The COVID-19 prompted decline in investment performance is expected to impact revenues and asset managers are bracing for further cost cutting. 

While the pandemic will obviously result in a rise in unemployment in our wealth management industry, some organisations are still hiring – as reported in the trade press.

Casuals were one of the first segments to be let go, with contractors soon following and organisations are also looking at forced leave and bringing forward retirements to reduce costs.

That said, there are still roles that need to be filled, such as in risk management, business continuity and call centres.

Cutting recruitment is another area for cutting costs. But this requires transforming the process to not only meet the current social isolation requirements, but also to improve it. 

How can you hire while maintaining social isolation?

Lock-down restrictions on face-to-face meetings means that many of the industry’s hiring, management and engagement process need to be transformed. 

While it may seem counter-intuitive, there are proven ways to recruit without meeting people face to face: ways that work better than traditional hiring methods. 

Research by LinkedIn cites that traditionally the majority of candidates hired are selected on ‘gut feel’, despite the fact this is successful[1] only one in seven hires. These are low odds for success and investment owners and managers would not invest in a company with those odds. Yet, this remains how most financial services HR departments hire, despite the fact that almost two-thirds of HR teams admit their traditional interviews failed at assessing candidates’ soft skills, according to the LinkedIn research. 

Now is a good time to transform this.

The solution

LinkedIn also notes that over three-quarters of candidates find their next role through a contact. Inhouse HR, which is rightly increasingly undertaking their own recruiting, needs to recognise this fact and harness it. This means that upon receiving a role brief, they should search who would be best at that role, who has excelled at it in the past – and then reach out to them.

Wealth management organisations, now more than ever, need the best people in the industry. And those in the industry know who these people are.  The best way to determine who these people are is through referrals. HR departments need to start this referral search even before advertising and seeking resumes.

Super Recruiters is assisting organisations to build this strength in their own HR departments. (This is more than a simple referral fee paid to employees who identify successful candidates). 

Wealth management organisations rightly need to reduce costs, including reliance on external recruiters and instead focus on transforming their internal recruitment resources. 

[1] Over more than two years of successful service