Talent: Your Biggest Investment
Why Private Equity Needs Personality Data
Private equity saw its best fundraising year yet in 2021. But not everything is rosy. Against the backdrop of the Great Resignation and the ongoing talent shortage, more investments increase the need for effective talent management initiatives — in both the firm and the portfolio. For firms to emerge from this era with a competitive advantage, a sound people strategy is key.
97%
The amount of portfolio companies that have inadequate succession plans for their CEOs
81%
The amount of midsized private equity firms that say portfolio talent management is their top strategic priority
How We Can Help
Make Decisions with Data
Historically, many firms have relied on qualitative approaches to evaluating talent, rather than quantitative approaches. But the cost of the wrong leadership can be exorbitant, and weaknesses in portfolio succession plans are commonplace. Using the world’s largest personality database, we can help you fill any role, in any industry, at any job level.
Improve Diversity, Equity, and Inclusion
A recent Summit Leadership survey found that 95% of portfolio company CEOs identify DEI as an area of focus, but only 44% have a formal strategy. Incorporating personality into your talent strategies can help build and retain a diverse workforce and create lasting cultural change so employees are included and heard. Plus, diverse organizations tend to be more profitable.
Raise Retention Rates
Quit rates reached an all-time high in 2021, and when you lose people — in the firm or the portfolio — you lose revenue. One solution? Stop selecting leaders who create toxic work culture. According to MIT Sloan data, this is the biggest factor in quit decisions and 10 times more important than pay. Ripple effects will include greater employee engagement and more sustainable growth.
Industry Spotlight: Private Equity
As an international authority in the science of personality and a provider of evidence-based solutions for talent acquisition and development, Hogan has been partnering with private equity firms for decades to help them solve problems and achieve their goals. We can even inform your investment decisions. Fill out the form to learn more.