Evolve HR Group’s Post

Why Private Equity Should Bet Big on Strategic HR Private equity firms often zero in on the numbers and investment thesis, but here’s the secret: investing in people can be the game-changer. Here’s why strategic HR should be at the forefront of a PE play: 1. People Power = Profit Power: Great hires are the lifeblood of a company. By investing in HR, PE firms can ensure companies attract high-impact talent and cut down turnover bringing an instant boost to bottom lines. 2. Cultural Alchemy: When acquisitions happen, cultures collide. HR with a solid people and change management strategy blend them, preventing chaos and making transitions smooth—and profitable. 3. Supercharge Performance: A talented HR team doesn’t just manage employees—they help managers unlock potential. Motivated teams innovate, solve problems, and outperform, driving business value. 4. Risk Insurance: Legal headaches and compliance issues? A strong HR department has it covered. It’s the safety net that keeps businesses out of regulatory trouble. For private equity, smart HR investment isn’t just about managing people; it’s about harnessing a hidden engine of value that fuels growth, innovation, and a killer ROI. Investing in strategic HR is where the unlocking value lies! #FractionalCHRO #FractionalHR #HRAdvisory #PrivateEquity

When an engineering spinoff was acquired by Private Equity, they needed to meet an aggressive timeline to stand up their new HR function. Read the full case study ⤵ https://lnkd.in/e2kH6hxD #PrivateEquity #Technology #Engineering #Investment #CaseStudy #HumanCapital #HR

HR tends to be a 'must do' in a private equity transaction and tends to leave a lot on the table. It's key to re-examine that approach to accelerate deal value while focusing on the human side of the transaction.

Pretty exciting feature from one of my Atlanta colleagues Ryan Brown at Insperity: Growing HR in a Growing Company | Middle Market Growth Managing company growth is a good challenge to have, but leaders may run into new HR hurdles along the way. Ryan Brown, private capital advisor with Insperity, shares how HR needs change as companies grow their teams and expand geographically. Plus, he explores why organic growth and growth via acquisition necessitate different approaches to HR strategy.   This episode is brought to you by Insperity. As ACG Headquarters’ endorsed HR solution for the middle market, Insperity’s goal is to help organizations find a way to make their people strategy benefit their business strategy. We know that people can be the greatest value – and risk – to the success of an M&A transaction. Insperity helps prepare organizations for the human capital part of the process and sees them through it. A trusted advisor to America’s best businesses since 1986, Insperity provides human resource services and technology designed to help companies minimize risk and maximize profitability. Along with insight from its business performance advisors, Insperity provides the most comprehensive suite of HR products and services available in the marketplace. With 2023 revenue of $6.5 billion and more than 90 locations across the U.S., Insperity makes a difference in thousands of businesses and communities nationwide. For more information, visit insperity.com/acg or email [email protected].   GrowthTV is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit www.acg.org. #venturecapital #privateequity #growthmindset #takecareofyourpeople

Fostering a highly innovative small business or start-up can require a visionary founder, a great product, and substantial investment, but it is predicated on having the right workforce supporting it with top talent and expertise to drive continued success. However, when most entrepreneurs start their businesses, they don’t envision being bogged down in the HR administrative details. They want to remain hyper-focused on advancing their products and achieving growth milestones. As an example, an Insperity client needed a solution to alleviate the burden of HR and payroll, allowing the CEO to focus on business strategy and execution. The company was growing, and it needed help to maintain this growth trajectory without the people side of the business falling off the rails. For firms like his that acquire and manage multiple companies, people-side dynamics can be overlooked and underestimated until the difficulties start to bubble to the surface. With employment trends beginning to reveal that productivity, revenue, retention, and innovation are highest amongst firms that leverage a talent-driven approach to human capital management, offering a modern and engaging employee experience can directly correlate to improved organizational performance and lower employment churn, costs, and risks. Insperity, a pioneer in the HR industry since 1986, stands out by offering more than just scalable HR solutions. With a proven track record and recent annual revenues of $6.5 billion, Insperity’s success is undeniable. It boasts a team of over 4,500 corporate staff, strategically located across 100+ U.S. locations. This enables Insperity to deliver HR services, administrative relief, and reduced liabilities. By choosing Insperity, you can rest assured knowing that your business operations are in capable hands. #HR #HRServices #HRThatMakesADifference #TakeCareOfYourPeople

Can HR drive value creation through succession planning in Private Equity? For years, Private Equity has largely focused on financial outcomes, often overlooking human capital. However, with longer holding periods and a growing emphasis on value beyond financials, the industry is shifting. In our latest article, we explore how succession planning can become a strategic lever for PE firms. By aligning talent allocation with value creation, HR can play a pivotal role in driving growth and ensuring portfolio companies are prepared for the future. Discover how HR can shift from traditional, top-down processes to a more dynamic approach that puts human capital on par with financial capital. Read more and learn how to unlock hidden value through succession planning: https://lnkd.in/eCiNtuKG #PrivateEquity #SuccessionPlanning #HRStrategy

Driving Success in Private Equity with Strategic HR In the fast-paced world of private equity, aligning human capital with business goals is essential for success. Boardwalk Human Resources Consulting brings deep experience in building HR strategies that drive performance and growth. Let us be your partner in scaling operations and enhancing value post-investment. #PrivateEquity #HRStrategy #HumanCapital #BoardwalkHR

“HR is not a cost center.” Many founders still hold the #misconception that Human Resources is merely a cost center, handling administrative work and payroll. If you manage HR this way, it will indeed be a cost center, and you'll sacrifice your top line in the long run. Instead, #HR creates tremendous value by enhancing the productivity of each staff member (if you do it rightfully, or you don’t). Here are two examples: 🎯Hiring the Right People When we discuss "cash burn" with startups, most of the costs are related to #people. So, how do you use the same budget to hire the right person and achieve your goals? This is no longer an era where you can easily find the right person just by offering a salary. It requires a match of culture, vision, and the candidate choosing you. HR plays a crucial role in guiding equity owners and business unit managers on the right approach and whom to hire⁴. (And let's not forget about retention.) 🎯 Structuring an Incentive-Aligned Package Many founders tell me they've found the right person and "hope" they will deliver. "Hope" is not a strategy. With more new-generation workforce joining the market, research shows the importance of package structuring¹. A well-designed incentive scheme not only provides fair compensation to performing employees but also impacts the overall culture and sets up a safety net for the company during downturns². Let's continue this discussion throughout the week. #hr #humanresources #startups #founders #vc #venturecapital #hiring #incentives #companyculture #employeeengagement #leadership Further reading and references: (1) Unlocking HR's Value Across the Enterprise | Deloitte US. https://lnkd.in/gwnqm9Qm. (2) Compensation Packages That Actually Drive Performance. https://lnkd.in/gZZpz9Rb. (3) 7 Compensation Strategies for Cash-Strapped Startups. https://lnkd.in/gMWa-fSj. (4) An exploratory analysis of incentive packages and managerial ... - Springer. https://lnkd.in/gsFrN6zF.

Is Human Capital 💼 Your Biggest Investment? 💰 In today's video, we dive into the importance of human capital as a company's biggest investment. Discover how payroll and related expenses impact the bottom line and how hiring the right people can lead to an above average return on investment. #HumanCapital #Investment #PayrollExpenses #ROI #CompanySuccess #RecruitmentStrategy #EffectiveHiring #WorkforceManagement #BusinessGrowth #HRInsights

In this 3Sixty Insights research note, I dive into the strategic value of Professional Employer Organizations (PEOs) for private equity (PE) firms. It underscores the pivotal role PEOs, such as Insperity, can play in managing HR functions, allowing PE firms to concentrate on growth and strategic goals by delegating operational HR tasks. It dispels prevalent misconceptions about PEOs and highlights their benefits, encompassing enhanced productivity, revenue growth, and employee engagement.