How to elevate your people strategy beyond industry benchmarks 

For many years, alternative investment managers have been regarded as leaders in employee benefits and reward. High compensation, comprehensive healthcare and above-market pension provision have historically underpinned a strong employee value proposition. Yet, as the industry evolves, with technology and AI becoming even more crucial to business operations, we are witnessing a shift in talent acquisition. The question facing firms today is not whether their benefits are competitive, but whether their people strategy is genuinely aligned with the workforce they are trying to build for the future.

Having worked with alternative investment firms of all sizes for over 15 years, one striking observation is how little the core benefits architecture has changed over that period. Our most recent UK Workforce Trends Report, due for release in March 2026, reinforces this point; around 96% of alternative investment firms continue to offer Private Medical Insurance, with the majority covering pre-existing conditions. Healthcare remains the cornerstone benefit, driven by high expectations and high utilisation. However, the report also highlights that 82% of organisations across all sectors now offer Private Medical Insurance, making higher-tier benefits more uniform across all industries.  

Similarly, there are longstanding norms that persist in other areas. Life assurance at four times salary has long been the standard level offered, with approximately 70% of alternative investment firms offering this level of cover, compared with closer to 50% in many other industries. Pension provision also reflects historical leadership. Prior to automatic enrolment, non-contributory employer rates of 10% and above were not uncommon, implemented by firms that chose to offer generous retirement provision before this became law. While automatic enrolment has since introduced greater variability, alternative investment firms still tend to sit ahead of the wider market, with higher employer contributions where pensions are based on base salary alone.

Taken together, this data tells a familiar story. Alternative investment has traditionally offered depth and richness in benefits. However, it also highlights a growing issue. As other industries invest heavily in their people propositions, the gap is narrowing. Benchmarking against peers may provide comfort, but when everyone follows the same norms, differentiation disappears. Employee benefits offerings run the risk of becoming generic, expected, and ultimately invisible.

In the present environment, firms are starting to recognise this. There is a noticeable shift towards more life-stage focused benefits, particularly in areas historically underrepresented within core provision. This shift reflects the commitment from our industry to invest in creating a more inclusive environment, but there is still some way to go if we want to continue diversifying talent streams. Recent discussions with senior leaders at smaller alternative investment firms highlight growing attention on women’s health, menopause support and broader health issues not routinely addressed by traditional healthcare plans. For organisations with a substantial proportion of female employees across long careers, they represent material workforce issues.

Other areas where we see a growing demand tell a similar story. Gender reassignment and inclusive health benefits were rarely discussed in the alternative investment context, even five years ago. In other sectors they are now considered non-negotiable. Compared to technology, professional services and parts of financial services, alternative investment has been slower to adopt some of these more progressive elements of employee support.

There are several reasons for this lag. The industry has long prioritised performance and cash-based reward, with benefits playing a supporting, rather than strategic, role. Decision-making structures have historically reflected gender imbalances, shaping benefits through a narrower lens. Founder-led cultures, particularly in early-stage firms, have often assumed that paying people well is sufficient, leaving individuals to address personal needs independently. Overlaying all of this is a degree of stigma and discomfort around sensitive health topics that has limited open discussion.

Yet demographics are shifting, and with them the relevance of these issues is increasing, especially for non-investment roles where compensation is less significant, and the overall employment experience carries greater weight. Benefits increasingly need to reflect not only who a firm employs today, but who it wants to attract tomorrow, and what it stands for as an employer.

Looking ahead, our recent survey asked firms what actions they have taken in the last 12 to 18 months to support attraction and retention. The responses extended beyond benefits into areas such as organisational purpose, culture, employee communication and employer brand. These dimensions are often more challenging for alternative investment firms than for other industries and defining a purpose beyond financial performance is inherently complex; cultures may emphasise individual performance and progression over collective identity. As firms scale, communication relies heavily on next-line leaders to be the culture carriers and to translate intent into lived experience, which can dilute the original message.

Historically, high compensation has reduced the perceived need to focus on these areas. However, this assumption is becoming increasingly fragile. The nature of alternative investment is changing, as is the talent it requires. Firms are competing for technology, data and operational specialists who are accustomed to more agile, people-centric environments. Younger generations place greater emphasis on transparency, purpose and balance alongside reward. The hiring pool is broader, more diverse and less willing to accept legacy models without question.

For alternative investment firms, this creates a clear strategic imperative. If it is accepted that people genuinely drive business performance, then a forward-looking plan for building, engaging and retaining talent is no longer optional. Benchmarking remains useful, but it is not sufficient, and firms must move from copying market norms to deliberately designing people strategies that align with their values, demographics and long-term ambitions.

Organisations that move beyond benchmarking to elevate their people strategy will not only strengthen their employee value proposition but also position themselves more effectively for an industry that is evolving in both form and expectation. The future of people strategy in alternative investment is less about adding more benefits, and more about making clearer, more intentional choices about what truly matters to your people.