Dangers of Training Employees to See them Leave
Fund houses worry that it would be even harder to retain their talented employees after having offered them training through business schools. Stephanie Villemagne told Financial Times that the business school training could help prepare professionals to take on roles in strategy, leadership and corporate development.
Many fund houses nurture their most talented employees through business school courses or industry accreditations with the expectation they will progress to a senior managerial role in the company. But companies may also worry that their best executives will become more attractive to competitors and even more difficult to retain.
In an interview with Financial Times’ Ignites Asia, Stephanie Villemagne, Associate Dean (Graduate Programmes) and Director of MBA Programmes at The Chinese University of Hong Kong (CUHK) Business School, says concerns around talent retention are justified, as fund houses are in strong competition for talent with other industries, such as consulting, wealth management, and investment banks.
When compared to the fund industry, companies in these industries tend to offer better training and development models for business professionals and provide clearer career paths, says Villemagne. So it’s a risk worth taking for fund companies to try to develop their own talent pool, she adds.
On the other side of the debate, there is a question of whether a CFA charter holder, who has been well trained in the business of investment management and has experience in the industry, needs to go to business school before being trusted with the responsibilities of managing a company.
It is also the case that business school qualifications are very expensive and require a long-term commitment.
Though the budget for studying in business schools in Asia is comparatively lower than that in the U.S., one still needs to pay for US$100,000 to US$120,000 to complete the courses offered in a city like Hong Kong, according to Villemagne.
Fund companies looking at other options to nurture their employees could choose the more cost-effective approach of providing internal training to their staff to cover leadership, people management, strategic planning and advanced communication.
Villemagne argues that, although most investment management professionals will have studied relevant courses and received technical training before they commence their career, their existing skill sets are not normally sufficient for managerial roles.
Most junior staff in the fund industry start in more technical or functional roles, most likely as research analysts or junior traders, and already possess the required technical skills for the job, such as basic equities research, algorithm trading and financial analysis, she says.
Nonetheless, before too long, young professionals also need to develop a different set of soft, less technical skills in preparation for more senior level responsibilities. In taking on new demanding roles in risk management, institutional sales, client relationship management, long-term strategies, or complex geopolitical analysis, their all-round abilities will directly affect the firm’s long-term performance.
Villemagne adds that this is where the business school training could benefit in developing critical thinking and help prepare professionals to take on roles in strategy, leadership and corporate development… Read More
Source: Financial Times – Ignites Asia
Date published: 29 June, 2016