A paid Non-Executive Director (NED) role can future-proof your career by providing an additional income stream. However, any board role (paid or voluntary) can provide invaluable opportunities to broaden your networks, develop new skills, and experience aspects of strategic management outside of your current executive role.
Whilst the pressures of COVID and the fears of recession are behind us, UK businesses and individuals are struggling with a number of concerns, including Brexit challenges, the cost of living crisis, regional conflict and instability, global trade and tariff issues, as well as a soft labour market. Any one of these concerns can leave one to contemplate how to future-proof their careers.
An insignificant board role saved my career during the GCF
Between 2007 and 2009, the Global Financial Crisis in the UK affected over 30 million people, hitting advanced economies especially hard and having long-term social repercussions. During this period, and extending into 2010, in the UK, around 80% of my executive and board recruiter peers were unemployed and struggling to find meaningful roles. It was indeed a blood bath for recruiters, and many other professionals suffered similar fates.
Fortunately, this was not my experience. In fact, not only did I remain employed, but my career actually improved. I can point to my first voluntary and small not-for-profit NED appointment as the reason for this. I am an example that board appointments can fundamentally future-proof your career.
The demand for Non-Executive Directors rarely drops
Even during micro or macro challenges and economic downturns, organisations need boards, and for various reasons, boards will always need new directors. Regardless of the challenges faced, Boards seldom decrease the number of their members; hence, directors completing their terms or opting for early retirement will need to be replaced.
These challenges may also highlight deficiencies in the combined skillset of the current board, resulting in the need to recruit one or more additional members to fill these gaps. An increase in demand for NEDs will also occur as more boards adopt the recommendations of the UK Corporate Governance Code, suggesting that the number of years a NED can sit on the same board and still be considered independent should be limited.
The demand for board directors and opportunities to future-proof your career with a board role are supported by the findings of the 2024 Spencer Stuart Board Index. An increase in demand for NEDs will also occur as more boards adopt the recommendations of the UK Corporate Governance Code, suggesting that the number of years a NED can sit on the same board and still be considered independent should be limited. Of the FTSE 150 UK companies, they found over 12 months that:
- The turnover or renewal rate for board members for the year was 13%,
- 31% of NEDs also had an executive career,
- 62% of NEDs sit on other boards,
- 26% of new appointments were first-time directors.
What skills future-proof executive careers
Consider what your job looks like five years from now? Will it even exist in five, 10, or 20 years? What could happen to the organisation and industry you work for? Whilst we can not accurately see into the future, there are certain key areas we can focus on.
To future-proof your career, executives should focus on cultivating a diverse set of transferable competencies, skills, and abilities that can open doors to new opportunities or even facilitate a shift to a different industry. With the rapid rise of AI, consider developing or enhancing skills that are resilient to the advancements of automation and artificial intelligence.
Some of those skills to consider are:
Emotional intelligence (EI) is closely linked to self-awareness, self-regulation, motivation, empathy, and social skills. EI is becoming a must-have skill for all levels of management, but is recognised as a key element in the performance of top-level executives.
Analytical thinking will continue to be a highly sought-after skill. In a data-driven world, taking a methodical approach to problem-solving is invaluable when making tough decisions.
Resilience and flexibility are essential for navigating complex challenges, evolving workplaces, and emerging technologies. Being able to quickly shift gears, address complicated situations, and adapt to new conditions will position executives for success.
Problem-solving and critical thinking abilities distinguish successful executives and leaders. Future-proof leaders must adeptly analyse, evaluate, and interpret information from multiple perspectives to develop well-informed, effective solutions.
Internal and external communication and conflict resolution skills will always play a vital role in the success of organisations regardless of size, scope, and business model.
Leadership skills have never been more important, and not just with senior members of a team. Everyone can benefit from being able to lead projects, think strategically, and build a rapport.
Board Roles can future-proof your career
For many, a Board Appointment can play a crucial role in professional development and future-proofing one’s career. The connections and experience gained in these roles can be leveraged into new career opportunities.
Ways a board role can help future-proof your career:
- Develop future-proof skills – As outlined above, there are several skills that executives should focus on as they look to the future. Board roles, both paid and voluntary, provide opportunities to develop and hone these skills.
- Supplement your income – The average income for the top listed NEDs is £100,556pa, with small-cap NEDs earning £52,500pa and private company NEDs earning an average of £15,000pa.
- Start building a portfolio career – Post-COVID has seen a rise in a switch from one full-time role and income, to a portfolio career.
- Enhance your professional reputation & profile – Approximately 5% of the UK population hold board positions, making these roles exclusive and, for many, a symbol of elite status. Being able to identify yourself as a non-executive director significantly boosts the impact of your Board Profile.
- Demonstrate strategic success – Board appointments expand your strategic management experience, which is fundamentally important for you to be able to demonstrate in order to drive career progression.
- Gain governance expertise – Securing a board appointment can enhance your governance knowledge and enable you to apply your expertise on a broader scale.
- Build leverageable networks – Even small organisations have significant NEDs on their boards. That means that sometimes fairly insignificant board appointments can open up professional networks with individuals you would not usually have. These relationships are highly leveragable and can provide access to new executive roles, board roles, or business or consulting opportunities.
- Provide an opportunity to give back: Boards offer an opportunity to give back to an industry, business, cause, or community that you are passionate about.
Successful NEDs are clear about these four things
It doesn’t matter if you have held a board appointment before or not (as seen in the statistics above). It doesn’t matter whether you are a CEO, retired, or just starting your career. It doesn’t matter what your current job is.
Successful Non-Executive Directors (NEDs) know what matters. They are clear about three things:
- The right board roles can future-proof your career
- The organisations they are targeting
- Why they should be appointed to the boards of those organisations, and
- How they will be appointed.
Start your board career today
Regardless of your age, skill, and experience, future-proofing your career with a board appointment must be part of your professional development and career plan. Uncertain times and concerns should not deter you; if anything, they should be your inspiration.
Finding and securing Non-Executive Director or Advisory Board opportunities is challenging, and securing an appointment to them is even more so. However, regardless of whether you are an experienced Director or just starting your board career, there are some simple things you can do that will: make you more appointable; separate yourself from your competitors, and help you gain the appointment that you want. Find out how we can help.
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About the Author
David Schwarz is CEO & Founder of Board Appointments – The UK’s leading board advertising and non-executive career support firm. He has over a decade of experience in putting people on boards as an international headhunter and a non-executive recruiter and has interviewed over one thousand non-executives and placed hundreds into some of the most significant public, private, and NFP roles in the world.