As family offices continue to evolve with technological advancements, the need to upskill employees … [+]
Among technological progress and societal shifts, there is a global trend to upskill and re-skill employees; the World Economic Forum’s Future of Jobs Report indicated in 2023 that 44% of workers’ skills will be disrupted in the next five years thanks to automation, AI, and other new developments that will significantly change our expectation of, and approach to, work.
Similarly, as family offices continue to evolve with technological advancements, the need to upskill employees has become crucial; the integration of digitisation, artificial intelligence (AI), and new software tools (including the transition from Excel) is reshaping the family office landscape – creating a demand for employees who are adept at using these technologies.
The Importance of Upskilling
In the fast-paced environment of family offices, the ability to adapt to technological changes is vital. Upskilling employees ensures that they can navigate the complexities of new software and AI tools, ultimately enhancing operational efficiency and decision-making.
With the added risk of poor cybersecurity, upskilling family office employees can be a positive step in mitigating risks and ensuring that family office operations remain secure.
Additionally, investing in employee development fosters a culture of continuous learning. Given that many family offices struggle to attract top talent, this is a great approach to garner the attention of new candidates and cultivate higher employee satisfaction and retention.
Technology-Focused Upskilling Areas
While family offices are many and varied, there are generally five key areas that – given their sophistication and nuance – are essential for staff to upskill in and understand.
Digital Literacy
Understanding basic digital tools and platforms is foundational.
Employees should be comfortable using cloud-based software, data management systems, and communication tools to perform their roles effectively. Many family offices in generational transition may have principals or staff more familiar with analogue or dated tool sets.
For family offices to cater to newer generations, understanding digital tooling and both its advantages and limitations is a great starting place.
Data Analysis and Interpretation
With the increasing reliance on data-driven decision-making, employees must be skilled in analysing and interpreting data.
Training in data visualisation tools and statistical analysis can empower employees to extract meaningful insights from complex datasets.
This can be made more pressing by either a shift from Excel to new tools, or by simply adopting one or several new software platforms. Ensuring integrity of data and information in this transition is critical – and this focus area can help navigate what can typically be a complex change.
AI and Machine Learning
While AI has been a buzzword for many years, the topic has reached fever pitch in recent times thanks to the proliferation of LLMs.
While few family office employees need to be AI experts, familiarity with AI and machine learning concepts can help employees understand how these technologies can be applied to streamline operations and improve services.
Offering workshops or courses on AI basics can demystify these technologies and encourage innovative thinking. Similarly, familiarity with these working areas can also bolster a foundational understanding of digital security and information retention.
Cybersecurity Awareness
On that topic, cybersecurity is paramount
Employees should be trained in best practices for protecting data, recognising phishing attempts, and maintaining secure communication channels.
In a recent poll, 54% of family office respondents indicated that they had dedicated external resources towards preventing cybersecurity breaches – a positive start. However, what remains crucial is to involve operational staff in educational and operational training to ensure that this awareness and skillset reaches all hands at once.
Financial Technology (FinTech)
The integration of FinTech solutions is transforming financial services.
While deep expertise need not be needed, employees should be knowledgeable about emerging financial technologies, such as blockchain and digital currencies, to stay ahead of industry trends.
The task of managing complex financial instruments in a family office is only set to become more challenging as financial instruments similarly become more complex. An appreciation of newer trends, and an investigation where new technologies become salient, should be key for staff.
Practical Upskilling Strategies
To enrich their staff’s skills, family offices can develop customised training programmes that address the specific needs and goals of the family office. This can include workshops, seminars, and online courses that focus on relevant skills and technologies.
Similarly, encouraging a culture of mentorship where experienced employees share their knowledge with colleagues can provide beneficial; Peer learning groups can also facilitate knowledge exchange and foster collaboration.
Where generational attitudes may differ, involving employees in cross-functional projects that require them to apply new skills and collaborate with different teams can reinforce learning and promote a deeper understanding of how different functions interconnect.
The Role of Leadership in Upskilling
Family office principals and leaders must demonstrate a commitment to employee development by allocating resources and prioritising upskilling initiatives. Leaders should actively participate in training sessions and communicate the value of upskilling to the entire team. in order to cultivate a culture that encourages curiosity and experimentation.
Similarly, acknowledging and rewarding employees who actively engage in upskilling efforts could come in the form of promotions, bonuses, or public acknowledgment of achievements.
5 Short Steps To Get Started
Identify skill gaps: Conduct a thorough analysis of current and future skill needs.
Create personalised learning plans: Develop tailored development paths for each employee.
Allocate dedicated learning time: Schedule regular training sessions and provide flexible learning options.
Foster a learning culture: Encourage knowledge sharing and peer-to-peer learning.
Measure and evaluate: Track training outcomes and adjust your program accordingly.
By focusing on key areas of education and implementing practical strategies, family offices can ensure their teams are well-equipped to thrive in a rapidly changing landscape.