The Alternative Investment Management Association conducted a survey with 100 hedge fund managers to explore the strategies they are adopting to attract exceptional talent. The findings revealed a highly competitive landscape, with hedge funds vying against large financial institutions offering substantial salary increases and tech companies promising innovative and adaptable working conditions. To stay ahead, the hedge fund industry is now adapting to these new dynamics.
Survey participants highlighted their efforts to adapt to this evolving environment. A key focus is on enhancing diversity, equity, and inclusion (DE&I) through various recruitment strategies. The industry recognizes that attracting and retaining top talent now involves casting a wider net to include a diverse range of candidates. Moreover, the traditional allure of financial compensation is being overshadowed by the growing importance of non-monetary benefits, especially flexible working arrangements.
Retention of talent: A primary concern
The survey also revealed that hedge funds are not just focusing on hiring but also on retaining their staff. Post-pandemic, employees in this sector are revaluating their career options, with about 90% of survey respondents expressing concern about talent retention in the short term.
To reduce the risk of losing key employees, hedge funds are conducting internal research to determine which organizational changes could encourage staff to stay. The survey indicated that promoting work-life balance and supporting parental leave are leading strategies, chosen by 69% and 68% of respondents, respectively.
One major U.S. hedge fund expressed regret at losing valuable staff to competitors due to delays in announcing the continuation of flexible working arrangements, underscoring the urgency of organizational change.
Flexible work environments: A leading retention strategy
In an industry known for its intense work culture, the emphasis on non-financial benefits marks a significant shift. According to the AIMA survey, 76% of hedge funds plan to offer flexible working options to support employee well-being and retain talent, making it the most favored strategy over even competitive pay.
Ref: (2023. November 7) Aima.
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