A fictional nonprofit lost its executive director (ED) when she died unexpectedly. The charity had a basic contingency plan, but the document didn’t name an actual successor for the ED position. Fortunately, the plan outlined procedures for finding a new leader, and the already-assembled search team was able to interview several candidates and hire a qualified individual within six weeks.
Executive searches often take much longer. So if your nonprofit hasn’t yet considered what it would do if it needed to quickly conduct an executive search, now is the time to put a plan in place.
Be prepared
The composition of your executive search committee is up to you. Often, this is a function of a nonprofit’s board, but you may also want to include department managers and even outside stakeholders, such as major donors and clients. Ideally, the search committee should be established before you need it, so you won’t waste time when the clock is ticking.
Also keep comprehensive, up-to-date job descriptions for key executive positions ready to go. They should detail the knowledge, skills, abilities and attitudes required. Update these descriptions periodically. If, for example, your nonprofit is moving in a new direction, your next leader might need a different set of skills and experiences than the current one has.
Initial decisions
If you have a position to fill, the committee needs to make some immediate decisions. One is to determine whether to hire an outside executive search firm. This decision typically hinges on several factors, including the position’s responsibility level and the anticipated size of the applicant pool. But before outsourcing a search, you’ll want to look around. The best person for the job may be a current board member, employee or volunteer.
Then talk about how you’ll conduct the executive interview process. Who’ll be involved? What format will you use (such as one-on-one or group interviews)? Will you interview in person or via videoconference? Be sure to prepare some thoughtful questions that reflect your organization’s needs and culture.
Salary and benefits
Even if you aren’t ready to discuss specific numbers, your nonprofit’s board and the search committee should discuss and arrive at a common philosophy about compensation. Factors that influence compensation decisions include your nonprofit’s size and complexity and the candidate’s qualifications.
You’ll want your compensation plan, including benefits, to be competitive with what similar organizations in your region and niche offer. Another consideration is whether compensation will be fixed or have a variable pay component, such as a bonus or incentive pay.
Search and succession
Because executive search can be closely related to succession planning, it might make sense to tackle all of these issues at once by consulting with experienced financial advisors and other outside professionals. Contact us for help on issues from determining executive compensation to creating individual exit/retirement plans.
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