Investment firms enjoyed a banner year in 2014, successfully retaining their top sales and marketing executives, but this year will severely challenge those trying to attract new talent, according to a white paper released Thursday by the Kathy Freeman Co.
The national retained executive search firm’s Sixth Annual Executive Survey of investment industry sales and marketing leaders found that 82% of respondents stayed with their firm in 2014.
Indeed, fewer executives changed jobs last year than at any time since 2009.
According to the survey, respondents stayed with their current firm because they were able to make a positive contribution and their compensation remained attractive.
Still, 58% said they would consider a new opportunity in 2015.
The paper said this was good news for firms that could present attractive opportunities with strong offers, and problematic for smaller ones that wanted to grow but had limited resources.
The paper recommended that firms lock in top performers through compensation plans offering long-term rewards, and that they demonstrably acknowledge these employees’ contributions.
The Kathy Freeman survey was conducted in the fourth quarter among currently employed executives with an established career in a senior sales, marketing or client-facing capacity with financial services.
“This year will be a very challenging recruiting year, particularly in light of the continued talent shortage in 2014,” Kathy Freeman Godfrey said in a statement.
“In 2015, the recruiting advantage may finally swing back to the larger firms that have the resources to offer the bigger jobs at more compelling compensation levels.”
The survey found that 60% of respondents had enjoyed increased compensation in the past year, while compensation had remained the same for 30%.
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.