Mfs Case Analysis

Topics: Hedge fund, Mutual fund, Management Pages: 4 (1335 words) Published: May 31, 2013
Massachusetts Financial Services (MFS) may characterize their labor market for portfolio managers as a “star system”, their labor market certainly does not have a star mentality. Rather than recruit stars, they mentor portfolio mangers into becoming stars. MFS promotes a culture of teamwork and collaboration in which talent grows from within. MFS often recruits employees right out of business school as analysts. Analysts are then brought up through the MFS system and trained to become great portfolio managers; no employee comes in at a great or “star” portfolio manager. Therefore, this ant-star mentality begins first and foremost at recruiting. From the very beginning management is open and clear with candidates about the compensation structure and culture at MFS. It is not the place to go if the candidate is only about money, prestige, and not willing to work with and train others. Their goal is to attract candidates looking to learn and grow with the company, not individuals who are stars or will become stars and leave for more pay. In addition to this, MFS never tried to lure star portfolio managers from other companies with large compensation. Their mentality was that if they did that, that same portfolio manager would eventually leave them for an even larger paycheck. After the analyst is recruited, they are brought up through the “star system”. One of the main reasons for this system is to develop firm loyalty and a deep bench of talented people brought up through the system to replace a manager should someone leave. This system proved to be fruitful in terms of retention as most portfolio managers had been with them since the beginning and MFS was ranked as one of the top 100 places to work by Forbes Magazine. MFS is successful at building loyalty amongst its employees because it not only is many employees’ first job out of school, but MFS also provided the training and knowledge to make employees successful at what they do. Portfolio...
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