VC, PE firms resort to salary hikes amid historic quitting spree

The ongoing tidal wave of employees quitting their jobs in search of more money and flexibility—also known as the Great Resignation—has not spared investment firms.

New data shows that 27% of venture capital, corporate venture capital and private equity firms lost a partner or key recruit in 2021, according to a recent J.Thelander-PitchBook survey of more than 760 respondents. More than 40% of those who quit joined a competitive firm, while 16.1% launched their own firm or company.

“The war for talent is greater than ever right now,” said Jody Thelander, founder and CEO of namesake firm J.Thelander Consulting. “We are seeing venture capital firms increase total cash compensation across the board, most notably among associates and managing general partners, indicating VCs are willing to pay a premium to recruit and retain top talent.”
   
“The market for talent in venture capital is certainly competitive, but so is the barrier for entry,” said Rachel Mackey, human resources and operations manager at Chicago-based early-stage VC firm Oca Ventures.

Perks of physical office spaces such as doggy daycare or in-person happy hours have been replaced by the freedom to work remotely. But flexibility can no longer be considered an extra benefit because employees already expect that—hence compensation still matters, said Mackey.

“The office perks that a lot of us are used to are gone, and potential employees are looking at compensation with a more critical eye,” she said.

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