Private Equity Leaders: One Quarter of PortCo Drift Costs You More Than You Think

The fastest way to burn time (and money) in a portfolio is to say, “We’ll just hire a new head for it”:

• Hiring is pricier than you think: SHRM benchmarking puts the average cost-per-hire near $4,700, and their Talent Acquisition benchmarks cite ~44 days median time-to-fill.
• Benefits are a real tax on payroll: For private industry employers, benefits are ~30% of total compensation costs (before you count tools, recruiting fees, severance, etc.)

Not only that, but most teams don’t model what “we’ll just fill/create a seat for that” really means when it comes to the precious commodity of time:

• Weeks 1-6: Seat is open. Pipeline and process issues keep compounding.
• Weeks 7-12: Onboarding and learning curve. You’re paying, but outcomes haven’t moved one bit yet.
• By next quarter: You’ve added fixed cost… and you’re still in need of a plan, enablement, and accountability.

So if you’re thinking, “We’re too busy,” that’s exactly when hiring becomes the reflex… and the reflex becomes the tax.

The right advisory partner is not a cost center or a new expense. The right advisory partner is a headcount alternative. Variable cost. Immediate action. No org drag.

Pressure test it quickly for two portfolio companies where you have turnaround, growth, or exit needs. We’ll tell you in days (not weeks) whether there’s a real revenue/EBITDA unlock worth pursuing, without putting headcount on your books.