Private equity performance management comes with its own unique challenges that have been further amplified by the current competitive labor market. As we emerge from the cocoon of the pandemic and the impact it’s had on business as we knew it, we see several factors impacting performance management in PE. Portfolio companies and their leaders are increasingly concerned with cultivating motivation, engagement, and teamwork among their employees.
CXOs will be more likely to succeed if they: (1) exhibit flexibility to meet employees’ needs; (2) see communication as across the aisle, not top-down; (3) acknowledge the importance of data; and (4) embrace the realization that satisfaction, whether from an employee experience or customer experience, can and should be measured.
See Also: Performance Management Trends and Outlook
Establishing the levels of employee engagement that lead to success requires investing significant time and energy, and when done right, will lead to continuous improvement and growth throughout the company. Failure to invest in rigorous employee engagement can cost companies hundreds of billions a year. In this economic environment and beyond, leaders cannot afford to ignore these demands.
Meeting the Increased Demand for Flexibility
Gaining the competitive advantage in attracting new talent means embracing the