Family offices are unique. There is never one office that is the same, yet each one thrives on building trust, cultivating long-lasting relationships, and understanding a family’s values and what they want their legacy to be.
Building a family office staff that is invested in longevity requires knowing your family office goals and staying attentive to those throughout the hiring process.
If your family office is growing and you’re unsure whether you should look externally for talent or simply train and promote from within, this is a decision that should be weighed with great care. There is no one-size-fits-all answer, either.
The right choice depends on timing, family office goals and organization maturity, and the specific skills needed to get the job done well.
Benefits of Promoting from Within
Once you have a robust family office team that knows the innerworkings of the organization and its priorities, you’ll want to hang onto them. That’s why many family office executives choose to promote existing team members when the conditions are ideal.
Here are some benefits of leveling up existing employees.
They already have institutional knowledge and established trust.
Your staff has already spent time learning about the family’s culture, their communication style, and expectations. They are familiar with the environment and value loyalty. This can be invaluable, as it can take a long time to build this with someone coming in from the outside.
Internal promotions reinforce retention.
When family office staff are seen and recognized for their talent, experience, and contributions, this can be the best way to reinforce long-term retention. It shows them that the family is committed to helping them grow and ultimately, this boosts morale and fuels them to continue investing in the success of the organization.
Faster onboarding.
Internal candidates already know the family and the team working alongside them. Onboarding will likely take less time and will be less disruptive to workflow than bringing in someone starting from zero.
Hiring internally can save money.
Recruiting costs can add up quickly and are often more expensive than promoting an existing team member and providing them with a raise.
Benefits of External Hires
Sometimes family offices need a fresh perspective or someone that brings talent or experience that the office doesn’t already have. For example, someone with specific technical expertise or training, or an individual who has had a robust career in philanthropy or fundraising may bring the connections and skill that the office needs to soar to the next level.
Here are some benefits of hiring externally.
When specialized expertise is needed.
As family offices expand, they may need individuals with skillsets that don’t already exist at the organization. For example, when a family office is looking for an expert in investment management, tax strategy, or multi-generational planning, recruiting externally can fill critical gaps.
When there is rapid growth.
When a family office sees significant growth or wants to expand geographically, hiring people from the outside might be necessary.
When there is a need for change.
Family offices are often rooted in tradition and sometimes, bringing on new experienced staff from the outside can bring change and fresh ideas to the table. An external hir can bring new insight and help modernize the office or processes in a way that is beneficial for growth.
Why Household Staffing
Many successful family offices adopt a blended strategy of investing and promoting internal talent while hiring externally for specialized roles. Because each family office has distinct dynamics and a unique culture, there really isn’t a right or wrong answer.
Instead, it’s about finding the right employee fit at the right time, and taking the time to discern which route will allow the family office to build the legacy set out before them.
With thoughtful planning and outlining clear expectations, family offices can build resilient teams that support future success. Our experienced team at Household Staffing can help you build that team, too.
With more than three decades in the domestic and family office staffing industry, our personalized approach allows us to find the right employee match for family offices and homes around the country. Call us today or complete our New Hire Form to get started!
