8 Best Practices for Engaging a NED
While we’ve all heard of high profile NED appointments in fellow recruitment businesses that had a negative impact, more subtle and often hidden, is the much higher number of Boards that don’t quite reach the potential of their businesses. Stagnating, not executing or following a doomed strategy or making rushed decisions in a crisis.
As seasoned non-executives,we know that an effective NED provides a collected and calm approach, expert staffing sector acumen and higher levels of strategic input – ultimately serving as a critical member of the Board. There are only a few staffing business advisors actually qualified for the role to serve Boards operating in the STEM markets.
Engaging a Non-Executive Director for your Staffing Business Best Practices
Read below the 8 best practices to engage a non-executive director suitable to your recruitment business needs and growth objectives:
1. Involve the whole Board at this stage to identify the right fit.
Tie in with the up-to-date strategic plan, business aspirations and any significant future events. Ideally, the spec should be developed by a Non-Executive Director directly and formalized through the nominations committee. When hiring a Chairman, recognise agreeing the specification is even more critical, requiring more input across a Board.
2. Don’t settle for less.
Don’t compromise too early – At the very least, you should be aiming to match the organisation’s ambition and strategic plan with sector specific expertise and personality fit.
3. Think Ahead
Consider where the business wants to be in three or five years’ time and use this to help shape the profile of your ideal non-executive director.
4. Appoint NEDs on specific pre-agreed terms
Set and agree terms upfront such as remuneration, tenure and time commitments, to avoid misunderstandings further down the line and make the most out of the engagement.
5. Expand the dynamics of the current Board
A NED appointment can provide an invaluable opportunity to bring greater diversity to your current Board, bringing fresh thinking and new perspectives.
6. Invest in sector specialist non-executive expertise
Not only will they have relevant experience and know-how, the right non-executive consultant will also invest time gaining an understanding and appreciation of your Board’s culture, personalities and other relevant subtleties specific to your staffing sector.
7. Look for genuine independence and integrity
The role of a non-executive director is to provide independent oversight and constructive challenge to the executive directors, safeguarding the business and shareholders. Gravitate towards candidates who clearly demonstrate integrity and a genuinely independent mindset.
8. Don’t be afraid of Change
Actively seek out candidates who are also motivated by change and innovation, who will help drive transformation, encourage progress and help maximize value to shareholders.
