In light of a more optimistic economic outlook, private equity and venture capital firms are increasingly looking at hiring to fill their ranks. As the job market becomes increasingly competitive, these firms have to become more creative in order to ensure they attract the most talented individuals. While a large compensation package and the prestige of working for top firms will appeal to many job seekers, firms are looking to expand their offerings beyond the traditional lures and are now addressing work life balance in order to attract and retain top talent.
One trend we’ve seen over the past couple of decades is the increasing importance that individuals put on work life balance. In the past, many workers focused solely on earnings potential, but younger generations are not so quick to trade their time for higher pay. In order to address this shift in preferences, firms are looking at ways to offer more flexible schedules and work arrangements, reduce time spent in the office while considering providing more vacation time.
These types of changes reflect a focus on attracting and retaining young workers, individuals that may have obligations raising a young family or taking care of aging relatives. Firms that chose to be more flexible in dealing with employees are at a marked advantage in attracting and retaining those from this high prized demographic group.
While we are seeing improvements, the financial industry has been a slow adopter of work life balance measures in comparison to the overall corporate world in the United States. Some of this is due to simple realities of the business; rigid trading hours still exist and for many positions, people need to be on the desk for a certain amount of time per day. For non-trading positions, however, much of the lack of progress in shifting to a more balanced employment model is cultural. In most firms, working long hours is a badge of honor and more senior employees and managers view time at the desk as a critical measure for advancement.
While this culture of long hours may still exist at most firms, the reality is that in an environment where fee revenue is harder and harder to come by, firms must look at work life balance as a part of an overall compensation package in order to reduce or limit cash costs. As a result, and following an overall trend amongst U.S. companies, we can expect greater focus on this core benefit in the coming years.