The complex field of investment management is steadily evolving, and this means leaders from all sectors must keep their eyes peeled for new talent. But balancing retention and professional development on top of the seemingly endless recruitment process for top talent can be burdensome for business owners. To help remove some of the burden, here’s a rundown of what investment management companies can do to recruit, retain and develop top talent.
Understand that talent does not always stem from the same spots.
Recruitment should not be limited to Ivy League alumni. While it’s routine to pull candidates from this sector of society, it’s imperative investment management leaders recognize that talent is not limited to a specific type of individual. Going into the recruitment process with a broader perspective on what type of candidate you are seeking rather than a specific credential can expand your company’s talent in areas you may not have expected.
Promote sponsorships instead of mentorships.
The terms “mentor” and “sponsor” are not interchangeable. We hear left and right from people in every industry about mentorships, but what about a meaningful sponsorship? Mentors have mentees. Sponsors have proteges. Each relationship has its time and place, but in my experience, the latter usually receives much less attention. A sponsor is typically someone from a senior level in a company, whereas a mentor could be someone just steps ahead of an entry level position. Sponsors have “been there, done that,” so to speak, and, therefore, have a broader perspective and greater experience to bestow on their proteges. Encourage sponsorships, rather than mentorships.
Encourage internal programs that support empowering the next generation.
Allowing your fresh talent to foster their growth internally is one of the best things investment management leaders can do to retain and develop talent. At my organization, we created an Emerging Leaders Initiative, which helps professionals who aspire to reach the next step in their career while building their leadership skills. The initiative provides a network across the financial investment industry to create valuable connections that will foster personal as well as professional growth. Internal programs such as this can springboard into potential sponsorships with senior leaders in the industry.
Raise awareness about programs that promote professional growth.
A major reason why new investment management professionals might not participate in sponsorship programs is due to unawareness. From their first day, make sure your new hires are aware of the programs at their fingertips that can help them grow professionally. Who knows? This could be the very thing that helps them succeed in the industry and move up the ladder.
Celebrate and encourage diversity.
As the president of a nonprofit committed to promoting diversity, this one rings near and dear to my heart. The benefits of implementing diversity into the workplace are extensive, and making sure every walk of life is represented in the workplace creates a more inclusive and open-minded atmosphere. Better financial performance and increased employee engagement just scratch the surface of the perks of implementing diversity practices in the workplace.
What can we do as individuals and companies to empower the next generation of finance leaders? It all starts from within our businesses and what we implement to inspire young professionals to stay in the industry and succeed. It’s up to each and every one of us to create the change we want to see and empower a more diverse generation of investment management leaders as we look to the future.