Executives in investment and wealth management are more satisfied in their jobs than at any time since the financial crisis but employers can’t rest on their laurels when it comes to staff retention, according to a new report on hiring in the industry.

The number of executives who are looking to move jobs has fallen consistently since 2009, according to findings in The Kathy Freeman Company survey for 2012. Just under half of executives interviewed said they were likely to consider an opportunity outside their current firm. This has fallen steadily from 78 per cent in 2009.

This is despite the fact that an overwhelming 80 per cent said the job market is better than it was a year earlier – meaning most people think there are more attractive opportunities out there.

Hundreds of executives were interviewed during a six-week period at the end of 2012 for the survey, and the picture that emerged was one in which executives are open to opportunities but are much more discerning than they were a few years ago, when conditions were clearly much tougher.

Particularly, equity ownership is an important part of a package and executives are looking to work with firms where employees are viewed as partners, and which provide a long-term future. Around 60 per cent said they would be willing to consider less cash compensation for equity ownership, and around the same percentage said equity had become a more important part of the package than it was five years ago.

The authors of the report view this as a vote of confidence in the industry, signaling that executives think that there is plenty of upside to be captured at the right firm.

Despite a number of crises to hit the financial services industry – volatile markets, busts and bailouts, and a generally negative public image – the majority of people want to stay inside the industry. In the survey, 80 per cent said they were aren’t contemplating a career outside of finance.

A hiring strategy

In what is actually a sellers’ market, the report says, employers “cannot sit back and be cautious.” It recommends linking compensation to the success of the overall firm and, especially where asset managers are owned by large insurance or banking groups, creating a plan for sharing equity.

Firms should also have a clearly articulated succession plan so that top performers have a career path, and reward creativity to promote idea generation from within, the report says.

“Perhaps most importantly, firms will need to act quickly in their recruiting efforts. The elongated hiring cycles of the past few years won’t work in this environment. If the right person is identified in the first round of interviews, be prepared to make a decision,” it adds.  

The report was produced by The Kathy Freeman Company, a California-based executive recruitment firm specializing in client-facing staff in wealth and investment management.