Investment industry sales and marketing executives who “sacrificed for the greater good” of their firm during the economic downturn are now reprioritizing around their own careers, according to a report released today.

Investment industry sales and marketing executives who “sacrificed for the greater good” of their firm during the economic downturn are now reprioritizing around their own careers, according to a report released today.

Over half (57 per cent) of respondents to the Kathy Freeman Company’s fifth annual executive survey - entitled Human Capital Strategies: Who Will Win In 2014? - said they would consider a role outside their current firm in 2014.

The Kathy Freeman Company is a US executive search firm specializing in the asset and wealth management, and investment technology spaces. The firm’s latest report examined key factors when it comes to attracting and retaining sales and marketing professionals.

However, executives remain “very particular” about their next move, with “specific details” likely to “carry the day,” the report says. It is also worth nothing that, since 2011, the number of executives saying they would consider a position at another firm has remained within the 50-60 per cent range (the figure was considerably higher in 2010, when around 75 per cent felt this way.)

For recruiters, the finding points to opportunities ahead, while for an employer is a reminder to ensure they are aware of changing expectations among employees.

For example, one of the main findings of the report was that career growth prospect is a key determinant of whether executives choose to stay at their current firm or move elsewhere. The opportunity to build a business was regarded equally as important among respondents.

Meanwhile, 60 per cent of those surveyed said equity ownership contributes to career satisfaction more so today than previously and is thus is regarded as increasingly important. Likewise, 62 per cent said they would consider taking less cash for an equity stake (the same amount was recorded in the previous survey).

The report recommends that employers discuss the availability of equity or initiate profit-sharing plans as a component of their firm’s retention plan.

“Target the executives at firms whose career progression is blocked. Post-financial crisis, there is pent-up demand within the industry to explore new challenges,” it says.

Increased activity among smaller firms

In line with a seemingly improving economy, many smaller firms are looking to change their leadership lineup, the report suggests.

“The search for rising stars is creating more opportunity in the executive suite than we’ve seen in the past five years,” the report says.

While under half (41.2 per cent) of those surveyed thought the job market will be significantly better this year, well over half (57.4 per cent) anticipate it will remain the same and just 1.4 per cent think it will deteriorate.

In other significant findings, it was also found that the industry is “in denial” about the shortage of talent - despite a flood of research in recent months showing that Baby Boomer investment executives – and indeed other senior staff in the wealth management world - are set to retire en masse over the next ten years.

The role of corporate culture

Meanwhile, the report advised “not to underestimate the importance of corporate culture,” as the findings suggest that job satisfaction or dissatisfaction is highly correlated to this. 

Even though only 18.5 per cent of those surveyed switched firms last year, dissatisfaction with the role, compensation and culture were the main drivers behind doing so.

The findings resonate with those of Family Office Exchange’s Family Office Compensation & Benefits study, released in November last year. While those insights reflected the family office space, the report found that finding and retaining talent has emerged as a family office’s top challenge when it comes to human resources.

The 225 survey participants in Kathy Freeman Company’s report represented firms in asset management, wealth management, alternative investments, private banking and trust, and service providers to the investment industry.