HR PROFESSIONALS in financial advisory firms will need to play a critical role in assisting with cultural transformation and talent acquisition and management over the coming years, according to a US expert on human capital in the finance sector
HR PROFESSIONALS in financial advisory firms will need to play a critical role in assisting with cultural transformation and talent acquisition and management over the coming years, according to a US expert on human capital in the finance sector.
Michael Herman, national organisational effectiveness leader for Deloitte & Touche’s Human Capital Advisory Services, said a critical challenge all financial advisory firms face globally is in developing the right sets of human capital programs in line with the business.
“In many organisations the business line is in charge of things such as compensation, hiring and other HR decisions,” he said.
“The challenge with HR in financial services for the most part – and this is a global phenomenon – is that HR has not been a business partner. And because of that there’s been a disconnect in building effective types of remuneration, training and cultural programs that help support transformation.”
Herman said he hadn’t seen a financial advisory firm that had ubiquitously been successful along these lines, and encouraged HR to take a more active role in partnering with the business.
“The opportunity is there for the HR organisation is to transform itself like the finance organisation did some 15, 20 years ago,” he said.
“Finance organisations were just rolling up the numbers and making sure taxes were paid then, but now they’re at the table of all strategic discussions.”
He said HR needs to be a decision science and focus on the key topics that drive business, such as cultural transformation and talent acquisition and management.
“One of the immediate needs is for HR to really start understanding the business and really think about how they deliver services to financial organisations.”
One of the key areas HR can assist with is the development and support of managers. A recent global asset management study conducted by Deloitte & Touche found that the transition to a new manager is critical, with a poorly managed transition potentially costing up to 2 per cent of assets in a pension plan.
