Why Family Offices Are Facing Recruitment Challenges: It’s More Than Just Salary!

About two-thirds of ultra-wealthy private investment firms are struggling to hire and keep key staff, according to a recent survey. The talent pool is shrinking, and many employees doubt their long-term growth at family offices.

This issue is especially pronounced in larger family offices. A report from AlTi Tiedemann Global and Campden Wealth revealed that 92% of firms managing over $1 billion face recruiting challenges. Even though they can offer competitive salaries, they experience high turnover rates, with an average of one employee leaving every nine months.

On the flip side, smaller family offices, particularly those with $150 million to $249 million in assets, face fewer retention issues. They often fill key roles with family members, reducing reliance on external talent.

Erik Christoffersen from AlTi points out that many older family offices need to attract new talent as staff retires. He notes that there is intense competition from institutional investors for top investment professionals. While compensation is important, the lack of clear career paths in family offices is a bigger hurdle. About 55% of respondents cited this as a major barrier, compared to only 26% who pointed to salary concerns.

Christoffersen suggests that family offices should rethink their organizational structures. This allows them to better utilize their talented staff, potentially offering higher compensation as employees take on more interesting roles. Providing better benefits and more flexibility, like remote work, can also help keep talent longer.

In today’s volatile market, having a skilled team is crucial. Christoffersen emphasizes that in the last decade, investors benefited from low costs and minimal volatility. Now, effective strategies are more important than ever. "You can’t just rely on a passive index portfolio," he warns.

This perspective is echoed in recent trends on social media, where young professionals increasingly seek workplaces that offer growth opportunities and flexibility. Family offices that adapt to these demands will likely win the talent war.

For further insights, you can explore the detailed report from AlTi Tiedemann Global here.

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