Professional trustee firms may need to strengthen recruitment strategies focused on diversity and operational efficiency to sustain recent market growth, according to Hymans Robertson.

The consultancy said the professional trustee market had experienced a strong period of expansion but noted that firms held mixed views about their future growth trajectories.

According to a blog written by Hymans Robertson head of sole trustee services, Shani McKenzie, some firms were adopting more cautious recruitment strategies aligned with more modest growth expectations.

These firms were considering not only overall headcount but also the mix of skills, experience and expertise within their teams.

Regulatory developments were also shaping recruitment plans, with firms monitoring the position on trustees taking on multiple appointments and how any changes could affect capacity.

However, other firms were investing in further recruitment to support ambitious growth plans, including taking on larger scheme appointments, expanding in-house service offerings, and diversifying into new areas of the market.

McKenzie suggested that as firms pursued different growth strategies, the pace and nature of recruitment were likely to vary across the sector, with rapid expansion by some firms potentially creating a more competitive hiring environment for others.

The blog also highlighted that, as the professional trustee market matured, retaining existing trustee appointments was becoming as important as securing new mandates.

As a result, resourcing considerations were increasingly focused on succession planning and aligning individuals with appropriate scheme opportunities.

In addition, McKenzie noted that the industry’s clearer understanding of the professional trustee role had led to fewer speculative recruitment enquiries.

While this had resulted in a smaller talent pipeline, it also created a pool of candidates that were more closely aligned with the expectations of professional trustee firms.

With this in mind, McKenzie cautioned that firms should remain vigilant to ensure their recruitment approaches continued to attract a diverse range of candidates with varied skills and perspectives.

The blog emphasised that diversity was particularly important in sole trustee arrangements, where concerns have previously been raised about the potential for a lack of diversity of thought.

Indeed, recent revisions to the Association of Professional Pension Trustees (APPT) sole-trustee code of practice now required trustees to consider how diverse views and challenges can be incorporated into decision-making processes.

Professional trustee firms are therefore increasingly seeking individuals with varied expertise and backgrounds to strengthen governance and enable flexibility as firms expand or individuals move between schemes.

Many firms are also utilising wider internal team structures to support the appointed trustee director for a scheme, bringing in additional colleagues where specialist knowledge or challenge is required.

Meanwhile, some organisations have established specialist centres, peer councils or governance boards to support scheme management and governance decisions.

At the same time, McKenzie stressed that efficiency remained an important priority, as scheme sponsors sought to manage pensions spending and regulatory compliance costs continued to rise.

While firms warned that efficiency should not come at the expense of diversity in decision-making, many were pursuing operational improvements through streamlined resourcing strategies, expanded in-house service offerings, and the development of governance frameworks to support regulatory requirements.

McKenzie added that technology was becoming an increasingly important driver of efficiency for professional trustee firms, particularly within sole trustee arrangements.

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