Gaining T-Shaped Skills to Ensure a Secure Career Path

Key Points:

• Advancing our skills is crucial for career growth and success.
• The investment industry requires a combination of technical, soft, leadership, and T-shaped skills.
• Technical skills are important early on, while soft and leadership skills become more vital as we progress in our careers.
• T-shaped skills, which combine deep technical knowledge with a broad understanding of other disciplines, are highly valued.
• Disruption, such as new technologies and sustainability, is driving change in the industry.
• Proficiency in T-shaped skills is in high demand, especially in areas of sustainability and AI/ML.
• Developing adjacent skills, like sustainability, can be a good starting point for career advancement.
• Lifelong learning and continuous skill development are essential in the dynamic investment management industry.

Advancing our skills is crucial for career growth and success. However, knowing which skills to focus on can be challenging. The “Future of Work in Investment Management: Skills and Learning” research report from CFA Institute provides valuable insights into the skills needed in the investment industry and how to navigate career progression.

The report categorizes investment management skills into four categories: technical skills, soft skills, leadership skills, and T-shaped skills. Technical skills, such as financial analysis and portfolio management, are foundational competencies. Soft skills, like effective communication and relationship management, are qualitative and nuanced. Leadership skills focus on ethical culture, governance, and articulating organizational mission and vision. T-shaped skills combine deep technical knowledge in one domain with a broad understanding of other disciplines, allowing professionals to synthesize different areas of expertise.

The importance of these skill categories varies depending on career level. Technical skills are particularly valuable early on, as they are often required for entry into the industry and for day-to-day job performance. As professionals climb the ranks, soft skills and leadership skills become more essential for relationship management and influencing others. T-shaped skills gain significance as professionals advance in their careers and need to demonstrate situational fluency and organizational understanding.

T-shaped skills have become especially critical due to industry disruption caused by new products, technologies, and regulatory uncertainties. The “Investment Professional of the Future” report from CFA Institute emphasized the importance of T-shaped skills. A LinkedIn poll also revealed that T-shaped skills were rated higher in value compared to technical skills, sustainability/ESG, and soft skills.

Disruption is expected to significantly impact job roles in the investment industry in the next 5 to 10 years. New analytical methods, including artificial intelligence (AI) and machine learning (ML), as well as an increased focus on sustainability, are identified as the main drivers of change. Developing T-shaped skills can help professionals adapt to these disruptions and stay ahead in their careers. AI/ML and sustainability are areas where there is a high demand for talent but a limited supply, making them attractive focuses for skill development.

Broad knowledge across multiple disciplines will be critical as new technologies and investment strategies emerge. Skills in areas like sustainability can be quickly integrated into the generalist skillset, as they overlap with existing technical skills in investment management. On the other hand, skills in AI and ML require specialized expertise in areas like data science and coding, creating a larger skill gap. Professionals should consider the speed at which these gaps are closing when positioning their careers for the future.

Diversifying skills and focusing on adjacent areas of expertise, like sustainability, can be a good strategy for career advancement. These adjacent skills can be developed relatively quickly without straying too far from existing knowledge. However, skills that are less analogous to traditional finance, such as AI and ML, may require more effort to develop but can offer higher long-term dividends. Lifelong learning and continuous skill development are essential in an industry as dynamic as investment management.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. The opinions expressed are those of the author and do not necessarily reflect the views of CFA Institute or the author’s employer.