3 Ways Private Equity Changes the Game in Recruiting

Private Equity Executive Recruiting

Private equity (PE) firms are often unfairly perceived as takeover specialists, only concerned with numbers on a spreadsheet and finding exit strategies that lead to big buyouts. Employees of a PE firm’s portfolio companies also fear layoffs, thinking the PE firm will ultimately “get rid of everyone” in preparation for selling off companies.


But PE firms’ approaches to hiring and managing talent tell a different story. A recent study conducted by Ernst & Young and Private Equity International (PEI) found that 51% of PE firms believe retaining talent is the top issue to remain competitive in the marketplace, while 53% ranked developing personnel as one of their top objectives over the next two years.


180one has witnessed this emphasis on talent firsthand in our work with several PE-backed clients over the past few years. Today on The Water Cooler, we look at how PE firms are having a positive impact on the recruiting world in the first article of new series about private equity and executive search..


From Buy & Sell to Buy & Transform

While corporate ownership in the US has shifted from public to private over the past few decades, PE firms have also evolved how they bring in and manage their portfolio companies. A 2016 article from Harvard Business Review explains how, in this new phase of PE ownership, firms must bring more than financial discipline and strategic expertise to their portfolio companies.


PE firms experience both winners and losers among their investments. When looking at their portfolio companies’ performances, they have started recognizing the importance of talent in creating a strategic advantage that leads to success. Today’s PE firms realize that they aren’t just buying a legal entity when making new investments; rather, they also acquire a management team and organization of people equipped to execute the company’s plan.


Now PE firms have begun to place more value on acquiring and retaining talent, strengthening HR practices and innovating the organizational operations of their investments in order to keep that strategic advantage.


Bringing Sophistication & Expertise to the Hiring Process

Engaging in their portfolio companies’ hiring processes used to mean that PE firms would leverage their network to identify talent or be actively involved in interviewing and selecting candidates. Today’s PE firms, on the other hand, emphasize the importance of strong recruiting and HR processes by investing in and sharing best-in-class hiring practices across their portfolio.


PE firms originally drove savings by consolidating shared resources such as Audit, Banking and Legal services via contracts with preferred vendors. Now they take a similar approach by investing in Talent Management services that they deploy across their portfolio when needed.


This approach provides smaller companies who possess nascent HR functions access to new tools and practices, including behavioral assessments to truly evaluate candidates and compensation benchmarks to remain competitive in the marketplace. PE firms also invest in building relationships with executive recruiting firms, vetting these firms and negotiating favorable terms on behalf of their portfolio.


Injecting this knowledge and sophistication into their portfolio ultimately evolves the holding companies’ hiring practices and offers them a “leg up” in attracting top candidates.


Experienced in Recruiting C-Level Talent

PE firms invest in dozens of companies, giving them insight into C-level leadership across a variety of organizations and industries as well as a plethora of expertise in recruiting the right candidates for those positions.


Through their previous experiences, seasoned PE executives are able to identify the appropriate balance between soft and hard skills needed in a C-level candidate and often have a better understanding of the existing talent pool. Although they may not make the final hiring decision, PE firms nevertheless are able to advise their portfolio companies during the recruiting process and ensure that they select strong leadership.


As PE firms shift their focus from financial fixes to company transformations, their emphasis on talent management and sophisticated processes has allowed their portfolio companies to evolve as well, boosting them to a new playing field when it comes to competing for candidates.


Interested in reading more about PE Firms and recruiting? Consult these resources:
5 Reasons Strong Talent Management is a Top Priority for PE Firms
 | How Private Equity Firms Hire CEOs


And don’t miss 180one’s work with some of our PE-backed Clients: Columbia Distributing | Owen Equipment | OFD Foods

By Catherine Landgraf 04 Sep, 2024
Chief People Officer ABOUT THE COMPANY In 2008, Columbia Distributing, Mt. Hood Beverage, and Gold River Distributing united to form Columbia Distributing as we know it today. With this merger and the 2018 acquisitions of Marine View Beverage and General Distributors, Inc., our company is now one of the Top 5 largest beer/wine distributors in the US. Size is not our only distinction, however, as Columbia Distributing boasts an extensive selection of beverages, including craft beer, wine and spirits. Columbia Distributing’s success lies in the teamwork of the roughly 3,000 employees spread throughout 27 locations in Oregon and Washington, who every day come together to execute on a common vision. Based on the success of the company and our future growth plans, Columbia Distributing is looking for a Chief People Officer to join the executive team where it will lead the overall people strategy of the company. ABOUT THE ROLE Reporting directly to the Chief Executive Officer, the Chief People Officer (CPO) will develop and execute the People strategy for the organization and partner with the Executive Leadership Team (ELT) to execute on the vision. The CPO will serve as a thought partner to the CEO and ELT, provide advisory services with regards to leadership, coaching, employee relations, talent acquisition, engagement, compensation, organizational design and change, performance management, learning and development. This role involves leading initiatives that support Columbia’s business objectives, enhance the employee experience and engagement, and ensure our continued ability to attract, develop, and retain top talent. The CPO will champion and further Columbia’s organizational culture while directly leading all aspects of the human resources function. The successful candidate will have strong communication skills, a deep understanding of best practices, and the ability to navigate complex organizational challenges. The role requires a high level of integrity, autonomy, confidentiality, and professionalism. The CPO will play a critical role in shaping the future of our organization and ensuring that our people are engaged, motivated, and aligned with our mission and values. ESSENTIAL DUTIES AND RESPONSIBILITIES Strategic Leadership Develop and implement a People strategy that aligns with the overall mission and strategy of the organization, resulting in innovative best practices and policies that will service the full range of the Company’s needs and help build a high-performing culture of success, accountability, transparency and collaboration. Act as a strategic partner to all members of the ELT and proactively provide insightful, innovative thinking and problem solving on critical HR issues. Gain an understanding of the organization and participate fully in all strategic deliberations. Optimize the People function/team, modernize and refine key processes and activities aligned toward achieving strategic objectives. Provide guidance on special projects, analytics & reporting, talent reviews, training, change management, organizational design, and cultural initiatives. Talent Management Oversee the recruitment, selection, and onboarding process to ensure we attract high quality candidates who align with our company values. Proactively manage resource allocation and maintain a competitive approach to recruiting and assimilating high-potential talent throughout all branches. Implement and manage programs for employee learning and development, performance management, and career progression. Design and implement succession planning strategies to ensure continuity of leadership and critical roles. Advise on people programs and processes to enhance talent attraction, retention, development, and succession. Coach and mentor organizational leaders for leadership bench strength capable of addressing the challenges of a highly dynamic organization. Organizational Culture Foster a positive, inclusive, and high-performance culture that supports employee engagement, satisfaction, retention and ultimately, business results. Develop and implement initiatives that promote the organization’s core values. Develop relationships with the employees and become someone who is sought for advice and counsel on HR, cultural and organizational issues. Facilitate integration of diverse workgroups, cultures and newly acquired assets. HR Operations Lead and oversee the design and administration of competitive compensation and benefits programs that are compliant with legal requirements and aligned with industry standards. Analyze market trends and adjust programs as necessary to remain competitive. Develop and implement people policies and procedures that promote fairness, consistency, and compliance. Mediate employee relations and performance issues and provide counsel to fellow managers on appropriate methods of performance management. Leverage data and analytics to drive decision-making as well as measure and report out on the effectiveness of people initiatives. Ensure HRIS systems and processes are efficient, scalable, and support business needs. Ensure compliance with all applicable labor laws, regulations, and industry standards. Manage and mitigate people related risks, including legal and regulatory issues. Stay current on industry trends and best practices to maintain a forward-thinking, value-added people function. Interact with vendors and external partners to create and maintain relationships and negotiate contracts. Partner with legal to ensure compliance & mitigate organizational risks. EDUCATION, EXPERIENCE AND SKILLS Bachelor’s degree required. Advanced degree or MBA preferred. Certifications in HR helpful (SPHR, GPHR). 15+ years of relevant business experience ideal. Solid knowledge of all facets of Human Resources. Broad and deep experience as an HR Business Partner supporting executives or senior leadership. General business and financial acumen with the ability to develop and utilize HR data and metrics as they relate to and impact business topics in Finance, Legal, IT, payroll, and administration. Excellent communications skills - written, verbal and interpersonal - and an ability to tailor communication style to diverse audiences. Demonstrated capability in adapting and innovating HR practices and solutions and right sizing them to the needs of a fluid and fast-paced, entrepreneurial organization. Results-driven, agile, change agent with the commitment and confidence to assume a leadership role in an evolving complex environment. Drive initiatives with limited resources and roll-up your sleeves attitude to achieve desired results. Unquestionable personal integrity, fairness and credibility necessary to gain the trust and commitment of individuals at all levels of the organization. Demonstrated success at cultivating strong relationships with internal and external stakeholders and creating partnerships at all levels within the organization to achieve results. Empathetic and engaging individual, who listens well, is responsive, solutions focused and results oriented. Passionate about the mission of the Company, enthused by the challenges confronting the organization, and dedicated to achieving its goal. Interested in Learning More? 180one is a retained search firm and has been engaged by Columbia Distributing to manage this search. If interested in learning more about the opportunity, please contact Tom Haley /503.334.1350/ tom@180one.com
By Catherine Landgraf 22 Aug, 2024
Chief Financial Officer ABOUT THE COMPANY In business for over 75 years, Commerce Properties owns and manages some of Portland’s finest apartment properties including Vista St. Clair, Oriel, Celio, and Summer Creek. They also own two retail centers, Apple Way Corner and Apple Way Market. Commerce Properties is a value-based organization that lives by 4 values: Integrity, Do It Right, Service, and Economic Stewardship. These values guide how they treat people and determine how they make decisions, interact with others, and plan for the future. Commerce Properties runs the company using the Entrepreneurial Operating System™. This is a comprehensive proven process for delivering both company effectiveness and individual job satisfaction. They want everyone to know where we’re going, why, and how they fit in. ABOUT THE ROLE Operations oriented Chief Financial Officer (CFO) to direct the organization's financial planning and accounting practices as well as its relationship with lending institutions, shareholders, and the financial community. This position also oversees the financial activities of the organization, including the preparation of current financial reports and summaries and creates forecasts predicting future growth. This job description reflects the principal functions, knowledge and skills required. The CFO must perform all tasks that management determines are essential to the operation of the company and appropriate for this position. ESSENTIAL DUTIES AND RESPONSIBILITIES A key member of the Executive Leadership team participating in identifying and executing quarterly, one year and three-year goals. Provide leadership, management, and accountability to the accounting team. Create, coordinate, and evaluate the financial programs and supporting information systems of the company to include budgeting, tax planning, real estate, and conservation of assets. Responsible for identifying and implementing emerging technologies to improve productivity and accuracy of corporate data Oversee the approval and processing of revenue, expenditure, department budgets, project budgets, ledger, and account maintenance and data entry. Work in alignment with Commerce’s Values. Establish and maintain appropriate internal control safeguards. Approve and coordinate changes and improvements in automated financial and management information systems for the company. Coordinate the preparation of financial statements, financial reports, special analyses, investment analyses and information reports. Develop and implement finance, accounting, billing, and auditing procedures. Manage company's financial, liability and property risk exposures. Work with insurance broker on annual insurance renewals Evaluate and control the organization’s fundraising plans and capital structure, especially for strategic business initiatives. Work with lenders to obtain short- and long-term financing. Manage Treasury function to realize best return on cash while guarding against loss. Interact with other managers to provide consultative support to planning initiatives through financial and management information analyses, reports, and recommendations. Ensure records systems are maintained in accordance with generally accepted accounting principles. Develop and direct the implementation of strategic business and/or operational plans, projects, programs, and systems. Provides oversight on the budgeting process along with performing any variance analysis of budget to actual. Analyze cash flow and expenses to guide business leaders. Analyze financial statements to pinpoint potential weak areas. Create and maintain forward looking financial models. Identify ways to improve profitability. Responsible for creating and maintaining accuracy of standard operating procedures on key account functions. Maintains confidentiality. Information regarding Commerce is highly personal and confidential. Any breach of confidentiality is grounds for immediate termination. QUALIFICATIONS Bachelor’s degree in business administration, accounting, finance or related field is required. CPA or MBA preferred. 10 years related experience in senior level accounting and finance position. Experience in property management or real estate a plus. Strong verbal and written communications skills. Experienced team leader and has the ability to take initiative Possesses organizational skills and ability to prioritize. Interested in Learning More? 180one is a retained search firm and has been engaged by Commerce Properties to manage this search. If interested in learning more about the opportunity, please contact Tom Haley /503.334.1350 / tom@180one.com
By Greg Togni 22 Aug, 2024
We are excited to announce our recent collaboration with Skutt Ceramic Products, resulting in the placement of their new Chief Financial Officer! Skutt Ceramic Products began in 1953 when Ralph and Neil Skutt manufactured the industry’s first multi-sided hobby kiln in Olympia, Washington under the name “Skutt & Sons”. The introduction of this new lightweight design revolutionized not just the ceramic kiln business but the whole ceramic industry by bringing ceramics to the home. A lot has changed over the last 70+ years. Kiln companies have come and gone, new clay bodies and glazes are constantly being developed that demand greater firing precision, and automatic controllers are quickly replacing the once cutting edge KilnSitter. Throughout the years Skutt has worked hard to meet the changing needs of their customers, but one thing that has remained constant is their fierce dedication to manufacturing quality products and providing outstanding customer service. They realize that every object placed in a Skutt kiln has value. It could be a child’s horse that looks more like a dog or a master potters $20,000 commissioned sculpture. Both of these artists are counting on their kiln to do its job and they don’t want to let them down. Congratulations to Skutt, and the 180one Search Team on a successful executive placement!
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