The Changing Landscape Of Investment Operations – 2020

The virtually held 2021 Investment Operations Conference by Conexus Financial traversed several key themes across the industry, with a large focus on people, data and technology, the mainstays from what was 2020. Kaizen Recruitment had the privilege to not only attend but also present at this conference in the panel: People and COVID: Sourcing, Training and Retaining the New Generation.

With people at the crux of operations, businesses and the global pandemic, in conjunction with the impact to, and of, data there was much to discuss in this context.

In the panel discussing post-COVID learnings, Lounarda David, COO IFM Investors, highlighted the incredible management response undertaking with the sway to working from home in March 2020. With accentuated expectations from clients to be flexible, deliver with speed and agility there was a fine balance in responding to their needs and keeping staff safe. As Lounarda underscored, it was a testament to operations teams stepping up to handling two months’ worth of work in a week and adding value in these uncertain times.

Although some organisations in Australia already had working from home rolled out, it had never been tested at 100% capacity by anyone. Sally Collins, COO VFMC, also highlighted the real need for a human experience even from a clients’ perspective as they wanted to provide reassurance of the safety of investments, over and above the ramped-up reporting at a higher frequency.

Maintaining service standards

Partnerships with third party service providers that operate on a follow-the-sun model was beneficial in ensuring there were no interruptions to service standards. This was enabled by the ability to move functions across regions as the virus affected different geographies at different times. Fund services firms stepped up and set a very high bar in their service standards without interruptions. Virtually conducting operations due diligence also enabled firms to delve into areas where previously they did not have visibility into owing to hard to access remote locations, with now a greater level of access to those doing the day-to-day for them.

Increasing the talent pool

The leaders also acknowledged the evolving mindset of hiring candidates from a wider geographical reach, factoring in the legalities. Kaizen Recruitment on the panel People and COVID: Sourcing, Training and Retaining the New Generation, also noted that clients have come a long way over the last year with video interviewing having become a normal part of the recruitment processes, however with restrictions currently eased, this is further evolving, with in-person interviews making a comeback.

Flexibility is king

We also highlighted that flexibility is king. A vast majority of candidates do not consider roles now without the availability of flexible arrangements, being extremely hesitant towards organisations that want to go back fulltime in the office long term. Candidates have declined dream jobs at prestigious firms for better flexibility and support counter-offered by their current employers.

As Sally Collins, COO VFMC, acknowledged, people cannot be mandated to return to offices as a blanket rule as there are a plethora of circumstances to factor in; the flexibility is key in building trust and comfort. The benefits are incremental to productivity, engagement and hence, profitability.

Managing teams remotely

Managing teams virtually and in a hybrid environment is however challenging and the leaders corroborated our view of frequent communication and feedback being integral, as we had highlighted. Lounarda David, COO IFM Investors, also raised an interesting facet of as part of their data uplift, there are projects underway to assess what the future workforce would look like and how the complexity of a hybrid environment can be managed with a cyber overlay.

The change in roles

The landscape of the investment operations recruitment market has evolved too. There continues an increasing hybridisation of roles, especially within fund managers, integrating operations, fund accounting, due diligence and client services functions, with the ability to drive projects and automation. With outsourced models, the oversight of the custodian and service providers requires the depth of knowledge but also beyond the technical capability, the soft skills to manage stakeholders at the third-party providers. There is a shortage of talent covering such a range of functions and skills. Candidates coming from custodian or larger fund managers have highly specialised skills unless they have had secondment opportunities. A number of operations functions having been offshored post GFC has generated a vacuum of candidates within operations with the end-to-end knowledge being rare, and highly valued.

It’s a candidate driven market

In the current market with international borders shut, the shortage is exacerbated especially across fund accounting, financial reporting and fund tax, where the demand outstrips supply of high calibre talent. This is now especially acute for contract requirements as there are no overseas candidates on short term visas, and majority of those who were here have long left.

It is now a candidates’ market, with quality candidates, irrespective of stage of career, in multiple processes, with the best and fortuitous landing up to four offers on the table to choose from. Our advice to yield such advantage is to continue to nurture relationships along the way and maintaining one’s LinkedIn presence to continue to get tapped on one’s shoulders along the way.

Hiring the right candidate

Now more than ever, in the current environment, it comes down to what hiring managers are looking to buy, and what they are willing to train. A candidate with the right transferable skills, understanding of the industry, aptitude and attitude should be given due consideration, even if they do not meet all technical skills, to not only allow for better retention by investing and developing staff but also diversity of thought on the team. Diversity in the workforce begins with diversity in recruitment and allows for an opportunity for candidates to be at the table. As corroborated in a recent piece by Kaizen “Diversity in the workforce begins with diversity in recruitment” having an inclusive recruitment process, will help build towards stronger leadership teams and enhanced business outcomes.

Often great candidates are lost owing to slow and drawn-out recruitment processes. In this new environment, it is no longer about salary, flexibility is king. There is greater emphasis from candidates on work-life balance, flexible work arrangements and other benefits on offer, with the best of the best in positions to decline offers that do not provide for these. To sum up, unicorns are hard to find, especially in this tight recruitment market, when you do, snap them up.

Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney. For assistance or further information please telephone our office at +61 3 9095 7157 or submit an online form.

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