10 Effective Strategies to Close the Board Diversity Gap
December 17, 2024 – As companies aim to diversify their boardrooms, the slow advancement and persistent gender disparities remain concerning. Insights from The Bedford Group TRANSEARCH’s latest compensation reports further highlight the ongoing need for gender equity in board composition.
“Despite widespread acknowledgment of the importance of diverse leadership, many corporations still struggle to bridge the gap in both representation and compensation,” the Bedford Group TRANSEARCH report found. It explains that by adopting a strategic, multifaceted approach, businesses can make meaningful progress toward inclusive governance, ensuring that board diversity is not only a goal but a reality. The report offers 10 ways to bridge the board diversity gap.
1. Commit to inclusive recruitment practices.
“It seems obvious but achieving board diversity has to be driven by a concerted effort by organizations,” the Bedford Group TRANSEARCH report said. “Expanding the search for board candidates to include diverse networks and adopting inclusive criteria will help identify and elevate qualified women into board top positions.”
2. Promote equity in leadership roles.
Ensuring women are not only present on boards but also featured in leadership positions within those boards and within C-suites is crucial for closing the diversity gap, the Bedford Group TRANSEARCH report explains.
3. Conduct regular diversity audits.
Perform routine assessment of current composition across gender, race, LGBTQ+, disability status, the study also notes. It says to set goals that align with diversity efforts based on business needs and stakeholder expectations.
4. Secure leadership commitment and stakeholder buy-in.
“Get commitment from the board and CEO to prioritize diversity,” the Bedford Group TRANSEARCH report said. “Consider adopting a formal diversity policy.”
5. Expand recruiting efforts.
The report also notes to use wider candidate sources. “Require that diverse candidates be considered,” the study said. “Leverage diversity-focused executive and board search firms. Look outside your sector. Good directors can be found in any number of adjacent or even non-obvious sectors.”
6. Consider candidates from foreign jurisdictions.
Organizations that have toe holds in one or more regions have an unique opportunity to find high quality board directors, according to the Bedford Group TRANSEARCH report. Casting the search net beyond the zones adjacent to HQs can yield some surprising and often under-utilized candidates.
Related: Breaking the Boardroom Glass Ceiling
7. Rethink candidate requirements.
The report also says to consider candidates without prior board experience and seek those with other backgrounds, like academia, law, and technology.
8. Add board seats.
“This one is controversial and not for the faint of heart,” the Bedford Group TRANSEARCH report said. “But, if a board is well established, and waiting for turnover is not a fast enough solution for injecting more diversity, adding new seats is an option.”
Achieving Boardroom Diversity Without Marginalizing Anyone
While women have come a long way, there is still a long way to go before we reach gender parity at the top levels of corporate America. As CEO of a women-owned search firm with the serious intention and track record of placing women and members of underrepresented groups in boardrooms and the C-suite (85 percent and 80 percent, respectively), Janice Ellig, CEO at Ellig Group, is deeply engaged with this particular struggle on a daily basis. “So, what I am about to say may sound like an oxymoron, but it is not,” she said. “While diversity must be considered a top priority in selecting corporate leadership, it should not be the sole criterion on which a selection is based. Rather, priorities have to be balanced to achieve the best and most equitable outcomes for good corporate governance.”
9. Formalize succession planning and term limits.
Proactively plan for retiring directors. Source qualified, diverse candidates in advance. Setting term limits and board positions also ensures that the board stays nimble and refreshed.
10. Foster an inclusive corporate community standard.
“Ensure diverse perspectives are valued,” the Bedford Group TRANSEARCH report said. “Provide training for new directors. Evaluate and enhance board culture on an ongoing basis.”
“The effort to create equitable boardrooms—where diversity is evident not only in the makeup of their members but also in their pay and power—continues,” the report concludes. “While the data points to gradual progress, the disparities in compensation for women board members highlight the need for a sustained and strategic effort to dismantle systemic barriers and foster truly inclusive corporate governance.”
With North American life sciences offices based in Toronto, Canada and Cambridge, MA, The Bedford Group provides executive search and talent management solutions to a diverse group of life sciences and healthcare clients, including start-ups, multi-nationals, publicly traded, and private organizations.
The Bedford Group, led by co-founders and brothers Steven Pezim and Howard Pezim, is a privately held executive search and talent advisory firm. Its services span the spectrum of talent management, including leadership assessment, coaching and development, and compensation advisory, as well as executive, managerial and senior technical recruitment. Established in 1979, The Bedford Group has three offices in Canada: Toronto, Oakville (Ontario), and Vancouver, all of which consult with clients throughout North America and globally.
Related: Aligning Diversity and Talent in Board and C-Suite Recruitment
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
