Incentives definitely drive behavior, so be sure you are driving the behaviors that benefit all concerned.
Chicago, Il. (PRWEB) October 20, 2016
Linda C. Mack, founder and president of Mack International, the premier retained executive search and family office strategic management/human capital consulting firm, led a ‘Trends and Challenges in Family Office Compensation and Recruiting’ session at the exclusive Institute for Private Investors (IPI)’ Fall Forum in New York, October 5-6, 2016.
The Institute for Private Investors (IPI) is the preeminent membership network for families of substantial wealth. IPI’s programs feature the latest points of view of industry thought leaders in venues intended to ensure a safe harbor for a confidential exchange of information. The Fall Forum offered members an opportunity to improve their understanding of the complexities of the current financial landscape and how to be more sophisticated stewards of their wealth.
Linda was joined by Rich Tomszykowski, Director of McLagan. Their session examined key executive recruiting and compensation trends in the Family Office industry. Linda emphasized that an increasingly competitive market is requiring family offices to keep pace in the recruiting, compensation and retention arena. She described the two main reasons why family office searches fail. “Either the family errs on the side of hiring someone they trust, but the individual lacks the qualifications to perform the job successfully; or they hire an executive who is technically highly qualified, but is not a “culture fit” for the family.” Defining the position and family culture in depth and developing a process to assess prospective candidates based on the position and culture fit requirements is critical for success.
Linda also offered best practices in the critical post-hire areas of onboarding, compensating and retaining executive talent. “Commitment to the success of the new executive and to creating an environment to foster success is critical.” Aside from a competitive compensation package, ideas on how to provide personal as well as professional growth opportunities were shared.
Mr. Tomszykowski presented his firm’s latest information on Family Office pay trends and what drivers influence various pay approaches. Linda stressed the importance that families clearly define performance expectations and compensation packages before any offers are extended and cited the increasing trend toward more defined performance based plans. “It is critical that incentive plans be aligned with family values and objectives and that plans be tested against various scenarios, including three-sigma scenarios like 2008, to ensure they will perform as desired – and to ensure there are no unintended surprises.” Several stories illustrated situations that that didn’t work out for the family or the incumbent where the design of the plan actually incented behavior that was not in the family’s best interest and caused unintended consequences. “Incentives definitely drive behavior, so be sure you are driving the behaviors that benefit all concerned,” said Linda.
Linda concluded the session with a discussion on Family Office compensation best practices. A lively and interactive Q&A session followed where audience participation underscored the widespread interest in the topic.
About Mack International
Mack International is the premier, boutique retained executive search and strategic management/human capital consulting firm serving national and international clients in the family office, family business enterprise and the wealth management industries on national and international basis. Founded in 2002, the firm has achieved an exceptional track record of success as evidenced by its unmatched industry expertise, in-depth market knowledge and unparalleled track record of success. Founder and President, Linda C. Mack has established proprietary methodologies such as the Mack 360© and is credited for having coined the term “expert generalist” in the industry.