Management Consulting
Aon
Full Credential Description
In the life sciences sector, particularly among small venture capital firms in the UK and Europe, there is a critical gap in human capital due diligence during investment evaluations. Many VCs focus primarily on legal, financial, and scientific aspects, neglecting the importance of assessing an organizations human capital. This oversight can lead to significant post-deal challenges, such as poor talent retention and misaligned compensation structures. Aon identified this niche issue and emphasized the necessity for VCs to conduct thorough human capital diligence, which includes identifying key talent and retention risks early in the investment process. To address these challenges, Aon provided tailored solutions that involved a comprehensive approach to human capital assessment. This included evaluating compensation structures beyond just top management, ensuring that all levels of the organization were considered. Aon advocated for a structured incentivization plan for employees, particularly in small innovative biotech firms, to enhance talent retention and recruitment. They recommended a bottom-up approach to determining equity pools for employee incentive plans, rather than relying on generic benchmarks, thus aligning compensation strategies with specific organizational needs and hiring plans. The results of implementing Aon's tailored solutions were significant. By focusing on human capital due diligence, organizations were able to protect their investments against people-related risks, leading to improved financial forecasting and greater certainty for investors. This proactive approach not only enhanced talent retention but also optimized workforce planning, ensuring that companies were equipped to grow effectively while managing costs associated with talent acquisition and retention. Ultimately, Aon's strategies helped life sciences firms navigate the complexities of human capital management, positioning them for success in a competitive investment landscape.