Happy July, Everyone!
This month kicked off with people enjoying celebrations in honor of Independence Day in the U.S., while many others here and around the globe have taken well deserved vacations.
We are starting to see a bit more trepidation on the parts of the larger firms, as there has been a slowing down of the interview process. In my opinion, this could be attributed to several reasons, including rising interest rates, inflation, and summer vacations. However, make no mistake that overall, the market for talent and the competition for it is still very much in play. As I mentioned in the last newsletter, we have entered a bear market; although we are seeing a few isolated hiring pauses, the demand for experienced talent within the wealth industry is very much alive and well and mirroring the hot temperatures outside!
I wanted to discuss 2 topics I have been encountering since the last newsletter:
Topic #1: Delayed Interview Process
Ideally, a firm from the very beginning maps out their hiring process and lets everyone involved know what it will entail and how long it will take. This approach provides a powerful tool in onboarding talent and adds value to your employment brand. However, when a firm does not have a defined interview process it can be a HUGE detriment. It doesn’t matter if you are Goldman Sachs or a small RIA; I can’t begin to tell you how many candidates are turned off by prolonged waiting times and a general lack of decision making. This is an important issue that we continue to impart to our engaged search clients, and we cannot emphasize enough the need for a defined hiring schedule so that candidates know what to expect. It doesn’t take a lot of effort but the ROI in attracting talent that wants to be part of your organization is huge. Conversely, it is just as crucial for candidates to communicate effectively with potential, interested clients by showing them the same courtesy and professionalism. At the outset of the process let the firm and or candidate know if you have a planned vacation or are considering pending offers – no company wants to be surprised nor do they want to feel their time has been wasted. For both employers and candidates, transparency is key to the onboarding process. Especially in this competitive market do not let the process linger as it translates as a lack of interest. This will result in a missed opportunity – so do not take this fact for granted.
Topic #2: Compensation: Reality vs. Fantasy
Because Avior caters to the wealth management industry which adheres to and is driven by market conditions, it still amazes me when I speak with potential and/or established clients who tell me, “We want a Sr. private banker with a large portable book, but we can’t compete with the larger firms or bonus buyouts”, or, “We want a Sr, FA with a T-12 over 1M but we can’t pay them a large upfront or any upfront, as they really need to be entrepreneurial to be here”. When this is the case, firms are setting themselves up for failure, as clients and candidates alike need to know what the market is bearing at that time. I can’t begin to tell you how many conversations I have with individuals who are not aware of the market conditions and, in many cases, choose to believe that the reality of these conditions does not apply to them. My advice is quite simple: meet with a compensation consulting firm to get a market analysis of what your competitors and the industry are paying. If you can’t afford to pay new hires what they should be earning, then you must reevaluate your expectations.
At Avior we are subject matter experts for this industry, and we can advise you on the above and many other related topics so that you ultimately have a successful search experience. Please feel free to reach out to me and I will be happy to discuss your situation in more detail.
ABOUT AVIOR EXECUTIVE SEARCH
Avior Executive Search is a professional recruiting firm specializing in the wealth management industry globally. We have built a proud reputation based on our search process and market knowledge and have an unmatched network with extensive search experience in the United States, Canada, Latin America, Europe, and Middle East global wealth management industry. To learn more about how Avior Executive Search can help you, contact us.