new report from SEI, the US asset manager.
“Wealth managers see a tremendous growth opportunity to increase their assets under management, and RMs will be a critical differentiator for them in this crowded market,” said David Campbell, senior vice president for SEI’s private banking solutions.
“Attracting and retaining RMs who can deliver on the promise of an advice-driven model is critical to banks’ success – most wealth management executives understand this and are looking at new methods to grow and keep their talent base," he added.
The VIP Forum, an online group for senior wealth executives, estimates that a firm currently employing 100 RMs would need to hire 150 new ones over the next five years to sustain even a 15% growth rate.
That said, wealth managers are seeking new ways to retain important staff, and many are finding that RMs aren't just driven by pay packets.
SEI conducted surveys in 2007 to identify the most important factors influencing a firm’s ability to attract and retain high performing RMs.
The two most important factors for retaining and hiring RMs of both small and large firms are culture and workplace environment, and brand and reputation, SEI research said. Compensation comes third on the list, followed by wealth management infrastructure and strategic business direction.
The report said that in order to attract and retain the top talent, wealth management firms need to "take a hard look at their infrastructure to see if it can support an advice-based business rather than a product based one."
It said: "A robust wealth management infrastructure will free RMs to concentrate on the important, high-value work of advice delivery and relationship-building. By removing the obstacles to excellent service, a firm will add a material differentiating factor that will attract talented RMs."
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