HIRING NON EXECUTIVE DIRECTORS
Michael Tait, experienced non executive chairman discusses the hiring of non executive directors:
Hiring a non executive director (NED) is an important decision for any organisation. Non executive directors bring with them a wealth of experience and knowledge that can help guide the company towards success. Getting it wrong can cause enormous problems. NEDs play a critical role in the governance of the company. They offer an outside perspective that can help companies avoid risks and make informed decisions.
Here are some steps to help you hire a good non executive director:
1. Define the role clearly:
Before you start the search for a non executive director, it is important to understand and clearly document what the role entails. Non executive directors are usually independent of the company’s management and operations. However, they play a key role in overseeing the work of the executive directors. They also provide guidance on strategic direction. You need to be clear about what you expect from your non executive director and what specific skills and experience you are looking for. A quality job description is a must.
2. Identify your needs:
Evaluate the current board and determine what areas you need to strengthen. This could be in terms of skills, experience, or diversity. It’s important to have a good balance of expertise on the board, and to ensure that your NED is equipped to add value in the areas where you need it the most.
3. Look for relevant experience: NEDs come from a variety of backgrounds and can have experience in a range of industries, but it’s important to find someone who has relevant experience to your company. Look for someone who has a track record of success in similar industries, or who has experience in areas that are critical to your business, such as risk management or finance.
4. Consider diversity: A diverse board is a strong board, and this is just as true for NEDs as it is for executive directors. Consider the gender, ethnicity, and experience of your board, and aim to find a NED who brings diversity in some form.
5. Network and search: Once you have a clear idea of what you are looking for, it is time to start searching. You can start by reaching out to your professional network, as well as using recruitment agencies or head-hunters. Don’t be afraid to look outside your immediate industry, as NEDs can bring valuable perspectives from other sectors.
6. Evaluate potential candidates: Once you have identified a few potential NEDs, it is important to evaluate them carefully. This can involve conducting reference checks, reviewing their resume, and conducting in-depth interviews. It is particularly important to meet with them in person as opposed to online video, as this will give you a better sense of their personality and whether they would be a good fit for your company.
7. Make the offer: Once you have found the right NED, it is time to make the offer. Make sure that you have a clear understanding of the terms of their appointment, including the length of the term, the responsibilities involved, and any compensation or benefits that are being offered.
In conclusion, hiring a good NED can have a significant impact on your company’s success. By following these steps, you can ensure that you find someone who brings the right skills, experience, and diversity to your board, and who will be able to help guide your company towards success.
Some useful links to searching for your NED as follows:
Norrie Johnston recruitment