Family Office Drama Queen: Even Billionaires Can't Find Good Help!

Diamonds Are Forever But Good Employees Aren't

Hi Dreamhouse fans! Barbie here reporting live from the world of high finance – where even the fanciest family offices are having a bad hair day! Can you believe that these ultra wealthy investment firms are spending up to 72% of their budgets on C level staff? That's like a whole closet full of designer shoes… wasted! A recent survey by AlTi Tiedemann Global and Campden Wealth reveals that nearly eight out of ten family offices are struggling to find good help. It's like trying to find a Ken who can actually cook – a true challenge!

Billion Dollar Headaches

The struggle is real my friends. Especially for those HUGE family offices managing over $1 billion! A whopping 92% of them are facing recruiting challenges. It's like trying to coordinate a Malibu beach party – so many details! And get this: they're also experiencing higher turnover with one employee jumping ship every nine months. Talk about a revolving door! Meanwhile smaller family offices with 'only' $150 million to $249 million are chilling because they can just rely on family members. Nepotism anyone? "Math is hard!" isn't just for me anymore!

Retirement Homes and Talent Tombstones

As if the current chaos wasn't enough many older family offices are facing a mass exodus of talent due to retirements. It's like everyone's suddenly decided to take a permanent vacation to the Bahamas! Erik Christoffersen from AlTi says there's fierce competition from institutional investors which is driving up the cost of top tier investment professionals. "I'm not sure that family offices are prepared for the sticker price shock of the going market rate to really attract and keep great talent year after year," he said. Apparently loyalty doesn't buy you diamonds anymore.

Is the Job Just...Not That Great?

Hold on to your tiaras dolls! It turns out it's not just about the money! Shocking I know. Christoffersen says that the lack of clear career opportunities is a huge problem. A whole 55% of family offices agreed that this is a substantial impediment while only 26% cited compensation. Apparently no one wants to work somewhere where the job descriptions aren't very exciting. Christoffersen says they need to spend more time showing what's so great about working at their company. Maybe a free Dreamhouse in the Hamptons would help? "Come on Barbie let's go party!" ...at the office?

Makeover Time: For Jobs!

Christoffersen suggests that family offices need to revamp their organizational structure to maximize the strengths of their talented employees. Basically give them more interesting work and maybe just maybe a pay raise! He also recommends better benefits and more flexibility like remote work. Who knew? It's like they're finally realizing that employees are people not just Ken dolls you can dress up and pose! Also Christoffersen says family offices should outsource to cover any gaps in house. I wonder if they need a professional party planner?

Volatility Vibes and Desperate Measures

With market volatility being the new normal Christoffersen says having top tier talent is more crucial than ever. "In the last decade with low cost of capital and very little volatility you just saw all ships sailed great or the tide rose for all boats," he said. "Now in this decade we're seeing much more volatility. And you can't just rely on a passive index portfolio." So in conclusion even billionaires need a little help from their friends – or at least some really good employees. Until next time remember: life in plastic it's fantastic... but talent is priceless!