Family offices are responding to the intense competition for top talent by giving their top staff perks such as equity, profit shares, and other lucrative benefits. This move is particularly aimed at retaining and attracting key employees in finance roles including portfolio management, financial planning, and investor relation roles.
These family offices want to ensure they can compete with big banks and alternative investment firms which historically have offered substantial incentive packages to lure top talent. By offering similar or better compensation packages, they hope to motivate employees to stay long-term and contribute to the success of the investment operations.
Further, as family offices continue to professionalize their operations and increase in complexity, the role of top-level staff has become even more critical. Consequently, family offices are willing to share more of their wealth to ensure they have the best people running their operations.
This trend is believed to be beneficial to the employers as well as the employees. For the employers, it can decrease turnover and increase commitment. For the employees, it’s a way to share in the profits and the success of the company, thus, motivating them to work harder and smarter.
