Tough Market for Hiring Investment Execs in 2015

The paper said employers should be prepared to pay a lot to attract new executive talent, as most potential recruits would require a double-digit hike in compensation along with some form of equity.

The recourse for smaller firms is to be creative by articulating the importance of the position to both the firm’s success and the individual’s career.

Sixty-three percent of respondents said equity had become a more important priority to their total compensation package today than it was five years ago.

Candidates want to benefit from their firm’s increasing value, given the rise of financial markets, the paper noted.

It said equity should be part of any compensation package whenever this was possible. Alternatively, a profit-sharing plan could demonstrate a firm’s willingness to share the upside of its business.

According to the paper, respondents showed a robust confidence in the marketplace. Seventy-six percent said the job market was “slightly” or “much” better in 2014 than in 2013.

Further, 82% expected their firm to hire more executives in 2015, and 85% rated their firm’s ability to attract talent as “good” or “very good.”

As to the biggest challenges to finding talent, 24% said their firm was not paying enough, and another 24% said that not enough strong talent was available.

The paper recommended that firms not invest much time in candidates before establishing early in the interview process the individual’s compensation expectations and whether that lined up with the firm’s budget.

The paper said 2014 data had confirmed the importance of leadership. Respondents expected their leaders to lead more effectively, and indicated there was much room for improvement.

“If your business plan includes hiring, your offer must meet higher expectations this year,” Freeman said.

“Executives want it all — more responsibility, career growth, a synergistic cultural fit and highly competitive compensation. Without a complete package, they probably won’t make a move this year.”