There is a feeling that a position in Nama, while not appealing to all, might offer a more comfortable and secure living than comparable employment in the private sector. Not so, at least if staff turnover figures at Nama are anything to go by.
Since it got up and running in early 2010, Nama has hired about 250 people, all seconded from the NTMA. In that same period, about 40 staff have departed, some 25 of whom left within the last year. A 10 per cent annual turnover is high, particularly so when the entity involved is a state body that pays an average annual salary of €100,000.
Most of those exiting head to the private sector, where, among other incentives, the 9 per cent public sector pension levy does not apply, and where there might be a chance to build a long-term career – Nama, lest we forget, is due to put itself out of business by 2020. This lifespan for the agency also means its staff are hired on fixed-purpose rather than permanent contracts, a fact that has consequences in everyday matters such as mortgage applications. On top of this, the spectre of Croke Park II cuts is looming.
Over in the private sector, it is said that some 60 parties were interested in the Nama portfolio ultimately picked up this week by the Starwood Group consortium, with bidders including a number of international investment operations looking to establish a presence here. Where better to look for experienced staff than Nama?
A live example of the staffing headaches is the departure of senior asset recovery manager Paul Hennigan, who has just left Nama to join a UK fund that wants to expand its Irish interests. Hennigan gained some profile last year when he acted as a witness in Paddy McKillen's legal battles with the Barclay Brothers and presumably has a degree of understanding of the market that is extremely valuable.
What Nama might do to address the issue of brain drain is unclear, particularly given the political realities surrounding the agency. What is more obvious, however, is that the greater the heat in the domestic commercial property market, the higher the turnover rate will become.
