Why is there a talent shortage in family offices?

A shortage exists because the demand for advisors with specialized skills (like ESG and tech) outpaces the supply, coupled with the need for rare soft skills.

How are family offices attracting top talent amidst competition?

Family offices are experimenting with incentive packages, 'golden handcuffs,' and relying on headhunters, but face challenges with compensation and career progression.

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Family Offices Face Talent Crunch as Heirs Demand Change

Q: What are the new priorities for NextGen leaders in family offices?

NextGen leaders prioritize impact investing, sustainability, technological innovation, and diversity and inclusion within their family offices.

13 Dec

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Summary

Next-gen leaders want family offices to prioritize impact investing and tech.
A significant talent shortage exists for family office advisors.
Family offices are rapidly multiplying, increasing demand for rare talent.

Family Offices Face Talent Crunch as Heirs Demand Change

Family offices are undergoing a significant transformation driven by the evolving priorities of the next generation of leaders. Younger heirs are increasingly emphasizing impact investing, sustainability, technological innovation, and diversity, seeking advisors who align with these values. This shift has led to a surge in demand for professionals with specialized skills, such as ESG specialists and CIOs, yet the supply of qualified candidates has not kept pace.

The "changing of the guard" has resulted in an acute scarcity of talent, creating a highly competitive market for top professionals. Family offices require a rare blend of technical expertise and crucial soft skills like trustworthiness and emotional intelligence. Furthermore, the appeal of family offices for top talent is being questioned due to limited upward mobility and compensation packages that may not match those in larger financial institutions.