How to attract private equity talent in an uncertain recruitment market

Who makes the first move?

There’s an interesting standoff going on between private equity firms and professionals right now. Due to a multitude of external factors including economic uncertainty, political instability, trade tariffs and the like, firms are reluctant to hire and candidates are risk-averse about moving.

This is creating an uncertain recruitment market where it’s harder than ever to secure the right talent. So how can private equity firms entice the skilled professionals they need to help them adapt to a changing environment?

1. Focus on growth

For too many organisations, cutting costs, often in the form of redundancies, is the default reaction when things get tough. Instead of seeking opportunities for potential growth, they focus on short term survival by cutting out perceived non-essential areas of the business. But that’s not massively reassuring to a potential hire. Show them that you look after your people in challenging times, that you have positive intent and are focused on growth, not damage limitation.

2. Provide progression opportunities

From a candidate’s point of view, the last thing you want to do when opportunities are at a premium is to join a business on a downward trajectory, with few plans or prospects for improving their fortunes. Our conversations with private equity leaders are revealing that when they do decide to move, it’s often due to frustration with their progress in their current role. That’s why it’s more important than ever for private equity firms to show prospective hires a clear growth path, including potential promotion pathways and development opportunities, with their personal objectives tied into the organisation’s strategic objectives. Not only does this show the candidate that there’s a viable long term career at the organisation, but it also connects their career success to your organisational success.

3. Move quickly

Many private equity firms are in the unusual position of being incredibly keen, yet at the same time strangely reluctant, to make a hire. In this challenging environment, there’s no doubt that they need to bring the right talent onboard, but they want to be absolutely sure about someone first. This is resulting in lengthy recruitment processes which run the risk of candidates losing interest and looking elsewhere.

Be realistic about how many interview stages are really necessary. Yes, you need to know that your hire has a strong blend of strategic thinking, keen financial acumen and effective communication skills, but you need to be just as adept at spotting these skills and assessing a candidate’s suitability. Throughout the process, ensure all your key stakeholders are available to hold interviews or give their approval as necessary, and if someone will be unavailable, make sure you have an alternative decision maker lined up well in advance. It doesn’t make you look good when an entire recruitment process grinds to a halt because everyone’s waiting for one person to make a decision.

4. Give them an agile environment

In rapidly changing market conditions, organisations need to be able to adapt quickly so they can navigate uncertainty, quickly identify opportunities and drive value creation in portfolio companies. Provide a flexible organisational structure where your people can collaborate effectively and make quick decisions. This needs to be allied to an adaptable mindset and a culture of innovation – giving your leaders the courage, the freedom and the strategic flexibility to adapt their strategies according to market changes, redeploy resources as they need to, and capture new opportunities for generating value.

5. Show them a vision

Private equity leaders are driven by the opportunity to make an impact. They want to know that they can build something which makes a genuine difference to the organisation and the people within it. Show them a clear vision for what you want them to achieve and where you want the business to be in the future. Give them the freedom and the resources to realise that vision. When a talented private equity leader knows that they’re trusted to bring an organisation’s strategic plan to life, that’s when you’ll get the best out of them.

Conclusion: your relationship should be mutually beneficial

Professionals who can change an organisation are in short supply at the best of times, but they’re even harder to secure during times of difficulty. By showing them your vision for the organisation – one where they have the opportunity to grow with you – and giving them the environment, the freedom and the tools to bring that vision to life, you can attract private equity leaders who can make a real difference to your business.