As the global economy continues its recovery from the unprecedented challenges of the pandemic, private equity firms are seizing opportunities for investment across key European financial centres, including London, Dublin, and mainland Europe. The increasing level of activity in these markets reflects the renewed confidence of private equity investors, who are keen to take advantage of favourable market conditions and growing opportunities across a range of industries.

Bonus season:

As the current bonus season comes to a close, it is evident that employees across the sector are generally content with their bonuses. However, there is a prevailing feeling of uncertainty among many employees about what next year’s bonuses might hold. This uncertainty is causing some to approach their employment with a degree of caution, and in some cases, consider alternative opportunities that offer more concrete bonus guarantees.

Given the highly competitive nature of the sector, firms must remain vigilant to the potential loss of top talent to competitors. Therefore, it is critical for companies to address employee concerns and provide greater transparency and certainty around their bonus structures. This can help to reassure employees that their hard work and contributions to the company are being recognised and rewarded accordingly.

To address these concerns, many firms are evaluating their bonus structures and considering ways to provide greater clarity and assurance regarding future bonuses. This may involve communicating bonus criteria more clearly, introducing guaranteed bonuses or other incentives, or offering more frequent bonus payments. Ultimately, companies must find ways to retain top talent and provide a supportive and rewarding work environment to maintain a competitive edge in the sector.

Hiring trends:

Despite the persistent challenges in the global landscape, the hiring activity has remained stable from Q1 and we anticipate this trend to persist into Q2. Our clients are actively seeking our services to conduct benchmarking exercises in order to ensure that their compensation packages are aligned with the prevailing market standards. As a result, Coopman is well-positioned to meet the demand for these services and is committed to delivering value to our clients. Further discussions revolve around addressing the “COVID skills gap” in junior to mid-level hires, caused by remote working over the last few years, resulting in limited exposure to senior management and gaps in technical ability. The challenge now is to identify ways to upskill these individuals.

Advice for clients:

In conclusion, as private equity activity continues to gain momentum across London, Dublin, and mainland Europe, it is imperative that companies remain vigilant in their approach to talent acquisition and management. With increased competition for top talent, it is recommended that firms evaluate their hiring budgets and take action to address any gaps in their workforce’s skills. In addition, companies should conduct regular benchmarking exercises to ensure that they remain competitive in the market and are able to attract and retain the best talent.

At Coopman, we understand the importance of strategic talent management in driving business success. With our expert knowledge and resources, we can provide your firm with a competitive advantage in the current market. Our team of experienced professionals can help you to identify and address any skills gaps in your workforce, as well as provide guidance on benchmarking exercises to ensure you are well-positioned to attract and retain top talent.

Overall, private equity firms across London, Dublin, and mainland Europe must remain agile and responsive to the changing market conditions to stay ahead of the curve. By partnering with Coopman, we can help your firm to navigate the challenges and capitalise on the opportunities presented by the evolving private equity landscape.

If you are concerned about how the current market may affect your position, or to discuss how we can support your hiring processes in the current market, please get in touch with Ian Parker, Manager of Accounting and Finance for the London market at ian.parker@coopman.uk