Family Office Recruitment

Report 2013

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Contents
Welcome & Introduction Exploring the Emerging Global Family Office Executive Summary FamilyOfficeRecruitment.com - What we do What is a Family Office? Jobs within a Family Office Key Recruitment Issues for Family Offices Candidates and family offices Trends Skills Salaries Recruitment firms and family offices Conclusions Thanks to Contributors Contacts Page 3 Page 5 Page 8 Page 10 Page 11 Page 13 Page 16 Page 21 Page 25 Page 31 Page 43 Page 49 Page 50 Page 52 Page 54

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Welcome & Introduction

Im delighted to welcome you to the Family Office Recruitment Report 2013, sponsored by Barclays.
The Family Office Recruitment Report 2013 is a global report, with the purpose of looking at the current state of the recruitment market within family offices. We address the key issues for family offices, the attraction of family offices for candidates, examine the trends, the skill requirements, and look at salary levels, as well as survey best practices and other issues. We addressed most of the areas family offices would look to hire in, from CEOs through to Accountants, from Personal Assistants, through to Butlers. The Report will be of interest not only to family offices themselves, but also to recruitment firms, candidates, as well as those who serve as trusted advisors to family offices, or who work in the private wealth space. The family office world is a private one, and therefore, it is not easy to compile such a Report. Likewise, it should not be assumed that all family offices adhere to what this Report describes. All family offices are different, and there is no one-size fits all approach, as family offices have different cultures, different structures, and therefore requirements for different roles however, our Report will provide an insight into some key issues that family offices face in general. With this being a global report, we admit that there will be some gaps, but we will fill these as we build upon this report on an Annual basis.

It is largely a hidden market, as the family offices are hidden themselves

Steffi Claiden, Founder & Editor-in-Chief, Family Office Review

I would like to thank all those who have contributed, by providing either qualitative or quantitative contributions, as without your help this Report would not be possible. This includes, in particular, specialist family office search firms / recruitment agencies who have first hand experience of working with both family offices and candidates trusted advisors to family offices our sponsor, Barclays and the Family Offices themselves.

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We respect your desire for discretion and privacy, and as a result, contributions from family offices will remain anonymous if requested, and most of these have been incorporated in the general text, unless where a quote particularly stands out and they are referred to as either a North American or European family office. I hope you find the Report useful, and you are welcome to contact me at the email below, and likewise, if you wish to register for our fortnightly e-newsletter.

Best wishes,

Vahe Vartanian Founder & Managing Director E: [email protected]

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Exploring the Emerging Global Family Office

Sponsors Editorial A family office can mean many things: an informal set-up of inhouse accountants, lawyers or other advisors, such as investment professionals; a formal private office serving one family; or a mini-financial institution serving multiple families. Regardless of the raison dtre, most family offices serve the purpose of acting as a discrete platform that aims to define and translate specific family interests into relevant wealth management services.
Importantly, the modern international family office is a very different one to the first single family offices (think Rockefellers). Today, the ultra high net worth market is the leading contributor to the growth of private wealth assets, growing globally at almost 10% per annum over the next five years, in an overall market that is growing at only 3-4%. The big question is how and why is this ultra wealth growing? There is no straight answer to this, but a few observations can be made: Wealth creation is moving eastward. For families engaged in emerging and frontier markets, the traditional separations of wealth creation and wealth preservation are not efficient enough. Rather, a case is being made for hybrid family office business models that more effectively feed direct investment, financial wealth creation and long-term portfolio management off each other. New wealth building is predominantly entrepreneurial in nature and still in wealth creation mode. Such families increasingly look to their banks not only for wealth preservation and wealth management, but for support in those wealth creation activities as well. Quite often, their needs are similar to corporate and institutional clients and require the same business capabilities, responsiveness, and technology platforms.

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The rise of the family without borders families that are building businesses and wealth at an entrepreneurial multi-jurisdictional level. These families are opting to partner with local specialists and market insiders beyond their home borders. Investment opportunities outside traditional investment banking and capital markets are increasingly more exciting and accessible. Multi-dimensional governance whether it be for the family business, the family unit, or the familys private wealth has become a top priority for family stakeholders. There is an unprecedented demand for deeply specialised legal, fiduciary, and governance experts. Although we are only beginning to see the rewards of such expert advice, the three-generation lifecycle of wealth is being put to the test. We expect, and certainly hope, that family wealth will last longer across multiple generations, offering families the opportunity to accumulate more steeply their private assets. Long-term risk management is becoming a more common decision-making factor in the investment selection and management processes of families. In addition, families are putting together more cohesive succession plans that are more efficiently managing multi-generational interests and are seriously investing into the education of their rising stakeholders. Profitability of family offices is gaining a new level of importance. Families no longer accept to act as a subsidy provider to their in-house teams, and are demanding that costs and the allocation of resources be continuously justified and managed efficiently.

So what does all this mean? For starters, we expect to see the emergence of a new type of ultra wealth that is more sophisticated, global and interconnected. The need for the right advisors whether they are in-house, salaried by families or external advisors in professional and financial institutions is a key success factor. The challenge facing these families will be sourcing talent in an industry that is clearly in a talent crisis with an undersupply of proficient experts. To manage this, moving forward, we expect to see the operating models of family offices more effectively define what activities are done in-house by the family office team and what activities are done through partnerships with the right specialists. This is why we are pleased to see the first of an annual series of talent recruitment reports, because we believe it is important that families recruit more strategically and tactically. Talent recruiting will need to be more about developing in-house teams that offer a value-add that complements the advice and services provided by external specialists. This is exciting, because it means there will be more opportunities for more resourceful partnerships to be forged between family offices and external specialists.

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We welcome a family office world that is marked by a concentration of high-end talent working alongside committed family stakeholders it is a world that we believe institutional wealth managers will learn much from, and in return, be able to provide deeper know-how and services to our clients.

Stefanie Drews Head of Key Clients and Family Offices Barclays Wealth and Investment Management

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Executive Summary
The family office sector is a private one, and therefore, it is always a challenging task to prepare a Report such as this. The purpose of this Report is to look at the key issues family offices face when it comes to recruitment, the attraction of working in family offices for candidates, as well as the current trends, skills requirements, salary levels and best practices.
The Report looks at family offices globally, and tries to cover the full spectrum of possible requirements that a family office might need from a Chief Executive Officer and Chief Investment Officer through to a Personal Assistant / Administrative Support, through to Household Staff, including Housekeepers and Butlers. Although families share many challenges, it is apparent that not all family offices are the same, and each has its own issues, culture and mindset; typically this follows the personality and experience of the Head of the family office. Asides from technical attributes, it is clear that family offices want to hire staff who will fit in and adapt to working in an environment which is different from other organisations. Staff often need to be adaptable to fit in with the family, and with the family office culture. It is generally agreed that Multi Family Offices provide more opportunities for career progression than Single or Virtual Family Offices. However, at the same time, staff can become disillusioned at Multi Family Offices, particularly if the needs of the families are not being met as the MFO has become too large, lost direction or, the original family has departed as it was not receiving the service it originally established the office to fulfill. Additionally, due to this growth, job roles may change from relationship based to sales based, which does not suit everyone. Individuals often seek a return to a relationship based role within a Single or small Multi Family Office. A family office job tends to provide job security, a work / life balance, and offers the prestige of working for a particular family. It appears that salary levels have remained at a similar level for the past few years and will continue to do so.

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Family offices grow organically rather than in a structured way, and it is necessary on occasion to evaluate the growth stage of the family office either internally or with the help of outside experts. A strategic review of the family office should be conducted, including an audit of the skills needed going forward, against what it presently has. Therefore, depending on the stage of development of a family office, the recruitment approach should vary, as skills requirements change. It is true that as skills requirements change, it is difficult for the Head of the family office, who feels a loyalty to existing staff. True family office talent is seen as rare, and much in demand, however, there is an abundance of experience and talent available from other sectors which family offices are turning to, and are willing to invest time in training. Key skills desired across most disciplines are cultural fit, discretion, appearance, commitment, and languages. Technology skills are also in demand, and this is where a generational gap emerges. Recruitment in family offices is not immune from market conditions, and indeed it has been a tough market since the economic crisis, with costs having to be cut, and job opportunities hard to come by. That said, talented individuals are always in demand, and 2012 has led to some optimism, which will hopefully continue into 2013.

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FamilyOfficeRecruitment.com What we do
FamilyOfficeRecruitment.com is a global portal designed specifically for family offices, for recruitment, news and general supplier directories.
We provide four key services: 1. Recommendations of search firms / recruitment agencies that specialise in recruiting for family offices A job board with the latest family office vacancies The Latest Family Office News A Family Office Supplier Directory, providing details of firms who wish to make family offices aware of their services, such as law firms, insurance firms, consultants, etc.

2. 3. 4.

We ensure that each firm on the website has a track record and experience of working with family offices. Recruitment recommendations are made by geographic region, as well as by specialism. That means we look to cover the full breadth of requirements within a family office, from CEO and Accountant level through to the Personal Assistant and Domestic Butler, encompassing all other roles between. As we have an overview of the family office recruitment market, we are able to produce this Report in conjunction with our network of recruiters, family offices and other partners, and collate all of this information with an independent viewpoint.

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What is a Family Office?

To first produce a report on family offices, we should begin by defining what a family office is and what the typical recruitment needs of a family office are.
Family Office definitions have long been debated, but for our purposes, we take the general and all-inclusive approach. Put simply, a family office is a private company or structure that looks after a wealthy familys wealth. Typically, this will involve managing investments, properties and structures for that family, whilst also offering personal services such as managing household staff and making travel arrangements. On top of that, a traditional family office would also cover day-to-day accounting, payroll, tax services, legal affairs, charitable giving and succession planning. Family offices work with extremely wealthy families, otherwise known as ultra-high net worth (UHNW), typically, it is said, with a net worth at least in excess of $100 million. Working with these families, it is natural that family offices are often very private organisations. The purpose of a family office is to manage and preserve the familys wealth for both current and future generations, whilst also providing for the familys day-today running costs.

Across the world, families create wealth in different ways and against different backdrops of political, cultural, market and belief / value influences. But they have very similar agendas when it comes to the transmittal of that wealth down the generations; protecting it and passing it on intact responsibly within a governance framework that encourages stewardship and creates a legacy are likely to be key drivers
Andrew Tailby-Faulkes, Global Head of Wealth Advisory for Key Clients and Family Offices, Barclays Wealth and Investment Management

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Three types of family office are typically referred to; Single Family Office (SFO), Multi Family Office (MFO), and Virtual Family Office (VFO). In simple terms, Single Family Office is the name given to a structure that looks after just one familys wealth, whereas Multi Family Office is the name given to an organisation that looks after the wealth of multiple families. A Virtual Family Office is generally a group of advisors who look after the wealth of a number of similar families on an outsourced basis.

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Jobs within a Family Office

Given the fact that one of the key functions of the family office is to manage investments, it goes without saying that family offices have job requirements on the financial side both for the management and administration of the familys wealth.
The financial side of the family office is typically split between the functions above and can be made up of a Chief Executive Officer (CEO), a Chief Financial Officer (CFO), a Chief Operations Officer (COO), with the investment aspects being overseen by a Chief Investment Officer (CIO). Within those, or accompanying those, is the need for Accountants, Tax Specialists, Analysts, Portfolio Managers, Investment Managers, Trust Officers, Wealth Planners, etc. Asides from the financial side, the legal aspect is also worth noting, and a family office could contain an in-house lawyer or General Counsel. The family office would typically have an administrator or personal assistant, and this could be just for the family office, or may also be at the disposal of the wider family. Looking after the personal affairs of the family is another non-financial aspect, and typically this would involve household / domestic staff jobs, such as Housekeepers, Estate Managers, Butlers, Valets, Chauffeurs, Gardeners, Nannies, and more. This personal aspect could extend to the other assets the family might own asides from property, such as yachts or private jets, and specialist jobs such as yacht crew staff and private jet staff can be seen as part of the family office.

Management of physical assets can bring up quite a heavy workload, as it goes beyond the staffing of vehicles or properties. Wealthy families are often collectors of art, jewellery, wine or other assets that require constant follow up, whether for maintenance, insurance, security and evaluation, attending auctions, etc
Tamar Hacoyan, Swisslinx

It should be noted that some of these jobs, particularly the financial and legal, can be outsourced, and that is an issue we will cover later on.

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Whilst this report will try to address all of the potential family office roles conceivable to our best efforts, as mentioned before, we will build on this report on an annual basis.

You really should sub categorize family office recruitment between Financial and Soft, which would include the concierge side. The soft side is more old school whereby butler services are appreciated, and there is a need for PAs that are more along the lines of mail opening and filing, bill paying and personal accounts reconciling, as well as a range of other services such as scheduling and travel management. The financial side of our office has two book keepers and accountants, plus a lawyer and accountant full time on staff, otherwise we contract out our legal, and accounting, we nearly always have a full time academic advisor on staff who works out of his home
Giovanni de Francisci, Petschek Family Office

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Key Recruitment Issues for Family Offices

We begin with an overview look at the specific issues that family offices face when it comes to recruitment.
However, before that, it is important to note that all family offices are different; once youve seen one family office, youve only seen one family office:

Im sure youve heard the statement that if youve seen one family office, youve seen one family office generally speaking, SFOs have the personality and values of the family whilst MFOs are more commercial service providers
Giovanni de Francisci, Petschek Family Office

Immediately, it is noticeable that a few key themes emerge, such as: Finding individuals with the suitable technical skills and experience, but also with the appropriate soft skills, temperament / fit The challenge of offering a career path The amount of management time involved when hiring Succession planning.

A constant theme throughout this report is the issue of finding individuals with the necessary skills and experience to work in a family office. This can be a difficulty for family offices, and they look to tackle the problem in different ways, with some finding it easier to source suitable talent than others; however, the issue is relevant across all seniority levels and sectors of recruitment, from financial hiring through to personal and household. There is common agreement that family office talent is rare, however, perhaps this is unsurprising, seeing as the family office sector is not large in terms of size, there are not that many family offices globally (although rapidly increasing), consequently it goes without saying that finding individuals with family office experience would be hard to come by.

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This, coupled with the fact that those currently working at family offices tend to stay in their positions for a long period of time, would naturally lead to a shortage of readily available family office talent. This can often lead to family offices looking outside of their sector for staff. When looking outside of their sector, family offices face another challenge whilst an individual may have the necessary technical skills, particularly on the financial side, they may not necessarily have the soft skills, i.e. the temperament or the fit to work in a family office environment, particularly if they are coming from a large organisation. Family offices are typically small, have a different investment mentality, and are more risk adverse. Due to this, the relationship with the head of the family, siblings, or the family office is extremely important.

Major issue for us is fit while recognizing this is a bit qualitative, our family office requires an extraordinary ability to roll with the punches and manage multiple priorities. While quantitative skills are important, its relatively easy for us to teach those what we cant teach is an aptitude to learn those skills. A flexible mindset when it comes to completing tasks is critical as is an ability to deal with volatile personalities
North American Family Office

The individual must also be adept at dealing with family issues and conflict.

It can be difficult to find staff who have the temperament to work within a family office as there are sometimes particular tensions created by different family members, that are brought into the office
John Elder, Family Office Advisors LLP & Hanson Investment Consulting

The size of family offices leads to the next key issue, which is in relation to offering staff a career path. It can be hard for family offices to offer a career path due to their size, and therefore, it is tough for them to attract / retain certain individuals. However, each family office tackles this issue differently;

Offering a career path we address this by being clear about our vision for the firm, and by supporting various professional development paths
David Carr, Chief Executive Officer, JonathanFry Plc

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This is where a key difference between Single Family Offices and Multi Family Offices is apparent. It is generally agreed that Multi Family Offices can offer individuals more career progression than Single Family Offices, due to the fact that they are typically larger organisations and therefore have more internal opportunities available.

I imagine that recruitment for single family offices is more of a challenge than for multi-family offices like ours. Fit must be harder to achieve and there must be less scope for progression / less variety in roles
David Carr, Chief Executive Officer, JonathanFry Plc

A multi family office would tend not to have the same tensions as a single family office, as they serve a number of clients and are often just investment boutiques
John Elder, Family Office Advisors LLP & Hanson Investment Consulting

Other than the generic CIO issue (meaning that a person will be involved with investments at SFOs or MFOs), I dont see that much similarity. In the SFO, number one is the persons ability to do the job and number one (intentionally duplicated priority) is compatibility with the family members. SFO jobs are more like dating chemistry than almost any other job
Timothy Lappen, Founder & Chairman, Family Office Group, Jeffer Mangels Butler & Mitchell LLP

That said it is also true that staff can become disillusioned at Multi Family Offices, particularly if the needs of the families are not being met; perhaps the MFO has become too large, has lost direction, or the founding family has departed as it was not receiving the service it originally established the office to fulfil. Additionally, due to this growth, job roles may change from relationship based to sales based, which does not suit everyone. Individuals often seek a return to a relationship based role either within a Single Family Office or smaller Multi Family Office. Another key issue for family offices is the time involved in conducting the recruitment process. Quite often, this takes up much management time, which is a heavy burden on Single Family Offices in particular, as finding technical skills, soft skills, and someone who is the right fit and personality, takes some time.

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The main issue we face when hiring is the management time involved, and the notice periods of new hires. Management time is one of the reasons we sometimes use executive search
David Carr, Chief Executive Officer, JonathanFry Plc

In conjunction with this, it is important that management time is spent considering the legal and general HR issues that accompany hiring a new person, which are particularly important for a family office, including background checks, references, having suitable contracts in place, confidentiality agreements, remuneration agreements, notice periods, and exit strategies.

I assume that all employees will be at-will (that is, they wont have an employment contract for a specific term). As such, they should use: an at-will employment application; a background check; a job description; a medical checkup (but ONLY for issues directly related to the specific tasks to be handled, such as the employees ability to lift an aging family office executive from the car to a wheelchair); an at-will employment agreement; a confidentiality agreement; periodic job reviews; an employee handbook (depending on the number of workers); and a separation agreement (when employment ends). Fit is the toughest to discern. I would start with a three to six month probationary period just to see if it works for both sides
Timothy Lappen, Founder & Chairman, Family Office Group, Jeffer Mangels Butler & Mitchell LLP

Recruitment also takes place at family offices as part of their succession strategy. Whether the head of the family currently running the family office is thinking of stepping down, or likewise an external expert running the family office, succession is an issue that needs to be taken seriously. The head of the family may decide to step down due to old age for example, and an individual external to the family acting as CEO, may be moving to pastures new. If a family member is not taking over the running of the family office, then there is the need to look externally. Even if it is a family member taking over, it is important to ensure that person has the appropriate skills in their armoury to take on such an undertaking. On some occasions, an external expert is brought in alongside the new family member to compliment their skills. Traditionally, when a patriarch steps aside, he would task his son with the running of the family office. However, we are now seeing the emergence of patriarchs who are handing over to their daughters. This is seen as a positive step, and patriarchs are taking steps to ensure that women are comfortable in taking on this role.

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We are beginning to see a number of family patriarchs take positive action to prepare and include women (daughters) to drive the business forward. In addition to formal qualifications, exposure to Asia, seeking corporate mentors and building international connections, are just some of the actions. Whilst, the commercial benefits of a more diverse leadership is not lost on patriarchs, there is acknowledgement that women are generally less risk averse and therefore the family business will be in responsible hands
Sabila Din, Founder & CEO, Din Consultants

The issue of a family office being run by family members versus outside experts is always an important decision. Whichever route the family office decides to take, it needs to be planned in advance, and ensured that there is enough of a handover period. Once again, fit is particularly important, especially if an external employee will be working with a new member of the family, rather than the older patriarch for example, as the new family member may wish to work in a different way or have different ideas.

Succession is a big issue as often the family office executive is the only one who knows where things are and thus can be more valuable to the family than he / she should be. In addition, without proper checks and balances, trusted executives can walk off with lots of assets
Timothy Lappen, Founder & Chairman, Family Office Group, Jeffer Mangels Butler & Mitchell LLP

To develop the issue of fit further, it has been suggested that personality testing would be a useful tool for both the Head of the Family Office as well as the new potential employee, whether a family member or non-family member. This should help when deciding whether the two can work together, or whether their different personalities or outlooks would cause a clash.

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Candidates and Family Offices

From the employees point of view, it is interesting to understand what their key motives are for working in a family office.
A few key themes emerge, noticeably in relation to: Work environment Job stability Pay Prestige

The draw of working in a family office tends to be a combination of lifestyle and compensation. Its a big step off the corporate ladder and for those fed up with the big company routine, it can be a breath of fresh air. The money can be good to excellent. What I hear most about people who are happy working in family offices is that they can see the difference they make, they have the power to make decisions and under ideal circumstances they are treated like family. Several people I know participate in deals along with the family, although I cant claim this is normal practice. Bonuses can be very good.
Steffi Claiden, Founder & Editor-in-Chief, Family Office Review

Certainly, the lifestyle and working environment theme comes out over and over again.

Interesting work; nice people (if applicable); good working environment; good pay and benefits (again, if applicable); ability to travel (if applicable)
Timothy Lappen, Founder & Chairman, Family Office Group, Jeffer Mangels Butler & Mitchell LLP

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Job satisfaction and lifestyle are usually more significant factors than remuneration
Edward Blomfield-Smith, Managing Director, Abercromby Appointments

Variety of work, pay can be over and above the norm compared to the independent sector also a lack of bureaucracy
Dominic Thatcher, Director, ThatcherMacKenzie Executive Recruitment

People enjoy working in a family office because many times there is more emphasis on quality of life
Paula Eppolito, President, The Eppolito Group

This work / life balance issue was picked up on by one family office as a key trend amongst the junior hires, who found this an important consideration when deciding whether to join them or not.

At the more junior levels there is a strange dichotomy whilst being keen to gain entry into the financial sector and having decent skills sets, its quite common for the current group of graduates to also want a decent work / life balance
North American Family Office

Pay, prestige and respect for an individual / family also plays a key part in attracting candidates. This can be seen in the statements below by recruiters that specialise in the placement of Personal Assistants:

For Private Assistants the attraction is often variety and the opportunity to work alongside, and learn from someone they respect
Ben Arnold, Founder, SORTED Personal Management

Personal Assistant positions are often demanding but have the draw of job security and longevity. They are fantastic roles for anyone who appreciates challenging and varied responsibilities where problem solving, fast thinking and using initiative are essential characteristics. Pay is in the higher spectrum of secretarial positions which is, of course, a strong pull for job seekers
David Morel, Managing Director, Tiger Recruitment

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The same can be said for household staff who work in a familys home:

Candidates who undertake a career in Service do see their roles as a key and intricate part of their employers life, and management of their property / ies. Dependent on the seniority of the position and hierarchy of household staff, it can be very prestigious. For example, in modern houses, titles such as Butler, House Manager, Staff Manager, Chief of Staff, Estate Manager and Head of Household Staff are given, and hence gives the air and role of leadership in the household
Lynda Weatherhead, Founder, LJW Recruitment

That said, even for those who are employed in Service positions, ultimately, pay is equally as important:

Usually salaries to be honest, within the catering environment staff will earn far more privately than through restaurants or hotels
John Pettman, Director, Exclusive Household Staff Ltd

Ultimately, however, candidates should be aware that money should not be their main driving force in wanting to work for a family office:

Sometimes people are mistaken by the amount of money they can earn at family offices, instead the motivation should come from working in a dynamic environment, within which is the opportunity to take on responsibility and autonomy and ultimately achieve good results. If they are looking for constant promotions and to climb the corporate ladder, then they are not a match for a family office
European Family Office

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Trends
We now turn our attention to some of the trends currently taking place within the family office recruitment marketplace, including a look at the job market, demand, and length of tenure, among other insights.
First we examine the job market and demand. It is quite clear the effects of the global economic downturn are still being felt by family offices, and this naturally affects the job market. Of course, even wealthy families are affected by economic downturns, suffering a decline in their assets, which prompts them to re-evaluate their hiring needs.

The job market has been challenging since the onset of the credit crisis and the ensuing recession, and it is certainly fair to say that demand for recruiting key executives for family offices has reduced, but not dwindled. However, as markets have gradually started to recover, the last 12 months has seen a tentative increase in recruitment activity
Edward Blomfield-Smith, Managing Director, Abercromby Appointments

This seems to sum up the general mood at present, that the conditions are still tough, a wait and see policy is being adopted, recruitment activity has slowed, that it is hard to find a family office job, but that there is still some recruitment activity taking place, and top quality candidates are still highly desirable. It should also be said that employees are less likely to take a risk by moving to a new employer, and at present, seem to value their job security.

Family Offices are hiring but not in the same numbers as before. Candidates are inclined to stay where they are at the moment although it does not mean to say that some cannot be tempted with a new opportunity
Dominic Thatcher, Director, ThatcherMacKenzie Executive Recruitment

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There is a much different market in the US than most of us have ever seen. In past recessions the market slows down and then gradually picks up on a steady basis. This time hiring needs are going up and down and it is very difficult to predict when the economy will become stable. Family Offices in general do not have heavy turnover so with the bad economy there are fewer jobs in family offices than in good times. Saying that, there have been some needs in this area for the last few years
Paula Eppolito, President, The Eppolito Group

As in all walks of life, finding a job is easier when you have a contact or connection at a particular firm. The same can be said for family offices, who often rely upon their own network of contacts to find suitable staff. Typically, they will look to hire someone they have known for a long time, and / or have worked with in the past in some capacity. Through this approach, they know they can trust that individual. However, where a suitable individual cannot be found through their network, family offices are turning more and more to headhunters / recruitment firms. Family offices in general, are very careful who they work with, and these headhunters / recruitment firms need to demonstrate their experience of having successfully worked with family offices to gain their trust and to be given a mandate.

Were seeing more families using fewer agencies and focussing on specialists who can give them their full attention
Annabel Moorsom, Founder, SORTED Personal Management

The most common way of finding appropriate candidates, anecdotally, seems to be through word of mouth. Friends, past colleagues, current service providers this is the first wave of those considered. Less common is going through a headhunter. There are a handful of firms in the US, large and small, that are reputable and either only recruit within the family office space or it is a specialty. In certain other countries outside the US, there are a large number of private banking / wealth management headhunters, some of whom have taken a run at family office recruitment with varying degrees of success. Be careful whom you deal with. The FamilyOfficeRecruitment.com site has quickly established a good reputation and is a useful source of listings
Steffi Claiden, Founder & Editor-in-Chief, Family Office Review

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It should be noted that there are numerous different job functions within the family office, as noted at the beginning of this report, and not all are affected in the same way. For example, the demand for Personal Assistants and support staff tends to be fairly consistent, more so than other jobs. An interesting trend is the different outlooks that single family offices have versus multi family offices, and essentially, the difference between smaller and larger family offices. Multi Family Offices tend to hire more often than Single Family Offices. However, this is somewhat expected due to the typically larger size of MFOs. These two quotes demonstrate this well:

We are a single family office, we have a small team of professionals, and have no plans to hire over the next year or so
European Single Family Office

We are always on the look out for talented investment individuals, and if we can snap them up before anyone else does, then we will, and even create a position for them even if we have no active vacancies
European Multi Family Office

How long does it take a family office to hire someone? Interestingly, the trend is
that family offices are willing to take their time when making hiring decisions. It is difficult to say whether this is a new trend in the current economic climate, or whether this has always been the case with family offices. Our sense is that it is the latter. However, it is clear that family offices want to be absolutely certain that they are hiring the best person for the job, even if it takes longer to make that appointment. It was mentioned that hiring can take anywhere from a couple of weeks to four years, demonstrating that family offices want to be very comfortable they can trust their new employee. Of course, there are differences depending on the job vacancy. The above is particularly true for recruitment on the financial side of the family office. However, Personal Assistant vacancies can take anywhere from just a few days to up to nine months. Domestic / household jobs can take anywhere from one month to up to a year.

What are the typical assignments that headhunters / recruitment firms receive from family offices? We asked FamilyOfficeRecruitment.coms Recommended Family
Office Recruiters this question, and unsurprisingly, on the financial side these were typically investment or business related roles such as Chief Executive Officers, Chief Investment Officers, Chief Operating Officers, Financial Directors, Senior Tax Specialists, Analysts, Investment Managers, Wealth Planners and Trust Officers. On the other side of the coin, non-financial assignments were just as varied and included Administrators, Executive Assistants, Personal Assistants, Private Assistants, Office Managers, Receptionists through to Housekeepers, Live-In Domestic Couples, Butlers, Cooks and House Managers.

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Length of employment is an interesting dynamic to look at. Near the beginning of this report it was stated that individuals tend to stay in family office jobs for a relatively long period of time, and that is one of the reasons why it is hard to find family office talent, because they dont tend to move jobs regularly. It certainly seems to be true that this is the case, and compared to other sectors in financial services, a job in a family office is more often that not a secure job, and one where the individual remains in their post for a long period of time and the family looks after them.

Generally working in a tight family environment with longevity of tenure, often staff do become part of the family
John Elder, Family Office Advisors LLP & Hanson Investment Consulting

This longer period of tenure can be seen for Personal Assistants at family offices. The PA is a key member of staff at family offices, often described as the gatekeepers to the family office executive / family members. They are trusted and valued.

As long as the position lives up to the job description and the employers remain reasonable, were seeing an average role duration of 4 years. If the employee performs according to the job description and fulfils all responsibilities there is definitely job security. Families do not want an ever-changing carousel of staff in their homes
Annabel Moorsom, Founder, SORTED Personal Management

Personal Assistants in the family office sector often tend to stay for a longer period of time (4+ years). The PA is the most senior level of support staff within the family office
David Morel, Managing Director, Tiger Recruitment

Long term employment is the case for most jobs within a family office. Longevity in a family office role relies on how close the relationship is with the family, the level of trust, and how much personalities match. As discussed earlier, if an individual is specifically looking for career progression, then a family office role may not be for them..

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Average tenure at this level of seniority tends to be 5 years or more. Job security can be very much dependent on the development of the relationship with the family but those who achieve the confidence of their employer will continue to advise future generations. However, should this confidence be lost, the remainder of the relationship is likely to be short-lived
Edward Blomfield-Smith, Managing Director, Abercromby Appointments

Family Offices tend to attract long term employment, however, especially within the single family office set up there are limited career advancement opportunities. The attraction to genuine family office business is the variety of work, from investments to asset management to trust business
Dominic Thatcher, Director, ThatcherMacKenzie Executive Recruitment

People tend to stay in tax roles longer than other positions. The opportunity for advancement would depend on how large the family office is and the growth of the family office
Paula Eppolito, President, The Eppolito Group

From those Ive known who have left family offices, the reasons Ive heard most have been the patriarch / matriarch in charge was too difficult for one reason or another to work with or there was not enough career progression available
Steffi Claiden, Founder & Editor-in-Chief, Family Office Review

It all depends on if the family like their work and most importantly trust them
John Pettman, Director, Exclusive Household Staff Ltd

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One trend, which will be interesting to keep an eye on is the location of family offices. The majority of the worlds family offices tend to be located across the USA and Europe. There has been, and there will continue to be, a growth of family offices across other areas such as the Middle East, Asia and South America, particularly when the concept of a family office is better understood in those regions. As there are more and more wealthier people in these regions, it is natural new family offices will be formed. It will be interesting to see how these family offices grow and the recruitment needs they will have.

Family offices are playing a more significant role in the Emerging Markets world. We are seeing an increasingly sophisticated and internationally-exposed Chief Investment Officer and Investment Manager. More importantly, there is a rising generation of family members who are financially-savvy and actively involved in the direct management of their wealth
Rory Gilbert, Head of Middle East and North Africa, Barclays Wealth and Investment Management

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Skills
What are the key skills that family offices desire?
There is some overlap with the issues covered in the report so far, and the key issue which keeps appearing again and again is that of fit.

There are 2 sides to the equation, one is of technical competencies and the other relates to character, traits and fit, and this needs to be a fairly balanced equation otherwise it wont work out
European Family Office

For family offices cultural fit was and will remain top of the decision making criteria
Sarah Dudney, Founder, Ignite and Former Headhunter

There is an extensive pool of people working in the wealth management and advisory sector who on paper may have relevant experience and qualifications. The challenge is finding the right personality who can also thrive in a less structured environment
Edward Blomfield-Smith, Managing Director, Abercromby Appointments

When discussing fit, some key words keep on recurring, as shown below:

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However, aside from the issue of fit and the technical competencies, technology skills are in demand. This appears to be a requirement no matter what the role is, from Chief Investment Officers through to Personal Assistants and Household Managers. Technology skills would include what are seen as the basics these days, such as the use of Microsoft Office and in particular Excel spreadsheets the use of mobile technology, and connecting instantaneously on smart phones the use of Cloud software and database systems and various other software. On some occasions, a generational gap seems to emerge with regards to the level of competency of these technology skills, but they are seen as being essential to work in almost any capacity at a family office.

On the investment side we look for CFA Charterholders or candidates. Finance backgrounds with experience in marketing / sales are also assets. Our team needs to be as comfortable working with Excel spreadsheets as they are on the phone to prospective investors / the sell side which is not an easy combination to find
North American Family Office

Professional qualification, administrative experience IT literate is a must. Qualities intelligence, integrity, customer focus
David Carr, Chief Executive Officer, JonathanFry plc

Candidates would be expected to be up-to-date with the changes in technology and be reasonably tech savvy
David Morel, Managing Director, Tiger Recruitment

Over the last 15 years, the key skills have become more technological. For example, a butler today would be expected to manage the broadband of a home, rather than iron the broadsheets
Annabel Moorsom, Founder, SORTED Personal Management

It is clear that the financial roles within a family office require the relevant qualifications dependant on region / country that that particular discipline requires. These range from investment certificates, exams, and tests through to chartered accountancy or tax specialists.

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On the non-financial side, it is interesting to learn of some of the skills that would be required, which cannot necessarily be assessed by taking a test, or earning a certificate. Nowhere can this be seen more than with Personal Assistants who not only need to be able to multi-task, but in doing so need to call upon a variety of skills:

Complex and changing diary management Complex and changing travel arrangements Overseeing, hiring and firing domestic and office staff Payroll (international) Property Management (domestic and overseas) Business and social event planning Managing arrangements for children, parents or other family members Contact management with friends, family and business contacts Office management Personal shopping Errand running Research Specific industry knowledge e.g. fashion, art, travel Languages An extensive black book Patience, calmness, confidence Availability 24 hours a day

Ben Arnold, Founder, SORTED Personal Management

A family office PA would be expected to be proficient in using the MS Office suite, have the ability to project manage, touch type, undertake extensive research both online and offline, have a balance of creative and logistical decision making and have evidence of strong written and verbal communication skills. To be a successful PA, organisation, initiative and proactivity are valuable traits. Individuals are predominantly hired according to personality
David Morel, Managing Director, Tiger Recruitment

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Similarly, there are skills required of Household staff that can be taught, but not necessarily easily measured, which is why the help of a specialist recruiter in that space is vital:

Household staff should be discreet and unobtrusive, friendly but not familiar, keenly anticipative of the needs of his or her employer, and graceful and precise in executive of duty. Etiquette, protocol and the ability to multi-task is key
Lynda Weatherhead, Founder, LJW Recruitment

Although not strictly speaking a skill, appearance makes a lasting first impression, and it is important that those who either work in a family office or in the household, dress professionally, unless told otherwise.

Appearance is key; usually clients make up their mind from first impression at interview stage
John Pettman, Director, Exclusive Household Staff

Languages are a desirable skill, as well as an understanding of different cultures. Having the ability to speak more than one language is proving to be extremely advantageous. Language skills are important for a variety of reasons, including the fact that families may have properties in various locations. In addition, the family they work for may originate from the Middle East, Asia, from Russia, or other nonEnglish speaking countries and it will not only make communication with them easier, but also prove as a valuable skill as the family themselves may not be fluent in English, particularly when it comes to business writing skills. An understanding of culture and how to behave is also very desirable.

Different cultures / clients look for different things. For example, some Middle Eastern regions wish to recruit only female workers due to their strict religion, or another example, Jewish dietary kitchens need to abide by the laws of Kosher cooking, or it might be that the client perhaps from Russia, has not yet mastered the English language and hence requires a bi-lingual worker
Lynda Weatherhead, Founder, LJW Recruitment

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Assuming that individuals have these basic skills, are well educated, have the relevant qualifications, technology skills, language and cultural skills, as well as the right personality, then some family offices are happy recruiting on that basis, and then training those individuals on the specific family office skills they need thereafter. In fact, some family offices specifically prefer to hire inexperienced individuals and then provide training.

Nevertheless, training should be an ongoing process, no matter the level of experience a staff member has.

A logical sequence after a successful hire has been made is to ensure that this hire works in the long term. All team members, new and old, need to be supported to ensure motivation and engagement in order to make a valuable contribution. In many cases with our clients that means investing in coaching and leadership skills development. We work with senior individuals in international family offices, coaching and assessing leadership and team structures ensuring that teams remain stable, accountable and focused on their duty of care to families and clients. Taking the long view in investing in people reaps the same reward as it does in financial markets
Sarah Dudney, Founder, Ignite and Former Headhunter

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A word of caution regarding family office specific training programs:

There is not specific training for working in a family office, largely because there is no one recognized regulating body. As of late there are several companies that have introduced so-called training programs aimed at those wishing to work in family offices. Its important to note that taking courses or / and getting a certificate is nothing more than a promotional or money-making scheme aimed at unsuspecting newcomers to the family office business, and will not carry any weight with a family office. In fact, you might find it counts again you. Be careful where you get information. And if you as a jobseeker are tempted to purchase a family office list for prospecting from what Ive observed those lists are largely a waste of time (as is cold calling in this business in general) and your money would be better spent going to conferences or other places or events where you can have in-person meetings. There are good books and reports to read written by reputable people who have been working for years in and with family offices. Family Office Review carries a book list on its site
Steffi Claiden, Founder & Editor-in-Chief, Family Office Review

As we continue to look at the skill requirements for family offices, we now look at the sectors family offices like candidates to have experience from. Clearly, and most common, family offices prefer to hire individuals who already have experience of working at other family offices. However, if this is not possible, family offices need to look elsewhere, and they do. Typically, on the financial side, family offices look to sectors such as asset management, funds, hedge funds, wealth advisory, wealth planning, trust and fiduciary, private equity, private banking, and commerce. In some cases, the family office may hire individuals that they already deal with, such as an asset manager or a portfolio manager, who knows them already. Despite lower pay, candidates coming from these sectors are attracted to family offices due to the different work environment, as already mentioned, and job stability.

Weve seen a migration of highly successful wealth managers and private bankers that target the UHNW segment, looking at moving away from the traditional private banking structure and towards a smaller more holistic family office. The market is seeing that successful bankers are becoming a lot more service focused as opposed to product pushing. Top performing candidates with strong and loyal client relationships are starting to see the advantage of starting a family office or joining an existing multi family office
Paul Westall, Director, Agreus

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In the Personal Assistant sector, family offices would typically hire PAs from private houses, from professional services, the finance sector, if they have worked with an entrepreneur before, the travel sector, the art world, somewhat depending on the interests of the family.

Having worked in a family office myself, and having recruited both from within the family office, as well as being a family office recruiter, I believe that working in a family office requires a certain character. Some of the best PAs in family offices are mothers themselves, or come from a traditional family background or have a sense of community (volunteering, active member in cultural or sporting associations). In other words, it does not require a specific talent, but the right motivation combined with the technical skill-set
Tamar Hacoyan, Swisslinx

In the Household sector, candidates are preferred from Royal Households, or those with experience of working with other families, high profile families, as well as from the hospitality industry in general, such as from hotels.

Is family office talent rare? The majority believe that it is, citing the fact there are
very few individuals with true family office experience, whilst others believe the talent available needs to be nurtured and trained, and once again, talent needs to be matched with fit. Others use this as an argument for preferring multi family offices, as more talent can be pooled together, and if one person leaves, it wont affect them as much as it would a single family office.

While there is an abundance of talent wanting to get into the space, there are relatively few individuals who have true family office experience. Many have either private office or investment office experience, however working in a family office can be quite different
North American Family Office

It is available; it is just a case of finding the right fit for the right role within the right family
John Elder, Family Office Advisors LLP & Hanson Investment Consulting

Family office talent is readily available if the recruiting firm is flexible about hiring raw talent and training it up
David Carr, Chief Executive Officer, JonathanFry Plc

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The advantage of being part of a multi family office is that there is more talent to choose from, as talent from various family offices is brought together. If you are thinking about succession issues, this helps, as if a talented individual leaves, others can step in, but at a single family office it would hit them harder
North American Family Office

It is the same for the hiring of Personal Assistants and interestingly, this is also a key issue in the Household Staff sector:

Candidates with experience can be found reasonably easily, however, spotting talented individuals with experience is rarer. If good quality family office PAs are not readily available, clients have been known to select candidates with substantial financial services experience where skills are transferable
David Morel, Managing Director, Tiger Recruitment

While fears of chronically high levels of unemployment begin to fade, and the overall economy improves, the outcome is a shortage of skilled workers in Private Service. At the same time, the demand for workers with higher levels of education, technical knowledge and skill has been rapidly rising. These rising skill requirements combined with a shortage of specific skills are creating a growing mismatch between the skills of household staff and the needs of the employer and private households. Training and educational institutions have responded slowly, albeit adequately to this change in demand
Lynda Weatherhead, Founder, LJW Recruitment

Skills need to be continually assessed, and much depends on the life stage of a family office. Family offices typically grow organically rather than in a structured way, and it is necessary on occasion to evaluate the growth stage of the family office. This lack of initial strategic or on-going planning generally leads to a lack of structure and employees not having clearly defined job descriptions, which can affect recruitment. From time to time, a strategic review of the family office should be conducted, including an audit of the skills needed going forward, against what it presently has. Therefore, depending on the stage of development of a family office, its aims and ambitions, the recruitment approach should vary, as skills requirements change. However, it can be difficult for the Head of the Family Office to implement due to loyalty to existing staff, or an unwillingness to look on strategic change as a necessary development rather than a past failure.

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It is appropriate within this Skills section to discuss a topic which was briefly touched upon at the beginning of this report, that of Outsourcing. It is quite clear that there needs to be a good balance of in-house versus outside contractors, but the benefit of having work outsourced / hiring contractors can be seen, especially when a particular expertise is lacking within the family office. However, be wary of having too many advisors, and be sure to check their credentials. Examples of work that can be outsourced include accounting, legal, philanthropy, and research to name but a few.

We contract out our legal, and accounting, we nearly always have a full time academic advisor on staff who works out of his home
Giovanni de Francisci, Petschek Family Office

Recruitment is and probably always will be one of the most challenging aspects of running a single family office. There is an inherent conflict: a family office wants to attract the best candidates, while usually desiring to maintain a low profile and a high degree of confidentiality around the work it does. At the same time, a family office wants to have exactly the right balance between family member employees and associates from outside the family, who bring an unbiased view and ideally, fresh ideas. At present, philanthropy advisors like me are usually part of a group of contracted service providers. This is a small but important band of contributors to the smooth operation of a familys affairs. We can supplement the work done by family and non-family members on a project basis, which gets the work done while keeping staff numbers and cost to a minimum. A family office is no different to any other business in choosing to utilise and maximise this particular recruitment path, but attracting and retaining proven and trusted staff, who can put a familys best interests first, will always be the panacea. Resources like FamilyOfficeRecruitment.com and its participating recruitment agencies greatly improve the chances of finding the perfect match between family and employee
Randi Weaver, Principal & Philanthropy Advisor, Good Giving Limited

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The same can be said for legal assistance:

We work with family offices with regard to the specific superyacht industry. We find that if family offices are often tasked to manage high value assets, they often require the assistance of expert advice on these matters. As such, family offices surround themselves with a team of experts allowing them to have a full hand on what they have been tasked with i.e. be a single point of contact and management. Indeed, managing these high value assets become more and more technical and regulated. It is therefore important for family offices to work with specialists thus ensuring that they are at all times ahead of the curve
Anouch Sedef, Superyacht Lawyer, R&R Avocats

The issue first turns on whether the family offices core business can support a specialist in that area. Otherwise, having an outside counsel may be the difference between paying someone wholesale on a 24/7 basis versus retail on an asneeded basis. Also, if someone is in-house, he / she can only do one thing at a time, whereas I can draw on over 125 attorneys to help with myriad matters. Further, if a family office has a matter outside of the general counsels expertise (say he / she is a trusts and estate attorney and a labor matter arises), the office will have to go outside for that work. Whats worse, the GC who is focused on a specialty may miss some of the broader issues which an attorney like me will spot, given that I have worked with family offices for over 25 years
Timothy Lappen, Founder & Chairman, Family Office Group, Jeffer Mangels Butler & Mitchell LLP

The issue of outsourcing is also relevant for research purposes:

It is virtually impossible to produce great investment results without the right research. This research needs to be thorough, insightful, and tailored to the investment objectives of your family office. Many research analysts have traditionally been hired by the large investment banks. Several of these firms have been facing a difficult operating environment since the financial crisis of 2007/2008. Ongoing regulation, higher capital requirements and falling commissions have led many of these companies to reduce staff over the last few years, including those working in equity and fixed income research. Given that there is still a need for quality investment research, however, there have been other companies that have arisen to fill some of the gaps that have been

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created by these changes. Independent research firms and specialised boutiques have sprung up on both sides of the Atlantic. These companies may focus on certain sectors (e.g. technology or financials) or they may provide specialised services or bespoke research. One of the advantages these smaller firms have over their large investment banking competitors is the ability to really listen to their clients and address their unique needs. They are more likely to be willing to give their time and attention to family offices. Many of these firms are independent operators, so there are no potential conflicts of interest with any corporate finance operations. Wherever it comes from, whether internally within your family office, from a large investment bank, or an independent research boutique, having the right input from experienced research analysts is key. Obtaining the services of an analyst who has experience in the industry that the company you are considering for investment operates in, who can ask insightful questions, pore through the companys financials, and make an informed investment recommendation is vital
Gillian Elcock, Founder & Managing Director, Denny Ellison

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Salaries
Salary levels are always an interesting subject matter, although very difficult to research and standardise, particularly within the family office sector. Given the fact that each family office is different, and that there are of course differences between regions and countries, the figures below should just be taken as a guide.
Compensation is far from standard. The families struggle with this. There are some compensation reports available that can serve as guidelines. Benefits vary from country to country
Steffi Claiden, Founder & Editor-in-Chief, Family Office Review

In the first instance, lets look at the salary levels for the financial side of the family office, including Chief Executive Officers, Chief Operating Officers, Chief Investment Officers, from a UK based headhunter:

At the senior level (CEO, COO, CIO), 120-200k basic salary is the norm, usually with a discretionary bonus of up to 100%. Basic salaries are comparable with commercial wealth management but bonuses tend to be less. Salaries have remained fairly stable for the last few years
Edward Blomfield-Smith, Managing Director, Abercromby Appointments

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A comment from the US:

This is a tough issue as it depends on so many factors. Bottom line who is the competition for the employee which is being considered? If its a CIO for a multibillion dollar family office, then the competition is hedge funds and the compensation I have seen can range up to $20MM per year. The range is huge, with CEOs starting below $200,000 and going up to ten or more times that amount. Of course, area of the country also is a factor, as is the reputation of the family and the job description
Timothy Lappen, Founder & Chairman, Family Office Group, Jeffer Mangels Butler & Mitchell LLP

A recent compensation survey entitled Family Reward and conducted by our friends at Campden FO and Sulger-Buel & Company, the CampdenFO / Sulger Buel & Company survey spoke to more than 25 family offices in the UK and Switzerland to find out how much exactly they pay. This survey, again, found that pay varies considerably from family office to family office, as well as from location to location. For the UK Single Family Offices:

London-based single family offices pay their chief executives anything from 150,000 to 390,000. Bonuses when they are paid are likely to be anywhere between 20% to 50% of base salary Chief financial officers and chief operating officers are paid between 70,000 and 230,000. Bonuses are likely to be paid on a discretionary basis and are typically anything from 15% to 20% of base salary Chief investment officers are paid between 100,000 and 250,000. Bonuses are likely to be either discretionary or based on selected benchmark index performance sometimes a bonus will be made up of a combination of both When it comes to SFOs outside of London, chief executives are paid a base salary of between 110,000 and 175,000 CFOs and COOs are paid a base of between 75,000 and 85,000.. CIOs have salaries ranging of between 80,000 and 250,000
Campden FO / Sulger Buel & Company survey

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For the UK Multi Family Offices:

Compensation at multi family offices is likely to be less than for senior managers at SFOs, particularly if the senior managers are shareholders. The research found that chief executives are paid between 110,000 and 200,000 annually. CFOs and COOs are paid more in line with their counterparts at SFOs, with base salaries between 80,000 and 240,000, although bonuses are likely to be higher, sometimes as much as 70% of base
Campden FO / Sulger Buel & Company survey

For Switzerland Single Family Offices:

Regional differences between salaries at family offices are likely to be minimal in Switzerland, but differences do emerge between a family office managing international money and one managing Swiss-based wealth. SFOs managing international money are likely to pay well very well chief executives are paid between CHF400,000 and CHF650,000. Bonuses, when they are paid, can be up to 50% of base salary and total packages can be more than CHF1million. CFOs and COOs base salaries start at CHF300,000 and can go as high as CHF600,000 while bonuses can be as much as 40% of base. CIOs have base salaries starting at CHF400,000, but unlikely to go much beyond CHF500,000. SFOs managing money that is Swiss-based pay their CEOs between CHF200,000 and CHF500,000, with bonuses typically 20% to 40% of base. CIOs are paid from CHF250,000 to CHF450,000 plus a discretionary bonus, or one based on a benchmark. The CIO position in such family offices is sometimes fulfilled by the CEO. COO and CFO base pay is between CHF200,000 and CHF400,000, with a discretionary bonus
Campden FO / Sulger Buel & Company survey

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For Switzerland Multi Family Offices:

MFOs in Switzerland pay their CEOs between CHF350,000 and CHF400,000 with bonuses anywhere between 50% and 100% of base. CIOs are likely to start on a lower base than their counterparts at SFOs, with base salaries starting as low as CHF100,000, but this can rise to more than CHF250,000. Bonuses of up to 70% of base arent uncommon
Campden FO / Sulger Buel & Company survey

The survey goes on to comment on pay, US versus Europe:

A direct comparison between family office pay in the US and Europe isnt easy to do, given the difficulty of comparing family offices in one country let alone geographically, as well as issues relating to data. But it seems US family offices pay their senior staff more a lot more
Campden FO / Sulger Buel & Company survey

Keeping our focus on the USA, and a particular niche, are salary levels for tax and accounting professionals. The Eppolito Group is an Executive Search Firm specialising in the placement of Accounting, Tax and Financial Professionals within the New York Tri-State area, and claims that salaries are stable:

Controllers - $125,000-$300,000 + bonus Seniors - $85,000-120,000 + bonus Tax Directors - $175,000-$400,000 + bonus Tax Managers - $125,000-$175,000 + bonus Tax Seniors - $80,000-$120,000 + bonus
Paula Eppolito, President, The Eppolito Group

If we now change focus and take a look at Personal Assistant salaries, we can see their salaries are slightly higher than PAs in other sectors, particularly as the responsibility involved is greater, as is the need for discretion:

The salary of a family office PA is at the discretion of the particular office. It is often between 38,000 to 55,000 per year. Family office PA roles pay at the top end of comparable senior PA positions in other sectors. There is little salary variation depending on geographic areas, other than being typically higher if based in London
David Morel, Managing Director, Tiger Recruitment

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Private Assistants range from 35k to 100k per annum salaries are slightly higher than in other sectors as the commitment and confidentiality are taken into consideration. Salaries definitely differ by region and are highest in the UAE and Russia, followed by Asia, Europe then the US. In our business they are rising, slowly, but still rising as employers are paying for the quality and commitment
Ben Arnold, Founder, SORTED Personal Management

Household staff salary levels are below, and these have a more pronounced range, which ultimately depends on the benefits being offered. For example, some household staff are provided live-in accommodation, use of car, travel expenses, whilst others are not.

Salaries can range anything from 20,000 to 100,000 per annum. Benefits are offered dependant on the requirement i.e. Daily position or Live In, for example if Live In, rental and associated costs are covered by the employer and if this is a position abroad, a return flight home annually along with the said countrys health care cover, car or access to driver in time off, access to Wi-Fi etc
Lynda Weatherhead, Founder, LJW Recruitment

Housekeepers 18-35,000; Executive Housekeepers 35-45,000 per annum Under Butlers 15-25,000; Butlers 25-45,000 per annum House Managers 35-70,000; Estate Managers 50-100,000 per annum Ladies Maids 35-45,000; Chauffeurs 30-50,000 per annum Junior Chef 20-30,000; Private Chef 30-70,000 per annum Obviously these are guidelines and depend very much on conditions including accommodation etc I would say salaries have stayed the same over the last five or so years. Usually household staff in the Middle East earn significantly more, plus it is usually tax free salaries
John Pettman, Director, Exclusive Household Staff Ltd

One interesting point of caution when it comes to family office salaries in general:

We find that family offices have become extremely cautious, not only to attract talent with money, but other benefits instead
Tamar Hacoyan, Swisslinx

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Family office basic salary ranges by job function

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Recruitment Firms and Family Offices

When family offices engage recruitment firms; headhunters / executive search specialists / recruitment agencies to conduct a search on their behalf, the majority of these are on a contingency basis rather than retained. So recruitment firms are paid by family offices based on results, when a successful placement has been made.
For some senior positions, retainers can be secured, although not as common. Regardless of the method chosen, contingent or retained, family offices should refrain from using multiple recruitment firms to help with their search. Just like any other supplier they work with, family offices should see recruitment firms as trusted advisors, endeavour to work closely with them in a targeted way, to understand their requirements and their culture, to find the right people for their office. Top family office talent will also appreciate the family office working with a single trusted recruitment advisor, as working with multiple recruiters could give the impression that a family office is struggling to source talent, may not take confidentiality seriously, or may even have a high turnover of staff. Recruitment firms are there to advise throughout the recruitment process, and family offices should work closely with them from the start, in putting together job descriptions, setting targets and deciding on salary levels. Detailed job descriptions are very important, and can not only help with the search process, but also set a candidates expectations. Having a recruitment consultant as a trusted advisor also helps them find a candidate over and above the written job description, and take into consideration key issues such as personality and fit. The best recruitment firms will provide family offices with advice and act as consultants. Family offices should only work with recruitment firms who have experience of working with other family offices and understand this sector well. To develop this point further, there do appear to be some regional differences, as recruitment firms with specific experience of working with family offices is quite common practice across Europe, whereas there appear to be fewer family office specialist recruiters in North America. Make sure you research the market you are in to find the best people to help you. FamilyOfficeRecruitment.com provides guidance on this, and is a good starting point.

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Conclusions
We have looked at several issues throughout this report with regards to recruitment in the family office sector.
Although families share many challenges, it is apparent that not all family offices are the same, and each has its own issues, culture and mindset; typically this follows the personality and experience of the Head of the family office. Asides from technical attributes, it is clear that family offices want to hire staff who will fit in and adapt to working in an environment which is different from other organisations. Staff often need to be adaptable to fit in with the family, and with the family office culture. It is generally agreed that Multi Family Offices provide more opportunities for career progression than Single or Virtual Family Offices. However, at the same time, staff can become disillusioned at Multi Family Offices, particularly if the needs of the families are not being met as the MFO has become too large, lost direction or, the original family has departed as it was not receiving the service it originally established the office to fulfill. Additionally, due to this growth, job roles may change from relationship based to sales based, which does not suit everyone. Individuals often seek a return to a relationship based role within a Single or small Multi Family Office. A family office job tends to provide job security, a work / life balance, and offers the prestige of working for a particular family. It appears that salary levels have remained at a similar level for the past few years and will continue to do so. Family offices grow organically rather than in a structured way, and it is necessary on occasion to evaluate the growth stage of the family office either internally or with the help of outside experts. A strategic review of the family office should be conducted, including an audit of the skills needed going forward, against what it presently has. Therefore, depending on the stage of development of a family office, the recruitment approach should vary, as skills requirements change. It is true that as skills requirements change, it is difficult for the Head of the family office, who feels a loyalty to existing staff. True family office talent is seen as rare, and much in demand, however, there is an abundance of experience and talent available from other sectors which family offices are turning to, and are willing to invest time in training. Key skills desired across most disciplines are cultural fit, discretion, appearance, commitment, and languages. Technology skills are also in demand, and this is where a generational gap emerges.

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Recruitment in family offices is not immune from market conditions, and indeed it has been a tough market since the economic crisis, with costs having to be cut, and job opportunities hard to come by. That said, talented individuals are always in demand, and 2012 has led to some optimism, which will hopefully continue into 2013.

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Thanks to Contributors
In alphabetical order Abercromby Appointments Edward Blomfield-Smith, Managing Director www.abercrombyappointments.com Agreus Paul Westall, Director Tayyab Mohamed, Director www.agreus.co.uk Barclays Wealth and Investment Management Andrew Tailby-Faulkes, Global Head of Wealth Advisory for Key Clients and Family Offices Lynn Zovighian, Private Banker Rory Gilbert, Head of Middle East and North Africa Stefanie Drews, Head of Key Clients and Family Offices www.barclays.com/wealth Campden FO / Sulger Buel & Company survey www.campdenfo.com / www.sulger-buel.com Denny Ellison Gillian Elcock, Founder & Managing Director www.dennyellison.com Din Consultants Sabila Din, Founder & CEO www.dinconsultants.com Exclusive Household Staff Ltd John Pettman, Director www.exclusivehouseholdstaff.com Family Office Advisors & Hanson Investment Consulting John Elder, Partner & Strategic Advisor www.foallp.com Family Office Review Steffi Claiden, Founder & Editor-in-Chief www.familyofficereview.com Good Giving Limited Randi Weaver, Principal & Philanthropy Advisor www.goodgivingglobal.com

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Ignite Sarah Dudney, Founder www.ignitecareer.com Jeffer Mangels Butler & Mitchell LLP Timothy Lappen, Founder & Chairman, Family Office Group www.jmbm.com/family-office.html JonathanFry Plc David Carr, Chief Executive Officer www.jonathanfry.co.uk LJW Recruitment Lynda Weatherhead, Founder www.ljwrecruitment.com Petschek Family Office Giovanni de Francisci R&R Avocats Anouch Sedef, Superyacht Lawyer www.rrlegal.ch Swisslinx Tamar Hacoyan www.swisslinx.com SORTED Personal Management Annabel Moorsom, Founder Ben Arnold, Founder www.sorted-pa.com ThatcherMacKenzie Executive Recruitment Dominic Thatcher, Director www.thatchermackenzie.com The Eppolito Group Paula Eppolito, President www.eppolitogrp.com Tiger Recruitment David Morel, Managing Director www.tiger-recruitment.co.uk

Thank you to the 17 other family offices from Europe and North America who contributed and wish to remain anonymous. Thank you to the FamilyOfficeRecruitment.com Advisory Board and Steering Committee. Thank you for your continued support.

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