Talent acquisition strategies have changed, but many portfolio companies still hire in a traditional way, such as collecting applications utilizing job boards. Today’s recruiters use new skills to attract quality candidates, especially when it comes to large-scale recruitment.
Private equity firms with successful portfolios know where and when to outsource their recruiting efforts by leveraging and utilizing the right resources throughout unique stages of growth.
Create a Job Description & Compensation Checklist
Whether one of your portfolio companies has a new project, a recent resignation, or another need for more headcount, before they talk to a candidate or post an open position, their HR team has some pre-work to do.
To make the most efficient use of time, your portcos must understand the role they’re recruiting for. They should review specific job openings and define the roles, responsibilities, and compensation packages for each position.
To get started, portcos should answer these questions to create the most targeted and effective job description possible:
- Why do you need to add a position?
- How will this position benefit the company?
- What are the required skill sets or expertise?
- Are there team gaps, or is there a need to backfill?
- How much experience should the ideal candidate have?
- Is there any related experience that could be relevant?
- What are the educational or certification requirements?
- Who will this employee report to?
- Who, if anyone, will report to this employee?
- What personality traits/soft skills do they need to possess?
- How is success in this role measured?
- When is the desired start date?
A competitive job offer is often much more than what the job pays. Today’s applicants are clever. If they don’t perceive the value in what companies have to give, they’ll find one that does. As a result, an explanation of the recruitment process, job description, and interview stages must be provided for a seamless candidate experience.
Portco talent leadership should put themselves in candidates’ shoes to see what kinds of perks they seek. Instead of only offering monetary compensation to applicants who are millennials, they can create incentives such as flexible working hours and opportunities for training and growth.
Even if your portcos have defined salary grades and ranges for each role, they must be confident in their cost per hire. Knowing this can benefit salary negotiations and explain why candidates may decline offers or have high turnover rates.
To give candidates the complete picture, portcos should answer these questions:
- Is this a permanent or temporary job?
- Is this role exempt or non-exempt?
- What is the current salary range for the position?
- Is there an opportunity for a sign-on bonus? An annual bonus?
- Are benefits offered, and what does that benefits package include?
- Are you willing to relocate someone, and are relocation expenses covered?
Verify Pay & Bonus Details
Ultimately, companies want to offer a competitive salary that aligns their expectations for the position with the candidate’s expectations. Before finalizing an offer, research must be conducted to determine if the pay is competitive in the current job market.
Searching job boards and the Bureau of Labor Statistics is a great place to start. HR teams can also ask within the company to see if any existing relationships provide this type of data and information. Once that’s complete, the research can be written down and formalized.
Key data points to focus on:
- Average compensation for the role (local & national)
- Cost of living in the market vs. national
- Total # employed with a similar title in a location
- # of local companies hiring for the same title
- # of similar jobs posted in the same job market
- Local employment rates
- # of people on the brink of retirement
- Racial & gender diversity within a job type
- Commuter details/accessibility to office
- Salary.com: Long recognized as a reliable source for salary data.
- Indeed and Glassdoor: Self-reported compensation data by employees & employers.
- Bureau of Labor Statistics: Quarterly updated database of pay & benefits.
Boost Candidate Interest in Working for Your Portcos
An employer brand is a critical component of gaining a competitive advantage in the labor market. Portcos shouldn’t allow a lack of brand awareness to diminish a robust recruitment process. Most prospects nowadays research company reviews before applying. As a result, candidates may be discouraged from submitting their application if they discover bad ratings for an employee experience or hiring process.
While you can’t change people’s minds about companies, great branding can help shape their impressions. The first stage is to develop an employee value proposition, which will help you effectively present open positions and your portcos to potential applicants.
You can learn more about how to create a compelling EVP (Employee Value Proposition) here.
Share These Tips With Candidate-Hungry Portco’s
Innovative private equity firms know that building a successful portfolio requires hiring skilled talent to ensure their companies scale faster and more efficiently. Successful recruiting isn’t just a hiring manager clicking through online applications. It requires a strategic process from the job posting through the final offer. Portfolio companies must build a repeatable process that maximizes their efforts to attract and retain top talent.
Start driving top talent to your portcos with these and other tactics by reaching out today!