Introduction

Exchange-Traded Funds (ETFs) have revolutionised the investment landscape, and as the industry continues to grow, the competition for top talent is fiercer than ever. To stay ahead, ETF company leaders must prioritise human capital just as much as financial capital. Smart CEOs understand that their employees are their most valuable asset. To ensure long-term success, they should be asking HR the right questions. Here are five crucial questions ETF leaders should be discussing with their HR teams.

1. “What are we doing to keep our best people?”

Employee retention is crucial in the fast-moving ETF industry, where knowledge, experience, and innovation drive success. Losing top talent not only disrupts operations but can also impact investor confidence. Retention strategies should go beyond compensation and benefits. Leaders should focus on career development opportunities, workplace culture, and employee engagement. HR should have a clear plan to foster loyalty and ensure employees feel valued and motivated to stay.

2. “Where are we vulnerable?”

ETF firms face unique challenges, including regulatory compliance, technological advancements, and evolving market demands. HR teams have a critical role in identifying vulnerabilities related to workforce skills, leadership gaps, and cultural alignment. Are there compliance risks due to under-trained staff? Are there key positions with no clear succession plan? By proactively addressing these concerns, ETF firms can mitigate risks before they become major issues.

3. “Are we building or buying our talent?”

As ETF firms scale, they must decide whether to develop talent internally or hire externally. Strategic workforce planning should be an ongoing conversation. Internal development fosters loyalty and ensures that employees align with the company’s mission and values. However, external hiring can bring in fresh perspectives and specialized expertise. Striking the right balance is key to sustainable growth.

4. “Do we have leaders ready for tomorrow’s challenges?”

The ETF industry is evolving rapidly, with increasing competition, technological innovations, and shifting investor behaviours. Leadership succession isn’t just about filling positions—it’s about building a pipeline of capable leaders who can navigate future challenges. HR should focus on leadership development programs, mentorship initiatives, and upskilling efforts to ensure the company has a strong bench of future-ready leaders.

5. “What’s the story our data tells?”

HR data can provide invaluable insights into engagement, productivity, turnover rates, and overall workforce effectiveness. Are there trends indicating burnout or dissatisfaction? How do retention rates compare to industry benchmarks? What skills are lacking in the current workforce? By leveraging HR analytics, ETF leaders can make informed decisions that enhance performance, engagement, and business outcomes.

Human Resources & ETF: Final Thoughts

Just as ETF firms rely on data and strategy to manage investments, they must apply the same rigor to managing human capital. By asking these five essential HR questions, ETF leaders can build a strong, adaptable, and engaged workforce, ensuring long-term success in an ever-changing financial landscape.

Is your Human Resources team ready to answer these questions? The future of your ETF firm depends on it.