Recently, our Director, Clodagh, spoke about what the next step might be when you reach the top of the career ladder. One of those suggestions was to explore the route of non-executive Directorship - an incredibly rewarding role which can put your many years of expertise, skills, and knowledge to good use.
For businesses, the attraction of hiring a NED lies in the impartiality and independence and individual has from the company. This separation a NED has from the company enables them to be far more objective about the work being undertaken and makes it a lot easier for them to offer critical, yet constructive, feedback to senior teams who are looking to improve their processes as well as make the business more profitable – potentially ready for sale.
Indeed, nearly two-thirds of businesses believe that the key role of a NED is to help them future-proof their company, focusing greatly on long-term sustainability. This is especially true in this post-pandemic era whereby business leaders will rely on the advice of NEDs to stay agile and maintain the ability to pivot where necessary.
But, from an individual’s perspective, what are the other benefits to being a NED?
A vast spread of opportunities
How many boards you choose to join as a NED is completely up to you, as is the choice of which industries you serve in the position. Unlike any other role, the opportunity to work across an incredibly diverse range of industries is a key draw for many who go onto become NEDs.
In 2020, it was found that, on average, NEDs held two board roles at any one time. However, when companies and advisors were asked how many boards they believe NEDs should sit on, the majority responded with three.
Of course, this cannot be thought of as a one-size-fits-all role. Different NED roles will never hold the same requirements in terms of time spent on the board. How much you take on as a NED is solely dependent on how you would like to shape your portfolio career.
You can be instrumental in a business’ success
From the contacts you have built up over your career, to the extensive knowledge you hold, the assets and attributes you have near perfected will be invaluable to those companies you go on to work with as a NED.
Whether it’s building a strong leadership team which can drive the business into exciting territories, to devising innovative IT platforms which may attract the minds (and money) of potential investors – your role will be instrumental in creating something great.
Many NEDs have a passion for giving back as they embark in this next stage of their career. Aiding the success of any business, large or small, is a key priority for most. If this is a value you hold dear, becoming a NED might be the perfect fit for you.
Financial gain is a given
With the amount of experience you’re bringing to the top table of a company, there’s no denying that the potential for money earned as a NED is rather good.
According to the 2020 Non-Executive Directors Survey by the Quoted Companies Alliance, the median salary earned by a NED stood at £48,840 per annum. Of course, depending on what companies you work for and how many boards you sit on, this figure may be a lot higher.
These are just a handful of reasons to look to become a NED, but there are plenty of other brilliant opportunities to explore if you’re considering taking on a board-level role.
If you’d like to discuss the options open to you or would like to peruse current vacancies, please contact our Executive team by clicking here.