ITB partner, Frontline HR Solutions, offers an exciting new lineup of Manager/Supervisor Development, Coaching, and Training Programs. Mike Perkins, President, announced, “With the addition of two outstanding leadership development experts, we can offer an expanded menu of customized leader development and coaching programs for businesses that understand the value of investing in their first and second-level leaders.” Leading the enhanced development programs for Frontline HR Solutions are Rodney Atkins, former Director of Talent Management for Progress Rail, a Caterpillar Company, and Dr. Colby Jubenville, Professor and Director of the Center for Student Coaching and Success at Middle Tennessee State University. Atkins has over 30 years of manufacturing and professional services experience with Fortune 500 Companies. Jubenville is a popular public speaker and success coach, and author of Zebras and Cheetahs: How to Look Different and Stay Agile to Survive the Business Jungle (Wiley) and Me: How To Sell Who You Are, What You Do & Why You Matter to the World.
Studies show that frontline leaders are the number one factor in employee turnover, productivity, and engagement. Businesses and non-profit agencies that have traditionally promoted employees to supervisor and management positions without providing leadership training and coaching have discovered that investing in the development of these leaders pays huge dividends, especially in the retention and success of the employees they manage.
“Frontline’s leadership development programs are specially-tailored for our client’s specific needs, schedules and budgets,” said Perkins. Frontline offers over a dozen training and development options ranging from fundamental programs like The Basics Every Leader Should Know, Do and Avoid; Discrimination and Harassment Prevention; Conflict Resolution; and Effectively Holding Employees Accountable to higher-level 360 evaluations, executive coaching, employee focus groups, and personal strength and communication assessments for individual and teams.
Employers cringe this time of year because it can be confusing to comprehend the unfamiliar concepts of benefit offerings and then identify which benefits are a suitable match for their employees.
Open enrollment is an opportunity for employers to adjust the benefit options they previously offered their employees or elect new plans. This period for most companies falls in November, to which all forms must be returned and processed for the new benefit plans to take over on January 1 of the new year.
It takes weeks or even months for HR professionals to investigate and negotiate with various insurance carriers to align the right fit for their organization.
This is what HR professionals are for, so don’t fret! Flex HR is your dedicated Human Resources backbone for all things HR. We’re an HR outsourcing and consulting firm that delivers all the HR support you need – including help with those confusing and complicated benefits.
Flex HR Is Your Benefits Solution Management Provider
Consider Flex HR as your benefits solution and management provider. We manage the complex benefits and insurance process for you. We work with your broker to deliver the census data for the broker to analyze market comparison costs, all the while the current vendor provides renewal information.
Founder & CHRO of Flex HR, Jim Cichanski, explains “we act as the client’s HR department, working with the broker to achieve the best plans possible for the cost the company is willing to pay.” Employees may be offered quality health, vision, dental, disability, and even pet insurance plans that are consistent with the company’s culture. “We do what it takes to offer employers and their employees the best plans achievable. Sometimes that takes getting creative by adding higher deductibles and a GAP plan to strategically project for the future years of not seeing large increases,” Jim outlines. We work with all industries and companies of all sizes.
After the benefit and insurance selections are made, our Flex HR team communicates and conducts the open enrollment process for you. It’s imperative to personalize these messages to employees, so they understand the guidance they are receiving in choosing their perfect plan.
Our dedicated and dependable experts reduce your leadership roles from consuming the burden of completing these tasks. We seamlessly systematize your company’s benefits to increase effective record keeping and ensure all reconciliations are up to date, protecting critical employee files. Our support keeps your organization in compliance with employment laws.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is important to me, so please leave a comment.
On September 26, I posted an article titled don’t become a hostage! I spoke of two examples of managers being held hostage by troublesome employees. I stated that one of the managers had an Epiphany that led to terminating the employee in question. A new manager resolved the other situation last week.
Sometimes it takes a fresh pair of eyes to evaluate the situation correctly.
As you may recall, the lingering situation was in a big box retail store where an Assistant Manager created continual unrest. Since my original post, a few exciting changes have occurred. The first and most important was the resignation of the General Manager. He left to take a job in a different industry sector. A more experienced general manager replaced him. These changes happened shortly after the publication of my article, almost exactly a month ago. After a month of studying the situation in his new assignment, the new General Manager transferred the troublesome subordinate to another store. She is now working under the General Manager who originally trained her.
So why did the new general manager act on the situation, whereas the former GM ignored it?
Experience beyond this company
External networks of competent employees
He refused to be a hostage
The former GM was still learning the job while dealing with a dysfunctional team. He was not fully competent and lacked confidence. I suspect that his boss, the District Manager, was culpable as his direction for this GM was lacking.
On the other hand, the newly appointed General Manager is an accomplished GM. He has significant prior General Management experience with another big box retail brand. Competent and confident in his leadership abilities, he took a different approach to the situation.
A toxic employee can do significant damage to a work environment. Team cohesion, morale, and eventually productivity and profitability will be affected. Wise managers know to deal with the situation immediately. They do not let them faster, to metastasize into an even bigger problem. The situation question went on for far too long. As I stated earlier, I lay the blame on the Regional Manager. He had long known of the situation. His strategy included a meeting where he told the team to “work out” their differences. It is no surprise that the team could not resolve their issues by themselves. A more experienced, decisive leader replaced the former GM. It was only then that the problem was correctly identified and resolved. I hold the regional manager responsible for the problems created by his inability to resolve the issue.
When this type of disciplinary issue arises, decisive intervention is required. The resolution should include progressive discipline supported by the appropriate level of documentation. The next-level manager must become involved when a manager is not fully competent. In this case, the fear of going through the holiday season shorthanded clouded management thinking. They became hostages. There is no justification for suffering under these circumstances, as there is always a solution.
Conclusion:
In conclusion, managers cannot avoid the need to discipline disruptive employees on a timely basis. Concerns about terminating a toxic employee because it may leave a hole in the management ranks are invalid. On the contrary, failure to address toxic behavior guarantees that the team will become shorthanded. The irony is that the best employees will leave first. They have options. The team that remains will be less competent, less functional, and less productive. This is a concern that second and third-level managers must be tuned into. The good news in my example case is that a new manager understood the need to act decisively. He found a way to eliminate the toxic employee. He did not allow himself to become a hostage to someone’s poor behavior.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.
There is so much buzz about Diversity, Equity, and Inclusion (DEI) in the workplace, but what about disabled persons and their accessibility (or DEIA)? The goal of putting DEIA initiatives into place is to value all individuals in a company, giving them the opportunity to show their strengths, but also ensuring they are given the tools they need to succeed.
Human Resource experts know all too well that few organizations put in the proper plan of action for hiring people with disabilities. Employers should verify their company handbook is updated to include policies and best practices for employees with disabilities to be given the capabilities needed to fully participate at work. And with the increase of employees working remotely, companies should focus on disability inclusivity to drive motivation and retention.
The Americans With Disabilities Act (ADA) safeguards the rights of employees with a disability by enforcing businesses to comply and offer reasonable accommodations to allow employees to work for a job they are qualified to do. But what exactly are considered reasonable accommodations and how can businesses welcome, and best practice these parameters?
Flex HR’s own Lytana Kids, HR Consultant, was interviewed by Authority Magazine to share her expertise on how businesses make accommodations for customers and employees who have a disability.
“In practice, the ADA requires companies to consider accommodating an applicant or an employee who has a need that may be out of the norm from others,” Lytana clarifies. She explains some reasonable accommodations “for example, maybe you have an employee who has a back problem and an ergonomic chair may provide the support they need, or a hearing impaired applicant who may need an interpreter to assist with their interview, or technology added to their computer that allows them to receive information differently rather than audio.”
These alterations are nominal in costs, not causing a business undue financial hardship. Choosing which modifications are practical for each employer is crucial, as this is a key approach to creating a long-lasting culture of acceptance. Developing an inclusive workforce is critical to represent the customers a company serves. Furthermore, it allows for more creative and innovative thinking for career growth.
Lytana shares that “as an HR leader I believe setting the right tone and culture is instrumental in the creation of the company being acceptive of differences, once this happens it’s not a special program that people have to follow, it’s a culture.” A key piece to this is training both for managers and HR professionals. “Both groups must know and understand the law, be realistic in their approach to accommodations and be willing to think outside the box. Another very important best practice is an “accessibility” employee resource group. This group not only has to be supportive of each other but should have an executive sponsor who learns what they, as employees, may need to then provide that support for the growth of the business. This is a win-win for both the company and the employees.”
As you now understand, Human Resources plays a major role in how workplace disability inclusion is adapting positive changes for organizations. The priority in the workspace should be validating all employees feel welcomed, appreciated, comfortable, and valued for their differences in a supportive work environment.
Flex HR customizes plans for each client, letting you choose as many or as few services as you need, depending on your business. Reach out for more info today! 770-814-4225 or 877-735-3947 (1-877-7-FlexHR)
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.
This past weekend I completed a two-day introduction to woodworking class at the local Woodcraft Retail Store. I must say, things have changed a lot since I took ‘Shop’ in High School. Most of what I learned this weekend was how to use a variety of machines I have never used. That part of the class was most useful as I am interested in buying one or more of those tools. That experience by itself was worth the cost of the class. The product of the class was a Shaker Style cabinet made of Poplar. It is the solution for a space in need.
I was one of five attendees, three women, and two men. I was the oldest as my classmates were in their late thirties or early forties. The two instructors were my age and older. I found the demographic composition most interesting. The maximum class size is six due to logistical constraints. Almost half of the room is occupied by tools and equipment, one limiting factor. The other is the queuing time to use the equipment. As our project required a specific sequence, a significant amount of time was spent waiting for your turn to use the required machine.
This class was an early birthday present from my wife, which I was pleased to receive for several reasons. I have projects around the house that challenge my carpentry skills. We are creating a 750-square-foot guest suite in the basement which requires framing skills and I am painting our Master Bathroom. The latter would not be much of a challenge except for the significant drywall repairs required. It seems that when we built our house, the builder did not properly prepare those walls before applying wallpaper. Those projects have stimulated my interest in learning more about carpentry and cabinet making.
The other benefit of taking this and future classes are related to supporting our Residential Construction Business. My wife started this business at about the same time that I left the Corporate World to become an Executive Recruiter. I am her CFO and principal consultant. Her business is doing so well that she needs me to become more involved in day-to-day operations. Sharpening my construction-related skills will help satisfy that need. It is a win-win proposition.
I have long believed in the value of life-long learning. Keeping one’s mind engaged is as important, if not more so, than the effort to maintain a healthy body. I find that if I keep my mind focused on achieving an important goal, my body will follow. My friend Faith is someone who has embraced life-long learning. A few years younger than me, she is an Account Executive with a major Health Insurance Company. She sharpens her edge by studying for additional college degrees on a part-time basis. Her employer has a tuition reimbursement program for coursework relevant to her job function. It is a win-win! She gets paid to improve her job skills and continues to exercise her mind in the process. She credits this strategy for keeping her at “the top of her game.”
The concept of life-long learning has been around for decades. I remember listening to my boss telling me how he encouraged his teenage daughters to learn new things just to hone their ability to learn. This included areas that were of little interest to them, like the mechanics of an automobile. That was over thirty years ago.
Our world is changing at a rapid pace. We are living longer. Job functions are changing or disappearing while new job functions are being created. It has often been said that today’s workers will likely have three or more careers during their lifetime. That requires the ability to change and adapt, to learn.
I find it interesting that at my age, I have little difficulty learning. It could be that much of what I am learning is additive to things I already know and understand. It could be the vast amount of training tools available that makes the process easier. YouTube, for example, is a treasure trove of resources. I admit, I may not be able to stay focused for as long as I was once, but frequent breaks and a cup of coffee help me stay on track. Motivation may be a contributing factor to my interest in continual learning. Probably because learning construction-related skills directly benefit our livelihood and our home. That is serious motivation.
Life is a learning experience. There is no growth without learning, including lessons learned from new experiences. Life is also about adapting to change. One cannot adapt if one is not open to learning. The ability to learn is a skill required for a successful life. We have often heard that one’s mind is like a muscle. It must be exercised to stay taught. My recommendation is to commit to becoming a life-long learner and enjoy a better life.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.
This project was a complete Kitchen Makeover that included new cabinets, surfaces, lighting, appliances, fixtures, trim, and paint. It is now a highly-functional, contemporary kitchen.
Contact Kitchen Connections to learn how we can improve the functionality and ambiance of your kitchen and bathrooms while increasing the value of your home.
Jill D. Weber is a Licensed Contractor and the owner of Kitchen Connections LLC., an award-winning design company specializing in home remodeling, design, kitchen, and bath cabinetry. She has more than 20 years of experience and stays engaged by managing each project, from start to finish. Your total satisfaction is her primary goal.
Recently, I have become aware of two situations where managers have become hostages to toxic employees. They are not being held at gunpoint by a criminal trying to negotiate an escape. However, the angst of the situation is similar. One is a female assistant manager for a big-box retailer. She does not work well with others and is actively working to undermine another manager. Not a team player, she creates unnecessary drama. My colleague, Stan, would call her a termite. Someone who destroys the foundation of the company. The other is a subcontractor with poor work habits who delivers an inconsistent product. Both have remained in position because management, facing a difficult labor market, has decided to live with these troublesome people, hoping to avoid the cost of losing them. However, one manager chose to act and found that his fears were unwarranted.
During my corporate career, workers were abundant, so the fear of being understaffed was not a consideration. At that time, the concern for turnover and overstaffing was our focus. Even so, I observed managers fail to discipline employees properly because they delivered outstanding revenue and profit performance. Those producers survived until their financial performance fell below standard. In the meantime, their peers complained about favoritism and unfair treatment by management. It was very frustrating to be a part of those teams. Overall morale suffered because management was held hostage by a flawed subordinate who happened to produce above-average financial results.
Today, we face a different, more difficult labor market. Baby Boomers are retiring, and fewer younger workers are available to replace them. Employers are finding it more challenging to achieve optimal staffing levels. Some managers overlook employee performance issues to minimize the risk of being short-staffed. That was the concern of my client. He was willing to put up with the poor performance of one sub-contractor to ensure that he completed his projects on time.
Nevertheless, I advised him to deal with the performance issue. I informed my client that the situation was sure to worsen. Eventually, he reached his limit when the cost of repairing the subcontractor’s shoddy work became unbearable. With a little bit of effort, he was able to find a suitable replacement. He refused to be a hostage.
It is not uncommon for managers to overestimate the cost of maintaining employee discipline and underestimate the benefit. Sometimes, it is easier to look the other way. They rationalize their decision to minimize the performance issues or ignore them entirely. Avoidance is a big mistake. The rest of the team is closely watching. They view the manager’s lack of action as favoritism and poor leadership. The team’s overall performance eventually suffers, and good employees leave for other jobs. The manager’s failure to deal with performance issues creates more significant problems with greater consequences.
So, what is one to do? First, don’t become a hostage to your employees! Enforce policy uniformly across the workforce. Don’t give a pass to employees who generate stellar results in some areas but fall short in others. Consistently enforced standards and appropriate disciplinary measures will go a long way toward creating a healthy, high-performance culture. This approach to discipline will help reduce turnover and attract better-quality employees.
Another viable strategy is to maintain an ongoing recruiting program. You may not need to step up the actual hiring, but you will know where to go to find good employees when you need them.
The two examples I presented at the beginning of this article make an interesting case study. One client decided to face the performance issue head-on, resulting in the termination of the sub-contractor in question. My client replaced the subcontractor with a more appropriate hire. The client refused to be held hostage. The other situation has deteriorated further as the management refuses to take corrective action.
Maintaining organizational discipline is not optional. Success requires vigilant maintenance of systems, processes, and procedures. Maintaining discipline may be more difficult in trying times, but it is of greater importance. The stakes are higher, as is the risk of failure. Good employees will gravitate to the best employers, so become the preferred employer in your market. Build a healthy culture of success by enforcing policy in a consistent, firm, fair, and friendly manner. It is the best way I know to ensure long-term success.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.
A remote working environment is here to stick around for a while. This effect of the Pandemic has truly changed how the workforce is adapting as we have seen companies increasing technology connectivity. It has also brought about the trend for employees to relocate to a state where their employer has not yet established a presence.
Initially, it seems that a remote employee relocation is straightforward, as they can work on a laptop with a cell phone from any location. However, for employers, there are payroll tax implications for their employees in these other states. Employers everywhere are feeling the consequences of payroll taxes.
Employers turn to both their payroll managers and their accountants for help; however, payroll tax work falls outside of the scope of both professionals. Thus, companies are turning to outsourcing payroll tax professionals, like Flex HR that have a payroll tax department set up to manage payroll tax work for companies everywhere.
Payroll vs. Payroll Tax
When Flex HR engages in outsourced payroll management, we assign a Payroll Manager to your company. They are responsible for engaging with employees on all aspects of their paychecks, answering questions about a deduction that was taken, or making a pay change. The Payroll Manager runs the payroll for the frequency that your business requires and submits a pre-process payroll review to the appropriate person to sign off each time. The Payroll Manager also maintains the reports needed for workers’ compensation audits and 401K 5500 reviews.
In addition, Flex HR provides a Payroll Tax Manager to set up the state unemployment insurance (SUI) and state income tax numbers (SIT). This has become much more relevant for companies as employees work remotely and might have moved to a state different than where the company is based. The Payroll Tax Manager will work to make sure that your company is compliant in all areas regarding payroll tax.
Our Payroll Tax Manager at Flex HR, Jessica Stafford admits “having a dedicated payroll tax manager is important because businesses cannot possibly keep up with the rapid changes in payroll tax legislation in all 50 states.”
Payroll Tax Outsourcing Relief
Establishing and managing payroll tax efforts are complicated without the proper HR administration. In addition to the Payroll Tax Manager setting up the SUI and SIT tax numbers, they may also need to create a local income tax (LIT).
Once these proper numbers have been set up for the new state(s), the employer must review human resources compliance tracking items for the affected states. It’s also crucial to update the employee handbook accordingly and monitor any customary operating procedures, including:
Posting jobs with the salary disclosed
Paying unused PTO upon the termination date
Following rules for salary requirements for hourly or exempt employees
Ensuring proper documentation required at termination for an exiting employee
Dedicated Payroll Tax Department
Once Flex HR is engaged for payroll tax work with your company, a comprehensive approach is taken by an information gathering session to fully understand your payroll tax needs. We get a current employee count and determine where specific employees are located.
Then, we put together a plan for setting up current state tax-related payroll numbers and identifying the priority for each state. This involves communicating with different state and local agencies.
Working with your organization’s HR manager, we confirm all state human resources compliance items are properly documented as well as all state payroll tax numbers are entered correctly in the system for any affected employees.
Jessica explains a common situation we see all too often. “We’ve had new clients come in with hundreds of thousands of dollars tied up in liabilities to states where they weren’t aware of mandated programs that don’t exist is their home states. Managing your payroll taxes may mean the difference in bankruptcy or going public, so it’s important to work with someone you can trust to register for the proper statewide programs, notify you of any legislative updates, and guide you through this new world of remote employment.”
Employment and State-Related Taxes
Flex HR is experienced in investigating previous payroll tax issues and any retroactive fees or penalties. We support ongoing payroll tax issues at your company.
There are general employment taxes that must be paid for by the employer, regardless of the state such as:
Federal income tax withholding
FICA (Federal Insurance Contributions Act)
FUTA (Federal Unemployment Tax Act)
State-related tax implications
State-related tax implications are varied and sometimes involve local municipalities. For example, some states require employers to withhold state income tax, while other states don’t have a state income tax. Some cities have their own set of income taxes, which is an additional wage withholding. Other withholdings that may be required are paid family leave, short-term disability, and/or unemployment benefits.
Our Payroll Tax Managers also notify you if having an employee in a state may trigger additional taxes, such as sales or corporate income tax, so that your accountant can be ready to file the proper returns.
Across the country, employers trust Flex HR with their Human Resources and payroll issues. The payroll tax department and tax professionals within Flex HR can help employers immeasurably with recouping items owed, eliminating legal exposure, and minimizing risk. Contact us now to get started!
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.
We Looked Into Brand Positioning in 2022, So You Don’t Have to. Here’s What We Discovered
For several entrepreneurs, it’ll only take them failing at starting a business or two before realizing that one major reason they failed was that they lacked the strategic insight to prepare for both long and short-term business growth and challenges.
However, not all entrepreneurs can afford to learn the hard way, as resources are too precious to waste on trial and error. It’s better to know what works before jumping head-first into business. One of the easiest ways to do so is to understand what your customers desire and what type of brand would impress the audience demography you’re targeting.
And that’s just what we did with our research. We compared businesses with traditional brand tones to those with modern and current ones to see how consumers responded.
Why Did We Perform This Research?
We were interested in discovering more about the kinds of companies that various consumers love and how that varied by age group.
As a business owner, realize that connecting the name of your firm and other branding elements to the demands of your customers can enhance and raise the likelihood that your enterprise will succeed.
In order to reach the study’s goal, we questioned American consumers whether they preferred patronizing companies that use classic brand tones or those with modern tones.
Why’s This Question Vital?
Every entrepreneur should be aware that choosing the right brand positioning strategy is one of the most crucial choices you’ll make when beginning or rebranding your company because it significantly affects brand positioning.
Building an outstanding brand requires a thorough understanding of your target audience and your company’s identity.
Entrepreneurs must dedicate time to getting a good name for businesses and products because the right name communicates a compelling tone that’ll enhance your brand’s positioning and have an impact on how the public perceives you.
The Main Results of Our Survey
In order to better describe our findings, we divided the data we collected into several age groups. And although the results of our survey weren’t very surprising, the reactions we received were interesting.
Here are the results of our poll of 301 people.
Customers under the age of 30 are more inclined to be captivated by businesses with a new and current brand tone, while those older will prefer a more traditional tone.
Customers between 35 and 45 years were equally split between modern and traditional brands. With how close the results were, it’s clear that this demographic is open to modern or traditional companies.
The results show that customers between the ages of 45 and 54 favor traditional businesses.
Customers aged 55 to 65 are particularly aware of the difference in the two options and strongly prefer old and traditional companies over new and modern ones.
The study found that men have no bias for modern or traditional companies.
Women, in contrast, choose trusted traditional companies over new and modern startups.
Of the 301 respondents, 148 of them preferred contemporary, modern brands, whereas the remaining 153 preferred classic, traditional brands.
Based on our results, you can build your brand with either a classic or modern tone, provided that it satisfies the needs of your target market.
Start Positioning Your Business
Building a solid brand identity requires time and dedication. So ensure you apply the results of this survey when coming up with your value proposition, advertisements, and brand name. This way, you can start infusing every element of your business with your brand tone.
Grant Polachek is the head of branding for Squadhelp.com, 3X Inc 5000 startup and disruptive naming agency. Squadhelp has reviewed more than 1 million names and curated a collection of the best available names on the web today. We are also the world’s leading crowdsource naming platform, supporting clients from early-stage startups to Fortune 500 companies.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.
I look forward to meeting with Paul, a good friend, and colleague, tomorrow afternoon. Paul and I have much to discuss, including my responsibility on his company’s newly created Advisory Board. The agreed-upon location is a convenient cigar bar, my preference for conducting business. I cannot meet in this venue every day, but it is a great pleasure when I can. I have been helping Paul connect with the financial community to support his company’s development goals. One of those connections suggested establishing an advisory board would be a good idea. As the common denominator in this process, they both agreed to invite me to join their Board. Naturally, I accepted.
During my career as an Executive Recruiter, many candidates expressed interest in serving on the Board of a prestigious company. Those folks were looking for paid Board seats but never considered a voluntary Advisory Board. As that type of search was not in my wheelhouse, I could not help them. After fifteen years of experience serving on Advisory Boards, I am enthusiastic about steering qualified candidates in that direction.
Large, established companies and small emerging companies form Advisory Boards to manage their businesses. Profit-oriented companies and not-for-profit associations use them. The scope of responsibilities will vary from organization to organization, depending on its size and complexity. Organizations expect Advisory Board Members to offer unbiased advice. They do not have decision-making authority or fiduciary responsibility, significantly different from a Board of Directors. Advisory Board members are chosen based on their skills, experience, and accomplishments relevant to the organization in question. To be invited to join the Advisory Board of a commercial startup, you will probably need direct experience with commercial startups. You should expect to have significant experience in the company’s industry segment. My friend and colleague, Mark McClellan, just reminded me that people with experience raising capital are in demand.
Compensation also depends on the organization’s size, complexity, and life-cycle position. Some are paid, including travel and meals, but many are uncompensated. Most of my Advisory Board roles have been voluntary and uncompensated, although our host provided food and beverage at each meeting.
Why would one become a member of an Advisory Board that does not provide compensation? It isn’t about the money, at least not immediately. As I mentioned earlier, serving on Advisory Boards has been personally gratifying. Each offered a new opportunity to gain skills and experience. They provided networking connections that led to new business opportunities. I have enjoyed giving back to the community, especially during my alum board years. That experience strengthened my relationship with the institution. If a career goal is to sit on a BOD for a prestigious company, serving on an Advisory Board is an excellent place to gain experience and credibility.
My first Advisory Board experience was with the National Alumni Association for my Alma Mater, where I served for three years. It was because of my affiliation with the Atlanta Chapter that I was nominated to join that body. The Executive Director of the Association talked to me about joining the Executive Committee, a pathway toward becoming Chairman. Regrettably, I had to decline that invitation as I was not in a position to devote the time or energy required for that responsibility. Nevertheless, my service on that Board was gratifying and a significant learning experience. I believe that serving on an Advisory Board for a not-for-profit association or a charitable organization is an ideal gateway for consideration in similar roles in the private sector. It worked for me. I gained visibility from that role which led to invitations to join profit-oriented and not-for-profit advisory boards.
Organizations need the kind of unbiased advice one can offer. Your expertise is required. You should consider joining an Advisory Board if you want to expand your skill stack, make new connections, and further enhance your career. If you are interested in becoming a member of a more prestigious, compensated Board of Directors, an Advisory Board is a possible stepping stone. A great place to start is with your College Alumni Association, an Industry Association, or a Charitable Organization. You will enjoy the experience and find gratification by giving back to your community.
I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox. Toward this end, put your contact information on my mailing list.
Your feedback helps me continue to publish articles that you want to read. Your input is very important to me, so please leave a comment.