Many managers are taking actions to improve diversity by recruiting from a broader range of colleges (48%); seeking candidates from non-traditional backgrounds (40%); establishing and increasing attractive family planning policies (39%); and establishing and increasing health/wellness policies (37%).
Private equity managers are significantly further ahead in setting diversity targets, although the industry as a whole has work to do. Only 30% of firms have set diversity targets.
- Just under half (48%) of private equity firms have set diversity targets compared to 15% of hedge funds
Similarly, private equity firms have had more success attracting women and improving gender diversity, but there’s still work to be done.
- Just 2% of all alternative fund managers report to have greater than 50% proportion of women employees in the front office; nearly all managers have fewer than 30% of their front-office roles filled by women.
- Over half (53%) of private equity firms report to have 10-30% of women employees in the front office versus 35% of hedge fund managers.
Outside of the front office, private equity firms, in particular, have had more success attracting women. In fact, 78% of private equity managers have at least 30% of their back-office roles filled by women.
The alternatives industry continues to be an attractive place for younger individuals, and managers do not feel they have challenges in recruiting younger talent. But given their tendency to change jobs frequently, retaining young talent is proving to be a more significant challenge.
- To attract and retain young talent, managers are improving office amenities (64%); allowing relaxed dress codes (61%); and flexibility to work from home (52%); among other initiatives.
- Few (outside of the largest managers) have made changes to their organizations that require significant investment (e.g., improving their family leave or health and wellness policies). This may make it challenging for alternative managers to compete against other industries, many of which are specifically trying to recruit new talent by offering attractive benefit programs.