A recent report reveals that investment firms catering to the ultra-wealthy allocate as much as 72% of their budgets on C-level staff. Despite these significant investments, many family offices, which manage substantial portfolios, are grappling with serious headcount issues. According to a survey conducted by wealth manager AlTi Tiedemann Global in collaboration with research firm Campden Wealth, nearly 80% of family offices reported difficulties in hiring, while 54% expressed concerns regarding the retention of crucial staff members.
This exclusive survey, shared with CNBC, polled 146 family offices between November 2024 and March 2025. The findings highlight that the challenges are particularly pronounced among large family offices. Despite their ability to offer more competitive salaries, 92% of firms managing at least $1 billion reported facing recruitment hurdles. Moreover, these large family offices experience a higher turnover rate, with an average of one employee departure every nine months.
In contrast, smaller family offices, especially those with assets ranging from $150 million to $249 million, generally reported fewer retention problems. This is largely due to their reliance on family members to fill many key positions. However, Erik Christoffersen, head of AlTi's multifamily office practice, noted that many older family offices, regardless of their size, are in urgent need of new talent as existing staff members retire.
The competition for skilled investment professionals is intensifying, particularly as institutional investors vie for a dwindling pool of top-tier talent. Christoffersen emphasized that family offices might not be fully prepared for the sticker price shock associated with attracting and retaining great talent in the current market. He pointed out that a more significant challenge than compensation is the absence of clear or appealing long-term career opportunities within the family office sector.
In the survey, 55% of respondents identified the lack of long-term career prospects as a significant impediment to recruitment and retention, while only 26% cited compensation as a primary concern. Christoffersen remarked that the job descriptions in family offices are often not compelling enough, suggesting that these organizations need to invest time in showcasing the unique benefits of working within a family office environment.
For current employees, Christoffersen recommended that family offices revisit their organizational structures to leverage the strengths of their talented individuals. By broadening job roles and enhancing job appeal, family offices can create more fulfilling positions, potentially leading to upward adjustments in compensation. Offering better benefits and increased flexibility, such as remote work options, can also make it more challenging for employees to consider leaving.
Christoffersen advocated that all family offices, except for the very largest, should consider outsourcing to fill any gaps within their teams. As market volatility remains a constant factor, securing best-in-class talent has become more critical than ever. "In the last decade, with low capital costs and minimal volatility, we saw all ships sail smoothly. However, this decade is marked by increased volatility, and reliance on a passive index portfolio is no longer viable," he stated.
