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“The Talent Perfect Storm”: Top Trends from our 1H 2025 Market Report

by Eric Walczykowski​, Adam Boone

April 29, 2025,,
The Talent Perfect Storm

Private equity backed software and SaaS companies trying to recruit elite executives have been facing some strong headwinds. Many find themselves discovering skyrocketing compensation, turnover plummeting to historic lows, and competitors armed with AI recruitment tools they haven't even considered. Welcome to the "Talent Perfect Storm" of 2025.  

Here we discuss some key findings from our 2025 Software & SaaS Talent Market Update #1, providing time-pressed portfolio talent professionals with actionable intelligence to create value and drive results.  

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“The Talent Perfect Storm”: Three Converging Forces

Our analysis reveals a counterintuitive phenomenon: executive talent markets are tightening dramatically despite sluggish deal-flow. Usually, rising deal-flow drives a rise in new executive recruiting, which tightens the market. 

But a "Talent Perfect Storm" was created by three converging forces that every private equity-backed company needs to understand before making their next executive hire: 

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    Growing Demand is Outpacing Supply:

    Private equity firms are increasingly focused on mid-hold value creation rather than waiting for market conditions to improve. This has triggered a wave of "upleveling" - replacing current executives with those who possess specialized capabilities to drive transformation. These executives aren't just "nice-to-haves" – they're essential for meeting ambitious value creation targets.

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    Executives are Staying In-Seat:

    With lengthening hold periods and uncertain exit timelines, many C-suite leaders are choosing stability. Some anticipate near-term exits and equity payouts, while others are simply exercising greater caution when considering movement during market uncertainty. Our Executive Turnover Index clearly reflects this dynamic, registering one of the lowest turnover rates we’ve seen in recent years.

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    Accelerated Recruitment Timelines:

    When exceptional candidates do enter the market, the competition is fierce. Our placement data reveals that interview-to-offer timelines have compressed by 22% over the past year. Those who move slowly on getting offers out are consistently losing out on top talent.

Key Market Trends: What the Data Reveals About Today's Talent Battleground

Follow the money, track the movement, embrace the AI revolution—these three market signals tell the story of 2025's executive talent landscape.  The firms mastering these interconnected trends are winning the talent battle. 

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    Compensation Continues Rising:

    While deal flow stagnates, executive paychecks are soaring. C-suite cash compensation (salary + bonus) continued the upward climb we have been tracking for the last several years. But we saw declines in equity package multiples across all functions except CEOs. Today's leaders want cash in hand rather than equity promises, signaling the expectation of valuations remaining moderate. For private equity firms, this calls for rethinking compensation strategies that have historically relied on equity upside. 

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    Executive Turnover at Historic Lows:

    Our Executive Turnover Index revealed turnover rates remaining well below the historical average of 6, dropping to 4.3 in the second half of 2024. CEO turnover specifically has plummeted to one of the lowest levels recorded by Bespoke since 2022. Go-to-Market (GTM) leaders continue to have the highest turnover across functions, reflecting their direct accountability for growth targets and the industry's pivot toward capital-efficient growth strategies. 

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    AI: The Game Changer in Talent Acquisition:

    AI is transforming software executive recruiting, especially when addressing the following common talent market blind spots: 

    • Network Limitations: Traditional recruiting often misses candidates outside existing professional networks. AI can analyze thousands of profiles across multiple data sources to build comprehensive talent maps. 

    • Narrow Market Focus: Many search teams focus too rigidly on specific vertical experience, missing transferable skills from adjacent markets. AI helps identify candidates with relevant capabilities even if they haven't worked directly in a specific sector. 

    • Overlooking "Step-Up" Candidates: Organizations often fixate on seasoned candidates who already hold the exact title they're recruiting for, missing high-potential leaders ready to step up to the plate. AI excels at identifying these candidates by focusing on achievements rather than titles.

Traditional recruitment methods can’t identify the majority of a potential talent pool. Even seasoned recruiters drastically underestimate the total software executive market in the US.  Bespoke’s Executive Index  is an example of the progressive AI tools needed to get the job done. Our Executive Index has mapped and validated 670,788+ US-based software and SaaS executives, providing on average 50% larger memberships than traditional methods in a given search. With this technology we’ve been able to close searches 15%+ faster, maintain accuracy 3x higher than conventional approaches, and produce comprehensive talent market maps in mere minutes instead of weeks. 

The Bottom Line: Navigate the Talent Perfect Storm or Fall Behind

The storm’s message is clear: traditional executive recruitment approaches have become dangerously inadequate. The convergence of rising compensation demands, historically low turnover rates, and compressed hiring timelines requires a fundamental shift in how companies approach leadership acquisition.

For private equity firms and portfolio companies facing critical hiring decisions this year, the choice is clear:

embrace the AI revolution in talent acquisition or watch competitors secure the leaders who will drive the next wave of innovation and value creation. In a market where every executive hire can impact your investment thesis, eliminating talent blind spots isn't just an advantage—it's essential.

For a comprehensive analysis download the 1H 2025 SOFTWARE & SaaS TALENT MARKET UPDATE.

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Bespoke Partners Named in Top 10 of the “Top 49 Retained Executive Search” 2-Years Running by C-Suite CV Secure.

Authored by:

  • Eric
    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.

  • Boone
    Chief Marketing Officer

    Boone”has orchestrated strategy, launches and marketing programs for more than 100 products, services and ventures generating billions of dollars in revenue and many multiples of enterprise value. Sequoia Capital, Goldman Sachs, Greylock, Bessemer Ventures and other top tier private capital investors have backed Boone's companies in a range of sectors including software, telecommunications, cybersecurity, and networking.

    Boone has led marketing, demand generation, branding, product management, services marketing, or alliances marketing programs for numerous successful companies including Avaya-acquisition Sipera, Sequoia start-up Syndesis, Subex, CoManage, and others. He has driven joint marketing programs and go-to-market initiatives with iconic industry leaders including Microsoft, IBM, GE, AT&T, Oracle, Comcast, Cisco, Ciena and Samsung.

    Boone holds an MBA in Business Strategy from the WP Carey School of Business at Arizona State University and completed the Competitive Marketing Strategy Program at the Wharton School at the University of Pennsylvania.

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