Private Company Leaders Prioritize Employee Development to Increase Engagement, Drive Productivity and Define New Leadership: Deloitte Private Survey

Nearly 90% of companies surveyed with annual revenues of $500 million or more plan to increase in-office events in the next year

NEW YORK, Nov. 21, 2024 /PRNewswire/ -- A Deloitte Private survey of C-suite executives and leaders revealed that nearly three-quarters (73%) of private companies plan to increase or significantly increase their investment in talent development in the next 12 months. 

The survey, Private Company Outlook: Talent development, asked respondents to share their organization's top three business priorities during the next year, and productivity (36%) and leadership succession (33%) appeared highest. Comparatively, only a small percentage of respondents selected managing liquidity (5%) and pursuing mergers & acquisitions (4%) as top priorities, potentially pointing to increased optimism around company financial performance.

Key findings:

• Private companies turn to innovative mentorship strategies to develop talent. Reverse mentoring (69%) emerged as the #1 talent development strategy organizations have implemented within the last year, suggesting that leaders recognize skills gaps to address among both early-career employees and senior leaders. Training employees on AI (64%) and on-the-job learning and apprenticeship programs (52%) were also among the top strategies. In the coming year, 72% of respondents say their organizations plan to increase or significantly increase their use of apprenticeship and mentoring programs.
• Organizations are divided about increasing in-person collaboration. Respondents from organizations with $500 million or more in annual revenue (i.e., larger private enterprises) more frequently cited in-office events (37%) among effective approaches to maintaining corporate culture in a hybrid work environment – 20 percentage points higher than respondents from organizations with under $500 million in annual revenue. The larger private enterprises were also significantly more likely than smaller-revenue organizations to say in-office events would increase or significantly increase over the next 12 months (87% and 9%, respectively).
• Employee engagement and productivity levels are key metrics. More than 7 in 10 (71%) leaders surveyed said employee engagement is one of the most important outcomes of employee development programs. Employee productivity was particularly important among organizations with under $500 million in annual revenue, with 80% of these respondents selecting productivity as a key outcome.
• Larger companies face more challenges getting buy-in from stakeholders when implementing new talent initiatives. Organizations with $500 million or more in annual revenue were three times more likely to consider gaining support from other leaders or stakeholders as one of their biggest challenges compared with those with less than $500 million. More than half of total respondents noted challenges such as the potential for low employee engagement (59%), uncertainty measuring effectiveness (57%) and disruption to current workflows (55%).

"Many of the preeminent priorities among private companies are talent-centric, ranging from enhancing employee productivity to developing and establishing new leadership," said Wolfe Tone, vice chair and U.S. Deloitte Private leader. "Investments in talent development are the cornerstone of fostering an engaged and collaborative workforce while ensuring an organization remains competitive and is poised to adapt in the future. While learning and mentorship programs are important pillars to a workforce development strategy, components like well-being and employee satisfaction also play a part in establishing a workforce aligned to company goals and forward progress."

About the survey
The survey of 100 private company leaders was conducted online by an independent research company between October 7 and 10, 2024. Respondents represented C-level, president, board member, partner/owner roles at private companies in the US with annual revenues of US$100 million to more than US$1 billion+. For more information about this survey, please visit: Private Company Outlook.

Deloitte Private serves the unique needs of private companies and their stakeholders by leveraging the full depth of Deloitte's technical experience and industry capabilities to serve private enterprises, family-owned businesses, private equity portfolio companies and emerging growth companies. Visit us at https://www2.deloitte.com/us/private or follow us on LinkedIn.

About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 460,000 people worldwide connect for impact at www.deloitte.com.

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SOURCE Deloitte