Just Released: 2024 Private Equity Talent Trends Report
Discover the five key themes reshaping executive talent strategies in private equity.
ON Partners, a pure-play retained executive search firm building diverse C-level and board leadership teams has launched its 2024 Private Equity Talent Trends Report.
Leveraging its exclusive executive search data in partnership with insights from HR Signal?, a platform delivering bespoke People Analytics and Predictive AI, the report unveils five critical key trends reshaping talent acquisition and retention in today’s private equity (PE) market.
"As a leading executive search firm partnering with PE clients, this report reflects our commitment to delivering premium talent intelligence,” states Bryan Buck , managing partner at ON Partners. “By integrating our advanced executive search insights with HR Signal's real-time workforce data, we offer a comprehensive analysis that equips PE firms with the strategic knowledge needed to make informed leadership decisions."
Private equity firms today face a rapidly evolving landscape, with the median holding period for portfolio companies reaching a record 5.7 years, according to Private Equity Info.
As many companies from the deal peak in 2021 near the end of their typical holding window, fluctuating market conditions have made both exiting existing companies and completing new deals more challenging.
In response, PE firms are increasingly focused on optimizing existing portfolios, with talent acquisition and retention emerging as top priorities.
Furthermore, a recent EY survey reveals that 76% of leading PE firms rank these areas as critical, a sentiment echoed by articles in Harvard Business Review and Business Insider, which emphasize the need for innovative talent strategies.
5 Key Report Themes:
To address these pressing issues, key findings in the report include:
The report shows that in recent years, the Chief Revenue Officer (CRO) role has experienced the most significant hiring growth rate across public, private, and PE-backed organizations as a whole.
The largest hiring growth rate surge has been across sales and customer-focused roles when isolating PE-backed companies only. This mainly includes operational value roles, such as marketing, product, and customer experience.
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In contrast, PE executive roles in finance, HR, and technology have remained flat or declined over the same period. ? The trend speaks to the key theme of focusing on operational expertise as a priority.
“While operational roles remain in demand, the overall hiring landscape is cautious, with both candidates and hirers conducting deeper diligence,” said Ashley Day, PhD , partner at ON Partners.? “We are seeing candidates evaluating multiple opportunities simultaneously, which can result in extended timelines for scheduling interviews and an increase in candidates withdrawing. Hiring committees, meanwhile, face the challenge of discerning true leadership success from past market momentum.”
According to ON Partners' executive search data from the last three years, private equity firms are evaluating on average fifteen more candidates per search, compared to just six or more additional candidates in searches conducted by public and private companies.
Further reflecting the increased rigor in hiring, PE firms are conducting two or more additional interviews on average per search in the same period. At the same time, public and private companies have reduced the number of interviews in their processes.
Download the Report to learn more about the five key trends reshaping executive talent in 2024.
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President & CEO | Board of Advisor | PE Advisor | Experienced global mfg. & distribution IOT executive | Develop & execute strategies driving optimal results | Positive/execution focused teambuilder | Veteran
1 个月Thank you to On Partners and HR Signal for sharing such valuable insights. The data really resonates with me, as I've experienced firsthand how executive searches are becoming not only increasingly lengthy but also, at times, more invasive. I understand that recruiters are hired to represent the firm with the open role, prioritizing their client’s needs. However, the best recruiters recognize that the process is a two-way street. It's not just about evaluating candidates—it’s equally about "selling" the opportunity to them. Striking this balance can make all the difference in attracting top talent.
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5 个月It's intriguing to see the evolving trends in executive talent strategies within private equity. The five key themes must offer valuable insights. Can anyone shed light on the most surprising finding in the report?