Legacy asset management technology not only hinders your search for available talent, but it might actually keep the talent away.
Remember the days when you went into a store to rent a movie? There is some nostalgia for when you could "make it a Blockbuster night."
Remember the days when you installed portfolio accounting software to a desktop computer, or did manual processes that you automate nowadays?
There's no nostalgia for that because, well, what’s nostalgic about inefficiency? Not to mention, some asset managers are still living in that world.
Holding on to legacy asset management technology is not just an internal decision with internal consequences; these old systems could harm your business.
The longer you hold on to older systems, the harder it is to find relevant talent.
According to an Accenture survey of asset management executives, 68% of respondents said they noticed a "significant uptick over the past year of firm employees departing for technology firms and noted that their firms have had a difficult time recruiting top software engineering and data science talent."
Smart people will invest their time and energy learning new systems with long-term application.
And they'll find ways to best utilize their human skills in a tech-driven and increasingly automated front-, middle- and back-office.
They will spend less time learning to master your old systems. Considering that, what will happen when existing talent leaves the company? Who will replace their legacy technology know-how? In any case, have good documentation for those processes.
When looking at job postings, a job-seeker with options will note which firms appear to be moving ahead or falling behind. They'll see what technology you're using.
A Dell and Intel study found that 80% of millennials said workplace tech would have an influence when deciding to take a job.
Is it no wonder asset management companies have trouble finding the talent they need?
Job applicants will go to companies that embrace new technology.
For asset management firms that don't make changes, what does that say to job candidates about the company's future?
Even if the firm has no intentions to shut down or harm itself, job-seekers' perceptions will convince them otherwise.
Having your team to learn an old system, while beneficial to the firm in the short run, hurts staff in the long run.
What happens if you let go of your employees? What if the firm winds down?
In either case, they might not have a chance to learn newer systems. They also might not have had time to advance their skill sets in other areas. How will they make themselves attractive in the job market?
Some employees recognize such fate that awaits, and they'll jump ship before it's too late.
According to LinkedIn's 2018 Workforce Learning Report, 94% of employees would stay at a company longer if it invested more in their career.
In the case of asset managers, adopting new technology would certainly signal the firm remains competitive.
If things don't change, job-seekers will have little use for firms that won't help them, and current employees who have a chance to move on will.
Legacy systems have pros and cons, but as the technology gets older, fewer and fewer people will invest their time, energy, and resources into learning old systems, rendering the number of desired applicants with expertise on a given software or application fewer and fewer.
In turn, job candidates may shy away from an advisory firm that uses older and inefficient technology, and joining the organization may be perceived as negative to one's skills and career development.
As the studies have shown, workplace technology influences an employee's decision to join a firm, and employees would stay longer at a firm that invests in their career development.
By upgrading the technology and allowing employees an opportunity to learn skills associated with the new systems, asset managers will do a better job at attracting and maintaining their talent.
Our monthly newsletter features helpful resources, articles, and best practices to implement within technology providers and investment firms
