Hedge Fund Employment Branding
Of course, many of our companies live in the mundane: stamping out bullion cubes, building tents, formulating new adhesives, providing insurance, or manufacturing engine parts. However, we can and should still demand the same level of excellence from both our management and our employees. The demand for excellence must be reciprocal; hedge funds do a marvelous job of imbuing both the company and the employee with a sense of privilege and dedication.
Have a company philosophy, not a “brand statements”
What does your company “mean?” What does it mean to work at your company? Do you have buzzwords in your career center that aren’t an actual practice? For example, do you simply “value diversity,” or do you demand that diversity be implemented across all of your corporate functions? Does your messaging around being a “creative environment” and “employee centered firm” really translate into an actionable corporate management philosophy?
Nothing is as valuable as your employees; their talent determines a company’s success. It is imperative to really mean what you say in your recruiting programs and go beyond marketing-speak. Take this line from Bridgewater’s (one of the largest hedge funds) career page:”If you want to work in an environment that values truth and openness in the pursuit of innovation, excellence and quality relationships…. If you want to discover your strengths and weaknesses and work hard to get better fast… If you have the need to understand what makes sense rather than to follow instructions…”
This is deep stuff, not marketing-speak. It is carried forward through their president’s statement which states, “Every “subordinate” is encouraged to argue with his or her “superior” if he or she thinks they know the better way, and every “superior” is required to encourage this.” Valuing the feedback and input appears to be more emphasized in hedge funds than many types of company’s. We can see another example of this on SAC Capital’s career page, which states, “SAC is dedicated to providing employees with ongoing formal and informal feedback to shape performance and promote success. Emphasis is placed on the exchange of feedback between managers and employees throughout the year.” Does your company address your management philosophy in your employment messaging – and then really do as you say?
Be a little bit secretive
Hedge funds are required by law to interact in a certain way with the public. They cannot be perceived as “marketing” their products to non-accredited investors (non-rich, normal people.) The regulation wraps their corporate communications with a veil of discretion and secrecy. Many of the largest firms in the country have websites which are little more than an address and a brief statement of philosophy. What does this mean to to their “employment brand?”
You could easily argue that the clandestine nature of hedge funds lends a certain prestige to being associated with one. Applicants who interview with hedge funds routinely know very little about the firms beforehand – both the required skills and type of individual required are often mired with purposeful generality. Take KKR’s statement that they “Provide all its employees with all rights as required by law.” Gee, that’s really helpful to someone exploring the company’s careers. However, the vagueness is intentional – private equity jobs demand a lot, and the often vague employment guidelines lend flexibility to hiring excellence.
Most hedge funds instead state principles and who they are – their requirements for you are left a little bit secret. At best, what you know of the company positions is that they demand certain values. Take Bloomberg’s (not a hedge fund, but related) abstract references to “Type B” personalities on their main career homepage. “The New Type B is out there, hard at work, solving the great ‘unsolvable’ problems. It’s not what you do that defines the New Type B. Only what you do that’s never been done.” Again, what does that tell the candidate? That they have to do what has never been done before? These are statements of broad values which appear to purposefully lend abstraction to the recruitment efforts.
Be a meritocracy
Asset management firms and hedge funds have a very distinct advantage in their evaluation of employees. At these types of companies, it is often very easy to quantify results. The result of this quantifiable performance is that hedge funds are usually supreme meritocracies. They usually care very little about your personality quirks, the manner of your interpersonal skills, or where you live. There is an understanding that you are there to make yourself and the firm money. Period.
The refreshing aspect to this employment relationship is that the self-interest of the employer is conveyed honestly. Does your company’s website state that you “encourage growth” and “career progression” for your employees? Ask yourself if you really mean it. Companies value employees primarily for their work output and contributed profit; however, their employment branding usually speaks a much different language. The flip-side of this self-interest is that hedge funds encourage the self-interest of their employees. Do you ask your employees to give their lives to the company or dedicate themselves for some abstract corporate goal? Or do you tell your employees that they should demand excellent compensation and rewards from you in return?
Consider another statement from Bridgewater’s president, “I want to pay people in proportion to their contributions and above the market.” Paying people above the market? Isn’t that illegal in America? Bridgewater demands hard work, but the equation is not one sided. Their employment brand is an absolute meritocracy – but for both company and employee.
We can’t all work for hedge funds, nor would we want to. However, recruitment and employment branding programs at every company could use a few lessons from hedge funds. If your company wants great employees, it should and must imbue its employment brand with values, leave hiring decisions open to excellence, and encourage and respect self-interest from employees. The relentless pursuit of success and excellence cannot be relegated to the (perceived) ego-driven industry of asset management – every company must find its own way of driving market-leading talent to their organization.