Family office compensation is evolving at an unprecedented pace, driven by a growing number of ultra-high-net-worth families and an increasingly competitive market for top talent. Recent benchmarking reports reveal striking trends: compensation at family offices has risen by 10% to 20% since 2019, fueled by surging demand for talent. Salaries for family office staff now range from $500,000 to as much as $7–$8 million annually, reflecting the intense competition for skilled professionals capable of managing complex portfolios, investments, and family dynamics.
In this environment, family offices face unique challenges, asking themselves:
- Where can we find top-tier talent?
- How can we retain them?
- How should we structure compensation to attract and keep the best?
In our discussions n with family office leaders we delved into these pressing issues, from hiring trends to creative compensation structures. These conversations uncovered actionable insights into how family offices can navigate the complexities of talent acquisition and pay strategies in the modern landscape.
In this article, we distill these insights into a comprehensive guide to salary, benefits, and trends for family offices moving into 2025 and beyond. Whether you’re building a team or rethinking your current structure, this is your one-stop resource for understanding the shifting dynamics of family office compensation.
Working for a Family Office
In recent years, family offices have become increasingly attractive employers, offering unique opportunities that differ from traditional financial institutions. This shift is largely due to a competitive talent market, where family offices and Wall Street firms vie for top professionals, leading to significant changes in compensation and work culture.
Competitive Compensation Packages
The competition for talent has driven family offices to offer substantial compensation packages. This surge reflects the high demand for skilled professionals capable of managing complex, personalized investment strategies.
Enhanced Work-Life Balance
Beyond financial incentives, family offices often provide a more balanced work environment compared to the demanding schedules typical of Wall Street. Employees may experience greater flexibility and a focus on long-term investment horizons, contributing to a healthier work-life balance. This aspect is particularly appealing to professionals seeking to align their careers with personal well-being.
Diverse Investment Exposure
Working in a family office offers exposure to a wide array of investment opportunities, including private equity, venture capital, real estate, and alternative assets. This diversity allows professionals to broaden their expertise and engage in innovative investment strategies tailored to the family's unique goals and values.
Direct Impact and Decision-Making
Professionals in family offices often enjoy closer relationships with principals and have more direct involvement in decision-making processes. This proximity can lead to a greater sense of ownership and satisfaction, as employees see the immediate impact of their work on the family's wealth and legacy.
Family Hires vs Outside Talent
Family offices grow their teams through two primary pathways: family hires and external talent. While both approaches offer advantages, they also present unique challenges. Below, we explore the dynamics of these pathways and provide actionable strategies for overcoming barriers to attract top talent, even those unfamiliar with the family office space.
The Role of Family Hires
Family hires provide a deeply connected, albeit smaller, talent pool. These candidates are typically family members or individuals closely linked to the family, which can foster trust and alignment with the family’s values. However, family hires make up a relatively small portion of the workforce in family offices—globally, the average is just 18%, though this number rises to 32% in regions like Asia Pacific, according to a report from Deloitte.
To optimize this pathway, family offices can:
- Create formal development programs for family members to prepare them for key roles.
- Establish mentorship opportunities to bridge generational gaps and ensure younger family members align with strategic objectives.
- Clearly define roles and expectations to maintain professionalism and reduce potential conflicts.
Accessing External Talent
External hires are crucial for infusing fresh perspectives and expertise into the family office. While family offices are increasingly attractive to executives – particularly those seeking creative autonomy and the opportunity to manage bespoke investment portfolios – many potential candidates are unaware of these benefits due to the perceived secrecy of the industry.
To find an effective external talent prospect, consider the following five tactics:
- Leverage trusted networks: Family offices can tap into their established relationships with private banks, wealth managers, or trusted advisors to identify potential candidates. Peer groups and industry events can also be effective platforms for connecting with talented professionals.
- Highlight unique work opportunities: Family offices offer flexibility, direct collaboration with principals, and the ability to make a tangible impact. Crafting job descriptions and employer branding materials that emphasize these advantages can attract candidates seeking a departure from rigid corporate structures.
- Offer cultural integration programs: Create onboarding experiences that immerse candidates in the family office’s values, history, and culture. These programs can help non-family hires feel more connected to the mission and reduce the intimidation often associated with entering the family office world.
- Build a strong digital presence: While family offices often value discretion, having a clear and professional online presence can demystify the organization for potential candidates. Share insights about the office’s mission, team, and impact to create transparency and build trust.
- Partner with specialized recruiters: Family offices may benefit from working with recruitment firms that specialize in niche markets, including private equity or ultra-high-net-worth clients. These firms understand the unique dynamics of family offices and can better identify compatible candidates.
Family Office Compensation and Incentive Structures
Family offices, which manage the wealth and affairs of high-net-worth families, are increasingly focusing on attracting and retaining top talent through competitive and tailored compensation structures. These structures often include a mix of performance-based incentives, deferred compensation, equity stakes, long-term incentive plans (LTIPs), special benefits, and clear career development pathways.
Performance-Based Compensation
Performance-based compensation aligns employees' financial rewards with the success of the family office's investments and overall performance. This approach incentivizes employees to achieve specific financial targets or strategic objectives.
According to the 2023 Global Family Office Compensation Benchmark Report by KPMG, many family offices are adopting performance-based bonuses to attract talent accustomed to such structures in traditional financial services.
Deferred Compensation
Deferred compensation plans involve postponing a portion of an employee's earnings to a future date, often tied to the achievement of long-term goals. This strategy not only aids in employee retention but also aligns their interests with the long-term success of the family office.
The KPMG report highlights that deferred compensation is becoming more prevalent as family offices seek to offer competitive packages comparable to those in corporate environments.
Equity Stakes
Offering equity stakes or co-investment opportunities allows employees to invest alongside the family, fostering a sense of ownership and aligning their interests with the family's financial goals. This approach is particularly appealing to executives from investment backgrounds who value the opportunity to directly influence and benefit from investment outcomes. The KPMG report notes that such arrangements are increasingly common in family offices aiming to attract top-tier investment professionals.
Long Term Incentive Plans (LTIP)
LTIPs are designed to reward employees for achieving long-term performance milestones, often over several years. These plans can include stock options, restricted stock units, or cash bonuses tied to the sustained success of the family office. Implementing LTIPs helps ensure that key employees remain committed to the family's long-term objectives.
Special Benefits
Beyond financial incentives, family offices often provide unique benefits to attract and retain talent. These can include flexible working arrangements, opportunities for professional development, and access to exclusive networks. Such benefits cater to the personalized nature of family offices and can be a significant draw for potential employees. The KPMG reportemphasizes that offering tailored benefits is crucial in differentiating family offices from other employers.
Career Path & Growth Trajectory
Clear career development pathways are essential for attracting ambitious professionals. Family offices that provide structured opportunities for advancement and skill development are more likely to retain top talent.
How to Connect Family Offices With Talent
The search for top talent in family offices is just the beginning of a larger challenge: successfully integrating executives into a unique work environment that differs significantly from large financial institutions. Transitioning from a corporate role into a family office often requires navigating cultural shifts and recalibrating expectations.
One key factor is the perception of freedom. Executives often enter family office roles believing they will have significant autonomy, but the level of freedom can vary greatly depending on the principal's leadership style and values. Another challenge is the scale of operations. Many executives coming from large institutions are accustomed to managing sizable teams, while family offices typically operate with much smaller staff. This reduced scale often brings added responsibilities, such as mentoring and training younger talent—tasks that may not have been part of an executive's role in larger organizations.
Leveraging Peer Networks and Trusted Advisors
Given these challenges, family offices increasingly rely on peer networks and trusted advisor relationships to source and vet candidates with experience in the family office ecosystem. Peer groups provide a valuable forum for sharing insights, talent recommendations, and best practices. Trusted advisors, such as wealth managers and specialized recruiters, help identify candidates who are not only qualified but also culturally aligned with the family office’s values and expectations.
For example, principals and hiring managers often prioritize candidates who have already transitioned successfully into another family office. This narrows the candidate pool significantly, but it mitigates the risk of hiring someone unfamiliar with the nuances of family office operations.
AI-Driven Recruitment: The Future of Talent Sourcing
Emerging technologies are transforming how family offices approach recruitment. AI-driven platforms can streamline the search for specialized talent by analyzing vast datasets to identify candidates with the precise skills, experience, and cultural fit required for family office roles. These tools can also uncover unconventional candidates from adjacent industries who might bring fresh perspectives to the table.
For family offices, which often operate with limited HR resources, AI tools offer an efficient and data-driven way to find talent without compromising on quality or compatibility.
Trends in Remote and Flexible Work
As family offices seek to attract younger, tech-savvy talent, remote work and flexible arrangements are becoming key differentiators. Younger professionals value the opportunity to work from anywhere and prioritize roles that offer work-life balance. By embracing hybrid or fully remote models, family offices can expand their candidate pool and appeal to a new generation of professionals who bring innovation and fresh energy to the organization.
The Future of Family Office Compensation
Successfully connecting family offices with the right talent requires more than traditional methods; it demands a sophisticated blend of relationship-driven approaches, innovative recruitment strategies, and a deep understanding of the unique dynamics of family offices. Leveraging peer groups, trusted advisor networks, and emerging AI-driven tools can streamline the search process and ensure the best fit for both the family office and the candidate. Coupled with flexible work practices and robust mentorship programs, these strategies help build teams capable of thriving in today’s complex financial and cultural landscape.
This is where Egon Zehnder excels.
With decades of experience working closely with family offices around the globe, Egon Zehnder is uniquely positioned to support you in navigating these challenges. From sourcing and assessing top-tier talent to advising on compensation structures and fostering seamless cultural integration, Egon Zehnder’s expertise ensures your family office is equipped for both immediate and long-term success.
As the family office landscape continues to evolve, having a partner who understands your needs and aspirations is critical. Contact Egon Zehnder today to explore how we can help you attract and retain the talent necessary to secure the future of your family office and achieve your strategic goals.
