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Investment Management Career Paths in the FinancialServices Industry
May 12, 2015
Anna OrgeraIlene SiscovickStephen Brown
MERCER WEBCAST
MERCER WEBCAST
1
Today’s Speakers
CLICK HERE
Anna OrgeraPartnerMercer+1 212 345 [email protected]
Stephen J. BrownPartnerMercer+1 212 345 [email protected]
QUESTIONS?
Please type your question inthe Q&A section of thetoolbar and we will do ourbest to answer it.
While in full-screen mode,simply use the Q&A buttonon the bottom right-handside of your screen.
While in half-screen mode,use the Q&A panel on thebottom right-hand side ofyour screen.
QUESTIONS?
Please type your question inthe Q&A section of thetoolbar and we will do ourbest to answer it.
While in full-screen mode,simply use the Q&A buttonon the bottom right-handside of your screen.
While in half-screen mode,use the Q&A panel on thebottom right-hand side ofyour screen.
Ilene SiscovickPartnerMercer+1 212 345 [email protected]
MERCER WEBCAST 2May 14, 2015
• Overview of talent challenges facing the sector
• Context: Mercer research on performance management and careers
• Career path design areas and examples
• Sample process for developing career paths
• Career pathing as focal point for talent and reward programs
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AgendaWhat we’ll cover today
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Key Talent Challenges Facing Investment Managementin the Financial Services Industry
• Market for talent is highly competitive
• Compensation alone is ineffective
• Skill sets are fully portable
• Not uncommon for full team lift outs or bolt ons
• Top performers have high expectations regarding career advancement
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ContextMercer research on performance management
AreaArea Critical Drivers of SuccessCritical Drivers of Success
Source: Mercer’s 2013 Global Performance Survey Report (n = 1,056 organizations)
Manager Skills • Elements having most impact– Having candid dialog– Linking performance to development planning– Setting “smart” goals
Executives Leading by Example • Holding one-on-one performance discussions• Having formal performance planning discussions• Holding team accountable• Providing regular coaching/feedback• Regularly talking about performance management as
a core business process
Calibration • Calibrating all employees
Technology • Providing access to information; supporting a comprehensive/timelyprocess
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ContextMercer research on career frameworks
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Source: Mercer 2012 Career Framework Survey. 297 US and Canadian organizations
1/3companies have acareer framework
68%companies plan to
implement one
9%
26%
65%
Plan to implement a new framework (9%)
Do not plan any modifications (26%)
Plan to modify their existing career framework,including linking additional talent management orrewards programs (65%)
68%
32%Plan to implement a career framework
Do not plan any modifications (32%)
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Career Path Design AreasProgram objectives
• Provide employees with a map to own their careers– What career opportunities exist?– Vertical and lateral progression
• Manage employee expectations– What experiences/skills are required for success in the role and to progress?– Career opportunities reflect organizational need and employee capabilities– Discourage entitlement mentality
• Provide managers with a tool to be effective coaches
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WHAT is expected of me?
WHERE ELSE CAN I GO IN THISORGANIZATION? WHAT OTHER
FUNCTIONS EXIST?
WHAT ARE THEROLE EXPECTATIONS?
HOW can I get there?
JOB FAMILIES/SUB-FAMILIES
Generally recognized majorprofessional area, often requiringa unique set of skills.
Most career development occurswithin a job family.
ROLE
A specific point in a careerjourney, characterized by acombination of career level,career stream, and sub-family.
Each role has a unique blend ofcompetencies and technicalcapabilities.
HOW MANY RUNGS ARETHERE IN THE CAREER
LADDER HERE?
CAREER LEVELS
The hierarchical position ofa job within a career stream.
Recognizes incrementalchanges in job scope andresponsibilities.
Consistent across job families.
DO I HAVE A CHOICE BETWEEN ATECHNICAL CAREER OR A
MANAGEMENT CAREER ATSOME POINT?
CAREER STREAMS
Career type within theorganization,characterized byunique responsibilities.
Career ArchitectureDetermining the right career architecture is the blueprint to a strongfoundation enabling individual growth and better business performance
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FUTUREOPPORTUNITIES
CURRENTROLE
Career Path Design AreasVertical and lateral progression
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ROLEPROFILE
Group A Group B Group C Group D Group E Group F Group G
ROLEPROFILE
ROLEPROFILE
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Career Path Design AreasCareer path design building blocks
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Career Path Guides
Career Tracks
Role Architecture
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Career Path Design AreasDual career track illustration for investment management roles
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Portfolio Manager(Technical Specialist)
Sr. Portfolio Manager(Technical Expert)
Chief InvestmentOfficer
Head of InvestmentArea
Team Leader (PeopleManager)
Senior InvestmentAssociate
Investment Associate
Investment Analyst
Individual Contributor People Manager
Investment Management Team
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Career Path Design AreasCareer path guides: content areas for each role
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Job RelatedInformation
Career PathGuidance
Major responsibilities
Job family specific experiences, e.g., investment management,research, trading, sales
Broadening experiences
Typical feeder roles (within and outside the organization)
Potential next roles (within and outside the organization)
Core competencies/skills
Technical competencies/skills
Career Path Guides
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Career Path Design AreasMajor responsibilities
• 3 to 8 major responsibilities
• Provide a picture of what’s critical
• Not every task or duty
• Show progression from role to role
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Career Path Design AreasMajor responsibilities: simplified progression illustration
Role Major Responsibilities Illustration
Senior InvestmentAssociate
• Independently performs most complex quantitative analyses with limitedsupervision
• Prepares reports for internal and external stakeholders• Assists in presenting recommendations to Heads of Investment Area and
possibly Chief Investment Officer• Makes buy, sell and hold recommendations for investments of greater
complexity• Coaches Investment Associates and Analysts• Serves on cross functional team to identify key information for financial
reporting
Investment Associate • Under general supervision, performs specialized quantitative analyses,including financial modeling and research, for specialty area
• Contributes to report development for internal and external stakeholders• Makes buy, sell, and hold recommendations• Reviews programming developed by Investment Analyst to track data
Investment Analyst • Under close supervision, conducts market research and analysis in support ofthe selection, evaluation and monitoring of investments or externalinvestment managers for a specialty area
• Develops programs to track investment and risk management data
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Career Path Design AreasExperiences
Types of Experiences ExamplesInvestmentManagementSpecific
• Demonstrated knowledge of assigned asset class and trends/developmentsin related areas
• Understanding of basic principles of risk management• Ability to interpret investment financial reports and apply data for decision-
making
Broadening • Project management• Financial analysis• Statistical analysis• Familiarity with sales and trading• Experience working outside of home country
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Career Path Design AreasCareer pathways: consider experiences and competencies/skills required
Career Pathway Area Examples
Feeder Roles:sources of talent withinand outside theorganization
• Within: finance and risk/compliance roles• Outside: MBA, other asset class specialists, financial services industry,
consulting
Next Moves:within or outside theorganization
• Within: most typically vertical, but sales and trading are possible options• Outside: financial services, consulting, academia, foundations/endowments
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Career Path Design AreasCore and technical competencies (may pertain to behaviors orknowledge/skills)
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COMPETENCY/SKILL TYPE PROFICIENCY LEVEL (EXAMPLE)
• Applies to specific jobfamilies, e.g., specificto investmentmanagement
TechnicalTechnical
Demonstrates beginner awareness andunderstanding
Applies intermediate understanding in ownwork and may guide others
Leverages advanced understanding in ownwork and may act as a coach
Leverages expert understanding and acts asa role model, organizational coach andchampion
• Applies to all jobs andjob families
CoreCoreLEARNINGLEARNING
FULLYPROFICIENT
FULLYPROFICIENT
ADVANCEDADVANCED
EXPERTEXPERT
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Competency Model Assumptions
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Competency FrameworkCompetency Framework
Level 1 Level 2 Level 3C
OM
PETE
NC
IES
Technical Competencies
Core Competencies
SAMPLE CAREER LEVEL
Relationship and Application
COMPETENCIES Core Competenciesthat apply to all jobsregardless ofgeography or function
Specific skills andknowledge that arecritical for functionspecific jobs
CoreCompetencies
TechCompetencies
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Career Path Design AreasCompetencies
Sample Behavioral Sample Knowledge/Skills
• Leadership• Decision making• Personal influence• Teamwork/collaboration• Flexibility• Resilience
• Communications• Quantitative analysis• Subject matter expertise• Business acumen• Risk management• Client facing• Analytical/synthesizing
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Key CareerFramework Components
Building Blocks: CompetenciesDefined company-wide competencies (leadership, employee) to driveperformance management and career development
WHAT
HOW
EXPERIENCE/PROGRESSIONGUIDELINES
Key behaviors,skills andknowledge
Job scope andresponsibilities/accountabilities
Education andexperienceguidelines
US bank
Illustrative
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Definition: Has the ability to convey and communicate ideas in a way that is simple and enhances understanding, collaboration and engagement.
Learning Fully Proficient Advanced Expert
Investment Analyst/Associate Sr. Investment Associate/Portfolio Manager/Team Leader
Senior Portfolio Mgr/Head ofInvestment Area Chief Investment Officer
Impactful communication
• Exhibits effective oral, written andnon-verbal communications anddelivers high quality work
l Listens attentively and askseffective questions to clarifyunderstanding
• Understands verbal and non-verbal nuances while deliveringmessages to create simple andhigh impact outcomes
• Leverages knowledge of a myriadof communication styles andadapts own approach to conveycomplex concepts in a simple wayto manage sensitive and diverseaudiences
Internal and external relationships
• Exhibits awareness of differentstakeholders (e.g. banks,investment managers, regulatorybodies, etc.) recognizing theirimpact on XYZ
• Leverages knowledge of differentstakeholders and seeksopportunities to engage them indifferent ways that can havepositive outcomes
• Understands priorities and deeperneeds of different stakeholdergroups while strategically utilizingthem for the organization
• Is an expert in managing multiplevaried stakeholder perspectivesand objectives while providing riskadvice with an impact on the widerindustry
Developing self
• Shows eagerness to learn newbusiness knowledge, technologies,tools or systems and makes apoint to offer ideas/solutions
• In times of change, applies variouslearning experiences to proactivelyanticipate problems, createefficient solutions and avoids“over-analysis”
• Drives, anticipates and embracesthe change process by quicklylearning new concepts andtechniques and helping others todo so as well
• Keeps abreast of innovativeindustry practices and externalperspectives and sharesdata/reports that can improveXYZ’s position
Personal Influence
Career Path Design AreasCore competency/skill example
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Career Path Design AreasCareer path guide simplified illustration for Senior Investment Associate
Area Senior Investment Associate
Major Responsibilities • Independently performs most complex quantitative analyses with limited supervision• Prepares reports for internal and external stakeholders• Assists in presenting recommendations to Heads of Investment Area and possibly Chief
Investment Officer• Makes buy, sell and hold recommendations for investments of greater complexity• Coaches Investment Associates and Analysts• Serves on cross functional team to identify key information for financial reporting
Investment ManagementExperiences
• Advanced understanding of assigned asset class and trends/developments in relatedareas
• Demonstrated understanding of investment quality standards, including performance inthe context of risk management and managing liquidity
• Advanced understanding of how to apply financial/statistical modeling to investmentanalyses
Broadening Experiences • Project management• Demonstrated ability to present recommendations to senior management
Required Core / TechnicalCompetency Level
• Fully proficient
Feeder Roles • Within Investment Management: Investment Associate role• Outside organization: MBA, other asset class specialists, financial services industry,
consulting
Next Moves • Within Investment Management, Portfolio Manager or Team Leader• Within organization, sales or trading• Outside organization, financial services, consulting, academia, foundations/endowments 21
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Building Blocks: Role ProfilesA single document for each role that would bring all the pieces together.This would drive market pricing and employee development
Each job standard profilerepresents a global level inthe career ladder
• Job Scope - Each grade is defined usingorganization-wide criteria such as scope/impact,complexity, span of control, etc.
• Responsibilities - Key areas of responsibilities aredeveloped and assigned by career stream for eachgrade
• Technical capabilities – Key skills, knowledge andbehaviors that are articulated by sub-department foreach grade. The types of competences include:
• Core (generic): across the organization for allemployees
• Department-specific: Some specific capabilitiescan be identified for sub-departments
• Guidelines on key qualifications and experiencesare developed and assigned by global job level
Illustrative
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Key CareerFramework
Components
WHAT
HOW
EXPERIENCE/PROGRESSIONGUIDELINES
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Sample Training and Development ToolDevelopment Actions
Competency models can include the identification of specific on-the-job actions to strengthen capabilitiesand facilitate employee development
Sample Development ActionsTechnical Competency: Effective Communication
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Illustrative
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Sample Competency Assessment Tool
§ Receives coaching from executive peerswhen developing the next generation ofmarketing skills, analysis, planning, andknowledge requirements that deliver bottom-line results which take more time thancolleagues at the Fully Proficient level
§ Draws upon a foundation of broad knowledgeto develop the next generation of marketingskills, analysis, planning, and knowledgerequirements that deliver bottom-line results
§Draws upon a foundation of broad knowledgeand drives others to learn how to developthe next generation of marketing skills,analysis, planning, and knowledgerequirements that deliver bottom-line results
§ Develops successful market plans thatdeliver on revenue projections and profittargets through the direction of seniorcolleagues/managers
§ Develops successful market plans that deliveron revenue projections and profit targets
§ Develops and drives others to championmarket plans that deliver on revenueprojections and profit targets
§ Identifies sources of competitive advantagein market and company capabilities todevelop market plans that reflect customerand market requirements with the guidanceof senior colleagues/ manager
§ Promotes delivery of integrated customer solutionsby translating information into actionable items forothers
§Coaches others to identify sources ofcompetitive advantage in market andcompany capabilities to develop market plansthat reflect customer and market requirements
§ Produces positive results using marketanalysis to make strategic decisions thatpositively impact the brand most of the timeafter reviewing a clear example
§ Produces positive results using marketanalysis to make strategic decisions thatpositively impact the brand
§Drives positive results through othersusing market analysis to make strategicdecisions that positively impact the brand
Based on where the majority of your ratings fall, choose an overall rating for the Market Analysis and Planning competency:
Supporting evidence (support your overall rating with specific work-related examples and results):
Developing Fully Proficient Role Model
Developing Fully Proficient Role Model
Mercer strongly supports baseline talent review and development through an assessment process.The assessment also helps socialize the competency model
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Sample assessment page withfree form comments boxes
Sample assessment pagesIllustrative
Sample administrator page
Section 1
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Sample Competency Assessment Results:Individual Report and Talent Heat Map
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Individual Report:Discrepancy profileshows largestdiscrepancies betweenown ratings and the ratingsof others
Individual Report: Overallprofile provides an overview ofresults
Talent Heat Mapprovides an overview of
aggregate results
Illustrative
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Sample Process for Developing Career Paths
• Gather information on current roles– Organization charts– Existing position descriptions
• Consider market practice
• Establish design principles around– Desired degree of change from current state– Career tracks and alignment with organization-wide role architecture
• Involve employees and managers in building content, e.g.,– Steering Committee– Design Team– Broader employees
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Key Learnings About Process for Broader Applications
Start careerpathing with theright job family
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Think carefullyabout projectteam structure
And so isexecutivesponsorship
Projectmomentum iscritical
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Career Pathing as Focal Point for Talent and Reward Programs
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Today’s Speakers
CLICK HERE
Anna OrgeraPartnerMercer+1 212 345 [email protected]
Stephen J. BrownPartnerMercer+1 212 345 [email protected]
QUESTIONS?
Please type your question inthe Q&A section of thetoolbar and we will do ourbest to answer it.
While in full-screen mode,simply use the Q&A buttonon the bottom right-handside of your screen.
While in half-screen mode,use the Q&A panel on thebottom right-hand side ofyour screen.
QUESTIONS?
Please type your question inthe Q&A section of thetoolbar and we will do ourbest to answer it.
While in full-screen mode,simply use the Q&A buttonon the bottom right-handside of your screen.
While in half-screen mode,use the Q&A panel on thebottom right-hand side ofyour screen.
Ilene SiscovickPartnerMercer+1 212 345 [email protected]
