EY researchers and Columbia Business School’s Private Equity Program have partnered to analyze data from Columbia’s student base that can offer PE firms a wealth of insights into the mindset of a professional cohort that might reasonably be expected to be interested in a private equity career.
Columbia Business School surveyed current students and recent graduates over a period of years for their opinions on topics ranging from the characteristics they would most like to see in their workplaces to how long they expect to remain in their current jobs. There are also responses from graduates who have been working in the private equity industry for a longer time. The EY teams and the Columbia Business School team analyzed the data across a variety of cohorts — Gen X/millennial, male/female, underrepresented minorities (URM)/non-URM and finance/non-finance.
To supplement the data, EY researchers and Columbia Business School also collaborated to conduct interviews with human resources executives and other leaders working in the PE industry to understand how firms are responding to the changing labor markets and industry
Key Findings
While monetary factors are important when choosing a career, for a majority of professionals non-monetary factors are equally or even more important, a finding that holds true across generations, genders and ethnicities.
Firms are laser-focused on developing their ESG competencies. While limited partnership (LP) demands are one driving dynamic, another factor is the desire to attract millennial candidates. The survey supports this strategy but finds that it isn’t just millennials who are interested in purpose-driven careers.
Firms are responding to the changing landscape with a plethora of new measures to make themselves both more competitive and more attractive to talent. Their responses include:
- Rethinking whom they hire, from where they hire and what tactics they use when making hiring decisions
- Tying recruiting and retention more firmly to purpose
- Reworking their cultures to be more open and inclusive
