We are having a debate: “Diversity in Norwegian boards”

In our political debate, on board M/S Søgne, precisely diversity and recruitment to Norwegian boards were discussed. All the participants had wise and enriching input for the debate, and the consensus was the same; we have to find board candidates outside our circle of friends. 

An Urgent Topic

Diversity in boards is a highly topical and urgent topic. In today's changing society, where technological advances and sustainability challenges require new perspectives, boardrooms must reflect these developments. Just by looking outside the circle of acquaintances, you can find the right candidates for businesses.

The changes in Requirements and Recruitment

The demands on boards are significant. In the past, it was mainly older, "white men" who were relevant for board positions. As Arve Juritzen put it; "There is no sympathy to be had for not being at the top of the list anymore. There is nothing wrong with us in that category either.”
The requirements and expectations of board members change in line with society's development. What do we really need? 

Janne Log points out; "that specialist competence will become more important, especially with regard to AI, other technologies and sustainability. Society cannot afford, in terms of knowledge or growth, to maintain a traditional board competence to keep pace with these changes. Therefore, the question of competence, how it is obtained, cultivated and used, becomes more and more relevant, and also challenges the traditional recruitment processes".

Diversity in Boards – More than Gender

Right now, it is women who dominate the wish lists for positions on Norwegian boards. This is to meet the state-notified requirements for gender balance. Nevertheless, it is diversity, not just a 60/40 gender distribution, that is needed in boardrooms. As Astrid Skaugseth points out, 7 out of 10 boards in Norway consist exclusively of men. "Gender is easy to identify and quantify, but that is only the beginning of diversity".
Gender balance can act as a way to break out of old recruitment habits, where friends recruit friends and acquaintances. This could be a "kick in the rear" as Ingar Bentsen describes it.

Through the debate and various inputs, the term "board wholesalers" keeps coming up. This concerns people who have held and hold many board positions. Many "board wholesalers" like to exchange boards with other "board wholesalers" and have been in countless boardrooms. A "board wholesaler" can also contribute with long experience, broad competence and important reputation. Nevertheless, the discussion is whether the amount of office can affect a role and whether it prevents others from being considered relevant? As Arve Juritzen mentions during the debate: "Perhaps one should set limits on how many board positions one has, to avoid board wholesalers?"

Diversity and Competence

Both the debate on diversity and the debate on competence have important contributions that need to be explored further. This applies not only to the boardroom, but also to society in general. This is about inclusion, initiative and breaking old habits. The aim is to create a culture of appreciation, recognition and opportunities – for everyone.

"Research shows that when you start with a good gender balance, you also improve on other indicators that cannot be measured in the same way. Let's start there. Then I think it will be easier to get the right expertise into the board," points out Astrid Skaugseth.

Still way to go

In the past, requirements for gender balance have also been introduced. Both in 1981, 2003 and 2008. The latter, in 2008, a 40/60 distribution was introduced in listed companies. Nevertheless, the gender balance has remained completely stable at approximately 40 %. There have been limited changes beyond satisfying this quota. Thus, quotas are a tool, not a final solution. The ultimate goal for a board does not consist of three equal men and two equal women. It is about different ideas, thoughts, backgrounds and experiences. The aim is that quotas should lead to diversity. This places demands on those for whom the quota applies, as well as those who surround them. How can one use this "wake-up call" as a competitive advantage and ensure that boards get the diversity of insight that the company deserves and society demands?

Åse Kristin Ask Bakke gave a good input as to why we have not seen major changes with previous quotas: "We humans are simple, we need someone to look up to in order to make our own changes. Look at football, for example: ten years ago there were no female football professionals who were role models, but today all girls in football want to be like Ada Hegerberg".

Recruitment habits in the boardroom

Aboard's research shows that 90 per cent of all board recruitment takes place via personal networks. That is: friends, acquaintances, former colleagues, business partners, study mates and family. Through the debate, old habits are reflected upon. Known is safe, we know them and we know what we are getting. Unfortunately, this means that boards can miss out on the best expertise. 

Aboard's surveys also show that 8 out of 10 people find it very difficult to make themselves available as a candidate for a board position, to others they do not know. Can today's recruitment be exclusionary for new candidates?
Sustainability and AI in particular challenge the market in new ways. It is therefore important to acquire new skills for the future. This requires that the boardroom is a place for everyone, not just a closed internal circle. 

Diversity and Competence – Necessary and Not a Lack

There is no shortage of competent women or candidates. There are many qualified women ready for office. Many of these are also available on our platform. Aboard has over 1,000 unique and competent candidates, who can precisely solve the challenges described above. Aboard's recruitment is a key to future solutions.

"Those of you who are present here and have not registered already, I would encourage you to do so, because you actually get follow-up. We have probably all been in contact with headhunters and recruiters, where there is zero follow-up and you hear nothing throughout the process. On the other hand, I get that at Aboard", 

Janne Log says: "(...) agree that Aboard's platform is very easy to understand, and should have included many more. Those of you who are present here and have not registered already, I would encourage you to do so because you will actually receive follow-up. We have probably all been in contact with headhunters and recruiters, there is zero follow-up and you hear nothing throughout the process. However, I do that at Aboard.”  

The future requires diversity

The way forward can be many. Reflection and attention to diversity, and what diversity means for the company in question, are central. It is difficult to break habits or invite a stranger into boards where everyone is an acquaintance. Nevertheless, we must bring about change. The competence in the boardroom is important. It is gender balance that we use as a tool to ensure change. There is a common desire to see more diversity in the boardroom, based on the need for expertise. The quota gives a kick in the rear, and the job is now to find the right candidate(s).