Evolving board recruitment strategies for nonprofits and beyond

Every organization, from the tiniest startup to a nonprofit or massive corporation, thrives only with strong leadership. However, finding the right board members can be a challenge, for both nonprofits and commercial companies. 

A KPMG survey of over 2,300 board directors found that nearly 70% of boards struggle to fill seats with people who have both the general business knowledge and the specific skills relevant to the company’s industry or needs.

According to recent data from Statista, in 2022, 36.84% of U.S. nonprofit organizations had to fill 5-14% of their positions, while a smaller 2.92% reported having 25-49% of their roles vacant. 

Therefore, it is crucial to implement solutions for diverse board member recruitment, and retention efforts to fill vacant positions.

The article explains board recruitment best practices, how to optimize resources in executive search, and establish a strong board recruitment plan.

Expertise needed in board of directors recruitment

With the growing importance of corporate governance, a key step in the board of directors’ recruitment process is determining the right competence and skills. Software Advice mentions that fundraising, HR expertise, and volunteer experience are the top skills for board members when we speak about nonprofits.

When it comes to for-profit board members’ skills, strong governance, specialized digital knowledge, and awareness of ESG strategies are necessary.

Whether you’re looking to recruit board members or create a recruitment pitch, it’s essential to prioritize inclusivity and board diversity.

There are additional elements to consider while recruiting diverse board members.

• Financial acumen. Every board benefits from members with a strong grasp of financial management. Such experts are financially responsible, can optimize resources, and guide sustainable growth strategies.

• Legal insight. Having people on your team who understand the law is a big help. They can break down complicated regulations and make sure your organization follows all the rules.

• Marketing skills. No wonder that board members with marketing expertise can create powerful stories, reach a wider audience and build stronger connections with the community.

• Diversity of backgrounds. The best boards have a mix of people from different areas, like teachers, tech professionals, or even people who used to work in government. Everyone brings their own experiences to the table, which helps the board make better decisions.

Crafting a robust board member recruitment process

The main challenge lies in understanding that recruiting nonprofit board members isn’t just about filling seats. The goal is to curate a team where each member’s expertise complements the others. 

The BDO global accounting network states that 44% of nonprofits face difficulties in attracting high-quality leadership and board members, either at a high or moderate level.

When creating a recruitment plan, it’s important to carefully consider several key factors. This includes setting clear goals, identifying the appropriate target audience, and determining the best way to allocate board positions.

Implementing a succession program

One of the most strategically sound ways to recruit and remain prepared for board vacancies is board succession planning.

Meaning, the board director must put together a committee that earmarks top-performing employees within the organization during an executive search. Steadily, these outstanding individuals will be shown the ropes of what it takes to be a board member, in something of a mentorship situation.

In the future, when a director is ready to step down from the position, the vacancy will be filled seamlessly. The successor will already understand the ins and outs of the board, the company, its cultures, and its operational nuances.

Note: Succession planning is one of the important aspects of board governance.

Opting for external recruitment

While an internal recruitment strategy might work for a more established board, it’s not necessarily the best fit for startups and other companies finding their footing.

In many cases, these kinds of younger corporations need upstanding candidates now. Time is of the essence, and the organization hasn’t been around long enough to groom an internal board member. Conversely, an established business might be seeking a more diverse board director and must look externally for options.

Finding the most talented, ideal external new board member means a lot of the power is in the hands of the candidates during the executive search.

To further elaborate, boards should desire captivating enough board candidates that these individuals must be sold on the opportunity. Those are the kinds of people with the reputation and track record for being governance game-changers.

Board of directors recruitment tools

Board director recruitment, like everything in the world these days, is being overtaken by technology.

All one must do is look as far as LinkedIn. It’s completely altered the networking process. LinkedIn is regarded as the most effective platform for vetting job candidates by 87% of recruiters!

Now, when someone provides their contact, it has their LinkedIn profile, making it easy to review their entire background with a click of a few buttons. That’s one layer of the vetting process wholly streamlined.

Though LinkedIn and other recruitment platforms aren’t the only technologies making recruitment more efficient. Consider a search firm to find potential board candidates.

Outreach strategies to recruit board members

Effective board recruitment strategies have evolved and now demand more creativity to attract top talents.

• Networking events. These events are all about meeting passionate talents face-to-face, people who might be the missing piece your organization needs. It’s a chance to have real conversations, and find common ground with someone who shares the values of your organization! For example, LinkedIn states that networking accounts for approximately 85% of job applications. Additionally, a survey revealed that 35% of respondents had a casual conversation on the platform that resulted in a new business opportunity.

• Industry conferences. Whether you are a non-profit or a commercial company,  you get to prove your mission and values, connect with the right people, and, most importantly, potentially find amazing board members who can make a difference. By the way, 95% of marketers agree that in-person events may help companies reach their organizational goals.

• Leveraging existing connections. On top of that, referral programs for hiring result in a retention rate of up to 70% for employees.  Current board members and other employees may recommend qualified candidates for the board. For nonprofits, it can be volunteers or donors. 

Interesting fact that only 7% of job applicants receive an employee referral, but referrals result in 40% of all hires! This means that having someone vouch for a person significantly increases the chances of getting hired. 

5 steps towards the selection and interview process

Building an effective board starts with a clear roadmap. By the way, a key player on that map is the corporate secretary, who handles a lot of operational tasks.

Undoubtedly, the task of the board of directors recruiting is tough. It may take up to 24 months to find the perfect candidate! 

However, to find the right board members, you’ll need to dig into applications, conduct in-depth interviews, and make sure everyone’s on the same page about values.

Here is a breakdown of the board recruitment steps:

1. Analyzing your current board’s needs
2. Preparing your board for changes
3. Identifying gaps
4. Reviewing applications
5. Conducting interviews
6. Aligning values and corporate culture
7. Assessing expertise

Analyzing your current board’s needs

Take a quick break to assess its current needs before writing the job description. Ask yourself:

what are your specific goals, and where is your organization in its journey? This way you can identify any gaps on your board –  missing skills, networks, or expertise that you need now and in the future. As your organization grows, the ideal board member profile might change too. So, you must be open to changes in the future.

Preparing your board for changes

Before launching your search for new board members, take some time to prepare your team internally. This includes outlining the specific recruitment process you’ll follow, gathering necessary resources like applications and information packets, and delegating tasks among board members and staff. 

Identifying gaps

Before you start the recruitment of new board members, identify gaps in your existing board. Begin assessment of board performance, experience, and skill sets. Consider using matrix for assessment. Please see below the example of the skill matrix to determine the qualities you need for the board search. 

Reviewing applications

An assessment of candidates’ qualifications and experiences lays the foundation for successful board recruitment. Here are tips on how to review job applications from your candidate:

• Prioritize job candidates who demonstrate their problem-solving skills by describing how they turned a chaotic situation into an organized one.
• Remember that attention to detail is crucial in job applications. Accuracy, completeness, and filling out every box correctly demonstrate the interest and meticulousness of the candidate. Typos and missing info give a negative impression.
• Сonsider how well the candidate aligns with your company’s mission. Look for genuine connections to your core values in their screening and cover letter responses. Candidates who align with your mission are more likely to be engaged and committed to the role.

Conducting interviews

This is a critical step in understanding how to recruit board members effectively. Embracing diversity during the meeting ensures that boards are equipped with leaders possessing varied experiences and insights, unlocking their full potential. 

Here are some useful strategies on what to pay attention to during the recruitment of new board members:

1. Qualifications vs. suitability. Evaluate both a candidate’s experience and their chemistry with the board.
2. Questions strategy. Pay attention to candidates’ questions to gauge their knowledge and expertise.
3. Developing a relationship. Aim for a conversational flow to build rapport with the candidate.

Aligning values and corporate culture 

Shared values play a pivotal role in effective board dynamics. Distinct workplace culture is vital to corporate success, according to 94% of executives and 88% of employees. So, here’s why companies should prioritize aligning values and corporate culture.

Board directors play a pivotal role in shaping an organization’s culture in all industries, because:

• They set the tone. Board member should embody and champion the organization’s values, promoting a positive work environment.
• Board directors influence employee engagement. The board director must foster open communication, inclusivity, leadership, and engagement.
• For board directors, diversity matters. Diversity in the boardroom leads to a richer organizational culture. Using a search firm helps to identify diverse talent and unique board member.

There are 3 tips on how a director can improve the corporate culture:

• Be proactive when talking about culture and values with your team.
• Think out of the box in the future hiring process.
• Continuously improve a trusting atmosphere on the board.

Assessing expertise 

When determining how to recruit board members for nonprofits, it’s essential to delve deeper than just shared values. A candidate’s expertise, especially in relation to the organization’s future path, is paramount. 

As leadership is a cornerstone for driving a nonprofit’s mission forward, honing in on a potential board member’s leadership capabilities and experience is a must.

Key points of assessment include:

• Alignment with the nonprofit’s trajectory
• Proven leadership abilities and accomplishments
• Relevant expertise and qualifications in the sector

Onboarding and integration for new board members

In the evolving landscape of board recruitment strategies, ensuring a seamless onboarding and integration process for new board members is more critical than ever. 

Nowadays boards grapple with complex challenges such as shareholder activism and rapidly changing industry norms. Thus, the onboarding process is the first step in equipping future individual directors and leaders to effectively serve and uphold the governance standards of the organization. 

Engaging in board services enables people to contribute to an organization’s direction and accomplishments. Moreover, it also provides chances for professional development and network building in various industries.

In fact, the Brandon Hall Group research indicates that businesses implementing a well-organized onboarding procedure can raise their new employee retention rate by up to 80% and enhance productivity by over 70%.

Best practices in board recruitment

A robust board of directors recruitment process lays the foundation for strong board service, ensuring longevity and engagement. The strength of nonprofit boards lies not just in the selection of the right candidates but also in their sustained engagement and commitment to the board’s goal.

Here are some practices in board recruitment. 

1. Utilize search firms. Leveraging a search firm can help in accessing a pool of competent board candidates. The search firm has the expertise in the board search and the network to find well-matched executives.
2. Ensure committee involvement. Involve committee members early in the recruitment process via board meeting. Their insights and suggestions are invaluable, given their hands-on experience with board service.
3. Plan CEO succession. In the ever-evolving corporate landscape, clear board succession planning is crucial. Thus, potential disruptions in leadership do not derail the board’s objectives.
4. Cultivate long-term commitment. To establish long-term commitment from board member, communicate clear expectations, and provide comprehensive support and understanding of the dynamics of board meetings.
5. Seek continuous education opportunities. Regular training sessions, workshops, and conferences keep the board member updated and engaged.
6. Offer mentorship programs. Pairing new member and experienced executive ensures successful integration and support in ongoing participation.
7. Recognize outstanding contributions. Recognizing outstanding work, whether through awards or other corporate recognition, helps to inspire motivation and commitment among board members.

How to measure the efficacy of board recruitment

When it comes to corporate boards, it is essential to regularly evaluate and improve their recruitment strategies. This way, the director ensures the board is composed of the best possible talent and can achieve long-term success. Some efficient  recruitment measurement criteria for board candidates include the following ones:

Alignment with the company’s vision

It’s essential to evaluate how well candidates align with the mission and values of the organization. This alignment helps to determine the long-term contribution of each person on the team.

Feedback from key stakeholders

Regular boardroom meetings with the nominating committee, human resources, and staff leadership allow us to look at the strengths and areas of improvement in the board selection process.

Community and private meetings

Holding private discussions and community forums create the impact and reputation of the board members within and outside the organization.

Key Performance Indicators (KPIs)

Just as in any other domain, using specific KPIs provides quantitative and qualitative insights into the success of board recruitment efforts. In fact, some pivotal KPIs include:

• Board diversity. A diverse board reflects a broad range of perspectives and experiences. Plus, evaluating the representation in terms of gender, ethnicity, and age is insightful for the executive. This is why McKinsey & Company states that companies with more diverse boards are 28% more likely to outperform their competitors financially.
• Skill sets. Aside from background diversity, it is important to look for knowledge diversity as well. With the multifaceted challenges that modern corporations face, ensure that the team possesses a mix of skill sets relevant to various domains like finance, technology, and governance.
• Member satisfaction. Board members provide feedback to recruiters on their onboarding, role clarity, and staff interactions

How iDeals board enhances recruitment efforts

Modernizing board member recruitment strategies is vital, with 70% of directors looking to optimize the process with technology. Board portal software comes out as the best solution for this challenge and here we tell you why. 

So it’s no wonder that the recent study refers to information access, centralized communications, and data protection as three main advantages of board portals. Ranked highly at Capterra among companies, iDeals Board offers an intuitive, secure, and efficient boardroom solution.

iDeals Board streamlines various recruitment processes. Let’s take a better look at what it offers:

1. Centralized storage of all recruitment-related documents, such as candidate CVs, reference checks, and interview notes.
2. With a safe and centralized information hub, recruitment professionals can organize and categorize the files for evaluation.
3. You can set up protection for sensitive documents with granular permissions, meaning only authorized users to access particular information.
4. Instant access from all platforms, whether desktop or web, enables top board members and hiring managers to stay connected from anywhere in the world and any time zone.
5. The board portal allows real-time communication and discussion threads.
6. Once a candidate is hired, the platform stores onboarding materials and necessary documentation with the highest security standards and protocols.

Key takeaways

1. Nonprofits need a diverse board with skills in finance, law, marketing, and other areas to make well-rounded decisions. Backgrounds in tech or public service can add to this diversity.
2. A successful board member recruitment strategy requires identifying skill gaps, setting goals, and implementing a strategic selection process.
3. Boardrooms simplify recruitment by providing a secure platform for storing documents and enabling real-time collaboration for a streamlined onboarding process.