New Study Reveals Human Capital Management in Large Private Equity Value Creation Focuses on C-Suite, with Exceptions

The latest research report from the Workforce & Organizational Research Center (WORC) has shed light on the importance of human capital management in large private equity value creation. Titled “Thinking Beyond the C-Suite Pays Off — Well, At Least Sometimes: Human Capital Management in Large Private Equity Value Creation,” the report delves into the role of human capital in value creation at leading private equity firms.

The study, supported by the Ford Foundation Mission Investments team, involved interviews with fund managers, deal team members, and human capital operating partners at seven prominent private equity firms. The findings reveal that while human capital management in value creation for large private equity firms often focuses on the C-suite, there are significant benefits to be gained by also considering lower-level workers.

Traditionally, private equity investments have overlooked the potential for value creation through improving the quality of lower-level jobs. However, the new research suggests that under certain conditions, large private equity firms are willing to embrace this approach. By dedicating resources to improving lower-level jobs, investors, companies, and workers can all stand to benefit.

Ellen G. Frank-Miller, Ph.D., founder and CEO of WORC, emphasized the importance of recognizing lower-level workers as an engine of value creation rather than just a cost to be minimized. The study supports the concept of Patriotic Capitalism, demonstrating that leading private equity firms can achieve financial returns by improving lower-level work, while also fostering a more satisfied workforce and healthier communities.

For more information on the research report and its implications for private equity value creation, visit www.worcimpact.com. WORC is a woman-owned social enterprise dedicated to promoting a thriving economy where every worker has a job worth having.

Source: WORC (Workforce & Organizational Research Center)