Almost half of employees working in private equity-backed firms are considering leaving their roles for a more inclusive workplace culture, according to new research.
The Leadership Blueprint report, from from behavioural and cultural development company Inclusion Live, reveals that 49% of employees would move to organisations that prioritise psychological safety and inclusion.
The study examines leadership practices that influence performance and culture within private equity (PE) businesses. Findings show that high-performing companies are over 14 times more likely than low-performing ones to demonstrate mature inclusive leadership behaviours, directly linking inclusion to stronger commercial results.
The research also highlights that inclusion and wellbeing are key to talent retention and attraction, with 83% of respondents agreeing that both are essential for creating a high-performing workforce. As competition increases and growth slows, the report suggests that inclusion may become a vital differentiator in maintaining performance, innovation and employee commitment.
Inclusive Leadership Linked to Business Performance
The data shows a clear gap between the experiences of leaders and employees. Leaders are more than twice as likely as employees to feel supported to perform at their best (57% compared with 28%), and four times more likely to believe that people are empowered to contribute fully (56% compared with 12%).
According to Inclusion Live, businesses with the most inclusive cultures are 3.78 times more likely than others to perform strongly in areas that drive exit value and support faster sales. The findings indicate that inclusive leadership does more than improve employee morale – it can also influence business outcomes and value creation.
The report points to a growing concern that without a strong focus on inclusion, organisations risk losing top talent to competitors who provide a more psychologically safe environment.
Misalignment Between Investors and Company Priorities
The study found that 85% of respondents have experienced misalignment between investor expectations and company priorities. This disconnect is associated with missed growth targets, rising stress levels and higher employee turnover.
The most frequently reported issues linked to misalignment include burnout and stress (27%), financial pressure (22%), increased turnover (22%), missed growth goals (20%) and a tendency to take greater risks to achieve faster growth (20%).
More than three quarters (77%) of employees said company culture plays a critical role in achieving Environmental, Social and Governance (ESG) goals. However, many noted that leadership gaps make it harder to reach these objectives.
Inclusion As A Route to Long-Term Value
“I see the same story repeated: investors pushing for pace, leaders firefighting and teams quietly disengaging,” said Esther Crew, Founder and CEO at Inclusion Live. “Everyone wants high performance, but misalignment stalls progress. This research shows that when people feel trusted, listened to and safe to contribute, commercial results follow.”
The findings underline the role of inclusive leadership as a key factor in both organisational performance and employee retention. As the private equity sector faces ongoing pressure to deliver results, fostering inclusion may prove essential not only for supporting people but also for protecting portfolio value.