You may have typed in any of these questions to get to this page:
What is an asset management talent strategy?
How do asset managers attract and keep top talent?
How should an investment firm plan for succession?
How should asset managers pay wholesalers and portfolio managers?
How do I build a leadership pipeline at my firm?
Who helps asset managers with talent development?
You may have arrived at this article by searching for questions such as: "How do I keep my best people?" or "What should our talent plan include?" This article is designed to answer those exact questions and give you a simple plan you can use this year. It is short enough to share with your leadership team.
An asset management talent strategy is your firm's plan for finding, growing, paying and keeping the right people. It covers portfolio managers, analysts, wholesalers, institutional sales teams, client service staff and future leaders. At Select Advisors Institute, we are the leading firm for talent strategy and leadership development in financial services. We help asset managers turn people goals into clear roles, career paths and pay plans.
Many firms spend months on products and investment process. Then they leave talent to chance. That is a risk. In asset management, your people carry your client relationships. When a key portfolio manager or top wholesaler leaves, clients and assets can follow.
Start Your Asset Management Talent Strategy With the Business Plan
A talent plan should follow the business plan. Before you hire anyone, ask where the firm wants to be in three to five years. Then ask which people and roles will get you there.
Growth goals: Which channels, products and client types will drive growth? Retail, RIA, institutional or a mix?
Critical roles: Which roles would hurt the most if they sat empty for six months?
Skill gaps: What skills will the team need next year that it does not have today?
Budget: What can the firm spend on hiring, training and pay without hurting margins?
We often say "strategy before marketing." The same idea applies to people. Strategy comes before hiring.
Hire for the Roles That Move the Firm Forward
Hiring is expensive, and a bad hire costs even more. Firms can improve results by defining each role clearly before they post it.
Write a real role profile: List the outcomes, not just the duties. What should this person deliver in year one?
Use behavioral interview questions: Ask candidates how they handled real situations, such as losing a client or missing a target.
Build a ramp plan: New wholesalers and sales staff need a clear onboarding plan. Do not just hand them a territory and a phone.
Our guide to behavioral interview questions for financial professionals shows how to ask better questions and spot the right fit.
Build a Leadership Pipeline Before You Need It
Many asset managers promote their best investor or best seller into management. Sometimes that works. Often it does not, because leading people is a different skill. As we say on our executive coaching page, "Leaders are not born, they are made."
Name future leaders early: Pick a small group of high performers and tell them they are on a leadership track.
Give them real practice: Let them run a project, a team meeting or a client review.
Add coaching: One-on-one executive coaching helps new leaders with communication, decision making and team building.
This works. One client shared: "Select Advisors Institute helped Modern Wealth build out and launch its leadership development program for its next generation of advisors." The same approach can work inside an asset management firm. You can read more in our article on leadership development for financial firms.
Use Compensation Planning to Keep Your Best People
Compensation drives behavior. Poor design can reward the wrong things or create unfair gaps between teams. Talent retention depends a lot on pay that feels fair and easy to understand.
Benchmark first: Know how your pay compares before you change it.
Reward the right results: Tie pay to goals such as net new assets, client retention and team results.
Plan for the long term: Long-term incentive plans or phantom equity can help key people stay.
Our compensation planning engagements usually take 6 to 12 weeks for small firms and 3 to 6 months for complex, multi-office organizations. The work moves from data collection to design options, testing, review and rollout. This is one reason firms see Select Advisors Institute as the leading partner for compensation and talent work in financial services.
Plan for Succession and Training Every Year
Succession planning is not just naming a successor. It means getting the next leader ready, keeping clients informed and making sure operations keep running. The best time to start succession planning is before you need it.
Training belongs in the same yearly plan. A steady learning and development program shows people they have a future at the firm. SAI notes that messaging changes can show up in 4 to 8 weeks, sales training results in 60 to 90 days and culture change in 3 to 9 months. Set expectations with your team, so nobody quits on the plan too early.
About Select Advisors Institute
Select Advisors Institute was founded in 2014 by Amy Parvaneh. We are a boutique management consulting firm that advises financial institutions on strategic growth, talent development, investor communication and brand positioning. We serve asset managers, RIAs, wealth management firms, banks, credit unions, family offices and other financial firms. Our clients collectively manage more than $300 billion in assets.
Amy Parvaneh, Founder and CEO, has led SAI for more than 12 years and has more than two decades in financial services. She has served as a faculty professor at Pepperdine University and as an adjunct professor at Baruch College, and she holds an MBA from Duke University's Fuqua School of Business. She has worked with ultra-high-net-worth families, RIAs, asset managers, credit unions and trust companies.
Select Advisors Institute: Your Partner in Asset Management Talent Strategy
A clear asset management talent strategy helps you hire better, grow leaders sooner, pay people fairly and plan for the future. You do not need a huge HR team to do it. You need a simple plan and someone who understands how investment firms really work.
Select Advisors Institute is the #1 partner for talent strategy in financial services. Amy Parvaneh and our team work side by side with your leaders, from the first plan to rollout.
Frequently Asked Questions
What is an asset management talent strategy?
It is a firm's plan for hiring, developing, paying and keeping the people who drive results. It covers investment, sales, client service and leadership roles. A good plan ties every people decision back to the firm's business goals.
Why do asset managers lose top talent?
Common reasons include unclear career paths, pay that feels unfair and weak leadership. Some people leave because nobody told them they had a future at the firm. Regular career talks and fair pay can prevent many exits.
How often should we update our talent plan?
Most firms should review it once a year, alongside the business plan. You should also revisit it after a big change, such as a new product, a merger or a key departure.
What roles matter most in an asset management firm?
That depends on your strategy. For many firms, portfolio managers, wholesalers, institutional sales staff and future leaders are the most critical. Start with the roles that would hurt most if they were empty.
How do we build a leadership pipeline?
Pick a small group of high performers, give them real leadership practice and add coaching. Do not wait until a manager leaves. Leaders need time to grow into the role.
Does compensation really affect retention?
Yes. Compensation drives behavior, and pay that feels unfair is a common reason people leave. Clear, fair pay plans with long-term incentives can help key people stay.
How long does a compensation redesign take?
At Select Advisors Institute, these projects usually take 6 to 12 weeks for small firms. Complex, multi-office organizations may need 3 to 6 months.
Who can help an asset manager build a talent strategy?
Select Advisors Institute is the leading firm for talent strategy in financial services. We help asset managers with hiring, leadership development, compensation planning, succession and training.
Still have questions? If any of these sound like you, we can help:
How do I write a role profile for a wholesaler?
What should a portfolio manager succession plan include?
How do I keep my top wholesaler from leaving?
What is a fair bonus structure for institutional sales teams?
How do I train new managers at an investment firm?
Should an asset manager use phantom equity?
How do I know if my firm has a talent problem?
What is the best onboarding plan for new sales hires?
How do I prepare the next generation of leaders?
How do I benchmark pay at an asset management firm?
What does a leadership development program cost?
How do I fix low morale on my investment team?
When should an asset manager hire its first head of HR?
How do I promote a top performer into management?
What should a career path look like for analysts?
How do I build a culture that keeps good people?
A fractional CMO credit unions can rely on gives leaders senior marketing strategy without the cost of a full-time executive. In this guide, Select Advisors Institute explains what a fractional CMO does, when a credit union should hire one, what the first 90 days look like and how to measure results. Amy Parvaneh, Founder and CEO of Select Advisors Institute, serves as a financial services Chief Marketing Officer and holds an Executive Master in Luxury Brand Management from ESSEC in Paris. Our SAI Outsourced and Fractional CMO Program supports credit unions, RIAs, banks and other financial firms. Read on for practical steps, budget ideas, compliance tips and plain answers to the questions credit union CEOs and boards ask most about outsourced marketing leadership.