Growing Private Equity Portfolios Through Strategic HR Leadership
Nate Skow — Senior Partner at hireneXus
HR was once perceived primarily as a function centered on recruitment, compliance, and benefits management. But in the past decade, HR has evolved into a strategic cornerstone of organizational success. Today’s HR executives are still responsible for leading overall people management, but they’ve also become key dri vers of business strategy, culture, and long-term growth. For 2025 and beyond, it is imperative for organizations, particularly those backed by private equity (PE), to rethink how they approach HR leadership — both in hiring and in role definition.
Let’s dissect a few trends in HR leadership, some of the core challenges faced by today’s HR executives, and good ideas for any hiring managers and CEOs aiming to attract and retain top HR talent.
Key challenges HR leaders face today
The pandemic catalyzed a massive shift toward remote work, but the post-pandemic era has exposed the complexities of hybrid and flexible work models. While many employees favor remote options, executive teams often push for in-office engagement to foster collaboration and company culture.
Successful HR leaders are those who can navigate this tension — creating policies that balance flexibility with operational efficiency while ensuring companies don’t step into a turnover crunch that grinds operations to a halt. Here’s what they’re up against:
- Scaling through strategic leadership: In PE-backed firms, the expectation is often rapid scaling. HR leaders must be adept at not just managing current workforce needs but also strategically planning for growth through mergers, acquisitions, and rapid organizational changes. This requires a blend of tactical know-how and strategic foresight.
- Talent retention in an evolving market: Even in an employer-driven market, retaining top talent remains a critical priority. HR executives must craft employer value propositions that go beyond salary — emphasizing career alignment, culture, and purposeful work. High turnover remains costly, and HR leaders must innovate retention strategies to address those costs.
- Data-driven decision-making: HR decisions today aren’t based on intuition alone. Workforce planning, diversity initiatives, and performance management all rely on data from staff forecasting, recruitment metrics, and business analytics. Leaders who can leverage data for predictive modeling and strategic planning have a clear competitive advantage.
What makes a top-tier HR leader today?
In my 25 years working in executive search for PE-backed companies, I’ve identified several non-negotiable qualities in the HR leaders who consistently drive organizational success:
- Strategic vision coupled with tactical agility: Successful HR leaders blend long-term strategic planning with hands-on execution. They can move fluidly between high-level workforce strategy and the granular realities of compliance, payroll, and employee relations.
- Crisis management experience: Leaders who have navigated downturns, layoffs, and complex M&A processes bring a resilience that is invaluable in today’s volatile market.
- Technological proficiency: The ability to evaluate, implement, and manage HRISs (human resource information systems), data analytics platforms, and performance management tools is increasingly essential.
- Influence at the executive level: Effective HR leaders aren’t just policy enforcers; they’re strategic advisors and empowerment experts. The best candidates can challenge CEOs, align with CFOs, and advocate for initiatives that drive long-term organizational value.
Hiring mistakes that undermine growth
When hiring decisions are based on outdated expectations or a narrow view of HR’s responsibilities, organizations are more likely to encounter misalignment, turnover, and missed opportunities to support growth. Here are some key mistakes to avoid:
- Under-hiring for strategic roles: In an attempt to control costs, organizations sometimes hire HR managers when they need senior-level executives. While this may offer short-term savings, it often results in long-term costs due to poor strategic alignment and high turnover.
- Seeking rubber-stamp leaders: Hiring managers occasionally look for candidates who will simply affirm existing practices — rather than challenge them. However, growth-oriented companies need HR leaders who are willing to push back, introduce new strategies, drive meaningful change, and play a major role in shaping the company.
- Overlooking alignment: While skills and experience are paramount, cultural alignment remains a key factor in leadership success. A candidate’s ability to integrate into the executive team and embody company values is often the difference between success and failure.
One recurring theme in my executive searches is the value of “over-hiring.” When companies plan for future growth — not just current needs — they position themselves to scale without the constant need to re-hire as they expand.
Consider a $100 million company with a five-year goal of reaching $500 million. Hiring an HR leader who has only ever managed $100 million organizations may suffice in the short term but will likely necessitate another search as the company grows. Hiring someone who has already achieved results for $500-million organizations prepares the company to scale and achieve more ambitious objectives.
Partner with hireneXus to find HR leaders
As the market continues to evolve, so too will the expectations for HR leadership. Here at hireneXus, we specialize in placing HR leaders specifically for PE-backed companies, which operate under accelerated timelines, complex M&A scenarios, and transformational mandates. Our search process focuses not just on HR expertise but on candidates’ ability to drive enterprise value in high-pressure, high-change environments.
If you’re looking to maximize the power of your portfolio companies through transformative HR placement and executive search, partner with us.
Nate Skow is a seasoned executive search consultant and Senior Partner at hireneXus with over 25 years of experience in recruiting HR leaders for private equity firms and portfolio companies.