3 Strategies For Private Equity Firms To Simplify Their Hiring Processes
When hiring for a portfolio company, teams and leaders need to be hired and on boarded at a rapid pace to quickly deliver ROI to investors and reduce the Time To Value (TTV). Often private equity firms will task their in-house talent acquisition teams and recruiters to find and appoint the best candidates, with the expectation that these positions can be filled and talent onboarded in under a month. As a result of this time pressure, countless private equity firms mis-hire the wrong candidate and lose half of their top talent within the first 24 months.
Today, the vast majority of companies are struggling to find top talent amidst the Great Resignation and Great Reshuffle and this challenge is even more prevalent for private equity. Every aspect of a portfolio company needs to have a strategy set in place that will guarantee performance and growth and the same is true when recruiting talent. Here are three things in-house private equity recruitment teams can do to strategically streamline their recruitment process while maintaining a swift hiring lifecycle.
Be Strategic With Talent Demands.
When hiring for a new role or replacing a former employee or leader - it is critical to examine the role specifically and if there are any aspects of the role that overlap or complement other skill sets or functions across the team. Hiring and recruitment always presents an opportunity to reinvision processes, people and performance. Sometimes a role that held a very particular function has absorbed more responsibilities that require a redistribution of skill sets. When beginning a search, look for opportunities to combine responsibilities, skill sets or reporting structures to make the team and process more efficient. Offering a fresh set of responsibilities or a more functionally hybrid role can also attract and entice passive talent looking for a more exciting career or future.
Create An Engagement Strategy.
Every position and role is different and will require a careful plan to find and engage the “best athlete talent”. Recruiting is based upon strategy, relationship building and engagement. Instead of starting each search from scratch, make time for developing strong partnerships with talent or talent sources and preemptively engage and build trust with candidates. If there is a specific resource (company, individual, industry expert, etc.) that has recommended successful candidates in the past - make an effort to reach out and regularly speak with these sources even without an immediate talent need or role. By building relationships and approaching candidates organically over time - top tier talent will be more likely to work with you, thus reducing the time for outreach, screening, and interviews and allows them to move through the hiring process quicker. In between searches, set aside a few hours a week dedicated to sourcing and relationship building - that way when you have an ideal candidate for a role, they are already interested, trust you and are willing to take your call.
Strategically Identify Stakeholders And Influencers Part of the biggest bottlenecks when recruiting for portfolio companies and private equity is the interviewing and assessment phase and the number of stakeholders involved in making a decision on a candidate. Strategically limit the number of stakeholders that will interview a candidate to those who deeply understand the goals, and responsibilities of the role and will interact with the candidate on a day-to-day basis. Having a complete 360 interview for a candidate is ideal, but in some cases may do more harm than good. Be mindful of the candidate's experience and respectful of their time by choosing critical key players that they will interview with. By reducing the number of stakeholders that need “buy-in” for a candidate, private equity firms and portfolio companies can deliver quicker feedback on a candidate and a recruiter can maintain pace for the hiring cycle.
About The Author
With over 10 years of experience in search and business operations, Julian is a highly diligent and efficient marketer and operations manager. He is a proven leader who combines creative thinking and strong communications with operational strategy, business development, recruitment operations, and digital marketing. Julian joined Chapel Hill Solutions to modernize the recruitment industry’s approach. He is passionate about creating a transparent and collaborative relationship with his clients.