b'ILPA PRIVATE MARKETS EDGE Q1 20216 7LPsconsistentlyexpressfrustrationovertheirabilitytoBasedonthebroaderLPTalentdiagnosticworkcompletedbyILPAin2020,ourmostrecent attract talent, particularly at more junior levels.Entry levelcompensationsurveyincorporatednewquestionsrelatedtototalcompensation,theemployee pipelines are scarce, sourcing is difficult and compensationvalue proposition and the relationship between staffing and the composition of the private markets and total rewards are difficult to benchmark.Resources areprogram. Check out the survey results for answers to some common LP Talent questions and read further constrained as new hires are brought up the learningthe full ILPA Industry Intelligence Report on LP Compensation.curve, with even more experienced hires requiring training. Retaining talent is also a challenge.LPs struggle with careerHow should LPs benchmark compensationWhat mistakes are LPs making when path ambiguity and limitations, compensation and incentivesrelative to other employers to remainevaluating their total rewards program packages and competing offers from the GP community. competitive?(i.e., other monetary and non-monetary Consider benchmarking compensation against a broaderbenefits)? cross-sectionofemployerswithwhomyoumightbeLPemployerstendtooverweighttheimportanceof ILPA seeks to provide solutions toward the issues that everycompetingfortalent.Thiscouldincludeawiderrange LP organization faces through the content we produce. Thisof LPs (e.g., type, size, location), but also GPs, other assetcertain aspects of the job, such as organizational prestige managers, financial institutions and service providers (i.e.,andculture,whileunderestimatingcorecontributorsto ILPAPrivateMarketsEdgeissuefocusesonhowLPscanconsultants, advisors, data and analytics firms).employee satisfaction like the quality of the relationship managetalentchallengesandseizerelatedopportunities.with their direct manager and level of responsibility they Employeeswillstayfortherightopportunity.Whileare granted. Read on for actionable talent insights and a deep dive onLPorganizationscanonlystretchsofaronthecash compensation, watch our video interview with talent expertcompensationtheycanoffer,theycandistinguishLP employers struggle to explicitly define what it is their themselvesbyincentivizingandrecognizingemployeesemployeestrulyvalue,leavingthevalueproposition Renee Neri from Heidrick & Struggles, register for upcomingwithanincreasedlevelofresponsibility;34%ofLPambiguous, and therefore, leaving current or prospective ILPA LP Talent opportunities and get inspired by our Memberprofessionalscitedthisasareasontostaywiththeiremployees uncertain of the LP organizations priorities and spotlight. organization.values.What factors go into how other LPsWhat are employees looking for beyond structure total financial compensation?cash-compensation? Two of the most influential factors on total compensationSeveralofthemostimportantdriversofemployee are within the LP organizations controlshort-term bonussatisfaction have nothing to do with cash compensation. EstablishabaselineagainstwhichtoDefineanddeliverontheiruniqueeligibilityandprimaryrolefocusarea.Geography(i.e.,The following factors were cited by LP professionals: work-evaluatetheirorganizationalstructureemployee value proposition, define andphysical location of the role) was the only factor over whichlife balance (47%), level of responsibility (34%), job stability and their staffing needs communicatecareerpathandtalentthe LP typically has no influence.(29%) and level of joy/meaning in ones work (29%). development opportunities and developShort-termbonuspayoutsaretypicallydrivenby Identify,hireandonboardindividualsandimplementtotalcompensationtwoinputs:non-investmentperformance,citedasa that are well-suited to their organizationsdriverby80%ofsurveyrespondents,andtotalassets unique needs and value proposition modelsthatincreaseworkplaceprogram performance, cited as a driver by 60% of survey satisfaction and reduce attrition respondents.Only39%ofsurveyrespondentscitedAll data on pages 7-8 of this report are in reference to theprivate markets performance as a driver of their short- ILPA Industry Intelligence Report on LP Compensation. term bonus payout. (December 2020).'