European ETF industry experiencing significant salary increases

The demand for talent in the European exchange traded fund (ETF) market is driving salaries higher. Industry experts believe this trend is a result of rising interest from clients and a competitive hiring landscape. Over recent years, many asset managers in Europe have entered the ETF market. This surge in interest has led to an increase in salaries for various roles as firms compete for skilled professionals. Companies like Robeco, Janus Henderson, and American Century are among those expanding their presence in the ETF space. A recent survey found that 18 asset management leaders highlighted the investment needed to build ETF sales and capital market teams as a major concern. Ben Burling, from recruitment firm Logan Sinclair, said the growing demand for ETF specialists combined with a limited talent pool is pushing salaries up. He noted that the lack of new entrants into the workforce is forcing companies to recruit from each other, escalating costs. Germany and Switzerland, two of the largest ETF markets in Europe, are seeing continuous salary increases, especially for senior sales roles. Michael O’Riordan, a partner at ETF consultancy Blackwater, confirmed that salaries are rising, particularly for capital markets specialists, who play a critical role in keeping ETFs liquid and efficient. O’Riordan warned that mutual fund companies attempting to transition to ETFs using their existing staff might struggle. He suggested that hiring experienced capital markets professionals is crucial, but firms can initially consider junior candidates as their client base grows. Andrea Murray, from Brown Brothers Harriman, emphasized the importance of capital markets personnel who understand the ETF landscape. She highlighted the strategic hiring of industry experts, like Robeco's Nick King, as a smart move for firms looking to strengthen their ETF capabilities. Despite rising salaries, O’Riordan noted that firms are cautious about hiring many new employees. They are focusing on maximizing the talents of their current staff, as headcount costs significantly impact their margins.