In the midst of the Great Resignation and the Great Reshuffle, Private Equity firms and their portfolio companies need to be more strategic and competitive for talent. Over the last few months, we have noticed a dramatic shift in the executive search and recruitment industry. Candidates are increasingly mobile and disengaged, and companies requiring leaders to return to the office are losing talent. What this means for Private Equity and PCs, is competition is fierce in today’s market for making an offer, let alone hiring a new leader.
Here are three ways to increase your chances of competing for talent during the Great Reshuffle. We like to refer to these as the 3 P's - process, purpose, and pay.
Be Competitive In Your Process.
The faster a Private Equity or PC can onboard new leadership talent, the sooner they can begin adding value to the organization, increase profitability, reshape culture, and more. The longer the process takes to find, interview, and extend an offer to the right candidate, the more opportunity is at stake across the board. Additionally, the longer the hiring cycle, the more likely a candidate will become disengaged.
Examine bottlenecks in your process where you can streamline communications, outreach, combine steps, and more. Candidates value efficiency and transparency within the recruitment cycle, which are the foundations for creating a positive candidate experience. Many PE companies are seeking to fill leadership positions as swiftly as possible and often forget about the candidate's experience. In today’s talent landscape having a seamless process for the candidate is just as important as having an efficient process internally.
Center Your Recruitment Marketing and EVP On Purpose and Passion.
When a candidate decides to work within a portfolio company, this is a conscious and intentional decision on their part. He/she/they have taken considerable time to think through how they want to make an impact in an area, sector, or product that they are passionate about. Private Equity firms can appeal to these drivers and key motivators within their recruitment marketing and Employee Value Proposition (EVP). To keep a candidate engaged, make sure that their values are highlighted and entertained throughout the entire recruitment process - instead of only at the very beginning. Appeal to their emotional side, the impact their leadership will have, and the opportunity for growth while doing work that they are heavily invested in.
Pay For Performance
Private Equity firms and their portfolio companies often work within tight margins and are challenged to get the most from their return on investment - even when it comes to talent. In today’s talent market, trying to underpay or lowball can easily offend a candidate, and result in them withdrawing entirely from the process. Offering a competitive salary structure for what the marketplace yields is critical. Conduct market research to find what other leaders at similar companies and levels are earning in salary, equity, benefits, etc. As we discussed earlier, candidates appreciate transparency and efficiency in the hiring process. One way to gain this trust is to publish a reasonable salary range within the initial job description. This communicates to candidates that you are both serious about finding the best talent available and willing to invest in them as they are investing in you.
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.