Following a recent article we shared on staffing and recruitment in family offices, we would like to provide further insights into this process and highlight the strategic opportunities Cyprus can leverage to attract more family offices.
Through extensive research, we have identified the key obstacles to effective staffing and recruitment, as well as the opportunities these challenges present for Cyprus.
Why Talent is Hard to Find
As family offices expand globally and their operations become increasingly complex, attracting and retaining top-tier talent has become one of their greatest challenges. This issue is particularly pronounced in Europe, where recruitment ranks as the top concern among family offices, according to a recent survey.
Family offices require professionals with a rare combination of skills: investment expertise, tax planning, governance, and the ability to navigate complex family dynamics. Unlike hedge funds or private equity firms, family offices often offer lower compensation and demand a broader scope of responsibilities, which can deter candidates. For example, executives may be expected to manage investments while also handling personal tasks, creating a unique cultural and operational environment.
Cyprus does not need to rely solely on local professionals. Government incentives for foreign relocation, combined with lifestyle benefits, make the island an attractive destination for talent from Europe, the Middle East, and Asia, a fact already demonstrated by the success of the local tech sector through the use of the Blue Card scheme.
Addressing Compensation Gaps
Family offices typically offer lower pay compared to private equity firms. The average CEO salary in family offices is around $288,000, versus $447,000 in private equity. To remain competitive, many offices are introducing bonuses, profit-sharing, and co-investment opportunities. A recent report by Morgan Stanley shows that 57% of single-family offices now offer co-investment options.
In Cyprus, CEO salaries in financial services range between €81,000 and €106,000, significantly lower than their American or European counterparts. By promoting co-investment opportunities and favorable tax treatment for carried interest, Cyprus can attract both talent and capital.
Education and Professionalisation
Cyprus can turn this challenge into an opportunity by developing specialized training programs in partnership with universities and private institutions. Creating a Family Office Certification would help standardize skills and attract professionals seeking niche expertise. As Cyprus ranks high in educational innovation, this initiative could help local institutions expand their offerings and strengthen the knowledge base of family office professionals.
Expanding Roles and Governance
According to Deloitte, 36% of family offices have increased the number of services they provide, and nearly one-third aim to professionalize further by hiring specialists in investing and tax planning. Cyprus can capitalize on this trend by positioning itself as a hub for family office governance and compliance, offering clear regulatory frameworks and incentives for professionalization. This aligns with the goals of Family Office Connect Cyprus and the priorities of local stakeholders.
Conclusion
The global struggle for family office talent is real, but for Cyprus, it represents a strategic opportunity. By creating specialized education, offering tax-efficient incentives, and establishing a clear legal framework, Cyprus can position itself as a premier destination for family offices and the professionals who serve them.
