Attract top board director talent

It’s well known that the not-for-profit sector is facing a huge shortage of talent. To have an impact, NFP organisations need to seek out the best talent across all levels and find better ways to retain them, especially in the boardroom where leadership, strategy and risk management expertise are critical.

In Australia, NFPs are under increasing pressure, with many facing funding pressure as well as experiencing increased privatisation, commercialisation and business competition.

There has been an unprecedented level of merger and acquisition activity in recent years as organisations realign business models to remain viable taking into account government reports and policy reforms. Many will need to radically pivot, establish new business strategies and models in order to survive. This requires a board of directors and management team with the right level of experience, capability and business leadership to develop and implement strategic business plans, as well as manage business reputation and risk.

There is also the question of whether board roles in this sector should provide some level of remuneration for services rendered or whether they should continue being voluntary positions. On one hand, NFP organisations often have unpaid board membership under the premise that community leaders should be invested in the issues being tackled, and compensation will put into question the pro-social values that it is built on. On the other, consider what factors can help to bring in the best of talent to such key positions and maintain high levels of board engagement – an honorarium or sitting fee being a simple incentive.

Establishing an effective organisational strategy for attracting and retaining top board talent is essential for an organisation’s long term success. Building a motivated, engaged board of directors that strongly identifies with the NFP’s purpose will certainly have great returns in the future.

Be clear about what you have to offer

A big advantage that NFPs have over private businesses and big corporations, is the mission and values it strives for. Potential board members want to feel inspired and passionate about the organisations they are working with. In addition, being transparent about the benefits you can offer versus those you cannot, will help both parties be clear about what to expect in future.

While financial remuneration may not be a given, it is an important part of being competitive. Providing a small bonus for guidance and advice provided can be a great way to retain the interest of board talent. Other aspects that are valued by potential employees according to the Best Non-Profits to Work For survey include communication, opportunities for professional development and engagement with other staff.

Regularly engage with old and new board members

Getting outstanding board talent to the table is only half the battle won. It is important not to lose sight of the bigger picture. Board members, old and new, should feel involved with the organisational strategy and engaged with the work they are doing.

An effective way to get off on the right foot is to maintain regular meetings with the board – both at an official and unofficial capacity. Regular conversations and feedback goes a long way in retaining board talent. It is also very helpful when the time comes to tap into existing board networks and recruit new board talent.

Financial benefits are not always the answer for board engagement. Even a simple thank you in public contexts and meaningful conversations with senior employees can make a difference in the interest level of board members with the organisation’s mission.

Find and identify the right talent

According to the Society for Human Resource Management, more than half of HR professionals consider their biggest challenge over the years to be retaining top talent in the organisation, and creating future generations of capable leaders. Keeping this in mind, it is important for HR to identify existing resources for board membership before spreading the word among different networks.

A great place to start is looking within existing staff that are senior leadership or about to retire shortly. You can also ask staff, stakeholders and other members of the board to provide recommendations for potential candidates.

Another way to maximise the search process for board talent is to go digital and explore connections on social media platforms such as LinkedIn by targeting management at competing NFPs. Creating a recruitment and board search committee with the sole purpose of hiring board members might also prove useful. With a combination of a clear offering and leveraging old and new networks, attracting top board director talent in the NFP sector can be achieved.

Kylie Hammond is the CEO of the Director Institute.