Portfolio companies increasingly recognise the huge potential of untapped international talent in the private equity sector — an awareness that emerged due to the new remote work era driven by the recent pandemic.
Portfolio companies increasingly recognise the huge potential of untapped international talent in the private equity sector — an awareness that emerged due to the new remote work era driven by the recent pandemic.
Leaders want to understand more about sourcing from this stream of talent and how to give these individuals a high-level onboarding experience while remaining in compliance with local laws.
“Due to Covid, home working and hybrid work practices are becoming the norm. Post-pandemic, many private equity professionals and those working within portfolio companies continue to work from home,” observed Sam Perry, Director of Strategic Alliances – Private Equity, Globalization Partners. “It means the pool of talent is now a lot broader.”
Perry explained while there is no shortage of talent in the area, the challenge lies in locating the right individuals and once found, knowing how to hire them in accordance to varying country-specific labour laws.
“The notion of there being a talent shortage is a myth. Finding the right professionals is about having the skillset to identify talent in whichever country you operate. It also involves knowing the laws in different jurisdictions. Understanding what is or is not compliant in terms of employment regulation.”
Globalization Partners’ mission is to help firms accomplish just that. The company’s Global Employment PlatformTM enables private equity firms and their portfolio companies to mitigate risk and manage compliance throughout key hiring tasks like filing taxes and setting up benefits and payroll — wherever they operate in the world. A presence in over 185 countries and in-country expertise ensures a local knowledge that’s critical to aiding in the understanding and appreciation of cultural norms when hiring in new countries.
Easing compliance and improving commercial viability
Awareness of the platform within the private equity world is slowly gathering pace.
“Several private equity professionals have still never heard of our Global Employment Platform™, but when we explain the concept to them, they immediately see the benefit such a service can provide,” Perry said.
Globalization Partners combines industry-leading technology with worldwide expertise to ensure all companies meet compliance requirements, potentially improving the commercial viability of private equity portfolio companies. A company that fails to maintain compliance with local laws can face serious legal consequences – particularly when going public and subject to greater investor scrutiny.
“Compliance is now no longer just about ticking a box – it’s also about making sure a company is commercially viable, which is critical for private equity-backed companies,” stated Perry.
Globalization Partners handles all aspects of recruitment and onboarding through its platform, keeping up to date with the ever-changing, country-specific labour laws, so companies can focus on other key areas of the hiring process.
In the past, the company’s services did not extend to sourcing talent – that was left to the private equity manager or portfolio company itself. Perry explained how this has changed.
Filling the gap
Previously, private equity firms would introduce Globalization Partners to their portfolio companies in need of a reliable global growth partner. Companies would express satisfaction with the onboarding experience provided but also frequently asked for help in finding talent. In response, Globalization Partners’ latest product offering, GP Recruit, came to fruition.
“The need for recruiting support highlighted a gap in the market, which led Globalization Partners to build a global network of recruitment partners,” Perry said. “So, if a company is looking to hire a C-level professional in China for example, our system will create a curated list of recruiters who can help meet their specific requirements. Once the right individual is hired, they are onboarded through the G-P platform – making the firm a one-stop-shop for recruitment and onboarding in this niche space.”
Finding a balance between compliance and the human experience
In the year ahead, Globalization Partners aims to build its presence among private equity managers and portfolio companies in Europe.
One way the company plans to improve its visibility is by organising educational webinars where they can provide support as thought leaders across the industry. For example, in many of these events, Globalization Partners shows managers how to scale their private equity-backed companies internationally, while avoiding the pitfalls that come with failure to follow best practice.
“My objective is to evangelise, educate, and explain exactly what we do, how our products work, and how we can support our clients,” Perry said, adding that he expects a greater future focus on the human experience to become apparent.
“People are no longer just numbers. In a way, working from home has made interactions more real as colleagues and peers get glimpses of a person’s life.”
In addition to accessing a deeper pool of global talent in compliance with local laws, Perry believes that the human element will become a major area of focus among private equity companies. This includes a greater appreciation for the cultural dimension of international hiring.
“If the industry focuses purely on numbers, they risk leaving culture aside and this is what brings that human element to this process.” Globalization Partners’ AI-driven Global Employment PlatformTM helps private equity clients stay compliant and confidently source global talent.
Contact us to quickly identify and hire the best talent in the right location.
Sam Perry, Director of Strategic Alliances
Sam is the Director of Strategic Alliances – Private Equity & Venture Capital at Globalization Partners. He has extensive experience in value creation, creating strategies and partnering with leaders to provide business transformation solutions. He has spent most of his career in London and New York. At Globalization Partners, Sam leads the European PE & VC business solutions channel, focusing on helping firms and their portfolio companies shape their global workforce strategies.
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