Almost three-quarters of asset management chief executives globally are worried a lack of talent will negatively impact their growth, according to KPMG.
KPMG’s annual Asset Management CEO Outlook questioned 125 asset management CEOs globally, including Australia, all of whom have annual revenue of over US$500 million.
The survey found 89 per cent plan to expand their workforce over the next three years but are fearful of a talent shortage occurring simultaneously with the retirement of older Boomer employees.
Over a third of respondents cited competition for talent as one of their top challenges compared to 27 per cent of CEOs in other sectors surveyed.
While they are eager to hire, one factor they are unwilling to compromise on is the return to office mandate, with 70 per cent expecting staff in the office everyday. Only 22 per cent said they would offer hybrid working and the percentage dropped further to 7 per cent for fully remote staff.
However, those who are willing to come back are likely to be rewarded, with CEOs indicating they will offer raises or promotions.
James Suglia, global head of asset management at KPMG, said: “Access to talent is rapidly emerging as a key constraint across a range of asset management priorities – from achieving net zero ambitions through to unlocking the value of AI. The links between growth and a strong talent strategy are becoming increasingly clear.”
Few CEOs believe that AI will lead to headcount reductions, rather than it can be used as an opportunity to upskill the workforce for future readiness or to enhance existing processes. As a result, three-quarters said implementation of AI is a top priority for their firm and 84 per cent expect to see a return on investment within five years.
“For the most part, few asset management CEOs seem to think that GenAI will result in workforce reductions. In fact, most see GenAI as an opportunity to help upskill their workforce for future readiness or to enhance existing processes, particularly fraud detection, cyber attack response and data analytics. Only 1 per cent think GenAI will eliminate more jobs than it creates.”
However, they have fears surrounding ethical concerns such as privacy, bias and discrimination, as well as regulation being a barrier to adoption.
While they are supportive of AI being used in the company in principle, the report noted few believe they have the necessary technical capabilities to deliver on their AI ambitions.
Factors that have the largest impact on the company
| Issue | Percentage |
| Employees retiring, coupled with a lack of skilled workers to replace them | 33 per cent |
| Widening expectation gap between older and ageing employees compared to the next generation | 26 per cent |
| Knowledge transfer between employees | 22 per cent |
| Differences in tension resulting from corporate responses to social and global issues. | 20 per cent |
Source: KPMG, 2024
