This is an extract from the Family Offices in Asia report.

Through a number of findings in this report, we have demonstrated how and why the Family Office ecosystem in the Asia Pacific has seen phenomenal growth over the last 24 months. With one billionaire being born in Hong Kong every 48 hours according to the Hong Kong Family Office Association and Asia on the cusp of the biggest wealth transfer in history, it is only set to get bigger or at least, it will if it can find talent.

The Family Office landscape in the Asia-Pacific is growing quickly which makes for an exciting read but this growth is recent. As we explore in our report, less than one third of all Family Offices across the Asia-Pacific have 10 years in operation behind them which naturally means the talent pool is both young and underdeveloped.

Unfortunately for Asia-based Family Offices, their people-problem is two-fold.

On one hand you have an incredibly deep-rooted talent pool in Asia made of exceptional financial and professional services individuals who have long worked within banks and businesses within the region. While experts in their fields and respectfully educated, these individuals are not familiar with the idiosyncrasies that make Family Office Life. They are not accustomed to the collegiate culture or flat structure that most Family Offices offer and instead thrive from aggressive career growth and value the likes of titles which have no meaning within the Family Office world.

These individuals work comfortably in large teams that provide both a vibrant atmosphere and constant soundboard where the room for error is large and the rewards can be high. In Family Offices, responsibilities can be great but reward or at least recognition is not always in line with those responsibilities and the margin of error is almost non-existent.

Loyalty and discretion are key and professionals hired to do the unthinkable have to be absolutely committed to the cause.

As Chi Man Kwan, Chairman of the Family Office Association in Hong Kong said: “For the Family Office industry, talent is one of the most fundamental building blocks, crucial to the long-term development of the industry but the truth is, we are facing a talent gap. Family Offices need specialised talent, those who are passionate and dedicated to the Family Office and their operations.”

On the other hand, Singapore and Hong Kong are vibrant and cosmopolitan playgrounds. They offer an extraordinary lifestyle that provides access to some of the world’s most beautiful places. They offer attractive propositions for western talent looking to immerse themselves in a new culture, manage unlimited liquidity and have a truly unique experience. The problem however is while Family Offices in every corner of the world require a perfect cultural fit, for Family Offices in Asia – this takes an entirely new meaning.

Cheong Wing Kiat, Executive Director of Singapore-based Wen Ken Group summarised this perfectly when he said: “If you can’t hold a pair of chopsticks, then you can’t talk to a Chinese businessman.” The same rule applies across the Asia-Pacific.

Leaders can either dive into a local talent-pool and find a candidate who is qualified and culturally aligned with local customs but not fluent in Family Office language or, they can take a chance on relocating a professional who, while able to develop their Family Office, might clash and unintentionally disrespect their culture. With less than five employees in more than 44% of Asia-based Family Offices, one wrong hire can have a detrimental impact on culture.

So what is the solution?

Singapore is one Family Office hub in the Asia-Pacific truly ramping up its hiring efforts and it started the process with the launch of the Skills Map in 2020. What is essentially a ready-made job description for Family Office Executives, Management Professionals and Advisors was introduced by the Family Office Development Team within the Economic Development Board to ‘serve as a guide to deepen specialist skill-sets in Singapore’s Family Office Community’. Ranking responsibilities and requirements 1-4, the Skills Map outlines priority skills in the ideal Family Office hire which they believe includes most importantly, Family Governance and Stakeholder Management. While offering a holistic overview of the key hiring needs, what this does not delve into once again is culture.

Perhaps one solution is looking to the some 14,000 returning Singaporeans who relocated back to the Garden City during the wake of the pandemic. The record-number of ‘returners’ were in the 20-24 age category and arguably while understanding the culture of the climate can bring back with them exposure to other commercial environments.

Another alternative is to offer comprehensive training, not just on the academic skill-sets required of these professionals but the importance of Cultural Fit. This would mean making informed hires based on competencies, emotional intelligence and personality. It would also mean understanding which of the four Family Office cultures a Family Office conforms to and then hiring professionals who fit into that culture who are also happy to stay there for the long-term.

However it is achieved, Asia must work fast to bridge the gap in their Family Office talent pool.

Download the full report here. Are you expanding your Family Office team in Asia?