Flawed Retention Tactics Asset Managers Still Rely On

Asset managers across Asia, especially in Hong Kong and Singapore, are under pressure to improve talent retention. Even with increased hiring budgets in 2025, firms are still losing top-performing investment professionals. At Selby Jennings, we’ve seen a spike in counter offers and rapid promotions, but most of these retention tactics aren’t working long term. 

“If the communication and chemistry aren’t there, these are just surface-level fixes that might work for two or three months,” says Jeffrey Chen, Head of Investment Management, at Selby Jennings Hong Kong. 

So, what’s driving the turnover, and why are firms starting to rethink loyalty and engagement? 

Asset management movement is accelerating 

Recruitment activity has picked up across asset management, especially in Hong Kong and Singapore. Firms have more budget and hiring confidence than in 2024, but many are spending just to replace staff they've already lost. 

At Selby Jennings, we’re seeing retention come up in nearly every conversation with clients. According to Jeffrey, it has become a central issue in headcount strategy this year, with firms increasingly focused on reducing turnover instead of simply filling open roles. 

Counter offers are back 

Counter offers have surged in 2025 as firms try to hang onto in-demand employees. Bryan Law, Head of Investment Management and Markets at Selby Jennings, Singapore, says he’s seen firms offering salary increases of up to 30 percent in a bid to reverse resignations. These counter moves are often made quickly, sometimes without deeper discussions about why the employee wanted to leave in the first place. 

But in most cases, they only delay the inevitable. 

“Most candidates who take counter offers still end up leaving in the next year or two,” says Bryan. “It often doesn’t address why they wanted to leave in the first place.” 

The pattern holds true across multiple markets and functions, and counter offers frequently backfire. Listen to a recent Searching Smarter Podcast discusses this topic in depth, weighing whether accepting a counter offer is a risk, a reward or a red flag. 

Loyalty isn’t built with perks or promotions 

Retention breaks down when employees feel stagnant, unheard or disconnected from the business. It’s not usually one dramatic event that triggers a resignation. More often, it’s a build-up of small frustrations that aren’t addressed. When people don’t see a future for themselves, or feel their input is ignored, they start looking elsewhere. 

At Selby Jennings, the most common drivers of resignation we’re hearing from candidates include: 

• No clear career path or skill development

Employees want to know what their next step is, and how to get there. When there’s no visible route to progress, motivation fades. 

• Poor communication with direct managers

Regular, two-way communication matters. When feedback is inconsistent or performance expectations are unclear, people disengage. 

• A lack of trust in leadership

If senior management lacks visibility, direction or credibility, confidence across teams drops. People follow leaders, not job descriptions. 

• Minimal recognition or purpose in the role

Feeling like your work doesn’t matter is one of the fastest ways to lose engagement. Recognition doesn’t need to be financial, but it does need to be genuine and consistent. 

• Over-reliance on titles or bonuses to manage morale

Promotions or incentives without meaningful change rarely improve retention. People can see through short-term gestures when there’s no long-term support behind them. 

Some firms, under pressure to reduce churn, are turning to harder policies. Goldman Sachs, for example, has reportedly asked junior analysts to pledge loyalty in advance. While rare in asset management, the move reflects growing anxiety about turnover.  

Growth, recognition and trust drive retention 

Firms that retain talent effectively are creating environments where employees can build skills, take on meaningful work and see progress in their roles. Retention improves when individuals feel like they are developing professionally and contributing in ways that matter. 

Some organisations are investing in internal training and mobility programs to support this. These efforts help employees upskill and move into roles where they can have more impact. They also improve efficiency and show employees that their growth is valued. 

Retention tends to break down when there is no structure around career development. Without defined goals or support to reach them, people start to disengage. Firms that lack proper appraisal frameworks or avoid career planning altogether are more likely to see high turnover. 

People stay when management relationships are strong 

The relationship between employees and their direct managers is one of the strongest predictors of retention. Most exits are not driven by company-wide policies or benefits. They are usually the result of poor day-to-day leadership, lack of support or communication breakdowns within teams. 

Retention improves when people feel heard and respected by their managers. That connection builds trust, encourages feedback and gives employees confidence that their concerns and contributions matter. 

In many firms, managers are promoted for technical performance rather than people skills. This often leaves teams without the leadership needed to keep them engaged. Developing line managers to lead with clarity and consistency makes a measurable difference in whether people choose to stay. 

In high-pressure, performance-focused environments, even a basic level of human connection through structured feedback, regular check-ins and recognition can improve team stability and reduce employee turnover. 

Asset management hiring support 

At Selby Jennings, we specialise in placing top talent across asset management, covering portfolio management, distribution, operations and risk. Our consultants bring sector-specific insight and operate with full market coverage across APAC, EMEA and North America. 

We work closely with global asset managers, boutiques and new market entrants to source and secure candidates across: 

• Public and private markets 
• Traditional and alternative strategies 
• Long-only, multi-strategy and quant platforms 
• Institutional and wholesale distribution channels 

Our search methodology combines data-led market mapping with targeted headhunting. This allows us to access passive talent and deliver shortlists quickly, without relying on job boards or inbound applicants. 

Whether you’re building out a new team, replacing a key leader or assessing long-term hiring needs, our consultants bring strategic clarity and execution at speed. We operate with confidentiality, precision and a deep understanding of market dynamics. 

To discuss your hiring plans or to benchmark how your current approach compares to peers in the sector, speak to our team today.