Building the Talent Trends Report each year is always a unique opportunity to focus on how leaders look at their most critical resource– their people! New dynamics are at play each year, impacting talent acquisition, development, engagement, and retention.
Our highly concentrated research, which polled executives at firms with assets from $25 billion to more than $1 trillion, found that these leaders have effectively managed through the pandemic, the Great Resignation, and Quiet Quitting by embracing both fully remote and hybrid working models. To its credit, the industry has adapted remarkably fast to the new dynamics of the workplace.
But one fact remains unchanged as the industry evolves: there’s an acute shortage of talent. Our 16-page report, predicated on our proprietary survey conducted in the fourth quarter of 2022, confirmed that industry leaders are increasingly concerned about their ability to source and develop talent.
The Numbers Aren’t in our Favor
Our data showed that whether it’s leadership for a new product or business line, or for operations or technology deployments, there is an absence of capable talent. Thirty-nine percent of our leaders polled said there was insufficient leadership talent in their pipelines to continue to grow their businesses. In some cases, the challenge is the affordability of talent, in others, it may be the proper cultural fit, and for some firms, it’s simply about finding sufficient experience. These issues are being exacerbated by the ongoing exodus of Baby Boomers who are setting off on retirement. With 75 million Boomers expected to retire by 2030, the quest for the best talent to grow our firms is becoming a critical business issue.
In our search work with companies across the country and viewed through our data, it’s clear that the industry needs to cultivate the Next Generation of talent or settle for slower growth.
Considering Alternatives in the Face of Obstacles
One workplace dynamic emerging from the Pandemic that is in a firm’s favor is the flexibility provided by hybrid scheduling. Firms are leveraging remote workers even more through the use of AI and technology, creating schedules for workflow, and interactions with colleagues that don’t require an in-office presence each week.
With other industries laying off thousands of their workforce in massive waves, investment management firms should certainly take advantage of exploring these newly available, educated, next-gen, and diverse individuals who have unexpectedly found themselves sidelined.
In today’s environment, it is also incumbent for firms to step up to offer more formalized training to foster the development of their high-performing talent, as well as for those who are demonstrating a passion for their work and the industry. Training is a sizeable investment for firms to make in their employees, so it’s critical that individuals display an appetite for development as a precursor to being selected for training.
The Time for Perfect Has Passed
One clear shift in today’s hiring is the recognition that firms are frequently unable to find all that they are looking for in one candidate. There is an inherent need to prioritize what’s critical in expertise upfront and to identify where it makes sense to compromise. While developing someone’s skill sets or knowledge base to the next level is expected in today’s market, the elements which necessitate cultural fit should not be overlooked. Firms that understand and articulate their mission and vision to candidates, and who invest in defining a benchmark for alignment, will enjoy tenure and productivity from these hires in the years ahead.
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