F2 Strategy recently surveyed a group of RIAs, wealth management firms, regional banks and bank trust firms to understand how they are weathering the “great resignation” in their technology departments at a time when the focus on technology innovation has never been higher. Not surprisingly, many report seeing higher rates of attrition. The majority of firms also report they plan to hire more tech talent over the next two years. These two findings run counter to each other. There is not an endless supply of tech talent. Already, wealth management firms struggle to bring in the best talent as they compete with traditional tech companies who lure talent with flexibility and desirable work projects. The combination of these two trends only exacerbates the problem.
Firms that wish to remain competitive with the ability to deliver on client expectations will have to think strategically about making themselves appealing. Often this can mean looking more like technology firms that provide flexibility, good pay and meaningful work.
TREND 1
33% of Firms Report Noticeable Uptick in Attrition
Insights and Actionable Intel
- More competitive compensation packages and seeking out promotion/career advancement are the primary factors driving resignations
- The desire for flexible remote work policies is an additional new driving factor in the post-COVID economy
- No one is immune: the trend is not limited to any geographic area; firms large and small are seeing higher attrition across the country
- Many firms have already taken note; 61% have developed strategies for mitigating attrition. Their top two actions include competitive salary adjustments and bonuses and flexible/remote work environment
- Take Action: Stem attrition with reimagined HR policies that include competitive pay, flexible remote work policies and more opportunities for promotions and diversified project experiences
TREND 2
78% of Firms Plan to Increase Their Tech Resources in the Next 2 Years
Insights and Actionable Intel
- This continued increase in technology resources is on top of the 84% of firms who have increased their resources over the past two years
- Technology talent is finite and wealth management firms are competing for the same people
- When attracting tech talent, firms need to understand they are not only being compared to other firms in the industry, but to companies in every industry
- Take Action: Create a strategic hiring plan that includes flexibility, good pay and meaningful work. When it comes to meaningful work, smaller wealth firms often have the advantage over large firms and should highlight the meaningful work that tech talent would not have the opportunity to be a part of if working for a larger organization. They can play up the talent’s ability to make their mark and wear many hats.
Survey Information: The data in this report is pulled from a survey conducted by F2 Strategy in April 2022. The survey includes responses from 33 leading RIA and Wealth Management firms representing $4 trillion in assets.
