For Ultra High Net Worth (UHNW) clients, advisors may be interested in Morgan Stanley's recent release of the Estate and Household Staff Compensation Report. The report includes information on salaries and benefits for various estate and household management roles. The report is based on data from approximately 300 families and family offices. Wealth Management.com has compiled the best practices and compensation trends.
1. Compensation
The report reveals that UHNW families are increasing salaries faster than the overall job market. Specifically, 45% of management and 36% of staff positions are experiencing higher salary increases. Interestingly, more than one-third of current staff members have been with the families for less than two years, and 59% have less than five years of tenure. This suggests a significant turnover rate. This situation puts more experienced staff members at risk of being recruited by other employers.
2. Best Practices for Clients
The report finds that UHNW families develop defined and consistent HR processes, including onboarding, benefits, regular performance management, training, and performance reviews. UHNW families understand the importance of offering competitive compensation and benefits packages to attract and retain top talent. They often provide generous salaries, bonuses, healthcare benefits, and other perks to ensure employee satisfaction and loyalty. Nonetheless, pay prevails as the top factor in staff retention.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
