Could technology investment help stem high-turnover in fund administration?

The high levels of staff turnover within Ireland's fund administration industry hasn't been such a problem of late - with many people seeking job security instead of a new opportunity. However, with many firms now recruiting once again, they may look to an unlikely method to prevent staff jumping ship - technology.

After a period of retrenchment, we understand that BNY Mellon, HSBC Securities Services, La Salle Global Trust Services and State Street are once again recruiting - even if it is in smaller numbers than during the boom time.

Staff turnover is an ongoing issue in the industry, since firms are continually competing for a relatively small pool of trained and skilled personnel, suggests a new report from US consultancy Tabb Group.

"Since many administration jobs include gruelling hours and tedious assignments, turnover has been typically high," says E. Paul Rowady, author of the report.

The industry in Ireland has in the past relied on a pipeline of graduates, who after a couple of years staring at spreadsheets and undertaking NAV calculations, have gone on to pastures new.

Tabb suggests that even the larger fund administration firms still use spreadsheets for complex accounting and performance assessment, which should in theory be replaced by "institutional grade systems and platforms".

"Staffing problems have been a primary driver for the focus on technical development within the fund administration arena," adds Rowady.

Still, in spite of some recent positive signs, statistics from the Irish Funds Industry Association suggest few firms are about to start rapidly bolstering their teams.

Assets under administration in Ireland have slipped sharply from their 2008 highs, and now stand at €1,208bn (as at Q2 2009), compared to €1,658bn at the same period last year.