Nearly half of private equity employees would consider leaving their jobs for a more inclusive culture, according to new research by Inclusion Live.
The Leadership Blueprint report, released by the behavioural and cultural development company, reveals that high-performing private equity firms are over 14 times more likely than low-performing ones to demonstrate mature inclusive leadership practices, resulting in clear commercial benefits.
The report finds that 49% of employees would consider leaving their organisation for one that prioritises psychological safety and inclusion. It also shows that 83% of respondents believe inclusion and wellbeing are essential to attracting and retaining talent.
Loss of talent is becoming a pressing risk for private equity firms, where competition is intensifying and growth is slowing. Inclusive leadership emerges as a critical differentiator that enhances performance, innovation and team commitment. Businesses with highly inclusive cultures are 3.78 times more likely to achieve the conditions needed for a strong exit value and faster sale compared to those with low inclusivity.
The findings also reveal a disconnect between leaders and their teams. 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%).
Culture also plays a pivotal role in sustainability outcomes. Over three quarters (77%) of employees say that company culture is critical to achieving Environmental, Social and Governance (ESG) goals. Yet, more than four in five (85%) respondents have experienced misalignment between investor expectations and company priorities, a factor that often slows execution and increases talent attrition.
This misalignment, the report warns, frequently leads to burnout and stress (27%), higher financial pressure (22%), increased employee turnover (22%), missed growth goals (20%), and greater risk-taking to speed up growth (20%).
“I see the same story repeated: investors pushing for pace, leaders firefighting and teams quietly disengaging. 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,” said Esther Crew, Founder and CEO at Inclusion Live.
The Leadership Blueprint provides a practical guide for operating partners, executive teams and HR leaders to identify the behavioural levers that drive inclusion and value creation. It highlights that failures in psychological safety and cultural alignment are threatening portfolio performance and exit success.
With talent retention now tied to ESG compliance and investor expectations, Inclusion Live urges private equity leaders to prioritise inclusive practices. The report concludes that closing the gap between boardroom priorities and workforce realities is essential to sustaining performance and preventing the 49% exodus risk.