Growth in the Impact sector is being fuelled by global attitude shifts, increased focus on sustainability and heightened investor interest. All good news for the market, but successful growth requires a strong vision and the right team to realise that vision. This blog considers the growth of the sector and shares insights into the associated hiring challenges.
Increasingly the investment funds we partner with are engaging us on Environmental, Social and Corporate Governance (ESG) roles. The ESG function is responsible for developing and implementing the sustainability and ESG strategy to drive responsible and sustainable investment practices, aligned with global sustainability goals.
This reflects the wider adoption of ‘green’ practices by the Financial Services sector. Financial Services is emerging as a driving force in the sustainability landscape. Financial institutions are increasingly adopting accurate emissions management, aligning their portfolios with green credentials, and influencing businesses to embrace sustainability.
The Investment landscape has seen the emergence of specific investment funds dedicated solely to Impact. Impact-focused funds understand the unique challenges and opportunities within the sector. These funds are not just investing; they are partnering with companies that share their vision for positive change.
“The global impact investing market size was estimated at USD 66.75 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 18.8% from 2023 to 2030.”
Grand View Research
The increased focus on Impact investment, coupled with the surge of innovative startups has led to positive sector growth. The Impact sector’s commitment to the Circular Economy is resulting in international investment into sub sectors including Blue Economy, Foodtech, Agritech, Energy transition and Regenerative Agriculture.
As with any startup, achieving investment is a crucial step in building a successful business. Post investment, the focus is on building a strong senior leadership team capable of realising the company’s vision. The next stage is hiring for growth. Bringing on a team of top-tier individuals with the right mix of skills and personal qualities to drive business expansion.
Therein lies the challenge. Impact sector growth is outstripping the available talent pool. How can Impact Investors and their portfolio companies (PortCos) secure the best talent to ensure their business thrives? Consideration should be given to the following:
- Limitless boundaries: A borderless approach considers the global talent pool rather than limiting the search to local talent only. This significantly improves the chances of finding the best fit candidate for the role.
- Transferable skills: An essential quality in the Impact sector as they allow professionals to adapt to diverse challenges, collaborate across disciplines, and drive innovation. These skills provide versatility, resilience, and a global perspective crucial for the sector.
- A strong hiring process: Establishing a candidate-centric hiring process places the emphasis on understanding and meeting the needs of the candidate. It involves creating a positive experience through clear communication and timely feedback throughout the process. This approach is valuable as it draws top talent and enhances the employer brand – a strategic advantage in attracting and retaining a skilled workforce in a competitive market.
- Cultural fit and adaptability: Seeking individuals with qualities such as cultural fit, whose values align with those of the company is critical. With a limited talent pool, the ‘right fit’ candidate outweighs the perfect skillset.
Our blog ‘Aligning Talent Acquisition with Company Culture’ shares 10 strategies that can be incorporated into your hiring process to increase the likelihood of recruiting individuals who not only have the right skills, but also contribute positively to your culture.
For a growing business, managing effective talent acquisition can be time consuming and take the focus away from core business activities. Working with an Executive Search Partner to help you hire the best talent for your organisation is a strategic decision. There are several advantages to such a partnership.
International Reach: An extensive global talent network taps into a diverse pool of candidates beyond local boundaries. This can prove invaluable for identifying top-tier talent, including individuals who may not actively be seeking new opportunities but may be the perfect fit for your company.
Specialised Expertise: Offering a deep understanding of the unique talent requirements for the Impact sector. This ensures a more targeted search for candidates who not only meet but exceed the company’s expectations.
Time Efficiency: Streamlines the hiring process, allowing your company to access a curated pool of pre-screened candidates promptly. This efficiency is crucial for maintaining momentum in a competitive market.
Strategic Talent Acquisition: Close collaboration ensures a deep understanding of your growth objectives, culture, and specific needs. This results in a more strategic and tailored approach to talent acquisition, aligning hires with your long-term vision.
Risk Mitigation: Building a successful business requires in-depth knowledge and experience of different markets, legalities, and cultural nuances.
Alex Partners Executive Search specialise in partnering with investment backed businesses and Investment Funds to source top-tier talent across a range of disciplines within the Impact sector. We help shape senior leadership teams and recruit individual contributors that help drive business growth. Our unique delivery model and truly borderless approach, allows us to offer our partners access to an ever-evolving global network of candidates aligned to your company vision and values.
If you are building an executive leadership team or hiring for business growth, Alex Partners is the catalyst for your success. We can help you elevate your business by strategically hiring and shaping a team that sparks innovation, resilience and delivers a positive impact.
