As wealth management firms prepare for a period of growth, innovation and change, attracting skilled specialist talent will be incredibly important.
Strong growth and falling rates puts the sector in a strong position to do well, and as the industry undergoes a huge amount of transformation, especially regarding rapid technological advancements, firms will need to adapt their recruitment strategies.
From our research 73% of employers across the Wealth Management sector said they’re planning to hire new talent in the next year, yet 64% said they think they will struggle to find suitable applicants. Research shows that this is partly due to an ageing population, with nearly half of financial advisers and advisers planning to retire in the next five years. Other reasons include negative workplace cultures, misalignment of values and a lack of investment in market leading tools and technology.
Additional insights from our 2025 Wealth Management Salary Guide and Market Sentiment report include a range of interesting factors employers and professionals should pay attention to.
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65% of respondents said their biggest market challenge will be compliance and regulation
As the FCA increasingly becomes a data led regulator it’s expectations of firm’s reporting abilities increase. Over recent years stricter policies around conduct risk have been implemented to ensure risks are raised and handled appropriately. Heightened focus has been on high profile errors in the retail banking sector which have increased pressures on wealth managers operating in universal banks and bank holding companies.
Frameworks and policies that ensure compliance with the consumer duty will continue to be key and firms will be assessed on whether they have sufficient data to evidence good customer outcomes. The FCA have confirmed they will intervene if there is a lack of data and evidence. One of the regulator’s reports showed that “49% of portfolio managers and 69% of stockbrokers had identified no vulnerable consumers” (Deloitte: Investment management and wealth – supervisors demand strong governance).
33% of employees said their salary had stayed the same for the past 12 months
Competitive compensation packages remain one of the most important factors when attracting and retaining top talent. When we asked employees across the profession what was most important to them when choosing an employer, pay, non-financial benefits and career progression ranked as the top three.
A study conducted by Arizent, insights and data company, that surveyed 600 people across wealth management, banking, accounting and other industries, illustrated that “28% [of respondents] said low compensation was the top driver of turnover” (Financial Planning: 4 ways firms can win the war for advisor talent).
82% of employers said they don’t have an employee value proposition
People are drawn to wealth management firms that encompass a culture they can respect, and aligns to their own values. In order to stand out in a saturated market it’s incredibly important for firms to clearly define and communicate their core purpose with a compelling narrative and brand story. May firms likely have a strategy for diversity and equity, ESG, charitable giving and wellbeing, but few take the time to assess their differentiators and market them effectively. For guidance on developing an effective employer value proposition get in touch.
For more insights on the wealth management employment market, plus accurate salary data and hiring predictions for the next year access our 2025 Wealth Management Salary Guide and Market Sentiment report.
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