KPM

Outsourcing Payroll Management Overtime Rule Strengthen Trust In Your HR Department Major Payroll Taxes Deciphering Background Checks 401(K) Missing Participants Mentorship Program Remote Work Policies Cafeteria Plan Employer Emergency Savings Accounts Retaining a Motivated Team Long-Term Care Insurance Payroll Best Practices Skills-Based Hiring Train Supervisors To Use Constructive Feedback Exemptions On Form W-4 DOL Final Rule On Independent Contractors Benefits of a Payroll Process Review Leadership Development Program Final Rule On Electronic Recordkeeping Orientation Employee Fraud Electronic Filing Qualified Retirement Plans COLAs Compensation Philosophy 2024 Health Coverage Year-End Payroll Educating Employees About Retirement Hiring Process Training Programs FUTA Neurodiversity Qualified Retirement Plan Audit HSA at-will employment Club Memberships custodial account esop Employers Payroll HRA ADA 401(k) Employee Value Proposition Agricultural tax breaks W-2 Filing Employment Tax When Hiring Loved Ones returnship programs

Shed Light On Your Organization’s Future With A Shadow Board

It is unlikely that any employer — be it a for-profit business, non-profit, or some other kind of organization — will look the same in five or 10 years as it does now. The COVID-19 pandemic has taught us just how rapidly change can occur when driven by necessity.

To not only keep up with change, but also get ahead of it, many employers are forming ‘shadow boards.’ The term might sound a little questionable, but these groups of advisors (sometimes also called “mirror boards” or “next-gen boards”) can shed light on your organization’s best future.

Fresh Voices
Employee demographics are changing. Millennials (those born between approximately 1981 and 1996) have been active in the workplace for years now. Members of Generation Z (those born around the Millennium) are now coming of age and entering the workforce or attending college and will be looking for full-time jobs soon.

Despite this influx of younger minds and ideas, many businesses are still run solely by older executive teams or boards of directors. Although packed with experience and wisdom, older leaders might not stay closely attuned to the latest developments in hiring, product or service development, technology, and marketing.

That is where a shadow board comes in. It is typically a group of younger, nonexecutive employees who meet regularly with the executive team or board to discuss innovative ideas and strategic initiatives.

Ideally, the two groups mentor each other. The older generation shares their hard-earned lessons on leadership, governance, and professionalism, while the younger employees attune senior leadership to the latest trends, concerns, and communication styles and tools.

Innovation Generator
You also can tap the shadow board for their input on issues that directly affect them. For example, would they welcome a new employee benefit under consideration or regard it as irrelevant? Similarly, you can use the board to test drive strategies targeting younger generations before you get too far down the road.

In addition, your shadow board can serve as an innovation generator. Some employers with shadow boards have ended up overhauling their processes, procedures, and even business models based on ideas that first emerged from the younger employees’ input.

Another benefit? Shadow boards can help strengthen employee retention. Selecting younger employees for a shadow board sends them the message that you recognize their potential and are invested in preparing them for bigger and better things. It also facilitates succession planning, a practice too many employers overlook.

Curiosity & Caution
If you think a shadow board might benefit your organization, approach the concept with curiosity and caution. Launching a board that has no real voice or inadvertently ends up alienating other employees could do more harm than good. Consider gathering input from outside advisors such as a human resources consultant or attorney.

Related Articles

Talk with the pros

Our CPAs and advisors are a great resource if you’re ready to learn even more.