“Top talents are scarce”

Remunerations increase in the asset management industry, the demand for talents is high and diversity is becoming more important, analyse personnel consultants and headhunters on altii.

Articles and blog post about the asset management employment market can be found with the altii content link AL126472.

“The recent, driven by the ECB’s interest rate policy, positive development of equity and debt markets have increased inflows and thus AuM in the retail and institutional business in the past years significantly,” says Matthias Junges, Senior Partner at the personnel consultancy PMCI, in his blog “Gehälter in der Asset Management Industrie” on altii. A set of new funds boutiques has established themselves on the German market and foreign asset managers are competing for German investors. This also had an impact on the employment market. A summary of salary ranges for different positions can be found in Matthias Junges’ article.

Beside mandates for institutional clients, personnel consultants are seeing a higher demand for retail sales personnel. Marijana Miljkovic, Consultant at Indigo Headhunters, says that asset managers are developing their retail sales business and hire new staff. Still, in her article “Retail Sales: Top Talente gefragter den je”, she admits that the demanded “top-talents in retail sales are scarce on the market.”

At alternatives, demand for talents is high as well. Due to low interest rates and high liquidity, investors are demanding more alternatives. Established players are trying to enlarge and develop their teams while again, foreign asset managers are trying to attract German investors, says Britta Bene, Consultant at Indigo Headhunters, in her article on altii “Alternatives in Germany - the party is on.” Because this asset class was ignored for long time by German investors, very few German professionals are capable of keeping up with their UK and US counterparts.

Looking outside of the asset management industry, especially financial service providers are on search, say László Ujpál and Alice Corp, both Consultants at Selby Jennings. They show in their article “Germany - a healthy hiring market” that working for data and software providers has recently gotten more interesting. While this area of work has been seen as less glamorous, salaries have increased and are now equal to or even higher than in asset management.

For the German hiring market, personnel consultants and headhunters seem to be in a positive mood. For the Swiss market, this is only true partially. László Ujpál and Alice Corp explain in their altii blog “Switzerland - a new hiring situation”, that the decision of the Swiss National Bank to remove the Cap of the Swiss Franc against the Euro has lead to layoffs in January and February. The asset management employment market has gotten “even more saturated […] with the same high number of active candidates now competing for even fewer jobs.” Just in March and April, more people have been hired again.

Many consultants believe as well that diversity will be more important in the future. In her blog post on altii, Isabel Moessler, Head of Capital Markets at ETF Securities, shows that supervisory boards with a higher diversity are less involved in scandals and manage ESG risks better. Still, it is not the diversity itself that interests asset managers but rather the implementation of laws and regulation that increases the asset management industry’s demand for female executives. “Women are now in high demand and the race is set to secure the best talent within your industry,” say László Ujpál and Alice Corp in their article “Germany - a healthy hiring market”.