Family offices operate under a different set of rules than traditional corporations – and among many … [+]
Recruiting the right talent for any business is an immense task that takes not only time, but energy and thought. While many industries share similar recruitment best-practices and know-how, recruiting for family offices is entirely its own game.
That’s due to a number of factors – family offices, each with their bespoke structures and objectives, require a tailored approach to attract and retain the best talent; and job applicants themselves usually possess unique characteristics that set them apart from the rest.
A recent webinar highlighted the intricacies of family office recruitment, drawing insights from industry experts and international family office recruitment specialists.
Understanding The Family Office Landscape
At the risk of oversimplifying, family offices operate under a different set of rules than traditional corporations. Their structure, goals, and culture create a distinct environment that poses unique recruitment challenges.
Besarta Dani, founder of Hejmdal Executive Search, aptly emphasised the importance of understanding the economic climate and the driving forces behind family office creation.
“Many family offices established after 2000,” Dani says, “reflect a strong desire for stability and control over investments, considering the economic landscape at the time.”
This focus on long-term investment strategies (sometimes beyond the period of 20 years) and a sense of control fosters a work environment that attracts many professionals.
The Family Office Allure
With this view, family offices offer a compelling value proposition for talented individuals. Brian Adams, a principal at Mack International, highlights the appeal of versatility, offering that “…working in a family office exposes individuals to various aspects of wealth management and asset allocation, from concierge services to investment management. This is particularly attractive to young professionals seeking a broader skillset.”
Beyond variety, family offices offer the chance to build long-term relationships with principals, creating a rewarding career path.
Key Ingredients For Success
One of the most important factors that differentiates executive search campaigns for family offices is that the recipe for success in a family office role requires a blend of technical expertise and a high level of emotional intelligence.
David Chie, who specialises in executive searches for tech founder family offices, underscores the importance of a service-oriented mindset. “While strong technical skills are essential,” Chie explains, “the ability to cater to the nuanced needs of family offices is equally important.”
Traits like flexibility, unwavering loyalty, and the ability to juggle diverse tasks are highly valued – but must still be complimented by technical acumen and a service mindset.
Compensation And Retention: A Partnership Approach
Compensation at family offices is highly flexible and tailored to the individual – and, as Besarta Dani points out, regional variations in compensation structure are pronounced.
“Middle Eastern family offices,” Dani notes, “often offer tax-free salaries and additional benefits like housing, whereas European structures may differ.”
Ultimately, the compensation package can be very attractive for the right candidate. Additionally, the relationship between principals and employees significantly affects compensation and retention. Long-term trust and loyalty are crucial to fostering a dedicated and successful team. Paul Westall, Co-Founder at recruitment firm, Agreus, also discusses this in a recent article, where he outlines how long-serving employees play a pivotal role in preserving institutional knowledge around a particular family office, “Their wealth of experience not only ensures stability and continuity but also facilitates informed decision-making, helping to navigate risks and capitalise on opportunities with confidence.”
Technology: A Modern Advantage
While the timeless pursuit of finding the right candidate continues, artificial intelligence and modern technology are evolving the family office recruitment landscape.
“These tools,” Chie explains, “allow us [recruiters] to reach a broader pool of qualified candidates while focusing more on developing strong personal connections.” This technological support helps executive search firms maintain efficiency and high standards, while working at scale – marking a shift that we’re likely to see blossom ofter the next few years.
Strategies For Finding the Right Fit
For job seekers looking for a family office role, many family offices leverage executive search firms to ensure they find the best talent. These firms offer a consultative approach, backed by extensive networks and industry knowledge.
Brian Adams outlines the typical recruitment process, which may involve a formal RFP or introductions from trusted advisors. “Investing time in understanding your needs,” Adams advises, “is crucial. A thorough search process can take several months, but it ensures you attract the right talent.”
Building A Successful Future
Family office recruitment is a specialised skill requiring an in-depth understanding of the unique needs and environment of these exclusive entities. By focusing on talent with flexible skillsets, a long-term commitment, and a service-oriented mindset, family offices can attract and retain top performers.
Candidates hoping to work in a family office environment must similarly marry their technical and industry experience and insight with the ability to work and adapt in a markedly unique environment.
As family offices continue to grow and evolve, adopting tailored recruitment strategies and leveraging modern technology will be critical to their long-term success. By following best practices, and by embracing the winds of change in both talent pools and technologies such as AI, family offices can build the world-class teams they need to achieve their ambitious goals.