Are there enough female board candidates?

This post is from June 2023, and some of the content may be out of date.

Will it be a challenge to find well-qualified women for boards, or is there a large enough pool to draw on? And how will better gender balance and diversity affect businesses and companies?

In this article, we take a closer look at these questions.

What is a board and why is it important?

A board is the highest governing body of a company. The board is to safeguard the interests of the owners and is elected by the company's owners. A board is normally led by a board chair.

In Norway, the role of the board is laid down by law in company legislation (aksjelovgivningen). The Companies Acts are designed to ensure that Norwegian companies are run in a sound and appropriate manner.

Under the Limited Liability Companies Act (aksjeloven), the board must:

• Ensure that the business is properly organised
• To the extent necessary, set plans and budgets for the company's activities. 
• The board may also issue guidelines for the business
• Keep itself informed of the company's financial position, and is obliged to ensure that the company's activities, accounts and asset management are subject to adequate control.
  
  

The board and board work are more than an obligation, and a well-functioning board can be a resource for the business. An effective board can provide valuable guidance and contribute to the success of the business, and the experience and knowledge of its members can be indispensable for navigating a complex landscape. It is therefore important to be conscious of how the board is composed and what expertise the board members possess.

Challenges in finding board candidates

Recruiting board candidates can be a challenge, particularly now that 13,000 new board members are to be recruited. It requires an understanding of what the role involves, and it is important to identify people with the right expertise and experience. Agile Styrerekruttering has Norway's largest database of qualified board candidates. We also use AI-supported executive search methodology to find the right candidate for you.

Understanding the role of a board member

Taking on a board position offers exciting and rewarding opportunities to contribute to the company's strategy and development. However, it is also important to be aware that, as a board member, you take on a formal role that carries specifically defined responsibilities. Failure to fulfil them can, in the worst case, result in liability for damages. 

As a board member, you are responsible for ensuring that the company is organised and has the expertise needed for the board members to receive ongoing and reliable information about the company's finances, liquidity and risk. Such ongoing and reliable information also gives you a basis for intervening in good time if the company starts to develop negatively.

What does it take to be a good board member/board candidate?

The vast majority of our board candidates are well qualified through senior executive roles, other board positions or completed board training. If there are people in your own network you would like to use who do not have this background, one solution may be to invest in training and developing potential board candidates. This may include mentoring programmes, workshops and seminars focusing on the role and responsibilities of the board.

How to find qualified board candidates

Identifying qualified board candidates requires a thorough evaluation of their skills, experience and ability to contribute to the company's success. Professional board recruiters such as Agile Styrerekruttering have robust tools for this.

Qualities of a good board candidate

A good board candidate should have strong business acumen, be able to think strategically, have good communication skills and be a good team player.

How to identify these qualities

It can be helpful to use assessment tools such as structured interviews, psychometric tests and reference checks to identify these qualities.

The benefits of diversity in the boardroom

Diversity in the boardroom can create value, as diversity among board members brings new viewpoints and opinions, different experiences, contrasts and areas of tension. Greater diversity in boardrooms in terms of gender, age and background can also contribute to better strategic choices, more innovation and faster transformation, which in turn can lead to better profitability. The more types of board members, and the more types of networks they belong to, the better for the overall pool of resources that the board is meant to be. Variety matters for the board's composition as a team, but also for the work the board is to carry out.

How to recruit board candidates who represent diversity

Active recruitment strategies may include searching for candidates in different industries, with different backgrounds and from different cultures.

The importance of training for board candidates

Training and onboarding can give board candidates the tools they need to be effective in their role. They can also help increase their understanding of the company's business and industry.

What kind of training is needed?

Good training will depend on the board candidate's expertise and experience, but may include courses with the following aims:

• Laying the foundations for good board work
• Creating awareness of the board's goals, framework conditions and practice
• Clarifying the board's role in, and tasks for, the organisation
• Clarifying and creating awareness of the role of board member

Effective training may include a combination of theory and practice, with guidance from experienced board members.

Conclusion

A well-composed board can help a business to be run well and succeed in achieving its goals.

How a board functions depends on who sits on it, and it is therefore important to find well-qualified board candidates.

The composition and size of a board are mechanisms that owners can influence, and the role these factors play in the company's performance therefore becomes important.

Good board work is about understanding the role of the board, understanding your own and the board's responsibilities and, not least, understanding how the role should be exercised in order to inspire management and owners.

Frequently asked questions (FAQs)

1. What should you look for in an ideal board candidate?

 In addition to the specific skills your business needs, an ideal board candidate should have strong business acumen, be able to think strategically, have good communication skills and be a good team player.

2. Why is diversity important on a board?

Diversity on the board can lead to better decisions and innovation. It can also help improve the company's reputation, be invaluable for employer branding and attract a broader customer base.

3.  What does training for board candidates involve?

Training may include courses in board work, corporate governance, strategic management and financial analysis, among other things.

4. How can you overcome the challenges of finding qualified board candidates?

There will be competition for the qualified candidates, so we recommend getting in early to secure the best ones. If you want to use someone in your own network who does not have the right background, one solution may be to invest in training and developing potential board candidates. This may include mentoring programmes, workshops and seminars focusing on the role and responsibilities of the board.

5. Are there enough board candidates?

This can vary depending on the industry and geographical location. However, it is always important to be proactive in searching for and developing potential board candidates. If you use a professional recruiter, you will get a list of qualified candidates to choose from.

Feel free to contact us if you would like a no-obligation conversation about board recruitment.