Why 2024 is the Right Time for PE-Backed Software Companies to Hire a Strategic Chief People Officer

In the midst of geopolitical tumult and financial uncertainty, it’s natural for companies to tighten their belts and look to cut costs where possible.

However, for private equity-backed software companies, 2024 presents a unique opportunity to invest in a role that can fundamentally strengthen their organization during such times: a strategic Chief People Officer (CPO).

Navigating Market Turmoil with Strategic Talent Management

Market turmoil creates a volatile environment for businesses, particularly in the competitive technology sector.

But it also offers an opportunity. As some organizations retract, the talent pool broadens, providing a chance to attract quality candidates who are looking for stable and visionary companies.

As we detailed in the most recent edition of our Private Equity Talent Benchmark Report, a strategic CPO can lead the charge in crafting a talent attraction function that not only identifies these individuals but also persuades them that your company is where they will thrive.

A CPO who understands the intricate relationship between business strategy and human capital can turn a period of market instability into a strategic advantage. By prioritizing the attraction of top talent and ensuring the alignment of employees’ skills with the company’s long-term objectives, they can position the company for growth when the market stabilizes.

The ‘Develop, Retain, and Belong’ Triad

Perhaps the most crucial aspect of a strategic CPO’s role in these times is fostering an environment where current employees don’t just survive but thrive.

It’s essential that employees feel a sense of belonging and are provided with opportunities for development. The CPO’s responsibility is to:

1. Develop:

Implement continuous learning and development programs tailored to enhance employees’ skills that are aligned with the company’s strategic direction.

2. Retain:

Cultivate a compelling value proposition for employees, understanding that people stay where they see a future for themselves. During market turmoil, a strategic CPO will ensure that communication channels are open and that employees feel secure and valued.

3. Belong:

In a world where remote work has become increasingly prevalent, creating a sense of community and belonging is paramount. The CPO must innovate ways to maintain company culture and employee engagement regardless of physical location.

A Proactive Approach to Talent Management

Rather than being reactive, a strategic CPO proactively manages the workforce to align with the company’s vision. In tumultuous times, they can reassess and realign the workforce planning to not only mitigate risks but also to capitalize on new market opportunities.

Furthermore, a good CPO understands the importance of data in driving strategic decisions. By leveraging analytics, they can provide insights into workforce trends, productivity, and engagement, allowing for informed decisions that can steer a company through the choppiest of waters.

Impact on Strategic Decision-Making

The CPO must be part of the top-level strategic decision-making process. Their insights into the workforce can offer a different perspective on the company’s direction and the strategies employed to navigate the challenging market landscape.

Our own CPO, Julie Catalano, shares her experience in her blog series, The People Perspective. She provides valuable examples of how the strategic CPO employs integrated talent management techniques to play a central role in executing on growth plansand achieving company goals.

As private equity-backed software companies look toward 2024, the decision to hire a strategic CPO should not be overlooked.

The benefits of having a dedicated leader focused on the human element of the business are invaluable, particularly when the market is unpredictable.

By focusing on talent attraction, development, retention, and belonging, a CPO can ensure that the company not only withstands the current turmoil but emerges stronger, more agile, and ready to capitalize on the eventual upturn. Investing in human capital strategy now is not just a defensive move—it’s a strategic play for long-term success.

Author:
Eric Walczykowski
Chief Executive Officer

Eric is passionate about building high-performing teams that value doing their best, working together, overcoming adversity and learning.

As a proven growth executive, Eric has served as CEO, President, Board Member, Investor and Advisor for technology companies that achieved over $4.5B in successful exits.

Eric brings to Bespoke Partners significant professional services experience from Deloitte and Andersen, as well as the high-growth client executive perspective for private equity-backed technology companies.

Eric earned an MBA from the Kellogg School of Management at Northwestern University and a BS in Business from Fresno State University.

Outside of work, Eric enjoys spending time with family, coaching baseball, travel, attending live events and sipping good wine.