eFinancialCareers.com asset management survey results

In a survey of 234 asset management professionals conducted by eFinancialCareers.com, the leading global careers site for financial professionals, clear divisions of attitude have emerged on central questions relating to employment expectations and bonus reform based on the type of firm in which asset management professionals currently work.

Across the asset management industry as a whole, currently employed respondents to the eFinancialCareers.com survey were split as to whether or not there would be further redundancies in their organisations over the next six months – 45% believing that there will ìprobablyî or ìdefinitelyî be further redundancies at their firm over next six months compared to the 42% who believe there will not.

However, based on analysis of the responses, attitudes varied significantly dependent of the type of asset management firm in which people worked. For example, the eFinancialCareers.com survey shows that those employed in the asset management divisions of banks were the most pessimistic, 61% believing further redundancies are likely at their organisation versus the 30% who believed not. By contrast, respondents working at multi-strategy boutiques were the most confident, only 27% expecting further cut backs against the 56% who thought there would not be any further reductions in headcount at their firm.

Across all sectors, the need to cut costs was viewed as the main driver for any further lay-offs in the next six months.

And when quizzed about whether or not they expected their organisations to be taking on staff over the next six months – again viewpoints differed greatly according to where the respondents currently worked. Based on the responses given to the eFinancialCareers.com survey, the most bullish regarding headcount increases came from those working at single strategy or multi-strategy boutiques. By comparison, those working at the asset management divisions of banks or insurance companies were less sure.

But for those asset management professionals who believed their firms would be hiring in the second half of the year, the primary reason given was ìpreparing for future growthî followed by ìthese are currently growing parts of our activityî.

Across all areas analysts, client services staff and fund managers were seen as the positions most likely to be in immediate demand.

The eFinancialCareers.com survey also shows that a sizeable minority (39%) of fund management employers have already amended their bonus schemes. Indeed, asset management employees working at banks and single strategy boutiques are more likely than not to have already experienced a change. Insurance companies, however, appear to be the slowest to adopt new schemes, the majority of respondents working in asset management divisions at insurance companies saying nothing has changed at present.

Across all firms, the most common reforms to bonus schemes to date identified by eFinancialCareers.com have been the introduction of longer time-periods over which to assess performance – anywhere up to five years - and the introduction of potential bonus clawbacks.

John Benson, CEO and founder of eFinancialCareers.com, commented:
ìWhilst there are some positive signals coming from asset management professionals working in certain sectors of the industry, the jury is still out as to whether or not this is a genuine expression of lasting optimism or just relief that they have survived the first six months of the year.î

The eFinancialCareers.com online survey of 234 asset management professionals took place during July 2009.