Strategies for Keeping and Motivating Relationship Managers

Published: June 2010
No. of Pages:
  

Introduction

The easy and profitable relationships that private bankers enjoyed with their clients and employers before the crisis are no longer. Indeed, the job of a relationship manager (RM) has just become much harder. Banks need to understand these changes and what RMs are now looking for from employers, in order to identify the best ways of retaining and motivating their private bankers.

Scope

  • This report incorporates results from Datamonitor’s Wealth Management Market Leader’s Survey of 2010.
  • This survey involved interviews with 160 wealth managers across Europe and 84 wealth managers in Asia Pacific during January and February 2010.

Highlights

The balance of negotiating power within the industry has swung fundamentally away from RMs and back towards the private banks, and modest earnings increases and additional management pressure are now the order of the day for RMs.

Private banks identify that there are a number of non-financial factors that today’s RMs want from their employers including good quality management and back-end support and recognition.

Given RMs’ changed circumstances and needs, Datamonitor proposes three recommendations which many, if not most, wealth managers should follow in order to both keep and motivate RMs; one of these is putting in place formal career development programs for RMs.

Reasons to Purchase

  • Understand the outlook for RMs earnings in 2010 across multiple European and Asia Pacific countries.
  • Find out what RMs want from their employers across the surveyed countries.
  • Access Datamonitor's best ideas on how to retain and motivate RMs.

Strategies for Keeping and Motivating Relationship Managers

Table Of contents

Overview 1
Catalyst 1
Summary 1
Methodology 2
Executive Summary 3
The world that relationship managers inhabit has changed dramatically 3
Wealth managers realize that non-financial factors are important to their bankers 3

Table of Contents 4

Table of figures 5

Table of tables 6

The Changed Circumstances of Relationship Managers 7
The world that relationship managers inhabit has changed dramatically 7
The majority of banks in Europe and Asia Pacific are still focused on retention rather than attracting RMs 7
The expectation is that the average salary for RMs will increase only modestly in 2010 12
How Wealth Managers can Keep and Motivate Relationship Managers 18
Wealth managers are attempting to improve RM retention and realize that non-financial factors are important to bankers 18
Private banks have been trying everything from forgivable loans to promoting work-life balance to help retain and motivate staff 18
Wealth managers recognize that a number of non-pay factors need to be addressed to successfully retain RMs 18
In many countries in APAC, non-financial factors are particularly important in retaining RMs 21
In many European countries, basic pay is at the forefront of RMs' minds 22
Datamonitor highlights three areas which are key to keeping and motivating RMs now 24
Key recommendation: put in place formal career development programs for RMs 25
Key recommendation: teach management the importance of communication 25
Key recommendation: seek to bolster banking brands 26
Appendix 27
Methodology 27
Wealth Management Market Leaders Survey 2010 27
Bibliography 27
Further reading 27
Ask the analyst 27
Datamonitor consulting 27
Disclaimer 27

List of Tables

Table 1: When it comes to relationship managers, what is your main priority for 2010 (please select one response)? 9
Table 2: When it comes to relationship managers, what is your main priority for 2010 (please select one response)? 10
Table 3: When it comes to relationship managers, what is your main priority for 2010 (please select one response)? 12
Table 4: By how much do you expect the average earnings (wages and bonus) for relationship managers in your country to change this year? 14
Table 5: By how much do you expect the average earnings (wages and bonus) for relationship managers in your country to change this year? 15
Table 6: By how much do you expect the average earnings (wages and bonus) for relationship managers in your country to change this year? 17
Table 7: What do you think is most important in retaining relationship managers (please select up to two responses)? 20
Table 8: What do you think is most important in retaining relationship managers (please select up to two responses)? 22
Table 9: What do you think is most important in retaining relationship managers (please select up to two responses)? 24

List of Figures

Figure 1: The retention of RMs is a key priority in both Europe and APAC 8
Figure 2: Banks in Singapore and China are focused on recruiting new RMs 10
Figure 3: Attracting new RMs is the priority in the Belgo-Dutch region, Germany and Spain 11
Figure 4: Most of the increases in RMs' earnings in 2010 should be modest 13
Figure 5: India is likely to see the highest increases in RMs' earnings in 2010 15
Figure 6: RMs in the UK are likely to see the biggest pan-European increases in earnings this year 16
Figure 7: Keeping RMs in APAC and Europe is not just about the money 20
Figure 8: There are noticeable spikes in the non-financial factors in APAC 21
Figure 9: Basic pay rises above other factors in several European countries 23

Published By: Datamonitor
Product Code: Datamonitor9337


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