As firms jostle to retain their top talent in a competitive jobs market, various recruiters observe discussions around professional development and growth have become increasingly prominent alongside remuneration.
In particular, while the “balance of power” has shifted more in the direction of the employer in many areas over the course of 2024, top talent remains in high demand and firms are making efforts to improve their long-term staff retention.
Money Management previously explored how highly regarded talent could soon see their loyalty tested in an uncertain market, as cost-cutting programs drive a rise in redundancies across the wealth management industry.
According to Kaizen Recruitment’s Darragh Cleary, manager for investment operations and accounting; and Amanda Chisholm, director for legal, risk, compliance and executive search, conversations around development and other growth opportunities are becoming more commonplace.
“Remuneration is a key factor in the retention and attraction of talent, particularly if an organisation is looking to unbolt talent from a competitor or move someone with a highly demanded skill set.
“However, firms understand that this alone isn’t enough and are enhancing their employee value proposition to ensure they retain talent for the long term,” they told Money Management.
In one instance, the pair detailed an executive in their network who noted high achievers and employees with less than 18 months in the business were being “picked off” by other opportunities, leaving average or underperforming employees to remain year-on-year.
This was in spite of the business’s annual staff turnover appearing positive on paper at just 4–6 per cent.
“This has meant that they have had to look at new ways to incentivise and retain their top performers and ‘rising stars’,” Cleary and Chisholm said.
Reflecting on the last year, they noted managers are placing a greater focus on employees’ medium- and long-term development outside of usual catch-ups with teams.
This includes offering paid personal coaching, subsidising additional formal education, providing support in securing industry mentors and other means to stimulate growth and professional development.
“There is an emphasis on career development discussions, internal growth opportunities, and some employers are encouraging employees to join relevant industry bodies to continue developing their networks,” they said.
Adrian Karloci, founding director and senior consultant at B&K Consulting, agreed that development remains a top priority in the current jobs market.
“I don’t remember a time when I’ve heard more people talk about development as something that they’re seeking,” he told Money Management.
“[This is] development in the form of growth, training, exposure, a clear path of progression.
“I know it seems simple, but development planning is huge.”
Impact of industry consolidation
One area with a significant impact on the financial services sector has been mergers and acquisitions (M&A), which have created some challenges for staff who are finding fewer opportunities to move between organisations.
This, according to recruiters, has driven candidates to place a stronger emphasis on development within their current roles.
For Karloci, employers who are able to embed a development focus effectively, and communicate this successfully with their teams, are the ones able to retain the best talent.
“I think great people just want to be constantly learning and growing,” he remarked.
“In the world of wealth management, all this consolidation has resulted in lesser companies to go and work for. So, slowly but surely, the mentality has shifted – if I can’t go to another organisation for growth purposes, how can my current employer help me grow?”
Kaizen’s Cleary and Chisholm also took note of the impact of industry consolidation, particularly on senior leadership roles.
“M&A across financial services, particularly among consolidating superannuation funds, is creating a negative overall impact on role volume where duplicate positions arise, particularly at the senior manager and above levels as funds often absorb the more junior employees post-merger,” they said.
This has resulted in some senior and executive level talents having to enter into the market pre-Christmas, competing for a “shallow pool” of presently available opportunities.
“However, we have noted additional opportunities generated within transitions and projects. Transition experience is currently a key skill set in demand within investment operations,” they explained.
“Candidates are still actively assessing the market. However, they are conducting thorough due diligence on opportunities in the face of significant company/role restructuring in 2024.”
