Family Office Staffing: Building the Right Team

Video transcript

The family office association was founded in 2007 as a peer network for single family offices. Family office staffing. There are whole courses and books on leadership and staffing. Here we will share a few observations from the perspective of the unique challenges faced by family offices. Some of these points may seem obvious but you would be amazed how often they are overlooked. The purpose of the family office will determine the kind of leadership and staff it needs. Early leadership choices are crucial and echo across time, potentially for generations. Ultimately, the success of the family office comes down to the people hired to execute the vision. It is not uncommon for a friend, family member, college roommate, or other trusted acquaintance to be hired to set up a family office. However, as the office grows and professionalizes, it usually becomes more formal and professionally staffed. Later hires often include professionals who have practiced as a trust and estate attorney, tax accountant, investment banker, or wealth manager. The concept of path dependency is important here because early family office hires will determine the culture and ultimate trajectory of the family office. While it can be very painful firing employees and reorganizing a family office, especially given how personal the relationships often are, there is usually an evolution as the family office grows over time and additional or replacement talent is needed. It should come as no surprise that trust is typically the most important factor for family office hiring. A range of tools are available for assessing talent. Depending on the family office, hiring may be quite formal, utilizing deep background checks, drug tests, trial periods, and extensive reference checks due to the sensitive nature of the role. Having said that, hiring can also be an informal exercise if on boarding a trusted prior relationship. Thank you for listening. We hope you have enjoyed this content. Please share with others or visit tfoa.info to learn more.