As this year’s annual LGBTQ+ celebration begins, we talk to six BALANCE members about their experiences in life and work As Pride celebrations kick off all over the world this month, six members of BALANCE, the Institute’s LGBTQ+ Allies network group, tell us about their experiences and what employers can do to support true equality.  Eimer Proctor Senior Manager When I first came out, Pride felt like a celebration and a safe space to be myself. Over the years, I’ve come to appreciate that this is not always possible, but I respect the path that has been forged by others to get us where we are today. During Pride 2023, I will remember those who lost their lives and stand in solidarity with my LGBTQ+ community around the world who still face persecution and continue to fight for their right to be who they are. It’s eight years since Ireland achieved marriage equality, and yet it was only in January 2020 that the law in Northern Ireland finally caught up. Given our current political situation in Northern Ireland, it’s unlikely that we will see any further advancements in LGBTQ+ rights and equality in the near future.  I find this very concerning given the rise in hate crimes, conversion therapy and anti-trans rhetoric in the media. It is up to everyone to help end discrimination for the LGBTQ+ community and promote equality.  There has been some great progress in recent years concerning diversity and inclusion in the workplace, but there is still work to be done to protect LGBTQ+ employees and at the heart of this is education.  Employers can introduce diversity and inclusion policies and practices, for example appoint diversity champions and work with employees to help them understand the appropriate language they should use in the workspace. Liaising with employees in the LGBTQ+ community and their allies is vital to understanding the obstacles the members of this community face every day. This, in turn, facilitates a greater understanding of how and why diversity and inclusion policies can directly impact business.  Those employees will, in time, become more comfortable to be themselves within their workplace, as they navigate the corporate world with the full support of their employer. Having these policies in place will also help to attract talented candidates, who will be carefully considering organisations with a strong commitment to diversity and inclusion.  Conor Hudson Finance Director It’s a general perception that Pride means ‘celebration’ and ‘party’. And, yes, this is a part of Pride – a platform to be yourself and express yourself, but still people are also joining Pride to ‘protest’ and it is important to remember that Pride started as a protest. Equality for LGBTQ+ colleagues in the workplace isn’t about sticking up a rainbow flag at the start of June.  Last year, in my organisation, a colleague and I launched an LGBTQ+ Employee Resource Group (ERG) with the intention of discussing Pride. While the initial reaction was positive, one response we received was, “We support LGBTQ+ rights; why do we still need to talk about Pride?” This remark justified why we needed an ERG – to increase visibility and offer a safe space to LGBTQ+ colleagues and colleagues with LGBTQ+ family. It is important for employees to feel part of an open and inclusive workplace from day one and allyship helps support this.  One of the actions we have taken to demonstrate visible allyship is to create MS Teams backgrounds and badges to highlight that this person identifies as an ally. We have found these a useful tool during recruitment and first introductions.  Allyship and open workplaces not only positively impact LGBTQ+ colleagues but can also support colleagues with LGBTQ+ friends and family.  Creating safe spaces for allies is equally important. They can’t be expected to know all the answers and they should be able to ask genuine questions without being judged. This culture not only creates open environments for LGBTQ+ colleagues, but also for other intersectional aspects of diversity. Hugo Slevin Head of Function Pride is a great day for us as an LGBTQ+ community, along with our allies, to come together and show unity, and strengthen through open visibility. It is always around this time of year that we start hearing the same question, “Why do we still have Pride?”, but I think it remains such an important day as shown by events over the past 12 months. First, we continue to witness attacks against our community members in ever-increasing numbers. Attacks across Europe are currently at a 10-year high and recent media coverage in Ireland has again brought this sharply into focus.  As a community, we should be able to feel safe in expressing and being who we are. Pride is very much our time to come together and have a platform to vocalise and display these concerns. We have also witnessed attempts to control the narrative on gay rights across the globe. Of significant concern has been what appears to be a regressing of rights in parts of the US, where this downward trend seems set to continue.  Even in Ireland, we have seen attacks on libraries and the cancelling of drag events in the last 12 months. Pride is the time of year during which our voices can be heard, and we stand against deliberate attempts to silence our community. Finally, Pride is fun! The streets of Dublin come alive – there is a real sense of occasion and happiness in the air. We get to walk the streets, dance and celebrate with our family, friends and co-workers. Jonathan Totterdell Major Programmes, Financial Services Pride in 2023 means a day of visibility and courage for both the progress we have made and the long path ahead for LGBTQ+ people around the world.  Recent events such as anti-LGBTQ+ Bills being passed in Florida and – closer to home, the rise of the far right and their anti-LGBTQ+ rhetoric – remind us that progress can be rolled back quickly, and it is imperative that those who live in relative safety can make some noise for those who can’t, without fear of repercussions. Over the past decade, I think we have seen some huge successes with gay marriage, a more open culture and a focus by corporates among Ireland to bring diversity, equity and inclusion (DE&I) to the C-suite. The financial services sector has been making really impressive strides. While there is a business case for DE&I, and many studies have shown that it leads to improved return on investment, I would like to see corporates in Ireland mature on this front, continue to grow their social consciousness, and see DE&I as a positive without the need to prove its financial return. Employers are expected to be ‘all in’ on DE&I in 2023, having the uncomfortable conversations that sometimes come with this topic, appointing champions and including DE&I as part of their leadership ethos. Inclusion is key on the DE&I agenda. You can have a diverse workforce, but without active inclusion, you will be missing a vital ingredient.  One thing I practice is to try to make sure everyone gets a chance to speak up at meetings and contribute ideas and viewpoints to decision-making. When people feel comfortable, they will be able to communicate their ideas more effectively.  Padraig Kilkenny Finance Manager For me, Pride is first and foremost a celebration. It is also an opportunity to reflect on the struggles for equality, not only in our own country, but for LGBTQ+ people across the world.  There is no doubt that Ireland has made considerable progress in terms of LGBTQ+ rights and fostering greater equality in recent years. Landmark victories such as the 2015 Marriage Equality Referendum and gender recognition legislation have increased visibility and acceptance across Irish society.  The Ireland of today reflects a society that embraces diversity and supports LGBTQ+ rights. This has never been more evident than at Chartered Accountants Ireland with initiatives such as the BALANCE network and, more generally, with its support for diversity and inclusivity initiatives. Personally, I am fortunate that I have never felt discriminated against in the workplace, but this is not to say that discrimination does not exist. What I have found helpful in my career is having LGBTQ+ representation at senior levels of the organisation and feeling that I have support from my colleagues and leadership.  I think this support can come in many forms from the highest levels where diversity and inclusion form part of the organisation’s strategy, values and by extension its culture, to more practical efforts, such as establishing and enforcing inclusive policies that protect LGBTQ+ employees from discrimination in areas like recruitment, promotion and benefits. Effective allyship is more than just having policies and strategies in place. It is about supporting and advocating for the rights, well-being and inclusion of LGBTQ+ employees.  Everyone should understand and challenge their own biases through education and listen to LGBTQ+ colleagues, valuing their experiences, and amplifying their voices and perspectives in discussions and decision-making processes.  Pride is a great marker in the calendar for employers to stop and reflect where they are on this journey to foster and support real equality across the board. Áine Crotty Audit and Outsourcing Manager As a leader of a team in my workplace, I believe in the power of people and the true potential that is inside each and every one of my colleagues regardless of their gender, age, sexual orientation, etc.  Therefore, being an ally to my LGBTQ+ colleagues is important to me because it supports them in reaching their full potential.  Non-LGBTQ+ professionals need to be aware of their actions and any potential bias they might have – without the awareness, there cannot be any action or change.  I would recommend attending events such as those organised by BALANCE so you can become aware of the issues your LGBTQ+ colleagues are facing.  There are also some fantastic resources and training out there about unconscious bias that will enable you to change the language you use or how you perceive and treat your colleagues.  After awareness comes accountability. As a non-LGBTQ+ professional, hold yourself accountable to making your work environment a more inclusive place for your colleagues. Make a commitment to yourself and others to change how you act with your LGBTQ+ colleagues for the better. Become an ally and be open and proud of that fact. Letting your colleagues know that you are an ally, and that you fully support them, can make them feel more comfortable in the workplace and allow them to speak more freely about any issues or discrimination they might be facing. It is widely known and accepted that culture comes from the tone at the top. Leaders, whether it be partners or senior executive management team members, need to bring DE&I to the forefront of their agenda. They need to live and breathe what they believe in and what they are trying to achieve for their employees. They need to lead by example and visibly demonstrate their belief in equality for all.

Ann-Marie Costello became the first female partner on the Corporate Finance Team at Grant Thornton earlier this year. Her advice to other women? Back yourself and take opportunities I grew up in a family of medical professionals, so accountancy was not necessarily the expected path. I actually changed from veterinary to commerce and German the day before the CAO application process closed, so my career could have been very different.   Opting to do a degree in commerce and German gave me time to decide what I wanted to pursue as a career. I found I really enjoyed the economics and accountancy modules, so it felt like a natural progression to go on to do the Master of Accounting at UCD Smurfit School before taking up a training contract with KPMG Corporate Recovery.  At the time, the accountancy ‘milk round’ was more geared towards traditional audit and tax routes, so joining an advisory team was the path less taken, but I really wanted the commercial experience that came with it.  Hitting the ground running Having a solid background in accountancy meant I could hit the ground running in Corporate Recovery and I had great training working on trading insolvencies. After qualifying and becoming a manager with KPMG, I left Ireland for a year of ‘anti-reality’, travelling the world.  When I returned, I met with Grant Thornton’s Debt Restructuring Team, who were pivoting away from insolvency. I liked the team and the idea of working to bring businesses back onto a stable footing.  After a few years, I transitioned to Corporate Finance and I made Partner in January of this year, becoming the first female partner in the department.  These days, my work is focused on helping shareholders to position themselves for the sale of a business and to maximise value. Most of my work has an M&A or due diligence focus.  So, in my career so far, I have been able to work with businesses across the entire economic cycle. Fall-off in female talent It just so happens that the areas in which I have worked have been particularly male-dominated, especially at senior levels.  My intake and training contract had a healthy mix of female versus male trainees but, from the manager level onwards, I saw a fall-off in female talent.  The reasons for the fall-off vary, ranging from the lack of a clear path for career progression, lack of support or mentorship, and movement from practice to industry, to work-life balance considerations and family commitments.  The diversity, equity and inclusion (DE&I) agenda was not well-developed when I was training, and as that has begun to change in more recent years, I think that it has brought some significant benefits. I do believe we have seen a move towards greater equity at senior levels – although the pace of change is slower than we may like, I think we’re getting there. We do need more balanced representation to attract younger generations – the ‘if you can’t see it, you can’t be it’ adage.  Greater supports are needed in the form of allyship and mentorship, as well as ensuring the wider conditions to support talent retention are met – these include issues such as childcare, paternity leave (both availability and take up) and flexible working.  There are wider societal shifts that need to become the norm to level the playing field further. Gender pay gap reporting Gender pay gap reporting has been a welcome development in terms of driving good behaviours within business and providing employees with greater transparency.  However, nothing can substitute the conversations on the ground that can provide you with clarity as to where you stand.  Conversations regarding remuneration, promotion and performance are often uncomfortable, so we sometimes tend to avoid broaching these subjects.  Time and time again, recruiters and HR teams tell me that, as women, we often undersell ourselves and have lower expectations for remuneration. We need to value our contributions more.  Do your research, back yourself and don’t be afraid to step out of your comfort zone to take on opportunities as they present themselves. Learning the skills for success At some point in your career, you will need to do more than just to be ‘good at the job’. At that stage, developing your career becomes about your network, your profile and your leadership. It is important to learn to have confidence in yourself and to value your input. This often comes with surrounding yourself with the right people, so don’t be afraid to talk – to your peers, your friends and your network. You will only ever regret the things you didn’t do, or say, so speak up and say ‘yes’ to opportunities for development. In my own experience, navigating career development and parenthood is not without its challenges. You need all the support you can get and to always try to look after yourself.  We just had our second baby towards the end of last year, a year during which I was also going through the partnership process, as well as taking on the role of Chairperson of Chartered Accountants Ireland Leinster Society.  I took on a lot, but there were several opportunities that presented themselves around the same time and, weighing it all up, I chose to go for them. I am lucky in that I have huge support from my family and, in particular, my husband, who had to pick up some of the slack. The role of mentoring and networking I sincerely believe that mentoring and sponsorship are key to development, and I’m glad to see so many businesses providing necessary resources and supports in these areas.  It’s important to have someone who can mentor you – someone who will tell it how it is, act as your sounding board and provide constructive criticism.  It is equally important to have a sponsor within your organisation – someone who will support you and guide you in your career development. I would encourage these relationships to be with both male and female mentors and sponsors.  It can often be helpful to have a mentor outside of your work environment to speak to about your work and personal development. Chartered Accountants Ireland provides a mentorship programme for members, which is a helpful resource. Networking can seem like a daunting task, particularly with the reopening of society post-pandemic. However, it really is never as bad as it seems.   The network of people Chartered Accountants will have from their time at university and training will be huge, and the Irish accountancy profession is particularly well-connected at home and abroad.  Try to keep this network active. You never know when you might be able to help someone, or when they might be able to help you.

The EU’s Markets in Crypto-Assets Regulation is just a few weeks away but is it a case of too little, too late for a fledgling market already in disarray? asks Peter McGuigan In a few weeks, the EU’s long-awaited Markets in Crypto-Assets Regulation (MiCA) will come into force, following agreement by EU policymakers last year.  Once formally enacted into EU law, the clock will start ticking for European issuers of stablecoins and crypto asset service providers (CASPs), who will have 12 months and 18 months, respectively, to prepare for implementing the new requirements. In many ways, MiCA is another example of the EU’s determination to be at the forefront of shaping the regulatory framework for digital or data-related industries – like the EU General Data Protection Regulation – while striving to further develop its overarching policy objective of “open strategic autonomy”.  At its core, and similar in some ways to other pieces of financial regulation, MiCA aims to create a “risk-based regime” that balances consumer and investor protection, financial stability and monetary sovereignty concerns, whilst supporting innovation within the EU.   Perhaps most importantly, it will also create legal certainty for crypto providers seeking to develop their activities in the EU.  Concretely, MiCA’s objectives will be operationalised through specific rules for issuers of both unbacked crypto assets and stablecoins. These rules cover authorisation, issuance, disclosure, governance, capital and own fund requirements, to name a few. The regulation also lays down a harmonised framework concerning CASPs, such as wallets and exchanges. CASPs will now be required to seek an authorisation in the EU before they can offer their services and will have to adhere to bespoke governance and satisfy market abuse regulation.  Can MiCA stabilise the crypto market? Since the collapse of FTX in the US last year and wider crypto volatility, views continue to be split between those who argue that the industry should be prohibited or pushed to failure, and others who advocate in favour of developing robust requirements to effectively bring it under the purview of financial regulators.   The reality, as recently outlined by the Governor of the Central Bank of Ireland, Gabriel Makhlouf, is that the crypto industry is not going away, and that it is therefore sensible to put in place a set of industry-specific rules designed to support innovation and protect consumers. It is, of course, difficult to determine with exact precision if MiCA could have completely prevented recent failures in the crypto market.  There is, however, a strong case to be made that it would have provided much more robust oversight and transparency for supervisors – enabling them to react and identify areas of concern much sooner.  In tandem, rules concerning the segregation of client funds and crypto assets, enhanced disclosure requirements and stricter requirements on conflicts of interest – as envisioned by MiCA – would have undoubtedly made the sector more resilient in a time of stress, and discouraged misconduct.   Despite these positive provisions, it remains to be seen whether MiCA can curtail future upheavals in the crypto market and keep pace with rapid technological innovation. Arguably, two areas will be crucial to the success of the framework:   The need for a globally co-ordinated approach to regulation so that failures in other markets are not transmitted into the EU as a result of interconnectedness; That EU policymakers are able to produce useable technical standards and guidelines to support MiCA’s application in practice.   Policymakers push for alignment Positively, at a global level, policymakers – through the Financial Stability Board and the Basel Committee on Banking Supervision – are already working on producing more horizontal principles and requirements for the sector.  Last year, for example, the Basel Committee published its position on the prudential treatment of banks’ exposures to crypto assets, while discussions are also ongoing among EU policymakers about how risk weights might be assigned to the asset class before the global standards are in place.  However, whatever capital requirements are assigned within the EU, it will be crucial that they are aligned with global standards in order to preserve a level playing field.  Work on MiCA’s technical standards and guidelines is expected to begin later this year, before supervisors need to enforce the rules in mid-2024 and early 2025.  As the legislation is a regulation, it should remove most of the risk of regulatory arbitrage within the EU, but it is crucial that all Competent Authorities take a harmonised approach with respect to licensing application processes. This is especially important as existing Virtual Asset Service Providers (VASPs), which fall under national frameworks, will need to transition to the pan-EU regime.  Comments made in May by the US Securities and Exchange Commission’s Hester Peirce acknowledge that the US risks falling behind Europe without clear crypto rules.   Ultimately, time will tell if MiCA is a success or not, but at least the EU has been the first jurisdiction globally to identify the risks and opportunities presented by the crypto asset sector. This regulation sets a solid basis on which to further build upon.  Peter McGuigan is Head of EU Affairs at the Banking & Payments Federation Ireland

In the face of rising business costs, practitioners must ensure that more SMEs avail of the Small Company Administrative Rescue Process in the months ahead, writes Graham Kenny In 1990, the Iraqi dictator Saddam Hussein led a ground force invasion into Kuwait. This war was to serve as an unlikely catalyst for a radical overhaul of corporate restructuring in Ireland. It set in train a clear evolutionary lineage to the Small Company Administrative Rescue Process (SCARP) recently enacted under the Companies (Rescue Process for Small and Micro Companies) Act 2021. To understand this evolution, it is important to consider what actually happened in 1990. The economic effects of the invasion of Kuwait had immediate and dire consequences for Ireland.  Up to 70 percent of Larry Goodman’s Anglo Irish Beef Group exports were sent to Iraq and its customers went into immediate default.   Faced with the collapse of one of the largest employers in the State, the then Taoiseach Charles J. Haughey hastily recalled the Dáil from its summer recess and passed the Companies (Amendment) Act in August 1990.  This piece of legislation introduced examinership into the Irish statute books and, for the first time, permitted protection from creditors and the subsequent write-off of company debts.  Over the past two decades, I have been involved in many of the seminal cases of examinership across a range of sectors, including the first Supreme Court hearing of an examinership (In Re Gallium Limited [2009] IESC 2009). My experience is that examinership has served as an essential corporate restructuring tool, saving thousands of jobs through schemes of arrangement. Often, however, the costs associated with such restructuring have been cited as a disincentive for smaller companies to use the process. As a result, examinership has notionally remained the preserve of larger companies. The genesis of SCARP In February 2020, COVID-19 reached Ireland and had a devastating effect on many small businesses. In response to the threat of another financial crisis, SCARP came into force in December 2021.  This new Act is based largely on the examinership model, but notably does not require an application to court for its commencement.  Like examinership, the idea behind SCARP was to give companies breathing space from their creditors in order to implement a restructuring plan, which ordinarily included the write-off of a portion of creditors’ debts.  Before discussing the necessary role SCARP will have to play in the coming months, it is important to first undertake a brief overview of the salient features of this new corporate restructuring tool.  Who can apply? The Companies (Rescue Process for Small and Micro Companies) Act 2021 is aimed at protecting ‘small’ and ‘micro’ companies.  Small companies are defined as having an annual turnover of up to €12 million, a balance sheet of up to €6 million and up to 50 employees.  Micro companies are defined as having a turnover of up to €700,000, a balance sheet not exceeding €350,000 and up to 10 employees.  How does a company prepare for SCARP? The first step a company should take in considering the SCARP process is that the directors should prepare a statement of affairs in accordance with section 558B(4) of the Act.  The statement of affairs is accompanied by a statutory declaration that is then given to a Process Advisor. What is a Process Advisor? The Process Advisor is ordinarily an experienced insolvency practitioner who will attempt to restructure the company’s debts. It may be noted that the company’s auditor or accountant cannot act as its Process Advisor.  The Process Advisor will review the company’s statement of affairs and other financial information (as set out in Section 558C(4)) and then outline their determination as to whether the company has a “reasonable prospect of survival”.  It is important to note that a Process Advisor does not take executive powers and that the board of the company maintains full control. The Process Advisor’s fees are subject to super-preferential status over all other creditor claims. How does the rescue process commence? If the Process Advisor determines that the company does have a reasonable prospect of survival, then they will confirm this in writing to the directors of the company.  Section 558D(2) sets out that, within seven days of receipt of such confirmation, the directors shall convene a board meeting to consider whether the appointment of a Process Advisor is appropriate.  Section 558K compels the Process Advisor to notify employees, creditors and the Revenue Commissioners within five days of their appointment.  Section 558O states that creditors must acknowledge receipt of such notice within seven days and further information regarding their claim within 14 days. Can a creditor opt out of the rescue process? Section 558L provides a list of potential excludable debts. This list includes the Revenue Commissioners.  Notably, the holders of such excludable debts have 14 days to notify the Process Advisor of their intention to be excluded from the rescue plan. Such creditors must give reasons for their decision to opt out.  From anecdotal evidence, it appears that the Revenue Commissioners is largely supportive of the process and generally determined to opt in. What is a Rescue Plan? Section 558Q sets out the matters that must be incorporated into any Rescue Plan. These include: a statement of affairs; the likely outcome for creditors on a winding-up or receivership; the effect of the plan on each creditor; the reasons why the plan is fair and equitable; and  details of the Process Advisor’s remuneration. How is the Rescue Plan approved? Section 558T puts the onus on the Process Advisor to call a meeting of members and creditors as soon as is practicable after preparing the Rescue Plan.  Section 558T(4) requires that such meetings shall be fixed for a date no later than 49 days after the date on which the Process Advisor was appointed.  It is important to note that creditors must be give seven days’ notice of such meetings, so in reality the meetings must be convened no later than day 42. Section 558Y(4) sets out that a Rescue Plan shall be deemed to have been accepted by a meeting of members or creditors when 60 percent in number, representing a majority in value of the claims represented at that meeting, have voted in favour. Section 558Y(5) sets out that the Rescue Plan shall be binding on members and creditors where at least one class of impaired creditor accepts the plan and, furthermore, that 21 days have passed from the date of filing of the notice of approval in the relevant court office and no objection is filed in accordance with section 558ZC. Section 558Z requires that creditors are given notice of such approval within 48 hours. It is important to note that under section 558ZB, the Rescue Plan will not become binding on members and creditors until 21 days have elapsed from the filing of the notice of approval. What does it mean for a Process Advisor to “certify” certain liabilities?  Like examinership, the Process Advisor is given the power under section 558ZAA to certify company liabilities.  This certification means that such liabilities are treated as expenses of the Rescue Plan and therefore give such creditors a preferential status.  This provision is often used as an incentive to encourage creditors to continue to trade with the company while a Rescue Plan is formulated.  The future of SCARP Corporate restructuring requires a fine balance between competing corporate interests, employee rights and duties to creditors.  An unfortunate consequence of this complexity is that the rules governing such restructuring, whether under examinership or SCARP, can be convoluted and sometimes confusing.  But this fact alone should not deter practitioners from seeking appropriate advice and permitting struggling companies from reaping the benefits of this multifaceted legislation.  The low number of companies availing of SCARP thus far is bewildering. I would suggest that one of the main reasons for this sluggish start is simply the unfamiliarity of practitioners with the process.  The well-worn path of liquidation is regrettably often proffered by advisors before a full consideration of SCARP (or indeed examinership) is properly undertaken.  I think the main reason SCARP has not taken hold, however, is down to the extensive supports and debt warehousing that has been offered by the State.  In my experience, entrepreneurial directors live in the moment and dream of a brighter future. Directors can be reluctant to focus on the dark clouds on the horizon and are often instead consumed with an arguably unrealistic optimism. A report published by the Revenue Commissioners in March 2023 highlighted that 13,000 businesses have been expelled from the tax warehousing scheme for non-compliance and are now facing a 10 percent penalty charge.  Perhaps more worryingly, the same report shows that about 63,000 businesses still had a combined €2.2 billion tax debt in the warehousing scheme. This report also revealed that such debts owed by businesses in the scheme ranged from 19,000 businesses owing less than €100 to 6,400 owing more than €50,000. Jobs and livelihoods at stake Behind all of these abstract statistics, it is important to remember that these businesses employ 400,000 people who, in turn, have families to support.  In the face of both cost-of-living and housing crises, it appears inevitable that any rise in corporate insolvency rates would have a devastating impact on countless families within the next two years.  In light of these stark numbers, it is incumbent on practitioners across Ireland to seek the appropriate advice from corporate restructuring specialists when consulted by companies in this quagmire of historical debt.  The sooner this advice is sought and considered, the more realistic the company’s chances of survival will be. SCARP offers a vital lifeline to many struggling companies, and in the coming months, it needs to become a standard go-to option for practitioners and  their clients.  Graham Kenny is a Partner in the Dispute Resolution and Litigation Practice Group at Eversheds-Sutherland LLP

In his new role as head of PwC Ireland, Enda McDonagh wants to attract the ‘best and the brightest’ with a culture of openness and trust As the incoming Managing Partner at PwC Ireland, Enda McDonagh is busy preparing to take over in his new role from 1 July. Although still “very much in the transition phase”, McDonagh is, he says, already clear on one of the biggest priorities ahead for his four-year term at the helm of the professional services firm.  “Our people are our single most important asset. Fundamentally, our business is about people,” McDonagh says.  “What differentiates the firm in the market is the calibre and quality of our people, so attracting the next generation of leaders – the best and the brightest – will be a key focus for me.” McDonagh has been Assurance Leader with PwC Ireland for the past eight years and part of the leadership team reporting to Feargal O’Rourke, the firm’s outgoing Managing Partner.   McDonagh’s career with PwC Ireland stretches right back to 1994, however, when it was still trading as Price Waterhouse and long before the move to its current flagship premises on Dublin’s North Wall Quay. “When I walked through the doors of our old office on Wilton Place that first time, would I have thought I would be where I am now 29 years later? I don’t think I could have predicted it,” McDonagh says. “I’ve worked for one firm in that time, but I’ve had multiple careers through the roles and the experience I’ve had.  “Working closely with so many clients across different sectors has taken me from indigenous companies operating in the domestic market right through to multinationals trading in Ireland – and offering them the support mechanism they need to invest here. “Ultimately, I think I’ve gotten to where I am now by taking every opportunity that has come my way and making the conscious decision to keep learning at every stage of my career.” The team around McDonagh has also helped. “I’ve had some ‘bad hair days’, we all do, but I’ve always had that support around me, not just when I’m at my very best, but also when I’ve needed help. That’s really crucial, I think. It’s why I’m still here and why I absolutely still love it.” Of particular importance to McDonagh has been the support and guidance he has received from Feargal O’Rourke, who has been Managing Partner at PwC Ireland for the past eight years. “Feargal has been a great role model and mentor to me,” he says. “His support and enthusiasm for our people and the business over the years has been unrelenting. I have really valued his leadership and would like to wish him every success in his next chapter.” As the new Managing Partner at PwC Ireland, McDonagh will lead a firm with national reach extending to 3,000 people in Dublin, Cork, Galway, Kilkenny, Limerick, Waterford and Wexford.    It will be far from a solo endeavour, however. “One of the most important tasks right now for me is assembling the leadership team I will work with over the next four years.  “One of our core values at PwC Ireland is that we work together as a team and this extends right through to me and how I work with the team around me,” he says. “Everything we achieve, we achieve as a team. No one person ever has the monopoly on good ideas. Equally, no one should ever be in a situation where they are left on their own to try to solve a problem, or to figure something out.  “You absolutely have to support people and give them the space to understand what they want from their career and what they need to grow as professionals, and as people.  “They can only really do that if they know and trust that they are in an environment in which it is okay to make mistakes.” A Partner with PwC since 2006, McDonagh held the role of Assurance People Partner for four years before he was appointed Assurance Leader in 2015. It was this role that gave him his first real insight into the strategic value of good people management and meaningful employee engagement. “I learned so much in those four years about how to make sure that all aspects of how you engage your people is as it should be, both operationally and from a management perspective,” he says.  “It’s really about how they experience the firm from recruitment through all the stages in their career, and making sure that what we are giving them is rewarding and exciting. That is enormously important.” McDonagh’s own interest in accountancy as a career took root when he attended Templeogue College in Southwest Dublin. “I had a tremendous accounting teacher who really kindled my interest and, after I did the Leaving Cert, I went on to study Commerce at UCD followed by the Master of Accounting at UCD Smurfit School.” He joined PwC Ireland, then Price Waterhouse, in 1994 while still studying for his master’s. “We hadn’t yet merged with Coopers & Lybrand at that stage to become PwC Ireland, so I’m really one of the dinosaurs here,” he says. In the years since, McDonagh’s career has centred mainly on large-scale listed Irish companies and multinational corporations. “From a business perspective, I’ve always worked in the non-financial services part of the practice,” he says.  “What we’ve called this has changed more times than I can tell you over the years, but, essentially, my focus has been on big companies in sectors like manufacturing, industrial products, pharmaceuticals, life sciences and food.” Although he has spent much of his working life with PwC in Ireland, McDonagh recalls a three-year stint with the firm’s Boston office in the early 2000s as a particularly important period in his career. “That time was really key for me in terms of the lessons I learned and how important they have been to me since,” he says.  “I moved to Boston as a manager and then became a senior manager over there. I think, for many of us, when you take yourself outside your own comfort zone, you learn the most. “For me, moving to Boston was like starting again. I didn’t know anyone. I didn’t have any connections in the city. “In that situation, you have to build your brand and reputation from ground zero, and in a much bigger market. It was a challenge, but one I loved and learned a huge amount from. “People are much more direct in business in the US, so you very quickly form a thicker skin. As my career has progressed in the years since, that resilience has stood to me.  “At the same time, I made some lifelong friendships professionally and personally with my PwC colleagues in the US, but also with people at the companies I worked with.  “Those relationships have stood me in good stead because Ireland as an economy has such a vibrant trading relationship with the US. Having experience and connections there is very helpful.” Now, as companies in Ireland, the US and elsewhere grapple with a fresh set of challenges post-pandemic, McDonagh is seeing a “singular view” emerging in boardrooms around the country.  “It’s an interesting time. The global economy is clearly softer now than it has been for some time and, as we know, there are multiple elements to this. “There are the rising interest rates, inflation, the cost of doing business, and the general economic outlook, which is far from clear. “Everyone is facing these challenges but there is also something else that is very much front-of-mind now in the boardroom and that is the pace of technological change. “There has been this sudden acceleration in the development of technologies like Artificial Intelligence, and that means that many companies are looking ahead to a pretty demanding change agenda no matter what sector they operate in.” This change will bring opportunity as well as challenge. “The positive here is that companies are able to see beyond current challenges, and they are thinking about how to position themselves for the opportunities that lie beyond,” says McDonagh. “And from an Irish perspective, economically we are certainly in much better shape than we were at the time of the global financial crisis.  “We have strong fiscal returns, and we still have good investment trade flows into Ireland. This tells me that we have the capacity to weather the storm and navigate the headwinds coming at us.”  

As the new President of Chartered Accountants Ireland, Sinead Donovan is intent on showcasing a vibrant profession to ‘Next Gen’ members As she prepares for the year ahead as President of Chartered Accountants Ireland, Sinead Donovan’s key objective will be positioning the profession to attract the next generation. Her appointment to the role at the Institute’s AGM on Friday, 19 May, was a source of deep and genuine pride for Donovan, whose late father Cecil Donovan took on the same role in 1986. “It means a huge amount to me personally because of my father’s legacy and, professionally, I see it as the pinnacle of my career so far,” says Donovan.  “I’ve wanted to get here for a long time, because it matters enormously to me to be able to emulate my father, whom I admired so much, and to represent the profession I love.”  In the year ahead, Donovan says she will give “every possible effort” to representing all members of Chartered Accountants Ireland on the island of Ireland and overseas.  “The way I look at it, this role is about passing on the baton for the benefit of our members and the wider profession now and into the future,” she says. “My father passed the baton to me and being a Chartered Accountant has always felt to me like being part of a family that is unique in how we support each other. “So, my job is to pass the baton to the next generation – to show them what this profession is really about, and all that it can offer – and bring them into the family of accountants in which I have been able to build a fulfilling career that I love.” Donovan’s career has brought her to the pinnacle of the profession, as Chair of Grant Thornton Ireland and a Partner in the firm’s Financial Accounting and Advisory Services practice. “There has been a lot of variety in my career and a lot of opportunity. I have built some amazing relationships and worked in environments that are just really people-focused. “So, I want to get away from this idea of the ‘grey-suited accountant’ who works only with numbers. That is just not what a career as a Chartered Accountant is about.” Despite this, the perception of the profession among the Gen Z cohort (born between the mid-90s and early 2000s) now entering the workforce is not as positive as Donovan would like it to be. Gen Z research findings Recent Gen Z research carried out by Chartered Accountant Ireland, under the auspices of Chartered Accountants Worldwide, revealed a troubling ‘perception gap’ between respondents who had no experience of chartered accountancy and those who had commenced their training.  The study aimed to find out how the ACA qualification is perceived by Gen Z respondents in Ireland and worldwide. The Gen Z respondents in Ireland with no experience of chartered accountancy reported viewing the profession as challenging (56%), numbers-based (34%) and boring (19%).  They were considerably less likely than the global average to view the profession as purpose-led (2%), creative (0%), or exciting (4%).  Encouragingly, however, the Irish respondents who had begun their training were far more likely to view it as varied (up from 8% to 25%) and purpose-led. The respondents in this cohort describing it as boring halved.    “It’s clear that, once students commence their training, they get a much better sense of what the qualification is about, but for those who haven’t made the decision yet, the perception gap is pretty stark,” Donovan says.   “Irish students recorded a significant difference in perception, which shows us there is work to do. Engaging the next generation of accountants and the next generation of leaders will be front of mind for the Institute this year.” There are more routes into the profession today than ever before, but as Donovan sees it, more must be done to promote the qualification to the next generation, including changing the established and accepted ways of doing things.  “If the next generation does not buy into what we do and see itself in our profession, it will be because we are not adequately selling it to them, whether at school or third level, or in the early stages of their professional training,” she says.  “I want to ensure that students understand what ACA is and what the benefits of entering the profession are. Gone are the days of calculators and ledgers. Our focus now is on technology, data analytics, leadership skills and global developments.  “Being an Irish Chartered Accountant is respected around the globe and the qualification enables truly global travel and ability to do business. Our profession is in the middle of a recruitment and retention challenge and if we don’t step up to harness this talent pool, we are missing out.” Next Gen values and skill sets  There has been a lot of attention in public discourse about the need to ‘step up’ post-pandemic and help students and new recruits adapt to the working environment, Donovan says.  “There is also a need for us to re-examine that status quo and use this opportunity to ensure the environment is one that works for the next generation of the profession. Those at the start of their careers are seeking a greater degree of flexibility and better work-life balance and genuine diversity, equity and inclusion at work. “This idea of the ‘grey-suited accountant’ is just not it anymore. What I see in our younger members is a very vibrant cohort who will be leading business decisions into the future,” Donovan says. “They value sustainability and Chartered Accountants have an enormous role to play here in every sense – not just in terms of reporting and assurance, but also in shaping sustainability policy within companies and in advising organisations on sustainability best-practice.” Technology will also continue to play an ever-greater role in the work of the Chartered Accountant of the future, Donovan says. “Our Next Gen members will have to be at the forefront of information technology and data analytics, and in understanding the impact Artificial Intelligence is bringing to the world,” she says. “So, we need to make sure their education in these technologies is deep and comprehensive so that they are fully equipped with the skills they need to thrive in a rapidly changing world.” Next Gen education  For Donovan, education is also critically important to ensuring that the profession is “represented credibly” to the Next Gen members of Chartered Accountants Ireland.  “We’ve got to engage them in interesting methods of learning, syllabus content and topics that are actually relevant to the work of the Chartered Accountant from second level right through to third level, in their training and exam experience with the Institute and right through their career from there,” she says.  “In terms of secondary-level education, Pat O’Neill, our outgoing President, has done amazing work over the past year in raising awareness of how outdated the current Leaving Cert accounting syllabus is.  “The Institute has had a number of meetings with the Department of Education and Minister Norma Foley on this issue and Pat will now continue in the year ahead to progress to the next phase of this effort, which will be about driving action in updating the syllabus sooner rather than later.” As it stands, Chartered Accountants Ireland is already leading the way in helping secondary school pupils around the country understand what a career in accountancy is really about. In early 2020, the Institute launched Boot Camp, an online programme designed to help Transition Year and Senior Cycle students improve their accounting and business skills. The Boot Camp Challenge presents participants with a realistic scenario of a business in trouble, whose management must make important decisions about its future. Students review the relevant financial information, consider the wider circumstances, and suggest a possible course of action.  The programme has over 5,000 users active in all 26 counties in the Republic of Ireland “I’ve done the Boot Camp challenge myself, it’s brilliant. It teaches pupils about business, about how accountants are engaged in really critical business decisions, and the impact these decisions can have,” says Donovan. “Most importantly, I think it shows them that accountancy is not all about maths and numbers and breaks that perception that, unless you’re really good at maths, a career in accountancy isn’t for you, because that’s not the case at all.” Project Athena roadmap Innovation is already leading the educational agenda within Chartered Accountants Ireland, which completed Project Athena in 2022. Undertaken with funding from the Chartered Accountants Education Trust, the extensive research project included close to 100 interviews with senior members, academics and regulators in Ireland and overseas.  The findings were academically validated by Trinity College’s Learnovate Centre and will now drive the Institute’s Next Gen educational strategy.  “The roadmap for future innovation in education stemming from Project Athena is in place and we will begin to introduce changes to our education tools and delivery methods from September 2024 starting with CAP 1 and moving to CAP 2 and FAE,” says Donovan. “Some of the developments we’ll be seeing over the next two to three years will include real-time exams, which will bring more certainty to students as well as greater flexibility.  “Data analytics will be used to review students’ activities and performance on an ongoing basis so we can see how each of them is getting on in real-time and identify who might need help and support before their exams.” Global member outreach Chartered Accountants Ireland is Ireland’s largest and oldest professional accountancy body. Dating back to 1888, it represents over 31,700 members around the world and is currently educating more than 7,000 students.  It is an impressive reach and one Donovan plans to harness as she endeavours to highlight the vibrancy and variety of the profession in her role as President. “Above all, I want all of our members to know that they can reach out to me. It’s incredibly important to me to be accessible and plugged into what people are doing. I’m on social media channels, particularly LinkedIn, and I’m more than happy to engage with people, if they want to, any time,” she says. With members in more than 90 countries and active local chapters in international cities ranging from New York in the US and Sydney in Australia to Dubai in the United Arab Emirates, the Institute has a healthy presence outside the island of Ireland. “My outreach work over the next 12 months will be international as well as national. I want to meet as many members as I can in the UK, the US, Australia and the Middle East – wherever I can get to, I will! “I worked in Australia myself back in the 1990s, so I know how much it means when a President or Officer Group visits from the Institute.  “When you’re away from home, your accountancy family becomes even more important and it’s just lovely to see the President and to see them interact with, and hear the views of, members overseas.” On home turf, Donovan’s itinerary will be no less busy as she has plans to visit, celebrate and engage with District Society members across the island. “We plan to hold our council meeting in November in Cork with a dinner in the evening for our members there and that’s very much along the lines of what I want to do throughout the next 12 months — just get out there and meet members as much as I can.” Beyond its own activities, Chartered Accountants Ireland offers a crucial voice to members on the world stage in professional, policy-related and regulatory matters relevant to its membership.  The Institute is a founding member of Chartered Accountants Worldwide, an international network of over one million chartered accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants.   Advocacy and representation will be another key priority for Donovan. “I’m very keen to continue growing and solidifying these relationships so that our members have the voice they deserve wherever it needs to be heard,” she says.  “I want to build on the relationships and reciprocity agreements we have with other corporate bodies throughout the globe and to make sure that we take every opportunity to let the younger generations we want to attract to the profession know that ours is a global qualification that can take them all over the world.”

In a competitive business landscape, recruiting top talent is a strategic imperative for organisations. Paul O’Donnell unveils the three Cs to attracting and securing the best candidates for your organisation’s success Great talent makes great organisations, not just because of their higher productivity but also the influence they have on the commitment and standards of others. Great talent is scarce, and as we head into more uncertain economic times the “war for talent”, as framed by Steven Hankin of McKinsey back in the 1990s, has already kicked off. Whether you hire directly or work with a search partner, the process of winning great candidates demands real attention to the full hiring cycle. To attract really great talent, organisations need more than the basics of a good recruiting process. Here are three key questions to ask and steps to take to ensure the best candidates say yes to your organisation. 1. Communication: What can your target talent pool read about you online? If you have a talent acquisition team or marketing function, dedicate a resource to continuously evaluating how the outside world sees your firm. What compelling story will your target talent pool read about the difference your organisation makes to its customers and community? What messages can they see from current employees as advocates for working with you? Where does your target talent pool like to spend time online, and is your message strongest here? 2. Contribution: What problem exists in your organisation by not having this role filled? Role and organisational purpose are the top attractions for the best talent. Does the organisation’s purpose matter to the candidate, and is your organisation the right place to address it? What difference can their effort make for stakeholders? These are your key questions externally and during your hiring process. 3. Character: What traits in the candidate does your firm want for the whole organisation? Complementary culture and values between a high performer and your organisation are essential. Losing a high performer over a lack of values alignment is optically poor and will reverberate internally and externally. Conversely, great talent can be extremely influential in changing the behaviour of those around them, so mapping the characteristics you seek for the whole company before hiring anyone new is vital. In an excellent article in MIT Sloan Management Review, “Make Leader Character Your Competitive Edge”, Mary Crossan, Bill Furlong and Robert D. Austin describe how character, when valued equal to competence, can result in better decisions and outcomes. The next time you hire externally, consider communication, contribution and character to put your own organisation first in the candidate’s decision-making process. Paul O’Donnell is CEO of HRM Search Partners

As artificial intelligence increasingly becomes integral to business operations, establishing an effective AI policy is crucial for boards. Stephen Conmy delves into the key steps boards should take to create a comprehensive AI policy  Creating your company’s artificial intelligence (AI) policy involves carefully considering various ethical, legal and operational aspects. Here’s a 10-step guide to how a board of directors can develop an AI policy – and communicate it effectively to the executive management team and staff. 1. Establish a working group Form a working group of board members, executives and relevant stakeholders to lead the AI policy development process. This group will oversee policy creation, gather necessary expertise and ensure representation from various departments and stakeholders. 2. Educate the board All board members should have a foundational understanding of AI and its ethical implications. Board members should have training sessions or workshops to familiarise themselves with essential AI concepts, such as algorithmic bias, privacy concerns and AI’s potential impact on employment. 3. Define the policy’s objectives Identify your organisation’s primary objectives in adopting AI technology. These objectives will shape the overall direction of the policy. This may include improving your company’s efficiency, enhancing customer experience or promoting innovation. 4. Assess the ethical principles and values Determine the ethical principles and values that guide AI development and deployment within your organisation. It would help if you considered fairness, transparency, accountability and well-being concepts. These principles will help establish a solid ethical foundation for the AI policy. 5. Evaluate legal and regulatory compliance Understand the legal and regulatory landscape surrounding AI, including data protection laws, privacy regulations and industry-specific guidelines. Ensure the AI policy meets these requirements to avoid legal risks and uphold compliance. 6. Identify potential AI use cases and risks Identify the specific use cases and applications of AI within your organisation – where will it be used, by whom and for what purpose? Assess the associated risks, including potential biases, security vulnerabilities and unintended consequences. Next, develop guidelines and best practices to mitigate these risks. 7. Establish accountability and governance Who will be responsible for your AI policy? Define the roles and responsibilities of stakeholders involved in AI development, deployment and monitoring. Establish clear lines of accountability and governance mechanisms to ensure ethical decision-making and risk management throughout the AI life cycle. 8. Ensure transparency and explainability Promote transparency and explainability in AI systems by requiring clear documentation, responsible data practices and understandable algorithms. Ensure that stakeholders, including employees and customers, can comprehend the basis of AI decisions and raise concerns if necessary. 9. Encourage continuous monitoring and evaluation Implement mechanisms to monitor an AI system’s performance, impact and adherence to ethical standards over time. Regularly evaluate the policy’s effectiveness and make necessary adjustments based on feedback and emerging best practices. 10. Communicate the AI policy Craft a comprehensive AI policy document that encompasses all the elements above. The policy should be written in clear, accessible language and provide practical guidance. Communicate the policy approach to the executive team and staff through various channels, such as company-wide emails, town hall meetings and training sessions. Stephen Conmy is Head of Content at The Corporate Governance Institute

The Economic Crime and Corporate Transparency Bill 2022 aims to bolster corporate transparency and combat economic crime. Maeve Hunt explains the two key takeaways for entities registered at Companies House and their directors In the single biggest change to the role of the UK Register of Companies since it was created in 1844, the Economic Crime and Corporate Transparency Bill 2022 seeks to make a number of modifications to company law with the aim of enhancing corporate transparency and reducing economic crime. To facilitate this, the Bill seeks to make further provisions about companies, limited partnerships and other kinds of corporate entities, and around the registration of overseas entities. The legislation, on receiving Royal Assent, will affect all those who interact with Companies House, whether individuals (directors, secretaries and people with significant control of entities registered at Companies House) or entities, including companies, limited partnerships, limited liability partnerships and overseas businesses. There will also be an impact on agents of such entities, such as those who provide company secretarial services. At the time of writing, the Bill is in the reporting stage in the House of Lords, which gives all members of the Lords a further opportunity to examine and make amendments to the Bill. Once the Bill becomes legislation, there will be a period of transition to allow individuals and companies sufficient time to comply with the additional requirements. There are two key considerations for entities registered at Companies House and their directors: identity verification and increased filing on the Register.   Identity verification To enhance the transparency of controllers and owners of businesses on the Register, Companies House will introduce mandatory ID verification for directors, company secretaries, people with significant control and others associated with those entities, such as their agents. The ID verification process will use technology to verify the identity of the person in question by comparing their photograph with an official government ID, such as a UK-issued passport. A director, company secretary or person with significant control will not be considered legally appointed until the ID verification process is completed, and they will be unable to act in that capacity or make filings at Companies House. This will cover both UK-resident and non-UK-resident individuals. For newly appointed individuals, the process will need to be completed prior to appointment. For existing roles, there will be a transition process to allow ID verification to be completed. If the verification is not completed within this timeframe, the individual will be removed from their role in that entity. Separate provisions will cover those who do not hold UK-issued identification, such as overseas nationals, or those unable to use the web-based service. For corporate directorships, similar provisions will also apply. A UK company will only be able to be appointed as a corporate director when all its directors are natural persons, and those natural persons are subject to appropriate ID verification checks. Non-UK companies will no longer be permitted to act as corporate directors. These provisions also extend to directors of overseas companies registered at Companies House. Improving financial information on the Register Currently, 3.1 million sets of accounts are published on the Register each year, and access to these accounts is arguably the most valuable service that the Register provides. Companies House will require all financial statements submitted to be in Inline Extensible Business Reporting Language (iXBRL) format. These tags are machine-readable, which will make the data easier to interrogate, compare and check, aiding Companies House in carrying out its new responsibilities for maintaining the integrity of the data it holds, identifying and addressing errors, and sharing data under certain strict conditions with other bodies such as law enforcement. Companies House currently accepts accounts in iXBRL format, as well as in paper format and most companies will be required to include a set of accounts in a similar, but not identical, format when filing their corporation tax returns with HMRC. There are currently reduced filing options for some companies where they meet the ‘small’ or ‘micro’ criteria set out in the Companies Act 2006. Such entities currently have an exemption from filing their Profit & Loss Account, and, for small companies, a Directors’ Report. A micro company is exempt from having to prepare a Directors’ Report. These reduced filing options will be removed, meaning small and micro companies will file their full financial statements, including a Profit & Loss Account and Directors’ Report (where applicable), which will be publicly available. Maeve Hunt is a Director of Audit and Assurance at Grant Thornton NI

Environmental, social and governance reporting is now considered paramount for many organisations. Derarca Dennis outlines five essential steps for getting it right. Irish organisations of all sizes will be affected by an ever-increasing volume of environmental, social and governance (ESG) reporting requirements. Even businesses that fall outside the scope of the regulations and reporting standards are likely to be required to align with them to meet customer and stakeholder expectations and requirements. The EY Ireland CFO Survey 2023 points to ESG still being perceived as a compliance and regulatory issue rather than an opportunity. Only six percent of the respondents say increasing the sophistication of non-financial reporting is one of the top strategic areas of focus over the next five years, down from 15 percent in 2022. Irish finance leaders will, therefore, need to increase the sophistication of their non-financial reporting and prepare for the advent of new and more exacting regulations in the coming years. They must also put in place the systems that will enable them to move the dial from compliance to value-creating opportunities for their organisations. Improved reporting It is vitally important for every Irish organisation to assess their current and potential obligations under both existing and upcoming regulations and reporting standards. To prepare for what will be an ever-increasing compliance burden, Irish organisations need to take the following steps. Gap assessment Organisations should carry out an assessment of any gaps between their current disclosures and existing and future reporting requirements to ensure compliance with the reporting regime as it stands and identify measures required to meet the requirements of upcoming regulations and standards. It will also build internal competencies to assess any gaps that might emerge. Governance Adopting a clear governance structure for sustainability reporting and management across the business is vital for ensuring accountability of key performance metrics and targets. Engagement at board level through the establishment of a sustainability reporting sub-committee is an important element of such a structure. Data and controls The creation of a centralised data management system for ESG data owners to feed into will simplify the reporting process and establish internal controls surrounding ESG data. Assurance readiness Irish organisations should keep future compliance in mind when conducting changes to their systems and controls to avoid having to make further changes later. Early involvement of organisations’ audit committees can assist in this process. Double materiality assessment A requirement under the Corporate Sustainability Reporting Directive, double materiality can allow an organisation to map the impact their business has on stakeholders and the environment, as well as the financial impact that sustainability issues will have on cash flows. Training Organisations should provide training to employees on ESG matters and regulations to engender a broader understanding of these matters and their importance across the business. Integration The ESG agenda is evolving at pace. New regulations and reporting standards along with market pressure will require CFOs to integrate non-financial reporting into their existing systems. This will place a heavy burden on finance teams, but it will also present opportunities for value creation through increased efficiencies, enhanced risk management and improved competitiveness. Derarca Dennis is Assurance Partner at EY Ireland

Despite rising inflation and interest rates, Ireland’s SMEs are prioritising innovation to stay competitive in a tough market, writes Neil Hughes Inflation is the number one threat facing Irish SMEs at present (56%), followed by rising interest rates (40%) and the availability of talent (34%). These were some of the main findings of the new Azets SME Pulse Survey undertaken with iReach, surveying senior leaders at 211 SMEs across Ireland in April and May. Forty-three percent said they were expecting the economic climate to worsen over the next 12 months. Only 18 percent are expecting an improvement. If economic uncertainty persists, one-in-three (36%) said they would consider cutting jobs. It is clear that inflation is proving to be a significant challenge for SMEs throughout the country. Every aspect of doing business is becoming more expensive and rising prices are putting a squeeze on already tight operating margins. Given the numerous challenges facing owner-managed and family businesses in Ireland, there is likely to be a greater number of SMEs needing support in the face of financial difficulty.  Rising prices, combined with the significant levels of tax warehoused during the COVID-19 pandemic that will fall due, mean that there are likely to be hundreds of SMEs facing financial difficulty that may need to be restructured.  I would encourage SMEs facing financial challenges to get advice on restructuring and find out if there are funding or finance options that might support their business. The Small Companies Administrative Rescue Process (SCARP) or examinership could help save their business and the jobs they support.  The main sources of funding SMEs expect to avail of in the coming year include their own cash (24%) and government grants or subsidies (19%). Just 13 percent are considering private equity, nine percent bank funding and four percent venture capital.  Forty-six percent of our respondents believe the government should provide additional grants and supports to help navigate the challenges ahead, and 35 percent want additional funding for skilling and upskilling initiatives. Twenty-five percent of our SME Pulse Survey respondents told us they expect the tax burden to increase, while 10 percent expect it to fall. When asked about the outlook for their own business, 19 percent said they expect their revenue and profits to increase in the year ahead, 63 percent expect no change and 18 percent are anticipating a decrease.  Despite the obstacles they are currently navigating, SME leaders believe that innovation will provide the greatest opportunity for their business over the coming six months. It is encouraging to see SMEs remain optimistic about the future of their business and committed to pivoting their business models and embracing digitalisation to fuel growth. There is no doubt that technology, whether for cybersecurity, data analytics, remote working, e-commerce or process automation, will be key to their ongoing resilience and competitive advantage. This will be critical as they continue to adapt to a rapidly evolving world.  The Azets SME Pulse Survey also reveals that only one-in-five Irish SMEs are currently measuring their carbon footprint.  They are beginning their sustainability transformation journey and ESG considerations will increasingly shape their business strategy – whether this is in the reduction of their environmental impact or promoting greater diversity.  Close to one-in-three SMEs are currently reducing the carbon footprint of their business. The main challenge they face in progressing their ESG goals is the cost involved. With Ireland committed to becoming net zero by 2050, however, SMEs will have to adapt.  Neil Hughes is CEO of Azets Ireland

Cloud computing has revolutionised how businesses operate but it has also given rise to new risks, challenging organisations to navigate security breaches, data privacy concerns and governance, writes Jackie Hennessey While cloud computing offers some great benefits such as reduced costs, flexibility, and scalability, it also introduces a unique risk profile, including information security, data protection, service availability and increasing regulatory requirements. Striking a balance between managing this risk and leveraging the power of the cloud is crucial. Effective cloud governance that promotes optimisation and does not create barriers to innovation can help organisations strike this balance. Navigating the key risks of the cloud Risks need to be governed and managed to ensure that cloud technology is being used responsibly and in compliance with regulatory expectations. As a result, it is more important than ever to understand and mitigate these potential risks to leverage cloud computing safely. Your first step to determining your cloud risk exposure is understanding the following six potential risk categories: People: Lack of available resources with the correct skill set; Data security: Failure to implement sufficient and appropriate security controls to protect data and prevent data loss through unauthorised access; Compliance: Failure to meet regulatory compliance requirements (including across multiple jurisdictions); Operational: Failure to implement cloud processes, systems and controls aligned with current policies; Financial: Failure to perform proper cloud spend management around unplanned spikes in transaction volume and traffic; Third-party: Lack of third-party oversight, including failure to acknowledge the increased risk of cloud vendor lock-in, vendor unreliability and dependencies. Cloud management Cloud-focused governance bodies Cloud governance bodies will be required to develop, monitor and evolve cloud governance over time by leveraging existing governance forums or establishing new ones with responsibility for: Cloud governance – formulating initial cloud governance policies, monitoring compliance and reviewing exceptions and proposed changes; Cloud operations – managing day-to-day cloud operations, service provision and related issues. Management of CSPs The approach to managing cloud service providers (CSPs) should be formalised and include processes for: Ensuring CSPs have adequate controls in place; Onboarding and offboarding of cloud services from CSPs; Monitoring of performance in line with Service Level Agreements (SLAs); Oversight of outsourcing arrangements carried out by CSPs (i.e. sub outsourcing); Ensuring exit strategies are in place for the termination of services (both expected and unexpected). Cloud strategy A cloud strategy should be developed or considered as part of the technology and outsourcing strategies. The cloud strategy will need to remain aligned with the business’s strategic objectives and be reviewed and updated periodically. Data privacy and security Data privacy and security policies and processes should be updated to consider the use of the cloud and additional controls that may need to be implemented as a result of this, such as: Sensitive data ownership and classification; Data flows and requirements for data transfer; Data loss prevention and rights management for cloud data at rest, in transit and in use. Cloud capabilities Mechanisms should be implemented to ensure ongoing resource availability with the right expertise and skill set. Cloud policies and processes Cloud policies and processes should be developed to define how the cloud is managed and monitored. These policies and processes should be communicated to appropriate stakeholders across your organisation to support ongoing compliance. Regulatory compliance Regulatory horizon-scanning mechanisms should be in place to identify the regulatory compliance landscape and expectations for cloud services relevant to your organisation. Jackie Hennessey is a partner in Risk Consulting at KPMG

The Lean methodology can help companies increase client satisfaction, cut costs and improve profitability, writes Willie Cleary The most important stakeholders for all companies are their clients. Without satisfied clients, there is no business, so understanding and accurately mapping your customers’ experiences is crucial. Doing so can help to ensure that your clients are getting the best possible product or service while also identifying and helping to manage aspects of your product or service that could be improved. Lean is a well-proven methodology that could help your business achieve these goals. What is Lean? Lean is a process improvement methodology that originated in manufacturing (e.g. car-maker Toyota) and has since been adopted by many other industries and professions.  At its core, Lean focuses on identifying and eliminating waste in a process, which can add value for clients and result in higher residual returns for business owners. Lean is a four-phase process involving the following steps: Identifying the client journey; Identifying value-added and non-value-added activities in a process; Removing non-value activities from the process; and Engaging in continuous improvement of the process. Step 1: Identifying the client journey The first step in mapping a client’s experience is to identify their journey from start to finish. This may include their initial consultation or onboarding and regular interactions thereafter, including the supply of goods or services.  The starting point here usually involves visually mapping out the entire process – on a whiteboard, for example.  All relevant team members must be included in this mapping phase to ensure that the necessary process improvement steps are captured, documented and fully understood by all. In a professional service setting, for example, the client’s journey after the initial consultation might include a formal letter of engagement.  If accepted by the client, this letter would lead to an onboarding process whereby the client would provide relevant information and documentation to the service provider. The service provider would then work with the client, providing regular updates in the lead-up to the final output, including a business plan, financial statements or tax returns. Step 2: Identifying value-added and non-value added activities  Once the client’s journey has been accurately mapped, the next step is to identify value-adding and non-value-adding activities.  Value-adding activities are those that contribute directly to the client experience. They may include meeting with clients to discuss their needs, preparing financial statements or business plans and providing regular updates or feedback. Non-value-adding activities do not contribute directly to the client’s experience – waiting for a response, for example, or unnecessary paperwork. All non-value activities must be clearly identified to improve the efficiency of the client’s journey. To identify value-added and non-value-added activities, you can use the “five whys” technique. This involves asking “why” five times to get to the root cause of an issue.  If you identify that waiting for a response from a client is a non-value-added activity, for example, you can ask why the response is needed. If the response is needed to complete the work, you can ask why it is needed to complete the work, and so on, until you get to the root cause of the issue. Step 3: Removing non-value activities from the process The third step in the Lean process involves removing non-value-added activities from the customer journey – streamlining processes, reducing bureaucracy and simplifying procedures, for example.  Removing these particular activities can create a more efficient process that adds value for your clients, mainly by reducing related costs.  You may be able to automate some of your client communication, for example, by using online document management systems to reduce paperwork. Step 4. Engaging in continuous process improvement The fourth step in the Lean process involves continuously improving the client’s experience of your business.  The output of this exercise may involve implementing new process changes based on client feedback or inefficiencies identified by your staff in their day-to-day work. Step four has two phases: Applying metrics or key performance indicators (KPIs) to measure the effectiveness of business processes (e.g. client satisfaction or query response times). By monitoring these metrics or KPIs, the business can more easily identify areas for further improvement. Involving core team members in continuous improvement by encouraging them to suggest improvements, solicited or unsolicited, and empowering them to make positive changes. This process can be supported by providing training and development opportunities for your team. The power of continuous improvement Lean is all about continuous improvement, so it is crucial to seek regular stakeholder feedback while reviewing business processes and identifying areas for improvement on an ongoing basis.  Mapping your clients’ experiences of your business has many potential benefits. It can help you to identify and eliminate costly inefficiencies, improve the client experience and increase profitability.  Willie Cleary, FCA is a Lean Consultant with LeanTeams

The Corporate Sustainability Reporting Directive aims to improve the quality, comparability and relevance of sustainability reporting by companies in the EU. Brendan Ringrose explains what it’s all about The pandemic, turmoil in Ukraine, stricter regulatory controls and the effects of climate change have all contributed to the heightened level of urgency surrounding environmental, social and governance (ESG) reporting. The Climate Action and Low Carbon Development (Amendment) Act was signed into law in July 2021. The Climate Act commits Ireland to reaching specific greenhouse gas emission-lowering targets by 2030 and 2050 and provides a framework for doing so. Greenwashing and reporting The European Commission’s Corporate Sustainability Reporting Directive (CSRD) is a proposed legislative measure aimed at improving the quality, comparability and relevance of sustainability reporting by companies in the EU. One of the main objectives of the CSRD is to address the problem of greenwashing, which occurs when companies make false or misleading claims about ESG performance to improve their reputation or gain competitive advantage. Greenwashing undermines the credibility and effectiveness of ESG reporting, making it difficult for investors, consumers and other stakeholders to assess the true sustainability performance of a company. The CSRD will apply to all large companies and all companies listed on regulated markets (except listed micro-enterprises). Organisations must not only disclose how sustainability issues impact them, but also how their activities impact society and the environment. Strengthening sustainability The European Commission’s Action Plan for Financing Sustainable Growth directly targets ‘strengthening sustainability disclosures and accounting for rule-making’ as one of 10 key focus areas. In tandem with the trend towards mandatory ESG reporting, more and more companies are choosing to disclose ESG information to satisfy stakeholder demands voluntarily. The CSRD obliges companies within the scope to report against common EU reporting standards adopted by the European Commission as delegated acts. Companies are likely to start reporting in 2024, based on FY 2023 information. Reporting considerations Companies will need to consider the following over the next several years. Timeline for implementation The timeline for the implementation of the standards and reporting is: FY 2023: first set of Sustainability Reporting Standards will be available by mid-2023 based on the draft standards published by the European Financial Reporting Advisory Group in November 2022; FY 2024: second set of Sustainability Reporting Standards will be available and EU Member States will adopt the EU directive; FY 2025: first reports due for the financial year 2024. Who does it apply to? The CSRD applies to all large companies governed by, or established in, the EU with: >250 employees and/or; >€40 million turnover and/or; >€20 million in total assets of listed companies. Small and medium listed companies get an extra three years to comply. What must be included? A dedicated section of the company’s management report must include the information necessary to understand its impacts as well as how sustainability matters affect its development, performance and position. Though the Non-financial Reporting Directive did not require auditing, the terms of the CSRD require sustainability reporting to be checked externally when the CSRD takes effect. Companies will need to seek limited assurance of sustainability information. This requirement is less extensive than that required for the financial audit statement but will, nonetheless, require external scrutiny. Companies must disclose information relating to intangibles (social, human and intellectual capital). Reporting should be in line with Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation. An entity will be exempt from the reporting requirements if the consolidated management report of a parent company includes the results of the company and its subsidiaries. Reporting This must be included in the management report. The bottom line Mandating standardised reporting provides for increased comparability in the public domain. This means that organisations can be held accountable by their stakeholders and, in turn, is likely to play a role in procurement processes. Brendan Ringrose is a partner with Whitney Moore LLP Law Firm

As the unsung heroes of the family unit, stay-at-home parents must be properly compensated for their work in the home with a stable retirement, says Carol Brick According to a survey conducted by Royal London Ireland in 2022, 88 percent of women believe that the role of the stay-at-home parent is undervalued or under-supported in Ireland. About 349,500 people in Ireland work as stay-at-home parents, with 94 percent being women, the survey found, highlighting a possible risk of poverty for those people upon retirement. Despite the invaluable work done by these individuals, more than eight in 10 agree that their role is undervalued or under-supported. According to the Royal London Ireland research, the annual cost to employ someone to do the household jobs usually completed by a stay-at-home parent would be an estimated €53,480. However, the survey participants estimated the potential ‘salary’ of the stay-at-home parent at an average of €28,460 per year. Those who give up work to look after a family, whether male or female, are the least likely to save for retirement. Stay-at-home mums are at the highest risk, as retirement savings are not on the agenda without an income. This is a significant concern as the state pension, after taking their years as a homemaker into account, will be approximately €12,000 per year. These individuals must consider financial protection and planning to ensure their family is financially secure, especially in the event of an unexpected death or illness. Long-term effects If stay-at-home parents in Ireland do not plan for retirement, they may face serious financial consequences in their later years. Without a steady income stream, they may struggle to cover their living expenses, healthcare costs and other essential needs. This can lead to a lower standard of living and reduced quality of life during retirement. Without a financial plan, they may have to rely on their adult children or social welfare. Furthermore, not planning for retirement can limit the options available to stay-at-home parents. They may be forced to work longer than they would like or take less-than-ideal jobs to make ends meet, limiting their ability to travel, pursue hobbies or support their families in other ways. Planning for retirement can help stay-at-home parents in Ireland achieve financial security and allow them to enjoy their later years. Lastly, not planning for retirement can affect their mental and physical health. Stay-at-home parents may experience higher stress levels, anxiety, and other adverse health outcomes without the financial resources to cover medical expenses or other healthcare needs. Planning for retirement can help stay-at-home parents in Ireland maintain their physical and mental health and enjoy a fulfilling and satisfying retirement. Society often undervalues or under-supports the role of stay-at-home parents, despite their invaluable contributions to their families and communities. I encourage individuals to prioritise financial planning and protection, no matter their employment status. Carol Brick is Managing Director of CWM Wealth Management and HerMoney.ie

At a time when companies are struggling with employee retention, internal networking is vital for individual and organisational growth, says Jean Evans When you open any newspaper or listen to broadcasts, podcasts or news these days, you are hit with reports of people leaving the workforce. Organisations are struggling to retain and recruit staff. This is further fuelled by negative media reports on the crises our society is currently facing, from housing shortages to energy prices. It is clear that something is simply not working. People are stressed and overwhelmed. They are feeling the pressure, they are time-stretched, and they don’t have enough balance in their lives. Organisations are unsure of how to respond, leading to managers who are ill-equipped to deal with the changes needed in the workplace.  There simply isn’t enough time to learn and understand everything in this working environment. Internal networking While there is no magic wand to solve the problem of workplace churn, helping people to understand what it means and how to connect with others can help. This is where internal networking comes in.  Organisations must make the time to coach and train employees on how to connect and learn about one another and grow to create a workplace community that supports them when they put their hand up for new projects, share ideas or need to overcome a challenge. Where there are genuine connections and support in an organisation there is psychological safety. This can help to create a happier workforce that is focused on reaching shared strategic goals. Organisational benefits There are benefits for organisations that take the time to facilitate internal networking: Knowledge sharing Internal networking can facilitate the sharing of knowledge, ideas and expertise among colleagues, which can lead to greater innovation, improved decision-making and better problem-solving. Career development Networking with colleagues can provide opportunities for career development, such as mentorship, job shadowing or exposure to new projects and initiatives. Improved communication Networking can enhance communication within an organisation by promoting open dialogue, encouraging feedback and creating a culture of transparency, trust and confidence. Increased job satisfaction Building relationships with colleagues can create a sense of community and belonging, which can improve job satisfaction, employee retention and overall well-being. Enhanced collaboration Networking can promote collaboration and teamwork, which can lead to increased productivity, better outcomes and greater job satisfaction. Professional growth Networking can provide exposure to different perspectives, experiences and approaches, which can help professionals broaden their knowledge and skills. Looking at company culture How internal networking manifests itself depends on the culture of a company. For it to work, everyone must be engaged and ready to buy into the powerful notion that having connections is crucial to any organisation’s success. Jean Evans is a Networking Architect and Founder at NetworkMe

The Work Life Balance and Miscellaneous Provisions Act 2023 (Act) has been signed into law. Moira Grassick outlines the Act’s key provisions and its implications for employers and employees Last month, the Work Life Balance and Miscellaneous Provisions Act 2023 (Act) was signed into law by President Michael D. Higgins. This new employment legislation will introduce several new statutory rights aimed at supporting a better work-life balance for employees and also supporting those with caring responsibilities. The Act also seeks to support employees who are victims of domestic violence through the introduction of a statutory paid leave entitlement of five days. New rights In summary, the Act introduces the following rights: the right to request remote working for all employees; the right to request flexible working for parents and carers; the right to breastfeeding breaks extended to two years from the date of the child’s birth; five days’ unpaid leave for medical care purposes for parents of children under 12 and carers; and five days’ paid leave for victims of domestic violence. The right to request remote work As all employees with more than six months of continuous service will soon have a right to request remote work, employers will need to plan how to manage these requests. The Workplace Relations Commission (WRC) is also developing a Code of Practice to provide further guidance for employers and employees on managing requests for remote working arrangements. An employer must respond to the request within four weeks. However, this timeframe may be extended to eight weeks if the employer is having difficulty assessing the workability of the request. While employers will be obliged to consider these requests under the new law, it should be remembered that there is no obligation to grant all requests. If employers refuse the request, the Act states they must provide a written notification to the employee confirming the reasons for the refusal. The WRC does not have jurisdiction to challenge the merits or the grounds of an employer’s decision to refuse a request for remote working. Potential impact The new rights to request flexible work for parents and carers, and remote work for all employees, are designed to promote a better work-life balance. While they represent a new development in employment law in Ireland, how these rights will operate in practice remains to be seen. Employers must develop policies for managing this type of request and prepare for negotiations with employees who want to alter their working patterns. Employers in industries that have developed remote work practices in recent years may face pressure to grant requests. If operations were largely unaffected by remote working arrangements brought in to deal with pandemic restrictions, it might be difficult to refuse a request for productivity or operational reasons. And with the jobs market remaining tight, employers who refuse requests risk losing valued employees to a competitor who does offer flexible or remote working options. Unpaid leave for medical purposes  The Act states that an employee is entitled to five days’ unpaid medical leave in a 12-month period to provide “significant care or support for a serious medical reason” for a person who is in a specified relationship with the employee, such as a spouse, civil partner, parent, sibling or person who resides in the same household as an employee. This leave is different to force majeure leave, which gives an employee three days in a 12-month period or five days in a 36-month period for an urgent family matter. Paid domestic violence leave  The Act introduces this new leave which provides for five days’ paid leave for victims of domestic violence to allow the affected employee to seek medical advice, legal representation and to engage with other specialist support services. Bespoke employment policies As it seems highly unlikely that all businesses will be able to roll out generic “one size fits all” policies to manage all these new employee rights, each company will need to tailor new policies to the specific needs of its operations. While employers should wait until the WRC Code of Practice is finalised before tailoring their remote work policies, it’s a good idea to begin preparing to update handbooks and policies to reflect these upcoming changes, making remote working more accessible for more employees. Moira Grassick is Chief Operating Officer at Peninsula

In today’s unpredictable business environment, organisations must invest in resilience to ensure they can withstand any disruption and quickly recover, writes Andy Banks  As Irish businesses grapple with a rapidly changing world, the challenges of geopolitical upheaval, soaring inflation and economic uncertainties have become ever more prevalent.   Added to this, businesses are facing the rising threat of cybercrime, supply chain challenges and the climate crisis.  To survive and thrive in this upheaval, Irish business leaders must be able to proactively anticipate and respond to disruption.  The key to success is resilience: the ability to navigate crises and the capacity to adapt and succeed in the face of disruption.   PwC’s Crisis and Resilience Survey 2023 delves into how organisations are directing their resources, efforts and investments toward building resilience to thrive in a state of permacrisis.  There are three ways organisations can embrace and invest in resilience to transform their operations in an era of constant disruption.  1. Integration: An integrated resilience programme is essential  It is no longer sufficient for organisations to operate in silos as they address today’s complex and interconnected risks. Both locally and globally, enterprises are moving towards an integrated approach to resilience.   They are centrally governing and aligning multiple resilience capabilities around what matters most to the business and embedding this programme into their operations and corporate culture.  2. Leadership: Thriving in a permacrisis means upskilling leaders and teams  Consistent with global trends, 33 percent of Irish respondents in the PwC survey said building a team with the right skills is a significant challenge in establishing a resilience programme. Fifty-seven percent of Irish organisations cite upskilling future leaders as one of the three most important elements of future-proofing resilience.  A successful resilience strategy and programme needs:  Executive sponsorship from the C-suite;  A senior leader with clear responsibility for the programme; and  A skilled team to drive the programme across the organisation.  3. Programme approach: Build operational resilience around what matters most  Organisations must build operational resilience and ensure that enterprise planning and preparation are part of a broader continuous cycle.   Irish organisations invest in teams to deliver on the resilience agenda, with 77 percent of respondents confirming at least one dedicated resource.   As more organisations integrate their resilience programmes, many firms worldwide are adopting the core principles of an operational resilience (OpRes) approach, focusing on protecting what matters most and prioritising investment based on what’s critical to their organisation and stakeholders.   This allows organisations to manage risks with high reliability and drive efficiency.  Those who have moved to an integrated resilience programme are significantly ahead in many of the core elements of OpRes: building a robust corporate immune system where an organisation can adapt, flex and grow stronger.  Technology-powered resilience   Distributed data, systems, processes and operational silos mean organisations struggle to obtain a complete view of their resilience, only identifying gaps when disruption hits.   The traditional approach to managing resilience is no longer working – simply checking off compliance with regulations does not deliver resilience.   Too many organisations miss opportunities to identify and rectify vulnerabilities before an incident occurs. What are the vulnerabilities you can and can’t live with? It’s time for a new approach.  Business leaders understand the need to underpin resilience strategies with technology that can intelligently aggregate data from across a business to provide an integrated, insight-driven single source of truth and greater agility in times of crisis.   Business leaders also want to use technology to create a living resilience programme they can continually test and evolve.  Andy Banks is Risk Assurance Solutions Partner at PwC 

Inclusive hiring has become vital to modern business practices as organisations strive to create a more diverse and equitable workplace. Fergal McPhillips argues that inclusive hiring is not just about a diverse organisation but about attracting and retaining top talent and creating an environment where employees’ unique perspectives are valued. Inclusive hiring is the act of seeking out and hiring employees who are diverse in their perspectives, backgrounds and thought processes. Generally speaking, it’s about recruiting people from underrepresented groups, such as people with disabilities, racial minorities and individuals from other marginalised groups. Organisations must overcome unconscious bias in their hiring and remain open to diversity in all forms, whether the diversity of thought, cultural background or embracing differences in gender expression. An organisation must recognise that different ways of thinking, experiences and skills can benefit it. Benefits Inclusive hiring is increasingly becoming a priority for organisations in today’s diverse business landscape. According to a study by McKinsey, companies with diverse workforces outperform their less diverse counterparts in terms of financial performance, with ethnically diverse companies being 36 percent more profitable than those who are not as diverse. Furthermore, an inclusive hiring process is a more equitable hiring process and can help reduce the risk of discrimination and legal liabilities. A report by Glassdoor found that 80 percent of jobseekers between the ages of 18 and 35 consider diversity an important factor when considering job offers. Inclusive hiring is essential for organisations that seek to create a diverse, equitable and inclusive workplace culture that can attract and retain top talent and drive long-term business success. It can also help improve employee engagement, satisfaction and morale while making a workplace more diverse, welcoming and productive. Creating an inclusive culture To engage in inclusive hiring and ensure it sticks, you must develop an inclusive company culture that truly embraces and celebrates the many differences that make people brilliant. Creating a diverse working environment is a process, not an event. It won’t happen overnight. It takes time and commitment. Your organisation must be ready to invest in the process, willing to hear new ideas, prepared to change its behaviours and encourage employees to change theirs too. Creating an inclusive company culture is critical in attracting and retaining diverse talent and driving long-term business success. This includes investing in diversity and inclusion training for all employees, ensuring equitable policies and practices, and establishing employee resource groups to provide a sense of belonging and community for underrepresented groups. In addition, fostering an open and transparent communication culture is important, where employees feel safe to voice their opinions and concerns without fear of retribution. This can be achieved through regular town hall meetings, one-on-one meetings with managers and regular employee engagement surveys. Ultimately, creating an inclusive company culture requires a commitment from leadership to prioritise diversity and inclusion in all aspects of the business and to take proactive steps to create a workplace where all employees feel valued, respected and supported. Fergal McPhillips is a Team Leader of Accounting & Finance Recruitment at Morgan McKinley

The European Union’s recently implemented Pay Transparency Directive is set to transform the way companies across the EU approach pay equity and transparency. Doone O’Doherty explores steps organisations should take to implement the Directive. At the end of March 2023, the European Parliament adopted the EU Pay Transparency Directive. This will go through the final formalisation steps, including Council adoption, and enter into force 20 days after publication in the EU Official Journal.  EU Member States will be required to transpose the Directive into national legislation within three years – very likely in 2026.  Given the proposed legislation’s complexity and implications, organisations should start preparing now to ensure a smooth transition from a legal, operational and strategic perspective. Under the Directive, greater transparency will be required in four critical areas.  Gender pay gap reporting and equal pay Organisations above a certain employee threshold will be required to publish gender pay gap figures externally.  Where a pay gap of five percent or more is found in any category of worker and other criteria are not met, a joint pay assessment must also be completed. Recruitment   Organisations will be required to provide information on pay (e.g. pay bandings) as part of the recruitment process, such as adding pay ranges to job adverts or sharing this information with applicants. They will no longer be able to ask candidates about current pay to determine offers.  Pay approach and philosophy  Employers with more than 50 workers must provide workers with information on the criteria used to determine pay and pay progression. Average pay levels Workers will have the right to request information on the average pay level of workers doing similar work to them, broken down by sex. This must be provided within two months of the request.   To whom does this apply? While local implementation may vary, the Directive suggests that the requirements listed above may apply not only to employees but also apply to other worker types (e.g. contractors and gig economy workers).  Key steps to take Given the significance of the measures to be introduced, organisations must identify their biggest risks and opportunities and prioritise activities. This will allow for developing an effective change plan to ensure readiness for the upcoming legislation and wider transparency requirements.  For some organisations, the impact of the EU Pay Transparency Directive will be significant, potentially leading to the widespread transformation of critical people policies and activities. Successful change (including impacted systems and processes) is a multi-year programme.   It will be critical for companies to: Understand the impact: Identify key stakeholders and gain a high-level understanding of key risks and opportunities for your organisation. Provide an initial briefing to identified stakeholders on the Directive and its implications for your organisation.  Assess organisational readiness: Deep dive into the key risks and opportunities identified through interviews and document reviews. Complete a readiness assessment to prioritise activities with stakeholders. Develop an implementation plan: Develop a high-level implementation plan to embed change based on agreed priorities, risks and opportunities.  Doone O’Doherty is Partner of People & Organisation at PwC 

With stakeholders pulling in different directions and competing for your time, staying focused on your daily goals can be difficult. Moira Dunne explains how to manage stakeholders trying to take time away from your scheduled tasks. Stakeholders are the key people you interact with in your role. It is essential to maintain good relationships with them, support and be responsive to them, but this can impact your work plan and put you in a tight spot. We feel pressure to respond immediately and don’t want to upset them by saying “no” to a request, even if it is not urgent. Furthermore, the stakeholder may be a senior figure, so you feel obliged to acquiesce, even if you don’t have time. As a result, you prioritise the new request but sacrifice important deliverables and your own personal time while letting others down. Overall, it can feel like the workday is out of control, leading to stress and anxiety. Here are four tips on managing requests from stakeholders. 1. Take control To help control your time, be clear about what you need to get done each week and block time in your diary for this priority work. As new requests crop up, you can assess which is the higher priority task. You may need to do both, but you will not drop the planned work without rescheduling it first. A baseline plan gives you the confidence to discuss your response regarding the work needed, and not having a plan in place makes it harder to do that. 2. Manage your response time When responding to stakeholders, the key is to say yes on your own terms. For example: Ask when they need the task completed; Inform them when you can work on the task; and Negotiate a time that suits you both – be as flexible as possible. As a result, you don’t automatically drop your planned work but still support the stakeholder as best you can. 3. Review urgent requests Urgent requests generally fall into two categories: things that couldn’t be anticipated; and things that were not done in time and became urgent. Many people don’t plan ahead. You can’t change their work style but can change your interaction with them. Take a few minutes on a Friday afternoon to check in with stakeholders who often have last-minute requests. Tell them you are planning your week and to send on any requests for the next one before close of business so it can be scheduled in. This prompts them to think ahead about requests instead of waiting until the last minute while subtly telling them that they should let you know in advance if they want time in your diary. 4. Agree expectations If starting a new relationship with stakeholders, set expectations with them beforehand. Find out what the service level agreement says and ask what timing will work best for them. Agree the response time for general queries (while acknowledging that genuinely urgent situations can be handled differently). Once agreed upon, it is easier to stick to these response times in the cut and thrust of a busy day. 5. Drop the guilt Do not feel guilty if a task from a stakeholder does not fit into your schedule. If you can’t do something, there will be a good reason, such as not qualifying as a higher priority than your current work or being within your role’s remit. Moira Dunne is the founder and director of beproductive.ie