No employer wants to let people go, but when redundancies are inevitable, a full understanding of your legal obligations is essential, writes Emma Richmond The news has been dominated recently by large-scale redundancies in the technology sector, with behemoth employers like Twitter, Stripe and Meta making headlines daily. Despite the depressing news, redundancy is not something any employer wants to face. However, in these uncertain times, it can be inevitable. Redundancy will leave your staff worried about what this means for their future career prospects so, as an employer, it is important to get the right legal advice when contemplating a redundancy programme. Employers must fully understand their legal obligations under Irish employment legislation, so we strongly advise consulting with a professional firm to ensure a fair, transparent, and legally compliant redundancy process. Before you reach out to a third-party, there are some key considerations to bear in mind. Redundancy A redundancy occurs when an employee's position no longer exists and the employee is not replaced. Within Irish employment legislation, there is provision for different scenarios which constitute a redundancy situation—for example, where an employer decides to carry on its operations with fewer employees. Collective redundancy A collective redundancy occurs where multiple redundancies are affected within a 30-day consecutive period. This is also dependent on the size of the workforce: Size of the workforce   Number of redundancies for a collective redundancy  21–49 5 or more   50–99 10 or more  100–299 10% or more  300 or more  30 or more   In a collective redundancy situation, there are additional employer obligations. These include: notifying the Minister of Enterprise Trade and Employment of the proposed collective redundancies 30 days prior to effecting any redundancies; and engaging in a consultation process with employee representatives. The minimum period of consultation is 30 days. No employee can be made redundant during this consultation period. Selection criteria in a collective redundancy Where a certain number of employees within a particular department (e.g. 10 employees within a department of 20) are being made redundant, the employer must apply objectively justifiable selection criteria. Examples of objectively justifiable selection criteria include adopting the approach of “last in, first out” or basing the selection criteria on an employee’s qualifications. Collective redundancy notice period In a collective redundancy situation, no employee can be made redundant during the consultation period. Once the consultation process has concluded and notice is issued, an employee who has at least two years’ service and is selected for redundancy must be given at least two weeks’ notice. Where an employee’s contractual notice is greater than two weeks, the employer must provide the employee with their contractual notice. While an employer may pay an employee in lieu of their notice period, the employee must be permitted to work during two weeks of their notice period. Statutory redundancy Employees with over two years’ service are entitled to a statutory redundancy payment which is calculated as two weeks' pay for every year of service (capped at a maximum of €600 per week) plus one additional week's pay. Employers may decide to pay their employees an ex gratia payment over the statutory requirements. It is good practice where employees are receiving an ex gratia payment that they be expected to sign a severance agreement in which they waive their right to take any future claims against their employer. Employees should obtain independent legal advice in advance of signing a severance agreement. Employers should get advice in drafting severance agreements to ensure that they are effective and enforceable. Redundancy entitlements and legal compliance Another key consideration is redundancy entitlements. Some of these include: entitlement to statutory redundancy; the lawfulness of the redundancies; timeframes of employment contracts; any transfer of undertakings in relation to the TUPE Regulations; and considerations regarding ex gratia payments. Employing the services of a professional for legal advice and consultation on relevant compliance requirements concerning redundance is advised here. Emma Richmond is Partner at Whitney Moore LLP Law Firm

The cost-of-living crisis seems bleak, but there are also opportunities for businesses to appropriately pivot their products and services to ensure they remain relevant to their core customers. Charlie Kerlin explains how The current cost-of-living crisis is having a profound impact on the UK economy. Consumers are already feeling the pinch, making a significant difference to how they spend their money. Although already impacting all sectors, this crisis will likely be felt most in retail, food and drink, hospitality and other sectors reliant on discretionary spend, in the months ahead. Faced with inflation and rising interest rates, household finances in the UK are being stretched. With GfK, the consumer data firm, reporting consumer confidence at a record low in September, fears of a recession have jump-started a ‘cut back economy’. The Cut Back Economy report, published jointly by Grant Thornton and Retail Economics in July, explored the effects of the current economic climate on discretionary consumer spending in the UK. The report estimated that the cost-of-living crisis would slash discretionary spend across the UK economy by about £24.9 billion per annum—and Northern Ireland is expected to be hit harder than other parts of the UK—due, in part, to the fact that energy prices are regulated differently in the region. The least affluent households across the UK are now spending about two-thirds of their entire income on necessities like electricity and the cost of heating oil or gas, and transport. Eighty-six percent of the households surveyed said they planned to cut back, but some variances exist. More than a third (36 percent) of those surveyed could be considered ‘financially stressed’. Other significant cohorts identified included ‘squeezed spenders’ (25 percent) and the ‘comfortably cautious’ (25 percent), each planning to cut back spending. Just 14 percent of respondents said they were determined to be ‘financially immune’, illustrating the vast impact of the cutback economy. So, how do we speak to the 86 percent, led by the younger generations who are leading the cutback? Some people will have to cut back by necessity. However, a significant proportion of the population, while more cost-conscious, will still have some level of discretionary spend. The data shows where and how habits are changing. Consumers are increasingly mobile, seeking to move brands or retailers. There is a shift towards discount supermarkets and own labels, and demand for foodstuffs, such as dry pasta and grain, is increasing exponentially. In order to allow businesses to pivot, data will be essential. By gathering and analysing relevant data and market trends, companies can better understand the behaviour and intentions of their core customers. What are they willing to compromise on to spend less? Is it lower quality, a lesser experience, or are they prepared to sacrifice convenience? For example, 35 percent of all households, regardless of how conservative they intend to be when spending, said they would spend less on media subscriptions. Thirty-one percent would spend less on holidays and beauty, showing luxuries are on the chopping block. Based on the economic modelling in the report, the impact of the cost-of-living crisis will see the retail, leisure and consumer industries in the UK lose £24.9 billion in discretionary spend in the year to April 2023. Companies must refocus on the core customers that retain spending power and ensure their product is appropriate to that market segment, while also offering value for money and ways to mitigate the challenges their customers face. This will help them to generate goodwill and loyalty as people pinch their pennies. We are seeing businesses work their contingency plans, seeking ways to become more efficient, optimise production and reduce waste. Financial resilience will be a crucial area of focus for the foreseeable future. It will be a challenge, undoubtedly, but understanding consumers and their behaviour is key to navigating the period ahead. Charlie Kerlin is Director of the Corporate Finance team at Grant Thornton Northern Ireland 

Networking can be stressful, especially when you want to leave a conversation without causing offense. Jean Evans outlines the dos and don’ts of a graceful exit We’ve all been there, stuck in a conversation at a networking event and not sure how to extract ourselves politely and leave feeling guilt-free. This is a skill that takes courage and, when done correctly, one that can demonstrate control, respect, and leadership, creating a positive first impression and leaving you with your reputation intact. No one wants to be ditched at a professional engagement by someone who looks like they’re eager to get away, just as no one wants to make another person feel unwanted or uncomfortable. So, plan ahead before you head out the door to network with your colleagues, other professionals or business contacts—and think about how each interaction might take shape. How long should a conversation last? How long a conversation should last really depends on your networking goals, whether you’re an introvert or an extrovert, and if you already know people at the event. However, the recommendation is five to ten minutes per conversation, before moving on. When to break out of the conversation To leave a conversation, you should wait until you can sense there is about to be a lull and then get in there with the opportunity to close off before the lull hits. Why? Because when the lull occurs, the conversation becomes awkward. If you catch it before the lull happens, then you’ll have the chance to leave the person on a positive note and with a first positive impression of you. Here are a few ideas for how you might approach finishing a conversation at a networking event. 1. Request a business card The act of getting and receiving a business card often signals that a conversation is coming to a natural close. You can finish off with: “It was great to speak with you, and thanks for your business card. I’ll connect with you on LinkedIn. I hope to see you at another one of these events soon.” 2. Organise a follow up If a 10-minute conversation isn’t long enough, then get out your calendar and schedule the follow-up right there. This shows that you are serious and committed to the conversation. You might say: “I’d love to get your business card to continue our conversation. Can we arrange a call next week? When might suit, and we can get something in the diary now?” 3. Make an introduction Ask your conversation partner who they’d like to meet and see if you can make a beneficial introduction for them. You’re adding value and allowing both parties to move on gracefully. You can say: “I’d love to introduce you to [name] – I think they would be a great connection for you.” 4.Top up your drink Tell the person with whom you are speaking that you’re going to get a drink or some food. Offer them something and tell them it was great to meet them before moving on. Leave them feeling good. 5. Do them a favour Make your exit sound like you are doing something to benefit the person you’re talking to and less about them thinking you are trying to get away. You can say: “I don’t want to take up all your time – I know we’re all here to network. It was great chatting with you and getting to know you a bit better.” While there is no doubt that closing conversations at networking events can be daunting, anyone can master this essential skill with enough practice. Jean Evans is a Networking Architect and Founder at NetworkMe

Compliance with data protection legislation is the responsibility of the board of directors of every organisation and must be prioritised in the boardroom. David O’Sullivan explains why Data protection starts and ends in the board room. Every board member should have a good understanding of data protection and how it affects their business, and every board- and sub-committee must be equally aware of the organisation’s existing compliance status and the operation of its data protection framework. Data protection fines to board members and directors the Data Protection Act 2018 (GDPR), directors may be liable for a fine of up to €50,000 and/or five years imprisonment if they are found to have allowed the organisation to commit an offence through consent, connivance, or negligence.    In the UK, the Information Commissioner’s Office has levied personal monetary penalties against company directors, demonstrating an appetite to keep senior management and company directors accountable for their actions. And while at the time of writing we are unaware of any such actions against company directors in Ireland, penalties here will inevitably follow. What questions should board members be asking? The data protection world is changing rapidly with the onset of fines, decisions and guidance from regulators, alongside evolving technology and new legislation. As such, it is crucial that organisations remain vigilant to change and proactively manage it, avoiding unnecessary risks.   There are some key data protection questions board members should ask: How are we staying abreast of changes? What are our current top risks? What are our industry peers doing? Are we making the most of this challenge/opportunity? Do we have the right level of expertise to deal with this? Do we need a full-time resource? Can we outsource the Data Protection Officer (DPO) role? What are the upcoming actions in the data protection framework? How involved should the board be in data protection? For an organisation to have data protection embedded, the board should oversee change and the direction of data protection. The below demonstrates examples of what high, medium and low levels of board involvement may look like in an organisation: High – a member of the board is made responsible for data protection. They regularly meet with the DPO or data protection manager for updates and report to the rest of the board on compliance at each meeting. The DPO presents to the board regularly, and the board actively asks for updates on risk actions. Medium – the board receives bi-annual reports from the DPO outlining compliance efforts and key risks and receive updates on risk actions. Low – an update report is provided to the board every quarter, with one annual report is presented by the DPO or another person responsible for data protection compliance.  How to know if your data protection framework is effective Every organisation has a data protection framework, some more formalised than others. Your framework must operate effectively, ensuring you will achieve your desired outcomes.   You will be able to know that your framework is effective if: staff receive regular training and awareness updates; you are informed of data protection risks; privacy has been built into processes and procedures; and frequent updates are given to the board on compliance status and steps to reduce any compliance gaps. How to use data privacy to your advantage There are several reasons to keep privacy in your strategic plans, ranging from compliance and fine mitigation to risk management and consumer trust. Consumer sentiment is changing, and people are making choices based on how their personal data is protected. No stronger evidence is needed than the actions of the world’s largest consumer technology companies’ efforts to increase privacy and security—Apple giving more tracking control to users, for example. To use privacy to create strategic and competitive advantage, the direction needs to come from board level and be embedded into the company culture. The most effective programmes are in organisations with clear ownership of data protection at the top level. David O’Sullivan is Consulting Manager with Mazars

A new survey has shown that most professionals are happy at their work, but remuneration is still the predominant reason people move on. Paul McClatchie delves into the results. The rising cost of living, combined with the talent shortage, is a sure-fire recipe for pay inflation.  However, a new survey by recruitment company Engage People shows mixed fortunes in the financial and legal sectors regarding remuneration over the past year.  Despite this, however, most professionals surveyed appear to be happy at their work.  While 63 percent expect a salary increase over the next 12 months, almost a quarter (23%) of the 795 people questioned did not get a pay increase in the past year. Eleven percent was the average increase in salary for those who did. Sixty-one percent saw their hours impacted by COVID-19, and 47 percent took a COVID-related pay cut. Of those, the average drop in pay was 12 percent. Anecdotally, the flexibility to work from home has saved employees money and contributed to a better work/life balance. So, a short-term impact on compensation hasn’t upset too many in the professions. On top of base salary, many professionals will have a car allowance and fuel cards. Most get an employers’ pension contribution, meaning total remuneration is generally higher than basic pay. In terms of bonuses, 75 percent of respondents in accountancy, banking, financial services and legal roles say they received a bonus last year, and 67 percent of those were satisfied with the level of bonus. For junior positions, 26 percent of base salary was the average bonus, where earnings were predominantly under €35,000.  Ten to fifteen percent was the mean annual bonus in the accounting area, with higher bonuses in banking relationship manager and sales roles. Although 82 percent of respondents claim to have worked some form of weekly overtime for up to three hours a week, just 41 percent received paid overtime. Again, overtime was more common in junior-level roles, up to a €40,000 base salary. Fifty-five percent anticipate their company’s staff numbers will grow over the next 12 months. The lure of a new role Despite the possible pay cuts and overtime, 84 percent of the professionals responding confirmed they are happy with their current work-life balance. However, the grass is always greener. Fifty-eight percent of professionals in financial and legal roles are satisfied or very satisfied in their current role, but almost two-thirds (62%)  admit they would leave their role if the right opportunity came up.  Pay remains the top motivation to move, and a 10 percent salary increase was the average expected by those surveyed to leave their job for a new role. However, 58 percent also said that they would turn down an offer if their current employer were to make a suitable counteroffer. The survey also identified career progression opportunities, the people in the company, and the company culture as reasons people will move to a new role. In terms of desirable benefits employers can offer, the top answers concerned flexible working, including both hybrid working and flexi-time. The offer of career breaks and a company car or a car loan were the next most sought-after perks. Paul McClatchie is the Founder and CEO of Engage People.

From tribe-based banking to embedded finance, Nick Root reveals what you can expect to see in the year ahead in fintech The financial technology sector is rapidly evolving, with traditional methods of banking now being replaced with digital solutions to make things faster, easier, and more streamlined for both businesses and consumers.   Here are the top trends in fintech in 2023. Virtual bank cards  Hailed as the future of financial spending, virtual bank cards are at the forefront of a revolution in business expense management. Since 2017, searches for the digital bank Revolut have increased by 143 percent, receiving an average of 1.3 million monthly searches globally.   Looking at Google Trends, we can also see that the term ‘virtual card’ has increased by 216 percent in the last five years and is currently at its peak. But how are they being used by businesses?  Perhaps the biggest reason virtual cards are increasing in popularity is that they offer more robust security measures, helping eliminate misuse by hackers and fraudsters.  They also reinvent the way companies handle employee business expenses. Every employee has a unique card, which means anyone can easily see who is spending what. Funds can also be assigned to team budgets, and purchases can be limited so that nobody spends more than what’s allocated. Embedded finance  The success of embedded finance will be predominantly down to distribution, trust, and improved user experience.   Banking as a service defines an ecosystem in which licensed financial institutions offer non-banking companies access to their services, typically through APIs. It enables clients to embed financial services into their products or build new financial services from scratch. The emergence of API-led banking services means distribution is no longer an issue. That layer of friction has now been removed, with any digital company able to offer a financial service without the headache and complexity that providing financial services used to bring.   Buy-now, pay-later 2.0  While buy-now, pay-later (BNPL) has raised concern recently, the online trend allowing customers to split their payments into interest-free instalments continues to surge.   Traditionally, BNPL services were used to split payments for high-value items, but they soon became associated with online fast fashion brands, targeting Gen Z and Millennial shoppers. In recent weeks, BNPL was further criticised after Swedish fintech company Klarna partnered with the fast-food delivery app, Deliveroo, allowing customers to ‘eat now, pay later.’  And although many mainstream banks are steering towards virtual cards, in January 2022, Klarna launched its first physical credit card, allowing customers to pay in-store and online.   In 2023, although it is expected to expand further, in Ireland, BNPL providers must go through the Central Bank to be approved. BNPL will also be regulated in the UK, as the government plans to enact legislation requiring lenders to carry out affordability checks before approving loans. The financial promotion rules for BNPL are also set to change to ensure advertisements are explicit and do not mislead consumers.   Contactless wearables  The Internet of Things is making waves in the fintech sector, allowing consumers to pay for goods and services faster than ever with wearable technology.  Alongside smartphones, bracelets and smartwatches are now used to make payments instead of bank cards.  The Apple Watch is one wearable that took the world by storm, showcasing an upward trend in 2022. Smart rings are also on the rise, with searches for the revolutionary wearable increasing by 180 percent globally.   Regtech  A new buzzword you may have heard in 2022 is Regtech – but what is it, and why does it matter?   The rise in digital products means there is an increased risk of data breaches, cyber hacks, and money laundering – but that’s where Regtech comes in. Regtech is a group of organisations that solve challenges arising from a technology-driven automated economy.   The Regtech industry is expected to disrupt the regulatory landscape by providing advanced tech solutions to compliance issues that arise in the fintech sector.  Tribe-based banking  The term ‘digital tribe’ has become popular in recent years, used to describe online communities that share a common interest, and are usually connected through social media or other online platforms.   In the past, people from diverse communities have been uncomfortable with legacy banks because they have not been represented, don’t feel empathised with, and aren’t open to communication.  Banks need to be more authentic and receptive to communication in this new era. People from these communities will soon be looking for a bank that gives them a sense of representation and openness. Nick Root is the CEO of Intergiro.

With cyber threat levels on the rise and their complexities growing, it is time to bring cybersecurity into the boardroom, says Puneet Kukreja According to the EY Ireland Global Information Security Survey 2021, 90 percent of Irish cybersecurity leaders reported an increase in disruptive cyberattacks over the previous 12 months. This issue goes beyond the chief technological officer’s remit and should be a company-wide concern, including the organistion’s board. The board plays an important role in overseeing and supporting how an organisation enhances its cybersecurity controls and practices in a world where threat levels are on the rise. Below are seven critical areas that boards need to focus on to better align themselves with the organisation’s cyber strategy and ensure that the organisation’s cybersecurity needle is moving in the right direction. 1. Understand the business Boards and their sub-committees are now required to undertake key oversight activities related to cyber risks across critical business processes and systems. For this, they should be aware of the budget allocated to cybersecurity programmes and understand whether the organisation’s cybersecurity function is adequately funded and resourced. The board should also be aware of the key responsibilities for security and data privacy across the enterprise. They need to be aware of the potential exposure of known blind spots. 2. Acquire knowledge of technology It is important for the board to gauge if it has the required knowledge and expertise in technology. It is imperative for the board to understand how the rapidly evolving ecosystems of cloud, cyber and data protection, internet of things and privacy overlap with its role in corporate governance and risk management. 3. Understand the cyber environment The board needs to have a clear knowledge of how a cyber threat can be responded to in a rapid manner. It is critical for the board to have a view of the full range of cyber risks facing the organisation and the potential to improve its existing cybersecurity control and practices. It needs to ask if management can implement the required risk management protocols to reduce the mean time to exposure and if the organisation has an effective incident response and recovery function in place. It is also important for boards to know if the systems targeted in a cyber event are managed internally, externally or sourced from the cloud. 4. Facilitate response readiness Boards must help document a cyber threat management framework. This framework should be regularly tested against the ‘cyber kill chain’ approach, a phase-based model used to describe the stages of a cyberattack which helps construct response plans for organisations. 5. Have exposure to cyber wargames Has the board and its sub-committees been exposed to a cyber incident response training exercise, or received training on how will the organisation respond if an attack occurs? One key action that boards can take is to bring cybersecurity-related skills and experience into the boardroom through the appointment of non-executive directors with previous experience in technology-related roles. 6. Keep third-party agreements ready Boards need to ensure that cyber incident response agreements are in place with third-party suppliers of technology and subject matter experts who can be mobilised in the event of a cyberattack. Boards also need to understand how the cyber risk exposures of all stakeholders are assessed and determined. 7. Be adept at media management If systems are compromised and sensitive data stolen, it could potentially impact an organisation’s reputation. The board should understand how the organisation will respond to the media and stakeholders following a cyberattack or breach. Take a holistic approach With remote and hybrid work being the new normal, continuous assessments and improvement of cybersecurity controls and practices across the organisation should be the focus of the board. For this, boards can mandate organisation-wide continuous training and education around cyber threats. It may also be useful to accompany this with a cyber awareness programme. An eye on internal control framework and cybersecurity monitoring procedures is needed, as well. The role of the board is assuming greater importance as cybersecurity risks and threats grow. Boards must now play a more constructive role in advising on post-incident response plans and in managing them from a business continuity perspective. Cybersecurity activity should not be seen as purely defensive. A company’s ability to adjust and strengthen its cyber resilience will position it for a more secure future. Puneet Kukreja is Cyber Leader in EY Ireland

Attracting and retaining talent is a challenge for most companies. Sean McLoughney outlines how regular performance management conversations can help engage and motivate high performers When someone leaves a company, there are greater costs than lost revenue and business opportunities. It costs time to recruit, interview and onboard someone. It can cost team morale, too, when a highly valued team member leaves. So, it is no surprise that managers are looking at ways to improve their staff retention strategy. However, one option that is often overlooked is performance management—in particular, the performance conversation. Below are three ways that performance conversations can be used as part of your strategy for engaging high performers. 1. Regular conversation The traditional annual reviews will soon be obsolete as they have little or no impact on people’s performance levels. Sitting down at the end of the year to discuss someone’s performance is a complete waste of time, because often it is too late to influence results. The only topic that people want to talk about at these annual meetings is their pay rise and bonus. Regular performance conversations throughout the year can, however, provide a great platform to communicate expectation levels and clarify business priorities. They can also help to foster the right environment for success, because talented people need to know that their input has meaning and makes a difference. Link their successes to key business and team outcomes and comment on their individual contributions. Another key component of these regular conversations is discussion about the areas each team member will focus on in the period ahead. Keeping the conversation future-focused will help you to understand what they intend to do and how they will optimise their time and resources. Remember, while you can’t change past results, you can influence future performances. Build regular performance conversations into your ways of working. 2. Align individual goals with business outcomes High performers want to ensure that their efforts add value and have an impact on the overall business results. The role of a performance-focused manager is to translate the business strategy at its highest level into what it means for each person. Discussing the business plan with your team will bring context to their work. It allows them to establish their own key goals, aligned effectively with wider business objectives. Being involved in defining their own goals increases personal accountability by fostering a sense of ownership, which will also increase engagement. Set up a team meeting to discuss the business plan prior to your next performance conversation. Start by outlining the plan at its highest level and the subsequent key priorities for your team. This will give everyone a better understanding of the significance of their work, as well as a sense of purpose. Next, ask the team what they believe needs to happen to achieve these expected outcomes. Gather all their ideas and connect them to the business goals. Then prioritise this list so that everyone’s focus and time is spent on tasks that generate a maximum return on their efforts. Finally, turn these ideas into achievable goals that bring clarity and engagement. You can discuss these goals with each person during their performance review meetings and update them, when necessary, throughout the year. This will ensure everyone is always working on the most important tasks. 3. Skills mastery and career progression The third way performance reviews can be used to improve staff retention is to have discussions about their skills mastery and career progression plans. Talented people are more likely to stay with your organisation if they genuinely believe that they are being continually developed and have access to opportunities to progress their careers. As part of your talent support role, you should ensure that everyone on your team has a skills mastery plan. A skills mastery plan provides people with a framework to enhance their skills, knowledge, and expertise. This helps them build a knowledge of skills for their current role requirements, while also preparing them for future promotional opportunities. The skills knowledge plan is not a static document. It must be reviewed and updated on an ongoing basis. During performance conversations, outline how your team members’ skills knowledge plans are aligned with the agreed business goals, and how they are likely to impact their career paths. Make sure to affirm how their learning can support them in achieving their goals and career aspirations. This is a great opportunity to embed a culture of continuous learning and improvement. Performance conversations, when used correctly and regularly, ensure that your company has the best possible chance of delivering a sustainable level of high performance now and in the future. It is an important component in attracting and retaining talented people. Crucially, all these steps are about much more than just discussing goals. They create opportunities for talented people to understand why they are important, how their efforts impact business plans, and how you plan to support their personal development and career progression. Seán McLoughney is the founder of LearningCurve and author of Time Management, Meaningful Performance Reviews and Slave to a Job, Master of your Career, all published by Chartered Accountants Ireland

With the Protected Disclosures (Amendment) Act 2022 now signed into law, companies must ensure they are up to speed with new requirements, writes Ita Gibney As we emerge from the pandemic, we have entered a phase of overwhelming change. We are heading into inflationary times, the Ukrainian–Russian war looks set to be prolonged, a recession is imminent, and a new world of work is emerging, as companies consider their cost base and margin pressure—whether it’s office space, employee numbers or energy costs. Such adversity creates increased risk and additional scope for negative news, making it imperative for companies to manage their communications with even greater skill and care. Accountants, as close advisors, are often called upon for advice in this area, which is not always their field of expertise. Liquidators and receivers, in particular, will be under pressure as they work through the fall-out of corporate challenges in the period ahead. Against this backdrop, businesses are also trying to be socially conscious and to run responsible, sustainable ventures. Purpose is now seen as being every bit as important as profit. Stakeholder capitalism is part of the valuation equation. Good governance, ethical behaviour and sustainability are now on a par with risk management and legal compliance. And, recent whistleblowing cases concerning both Uber and Twitter demonstrate just how fast reputations can sink when a corporate entity finds itself in the glare of negative publicity. Updates to Ireland’s whistleblower regime In Ireland, the Protected Disclosures (Amendment) Act 2022 has brought significant change to our whistleblower regime, including greater risks for companies, especially those engaged in unethical practices or breaches of law. The updates build on the protections offered in 2014 under the Protected Disclosures Act. Now, a wider scope of categories of worker will be protected, including volunteers, board members, shareholders, and job applicants. Further, the definition of penalisation has been expanded to cover more covert acts, including negative performance appraisals or withholding promotions. Most notably, the amendments put the burden of proof firmly with the employer. For corporate entities of 50 employees or more, the Act requires that they establish, maintain and operate internal reporting channels and procedures for the making of protected disclosures. The importance of having policies and processes for protected disclosures provides an avenue for the whistleblower to go through prior to reaching out to external sources. Entities will need to be aware of, and know how to, manage their risks prior to a disclosure. Prevention is better than a cure Under the new legislation, there is now a greater risk of a whistleblower going public. Whistleblower procedures, then, must be part of wider corporate reputation strategies, recognising that crisis prevention is the key to corporate health. There is a renewed drive towards unionisation of workers, and a backlash against the gig economy and poor workplace cultures, especially for new market entrants. Work cultures, if found to be negative, are quickly trending on social media, affecting recruitment as well as reputation. Companies need to be quick, consistent and authentic when it comes to protecting their brand against public scrutiny. All the experts in the world will advise that it is wiser to prevent a crisis than to handle one. A good CEO will manage the risks hands-on, test the crisis communication plans, have good independent counsel to plan for any potential bad that may arise in the future. Companies will forge great reputations, not just because they have great products and services, but also because they take full account, in advance, of the public impact of their corporate footprint. CEOs and boards must take heed—never has corporate reputation and maintaining the trust of stakeholders been such a critical factor in preserving business value. Ita Gibney is Chair of Gibney Communications

Active listening can be a powerful tool for effective communication and connecting with colleagues. Ed Garvey-Long offers tips on how to get it right It might surprise you to hear that there are different types of listening. However, I'm sure we all know the feeling of talking with someone and noticing that the other person's attention is elsewhere, distracted by something else. This can make us feel like the person we are talking to is undervaluing what we are saying, even though they may well be able to recall accurately what was said during the conversation. This is known as 'passive listening.' Its opposite—active listening—is a much more useful tool, particularly in the workplace and when connecting with colleagues. The term 'active listening' was coined in the 1950s by American psychologists Carl Rogers and Richard Farson. The central idea of active listening is to be an equal participant in conversations. This allows the listener to take note of body language as well as words and will result in a more nuanced discussion. Employing active listening will not only help your colleagues feel they have genuinely been heard but can also help build a foundation of trust within teams. Furthermore, this is a skill that anyone can learn. Below are some tips to help you become an active listener: Slow down When another person else is talking, we might rush to the end of the conversation, guessing what they are trying to say and getting our brains to start rehearsing what is best to say in response. In doing so, however, our attention shifts, and we risk missing important details. Don't rush ahead! Instead, slow down and really consider what is being said to you. Once the other person has finished speaking, taking a second before speaking is OK; maybe even ask a follow-up question about what they have just said to demonstrate that you have been listening and understood what has been said. Notice what's not being said We give off more signals about our thoughts and feelings than just by using our words. Our body language can often give subtle clues about the speaker's situation. For example, a stressed colleague might have very tense body language, sitting hunched on their chair. Stress can also sometimes be heard in someone's voice, making them sound strained or even quieter than usual. If you notice these behavioural changes in someone you are conversing with, don't interrupt them and draw attention to it. By doing so, you run the risk of making them feel uncomfortable. Instead, wait for an appropriate time to ask a question like 'are you doing all right?' This can reassure someone that they are being noticed and might encourage them to open up more about their situation. Empathy is king Everyone has difficulties in their lives from time to time, whether it be work stress, family issues or money worries, etc. When listening to someone, consider their perspective as much as possible. They might have been nervous about having this conversation with you or are finding the topic hard to talk about. Recall how you've felt in the past in similar situations and behave as you wish others had behaved towards you then. Consider the context Active listening is a great skill to practice and can really help colleagues feel heard and help you develop your own communication skills. However, it is essential to acknowledge that it can be quite tiring to be constantly in active listening mode. Instead, consider saving your active listening skills for important meetings, such as probation reviews or when colleagues ask to speak to you in private. Active listening can be a powerful tool, but it's wasted if it's used on idle chitchat in the office kitchen! Ed Garvey-Long is a poet and founder of Ed Garvey-Long Coaching

As organisations across Ireland prepare to publish their reports, Deirdre Malone outlines some practical aspects of the Gender Pay Gap Information Act. Among the key questions for employers about Gender Pay Gap reporting, one of the most important is who to include. All employees must be included, but this is not as straightforward as it appears. The definition of an employee in Irish employment law is well understood, but for Gender Pay Gap reporting, the statutory definition is taken from the Employment Equality Acts and includes individual contractors who are engaged personally to provide services. This definition has the potential to make things very complicated for employers. In most cases, employers have gone to some lengths to ensure that these individuals are not deemed employees. They do not have HR records for them, and they do not know how much the contractors are paying themselves for their work for the organisation, nor have they any idea of their leave and bonus arrangements. Including this cohort of workers in the Gender Pay Gap report will place many employers in a difficult position. Furthermore, this data gap may force some employers to exclude contractors from their Gender Pay Gap report. The Guidance Note that accompanies the Gender Pay Gap Information Act (the Act) advises employers to consult Workplace Relations Commission (WRC) case law for advice, but this is not as comprehensive as it could be. Instead, a practical and common-sense approach is required. Non-binary and transgender employees Very simply, everyone identifying as female must be included as female in the report, and the same applies to males. There is no definition of male or female in the Act, and it is up to individual employees to self-identify their gender. Organisations must remember that HR records may not be in accordance with individuals’ self-identification. Where there are non-binary individuals who do not identify as either gender in the workforce, they are not included in the Gender Pay Gap calculations but should be included in the headcount. Employers must ensure that data collection concerning gender identity is carried out as sensitively as possible. Those collecting the data must never rely on second-hand information or hearsay. Employers must engage with all employees about why they are seeking this data. They must ensure they obtain it directly from the individual or a trustworthy and reliable source. However, no one should be singled out and asked about their gender. Large group companies with numerous legal entities Many large organisations will wish to produce a single Gender Pay Gap report for their Irish operations. However, they need to be mindful that each legal entity in a group that employs more than 250 people has its own statutory reporting obligations. Nothing prevents the organisation from producing a consolidated report, however, if each legal entity also reports its individual statutory requirements within the consolidated report. There will also be cases where large organisations have entities that employ numbers below the reporting threshold. In our experience, though, companies tend to report on those entities—either within a consolidated report, or separately, to present the fullest possible picture of gender representation across its business and also in the interests of transparency. Where an organisation chooses not to report on smaller entities, the reasons behind that decision must be communicated fully, so they cannot be accused of a lack of transparency. Managing leave when calculating ordinary pay If a type of leave is paid, it is included in the Gender Pay Gap report. All pay received by every employee in the 12 months up to the snapshot date must be included in the calculation. However, this can give rise to anomalies. Take maternity leave, for example. Where maternity leave is paid, an employer may pay an amount to top-up statutory maternity benefit. Only the portion paid by the employer is included in the calculation, however, thereby artificially depressing the hourly pay rate of the employee in question. Where employees exercise an entitlement to additional unpaid maternity leave, this can further skew the figures. This will have to be looked at as it will be essential to explaining the anomalies in the circumstances arising for various cohorts of employees. Deirdre Malone is Head of Employment Law at EY Law Ireland

The Employment Investment Incentive Scheme looks set to become a vital source of much-needed funding for businesses in Ireland. Paddy Morrissey explains why The Employment Investment Incentive Scheme (EIIS) has been a crucial source of funding for Irish SMEs since its introduction in 2011 when it replaced the Business Expansion Scheme (BES). Now, EIIS, which allows Irish taxpayers to claim relief of up to 40 percent on qualifying investments, looks set to become an important source of investment for SMEs operating in a volatile economic environment in which risk appetite is on the wane. Despite several pre-budget submissions from various bodies, Budget 2023 became the first Budget in recent years to propose no amendments to the scheme after a period in which significant changes were made. The most significant came in the Finance Act 2019, which introduced a new self-certification-based system to replace the existing Revenue approval system. This allowed investors and investee companies to take responsibility for fulfilling the scheme's conditions. Once the investment takes place, the company may issue a "Statement of Qualification", allowing investors to claim their tax relief. The move to self-certification was widely welcomed, as it significantly shortened the period between an investor making an investment in a company and being able to claim tax relief. Some concerns have been raised about the uncertainty self-certification creates for a company receiving investment, however. The main concern here is that where a company is judged to be non-compliant with the provisions of EIIS, the withdrawal of the tax relief is against the company. In a scheme known for its complexities, companies are now limited to querying particular areas of the EIIS legislation solely with Revenue. It is not possible to seek an overall opinion from Revenue on whether or not an investment will qualify – a point noted in some pre-budget submissions. With that said, Revenue's guidance notes (Part 16-00-02), coupled with appropriate tax advice, are critical resources available to stakeholders to minimise risks. The most recent changes to EIIS came in Finance Act 2021. This extended the scheme to 2024 and removed the requirement for the benefitting company to spend 30 percent of the investment before issuing a "Statement of Qualification", accelerating the time between investment and the investor's ability to claim tax relief. The 2021 Act also significantly broadened the scope of fund structures that can complete EIIS investments, allowing Investment Limited Partnerships or Limited Partnerships managed by Alternative Investment Fund Managers to participate in the scheme. The 2021 Act also relaxed the 'capital redemption window' rules. Previously, exiting the initial investment before the second tranche investment had completed its minimum four-year holding period would result in a clawback of the investor's tax relief claimed on the investment. Now, investors may complete follow-on investments in a company without it impacting their ability to redeem or exit the initial investment. Recent findings suggest a contraction in investment activity in Ireland, driven by a volatile global economic backdrop. According to the Irish Venture Capital Association, overseas funding in Irish technology companies fell by 50 percent between the first and second quarters of 2022—from €303 million to €152 million. Equally, rising interest rates are driving a higher cost of debt funding. In this context, EIIS funding, boosted by legislative changes to the scheme in recent years, looks set to become an increasingly important source of equity funding for Irish SMEs in the coming years. Paddy Morrissey is an Investment Associate with BES Management DAC, the fund manager of The Davy EIIS Funds

As financial services firms prepare to comply with Central Bank guidance on operational resilience by December 2023, there will be challenges ahead, writes Linda Gibson The Cross Industry Guidance on Operational Resilience issued recently by the Central Bank of Ireland (CBI) highlighted just how important operational resilience has become to the financial services regulator—increasingly comparable to financial resilience, both in terms of regulatory resources and the supervisory scrutiny firms can expect to face. While the past two years have been challenging for businesses in Ireland, their resilience journey is only just getting started. The objective of the Central Bank’s guidance is to communicate to the industry how to prepare for, respond to, recover, and learn from an operational disruption that affects the delivery of critical or important business services. The guidance aims to enhance operational resilience and recognise the interconnections and interdependencies within the financial system that result from the complex environment in which firms operate. Responsibility is now being placed on the board and senior management to approve: the operational resilience framework; the critical or important business services; impact tolerances, business service maps, scenario testing to ascertain the firm’s ability to remain within impact tolerances; and communications plans. The CBI’s approach is that every firm, regardless of size or activity, will need to meet its expectations. While proportionality is a key factor, every firm will likely have at least one critical or important business service. Firms will now be working towards compliance with the CBI’s guidance on operational resilience by the December 2023 deadline. If firms needed a reminder of the importance of operational resilience, they need look no further than the recent disciplinary measures taken by the CBI against firms that failed to ensure continuity of service in the event of a significant IT disruption and for outsourcing-related control failings.  Embedding hybrid working into resilience models COVID-19 has brought operational resilience to the forefront of the boardroom agenda after firms around the world grappled with significant day-to-day disruption and a shift in the status quo. Where previously it was seen as more of a planning exercise, this rapid change helped focus many leadership teams on the need to meet the regulator’s expectations. Across our organisation, we revisited many of our controls during the pandemic to ensure that potential risks arising from remote working were considered (print capabilities were disabled centrally, for example). Maintaining most of these controls enabled us to accommodate an environment where employees work flexibly, both within and outside of the office. Promoting the shift towards resilience While a paradigm shift in mindset and culture may be unnecessary, there is value in consistently conveying that resilience is about understanding what is most important and planning to get that done, even in dire circumstances. It is important to engrain an enterprise-wide culture and mindset. If you have a consciously engaged and resilient workforce, resilience planning and decision-making will be more effective. In addition to building resiliency by design, to prevent and minimise most disruptions, firms should strive to maintain strong contingency plans for “all hazards” such that, when disruption is unavoidable, they are able to recover and resume the delivery of services as quickly as possible.   Future fix The events of the past two years have brought to light the reality of supply chain risk and business continuity challenges associated with third-party vendors. This significant and persistent threat forced businesses to undertake consequence assessments of supplier disruptions on operational, strategic and financial functions. These are all key elements of operational resilience. Firms now have an opportunity to "future fix"; to create more resilient operating models and build for competitive advantage. They must recognise that the purpose of the new regime is not to demonstrate how resilient they are, but for them to proactively assess where they may have resilience gaps and look to address these gaps as soon as is ‘reasonably practical’, and no later than December 2023. The challenge across the industry is to relay to employees. The next year will be a busy time, and firms need to act early to address vulnerabilities where they exist, instil the operational resilience mindset throughout the organisation, and adjust their operating models to support resilience where it is necessary. Linda Gibson is the Head of Regulatory Change at Pershing EMEA

Dawn Leane examines the main barriers to success experienced by women and what organisations can do to break the career inhibitors down In workshops organised after the publication of the research study carried out by Fiona Dent and Viki Holton for their book Women in Business: Navigating Career Success, women were asked to identify factors they believed had hindered their progress. Their responses are broadly categorised as follows: Limiting beliefs; Family issues; Work colleagues; Personal style and skills; Lack of organisational support; Gender issues; Taking the wrong career path; and Politics and bureaucracy. The most frequently mentioned issues focus on self-doubt and limiting beliefs. As this is a nuanced subject, it is important to distinguish between limiting beliefs and confidence.  Limiting beliefs vs confidence Beliefs are assumed truths developed over time from our direct experiences and observations. They usually don’t exist as explicit propositions. We may barely be aware of them, but they influence what we think, say, and do.  When they manifest self-doubt, they become limiting beliefs. An example of a limiting belief may be ‘I can’t handle conflict’, which could lead to a lack of assertiveness or the tendency to give in to others. Limiting beliefs can have a significantly negative impact on our ability to achieve our full potential. Confidence, however, can be significantly influenced by workplace culture. Women are regularly told that they should be more confident, which is particularly unhelpful as it puts the responsibility firmly back on women, as opposed to examining the environment as a contributing factor. One way in which the office environment can impact confidence is ‘backlash avoidance mechanism’, whereby women feel uncomfortable self-promoting due to perceived social consequences. Feedback and career development In the workshop, 59 percent of participants believed that men and women are judged unequally, particularly when it comes to feedback and development in the workplace. This is supported by the Women in the Workplace study—a study of US women in the workplace conducted by LeanIn.Org and McKinsey & Company—which found that women report receiving feedback much less frequently than their male co-workers. In fact, women are more than 20 percent less likely than men to receive difficult feedback, which is essential to improving performance. One reason cited by managers is their fear of an emotional response, which is less of a concern when giving feedback to male employees. Further, the feedback that women receive is often vague and non-specific. In their Harvard Business Review article, ‘Research: Vague Feedback is Holding Women Back’, Shelly J. Correll and Caroline Simard advised that “women are systematically less likely to receive specific feedback tied to outcomes, both when they receive praise and when the feedback is developmental.” They also found that when women did receive feedback, it was largely focused on their style of communication. Family issues While it is widely accepted that family issues can be a barrier to success, most participants in Dent and Holton’s research recognised that decisions made in relation to family life require compromise—and that it was typically the woman in the relationship who compromised out of personal choice. Many women accepted this as an inevitable consequence of motherhood and feel obliged to take responsibility and be available for their children. Managing employee long-term success The overarching message from these pieces of research is that what happens early in a woman's career significantly impacts her long-term success. It is important that both the career accelerators and inhibitors discussed in this series are considered by organisations when developing talent management and career development programmes. You can read the first two articles in this series: Empowering women for better balance in the workplace Four success factors for women in the workplace Dawn Leane is Founder of Leane Leaders and Leane Empower. 

Good coaches motivate, support and inspire us. So, what can leaders do to become the inspirational coach their team needs? Patrick Gallen shares his insights When we think about a coach, our first thought may be of sports coaches, and images of wild gesticulating on the side-lines to rallying pep talks. People don’t always associate the idea of coaching with the workplace. However, for the past 30 years, many leaders have embraced coaching as a way of developing employees and driving organisational performance. The skill sets are transferrable, and there is no arguing with the evidence – good coaches produce better results. Increased need for workplace coaching There has never been a more important time or a greater need for incorporating a coaching approach into leadership styles. With the increasingly demanding changes brought about by the legacy of the pandemic, blended working environments, amendments to legislation, advancements in technology and human interconnectivity are all contributing to increased pressures experienced by staff on a daily basis. There is a need for leaders to put their coaching hat on and listen, ask questions, challenge thinking, and provide support to their team. If employees are not supported through periods of change, there can be a detrimental impact on engagement and, ultimately, performance. In a recent survey done by Forbes Magazine, only 33 percent of employees report feeling engaged, and companies with greater levels of employee engagement are, on average, 22 percent more profitable. Research proves that coaching improves employee morale, boosts engagement, enhances employee retention, and drives productivity. Even tech companies such as Meta, Google and Apple increasingly seek workers with ‘soft skills’, like coaching. What makes a good coach? Humility, openness and authenticity: The old model of ‘leader as hero’ can be replaced with a model that is humble and open. Be open to questions, and if there is something you can’t confidently answer, don’t be afraid to say so. This can foster an authentic sense of relationship transparency, which is integral to trust. Shared purpose and values: Sometimes, we can’t see the wood for the trees. Effective coaches can encourage organisational focus, team cohesion, and group resilience by stepping back from the noise and redirecting attention to the shared purpose and values of the team. Trust and communication: It may seem obvious, but effective coaching centres around communication. By keeping teams informed and encouraging frequent communication, employees can feel more in control and involved. Enabling vertical as well as horizontal communication – and employing a healthy sense of humour – can go a long way. Team support: Psychological safety is vital for teams during times of change. Would your team benefit from a safe space and having their voices heard in decisions that affect them? Do your people feel free to speak up, disagree, or challenge? Coaches help create that environment. Celebrate success: It’s human nature to dwell on things that go wrong as opposed to right. However, effective coaches give credit where credit is due. As the old adage goes, ‘people don’t quit jobs, they quit managers’. What can you do to be the coach that your team needs? Patrick Gallen is People and Change Partner at Grant Thornton

Despite the tough current climate, Budget 2023 made clear that action against climate change remains a priority for the government. Deirdre Hogan explains The Minister for Finance, Paschal Donohoe TD, delivered his Budget 2023 speech against a contrasting backdrop: the trilemma facing Irish businesses and individuals of energy, inflation and supply chains versus the recent positive reports on the exchequer finances. While the Budget’s focus was on solving the short-term cost of living crisis, the Minister noted that “climate change is one of the key challenges of our time”, indicating that the climate crisis remains a priority for the Government. Carbon tax As expected, carbon tax was increased by €7.50 from €41 to €48.50 per tonne of CO2. The carbon tax increase applies from 12 October 2022 for auto fuels but will be offset by a levy reduction, so we will not see a price increase. For all other fuels, carbon tax will increase from 1 May 2023.   Due to the current energy crisis, the government opted to extend the nine percent reduced rate applicable to electricity to February 2023 and maintain the excise reduction introduced last spring on marked gas oil, petrol, and diesel of five, 16 and 21 cents respectively, providing for costs in the winter months when energy usage will be at its highest.   The receipts from carbon tax are ringfenced to support wider sustainability initiatives and to support the costs of society and businesses in their transition from high carbon-emitting practices to more sustainable alternatives. Carbon tax is expected to generate €623 million in 2023, and almost 50 percent of that is earmarked to go into improving the energy efficiency of houses. Certain social welfare measures, such as Qualified Child Payment and the Fuel Allowance, will also be funded by the carbon tax. The Fuel Allowance is set to increase to €200 above the relevant State Pension Contributory, while those over 70 will see an increase in the Fuel Allowance to €500 for a single person and €1000 for a couple. Agriculture Farmers are set to receive €81 million to finance a new agri-climate rural environment scheme that will support up to 50,000 farmers who take action to improve biodiversity, climate, air, and water quality. Individuals Every household in Ireland will receive €600 in electricity credits over three €200 payments commencing pre-Christmas 2022. Businesses For businesses, a Temporary Business Energy Support Scheme is being introduced to assist businesses with their energy cost over the winter months. Other sustainability-related measures Other sustainability measures introduced include the announcement that €850 million will be spent on capital investment by the Department of the Environment, Climate and Communications in 2023 with over €337 million going towards grants for improved energy efficiency. This should fund over 37,000 home energy upgrades. In transport, the reduction of fares by 20 percent and the 50 percent reduction in the Youth Travel Card will both be extended until the end of 2023. Considering the current sustainability skills shortages in the labour market, the government provided for more than 2,000 apprenticeship places in areas around sustainable finance, green technology, and climate change. The above measures are all welcome and positive. However, there is more work to be done to help increase the pace of our climate or sustainability ambitions. Deirdre Hogan is Partner, Tax and Law from EY Ireland

Russia’s invasion of Ukraine has created an energy crisis across the European Union. Now is the time for European governments to radically restructure their energy sectors, writes Judy Dempsey As autumn kicks in, there’s hardly a household or company in Europe that has not been affected by the huge hikes in energy prices. Now that Russia has stopped supplying gas to Germany via the Nord Stream gas pipelines, governments are rushing to buy expensive gas, attempting to fill their storage facilities ahead of the winter. The last thing they want are price-hike demonstrations and to lose support for Ukraine’s determination to defeat the Russian military. There are several lessons in these price hikes and shortages that must be learned by all EU member states, and the first is the price of dependency. Successive German governments and companies believed gas contracts with Russia were reliable and stable, but how many times did experts warn that Russia could one day use energy exports as a geopolitical instrument? By cutting off energy supplies, Russian President Vladimir Putin is punishing the European opposition to Russia’s invasion of Ukraine in the form of sanctions and curtailed weapon supplies to Kyiv. Putin’s goal hasn’t changed. He wants to divide the EU and give succour to populist movements that are often pro-Russian, anti-NATO and anti-American. That is why the West must stay the course over Ukraine. A Russian victory in Ukraine is a defeat for European security and stability. The second lesson here is how the European Commission, despite its best intentions, did not liberalise energy markets enough to ensure that energy could, like the single market, flow across the EU. The third concerns the failure to link up electricity and gas grids, from north to south—and to link the Baltic states to their western neighbours just as Russian gas transmissions had for decades been designed to flow westwards to Europe via Germany. Fourth is the issue of solidarity, always a thorny issue if you recall the absence of solidarity during the 2015 refugee crisis. With regards to the energy crisis, EU member states have been trying to find their own national responses. Yet, Germany—whose household energy prices are sky-rocketing—actually sells gas to France. Why? Because France, which uses nuclear energy as one of its main energy sources, has neglected the maintenance of its plants. Meanwhile, Denmark has a surplus of energy, but the grids to export this energy are not compatible with other EU member states. The fifth lesson is that this energy crisis should be the catalyst for pushing forward renewable energy. Yet, in a bid to get through this winter, Germany’s Social Democrat-Green-Free coalition is re-opening coal faces. While the Greens support this very ‘un-Green’ development, the party is divided over whether the remaining nuclear power stations former Chancellor Angela Merkel vowed to close by this year should be kept open. In short, Europe’s backing for reducing carbon emissions will be a challenge. In June 2021, the EU adopted a European Climate Law aimed at reaching net zero greenhouse gas emissions (GHG) across the bloc by 2050, with an intermediate target of 55 percent by 2040. This commitment will be tested unless there is massive up-front investment and political commitment to forge ahead with making renewable energy the priority. If not, Europe will be unable to break out of the dependency trap, unable to cope with another energy crisis, and unable to take another big step towards integration and embracing climate by connecting the different energy sectors. Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe

Coined in the seventies, the term ‘the glass ceiling’ has become a mainstay of discourse on gender equality in the boardroom, but over 40 years on, have we even come close to breaking it? Liz Riley reports It was during her speech at the 1978 Women’s Exposition in New York City that Marilyn Loden, the American feminist author, and workplace diversity advocate, coined the phrase ‘the glass ceiling’.  Forty-four years on, the term is still relevant—outliving Loden, who died in early August 2022. “I thought I would be finished with this by the end of my lifetime, but I won’t be,” Loden said in an interview with The Washington Post in March 2018.  “I’m hoping, if it outlives me, it will [become] an antiquated phrase. People will say, ‘There was a time when there was a glass ceiling’.” So, what is the glass ceiling—and how relevant is it to the workplace of today? Defining the glass ceiling The ‘glass ceiling’ is a metaphor describing the barrier preventing women from rising beyond a certain level in their profession. They have a clear view of what is beyond their reach, but they can’t break through to the other side. “There are two aspects to the glass ceiling,” explains Louise Molloy, Director of Luminosity Consulting, and an executive and team coach specialising in leadership development. “Well recognised are the limits organisations, culture, society, and behavioural norms, put on women.  “It is now also recognised that there are limits that we, as women in the workplace, might inadvertently put on ourselves. We do this through the options we advocate for, how we position ourselves, and the career decisions we make. To really break the ceiling, we need to work on both.” With gender pay gap reporting coming into effect this year, you might think that the end to the glass ceiling is surely near. According to a recent report by the European Commission, however, the number of women in Ireland holding senior management positions stood at just 28.8 percent in 2020, up from 15.3 percent five years prior. Ireland has made “excellent progress” on gender equality, the report states, but not everyone agrees. “While progress has been made in Ireland, women here are still substantially underrepresented in senior roles and decision-making spaces,” says Emma DeSouza, Women’s Leadership Coordinator with the National Women’s Council of Ireland.  “According to the latest CSO Gender Balance in Business Survey, in 2021, only 22 percent of the members of Boards of Directors in Ireland were female, one in eight CEOs in large enterprises in Ireland were women, and men accounted for 86 percent of Board Chairpersons.” While Chartered Accountants Ireland (the Institute) currently has 42.6 percent female membership overall, the 24-44 age group has an average 51 percent female membership, showing clear progress among the younger generations of Chartered Accountants.  Of the 1,686 people who have listed their job descriptions and identify as ‘senior executive’, however, just 287 of women. “I think we have made progress, but progress is not necessarily good enough”, says Sinead Donovan, Chair of Grant Thornton, and Deputy President of Chartered Accountants Ireland, “The end destination is to break through the glass ceiling. It is distressing that we are not there yet. Every year we celebrate that we are getting closer to breaking it. Sometimes, I wonder if that is a helpful narrative or not. “At the end of the day, if the intake to our profession is more than 50 percent female—and has been more than 50 percent for several years—and the population is more than 50 percent female, well, then we shouldn’t be celebrating anything until we are at that 50 percent mark.” Progress in the profession Eileen Woodworth became the first woman to be admitted to the Institute in 1925, but progress in the years that followed was slow. Professor Patricia Barker, Lecturer of Business Ethics at Dublin City University, was the 20th woman admitted to the Institute—48 years after Woodworth.  The issues preventing women from entering the profession didn’t stop at admittance. “Most people couldn’t conceive of a woman being a Chartered Accountant,” says Barker. “I was regularly addressed as a man with the name, ‘Mr Patrick McCann’. There were no women’s bathrooms for members in the Institute at Fitzwilliam Place. I had to use the librarian’s loo. Miss Jenkins was not pleased.” When she “pitched up to conduct the audit”, clients assumed she was the comptometer operator, Barker recalls. “There have only been two women presidents of Chartered Accountants Ireland since its inception, Margaret Downes in 1983 and Shauna Greely in 2017—a wide 34-year gap.”  This gap is closing, however. Sinead Donovan will take the reins as the Institute’s President in 2023. “It is an improvement, but one from a disgraceful base,” says Donovan. “It is shocking that it has taken this long.  “However, I think we are in a good place now for the future. It’s key to look at the movement [the Institute has] made on the composition of Council, which is currently sitting at a 47/53 percent split. We should maintain those numbers and aim for at least a 40/60 percent split for Council officers going forward.” Former Institute President Shauna Greely, who is currently Chair of the Institute’s Diversity and Inclusion Committee, also feels positive about the future. “Lots has been achieved in the past 50 years with gender representation in the profession,” says Greely.  “We have gone from 20 female members 50 years ago to 13,000 today. It is hugely important to have female role models, and we have many. Female graduates are encouraged to become Chartered Accountants, and female members can aspire to what others have achieved before them.” Diversity and inclusion It is now common for organisations to have initiatives and strategies specifically aimed at diversifying the employee pool. Molloy thinks this is helping women to find equity in the workplace. “Industry-level initiatives such as the 30% Club and Women in Finance and Tech are great for spotlighting the issue at a macro level,” Molloy says. At a company level, employee resource groups such as Meta’s ‘Women@’ initiative also help to create a space for women to share their experiences and build alliances, Molloy adds. “Through specialist sessions on topics such as how to communicate impactfully about your work and ambitions and how to network strategically, women learn to empower themselves,” she says.  “Many of the groups I work with have men as well, both as champions of diversity and attendees. These initiatives tend to be hugely successful as they are self-empowering and drive change from within.” Like Molloy, Donovan feels that support from both women and men is needed in any effort to help women get ahead. “We need to call it out. It cannot be down to women to ask about female representation on committees,” she says.  “It upsets and annoys me, and I know it annoys the lads when I’m the one who has to say it, when we all know it shouldn’t have to be me. The whole board should think about the diversity of the organisation.” Ultimately, Donovan believes that ‘Gen Z’ (the next generation of professionals, born between 1997 and 2012) could be the ones to pave the way for true workplace equality.  “I think they will flip a switch, but, whether it’s a switch for gender equality, I don’t know. I think equality and diversity will be a by-product of their way of working. Because of Gen Z, working will become more virtual, less about relationships and more about deliverables,” she says. “They are just not into developing relationships in the way that we were. That should mean the output will be more diverse, but I don’t think that’s the driving force. They’ll ask if it makes their work-life balance better or gives them space to do what they want to do. That will be their driving force rather than ticking diversity boxes.” Barker agrees, saying it will be interesting to see “if women retain the foothold they have achieved” as we move into new models of working, incorporating working remotely and a potential drop in employment opportunities “as inflation rises”. Breaking the glass ceiling As for actually breaking the glass ceiling, Donovan doesn’t hold out much hope. “I don’t think we will ever, as a country and a culture, waiver from the fact that women ‘need’ to stay at home to rear children or take time out from their careers to have children,” she says.  “Whilst that is there, I think it will always be a barrier to equity. I think if we get to 40/60 at the top levels of the profession, that might be where we cap out. We will never have enough momentum to enable the progression needed to achieve parity. Does a break from work impact a woman’s career? It does. It absolutely does. This will only be corrected when it becomes accepted and ‘the norm’ for men to take a gap to share in the family responsibilities.” Barker is, however, a little more optimistic: “It is not so much a question of breaking through the glass ceiling—it’s more a question of women defining the landscape of the ceiling once they get up there”.

Prosecutions against charities that do not file their annual report with the Charities Regulator will be ‘the next step’ in the regulation of the sector, writes Colin Kerr The Charities Regulator is calling on non-profit organisations to prioritise compliance and transparency to support public trust at a time of rising regulation in the sector. Published in late July, the Charities Regulator 2021 Annual Report revealed that just 64 percent of registered charities in Ireland had filed their annual reports on time. Commenting on the finding, Helen Martin, Chief Executive of the Charities Regulator, said there had been a decline in the number of charities filing their annual reports within the required timeframe, a trend she called ‘disappointing.’ “Our registration and compliance units are assessing why some charities are failing to meet this statutory requirement,” Martin said. Providing an overview of a charity’s finances and activities on the Public Register of Charities, these annual reports are an “important means” for registered charities to provide basic information to the public, Martin added. “The question for charities is whether they can afford not to comply with the requirement to file annual reports. Funding is the number one concern for charities we surveyed last year, and as inflation brings an increased cost of living, it will remain so,” she said. “There is a strong link between greater transparency and accountability and public trust in the sector, making their annual report to the Charities Regulator an important means for registered charities to provide basic information to the public on their finances and activities in the previous year.” Under the Charities Act 2009, every charity must submit its annual report to the Charities Regulator ten months after its financial year ends. “In 2021, we noticed a drop-off in the rate of compliance with this requirement,” said Tom Mulholland, Director of Compliance and Enforcement with the Charities Regulator. “The Charities Regulator came into existence in 2014 and, every year prior to 2021, the rate of compliance was increasing year-on-year. “We are concerned with the reduction of the number of charities filing their annual reports on time, as this is a legal requirement.” Mulholland pointed out that filing an annual report to the Charities Regulator was not an onerous process. “The report is filed online, and it is a straightforward form, which requires basic figures including income, expenditure, assets, and liabilities. It is an opportunity for charities to give details of the work they carry out,” he said. “There is a free text section on the form, which allows the charity to detail their activities, which means that if someone is looking up a charity on the Register of Charities website (charitiesregulator.ie), they can see from the most recent annual report what the charity itself is saying about its activities.” Those charities that file their annual reports to the regulator were also demonstrating to the public that they were compliant with their obligations. Mulholland said: “This should be a comfort to someone who decides to donate to a charity, and it also allows the donor to get information about the charity in terms of its income, expenditure and activities.” While the Charities Regulator had always been ‘proportionate’ in its interaction with charities, Mulholland said that, in the interest of fairness and due diligence, it had to consider those charities which were making the effort to be compliant when dealing with non-compliant parties. “We are considering our options when dealing with those charities that do not file their annual reports to the Charities Regulator,” he said. “It is possible to remove a charity from the Register of Charities. This has serious consequences–an entity that is not on the register is not permitted to call itself a charity or conduct any charitable work under the Charities Act. “It is also an offence under the Charities Act not to file an annual report with the Charities Regulator and we are actively contemplating acting against those charities that are not compliant,” he said. Mulholland said that the Charities Regulator could opt to prosecute a charity in the District Court. Prosecutions have been taken against entities acting as charities, which are not on the Register of Charities. To date, however, no prosecution has been taken against charities that do not file their annual reports. “The Charities Regulator is evolving and we have been in business since 2014. We take a proportionate response in relation to our interactions with charities and we tend to interact with charities rather than dictate actions to be taken,” Mulholland said. “Having said that, prosecutions against charities, which do not file their annual report with the Charities Regulator, will be the next step in the development of regulation of the sector.” Under the Charities Governance Code, Chartered Accountants looking after the accounts of a charity should have access to the minutes of the meetings of the charity’s trustees. “Accountants working with charities should be able to see these minutes, which should show that the trustees are taking an active part in the running of the charity and that the decisions they make are clear from the minutes,” said Mulholland. “There is also legislation before the Oireachtas, the Charities (Amendment) Bill 2022, which provides for the introduction of accounting regulations in relation to charities, which will supply a format for the preparation of financial statements in relation to charities. The Bill will also herald the introduction of Charities’ Statement of Recommended Practice (SORP) requirements for charities with an income of more than €250,000.” Already in force in Britain, SORP is not yet a requirement in the Republic of Ireland. The Charities Regulator is also continuing to promote the Charities Governance Code, which sets out minimum standards for managing and controlling Irish charities. The code was established to help charity trustees implement processes that meet their legal duties under charity legislation. “The code was rolled out in 2021 and we are pleased with the uptake, which is around 69 percent,” said Mulholland. “One of the aims of the code is to encourage transparency in Irish charities. One of the ways charities can show transparency is through the clarity of their financial statements. “We would also urge charities filing their accounts with the Companies Registration Office to file their full financial statements rather than their abridged statements.” In conclusion, Charities Regulator Chief Executive Helen Martin said that compliance with the Charities Governance Code, and with the requirements of the Charities Regulator, could only benefit individual charities directly. “It is public money that is being spent here,” Martin said, “and everybody from the donors to the Regulator to the charities themselves want to make sure that these funds are spent in a transparent and accountable manner.”

A milestone move to new premises has laid solid foundations for future growth at Crowe Ireland, says Naoise Cosgrove, the firm’s Managing Partner The recent move to new offices on Mespil Road marked an important milestone in the evolution of Crowe, the accountancy, tax and business advisory firm, founded 81 years ago in Dublin. For Naoise Cosgrove, who has been Crowe’s Managing Partner since 2016, the move also signalled the start of an important new phase in the life of a firm with deep roots in Irish business stretching back to 1941. “We have ambitious growth plans and a modern office that serves as a collaborative and social hub is essential to this,” Cosgrove says. “Our new home is a place to teach and learn, to share ideas and develop relationships that are central to our culture.” For Cosgrove, who began his career with Crowe in 1999, the strength of this culture has also been at the heart of his own progression with the firm, spanning two decades in corporate finance. “I see our culture as our greatest asset, and I think I was very fortunate at the outset of my own career to find myself at a firm with great people, and wonderful mentors. I have stayed with Crowe ever since,” he says. The move to Mespil Road also represents a significant investment for the firm. “We had been at our previous office in Marine House further along the Grand Canal since 1978. It was time for a change,” Cosgrove says. “Now, we have a best-in-class environment that allows our people to work collaboratively, share knowledge and ideas, and one that supports our hybrid working model. It is a very different workplace to the one JJ Bastow and Jim Charleton might have imagined when they founded this firm back in 1941, and it positions us for growth at a very exciting time.” Deep roots Originally known as Bastow Charleton, Crowe started life on Cavendish Row, working with cattle dealers attending weekly marts at the Dublin Cattle Market on Prussia Street. The practice established a strong presence in the meat and metal sectors throughout the forties and fifties. When Jim Charleton passed away in the early 1960s, his brother Joe, a tax practitioner, took over his interest in the practice, becoming a driving force in its expansion in the decade that followed. Bastow Charleton expanded further in the late eighties and early nineties, merging with Hogan Kenny Matthews and Clarke and Conroy O’Neill, both Irish firms. In 1995, it joined forces with Horwath International, the global network, to service the needs of clients internationally, rebranding subsequently as Horwath Bastow Charleton and, more recently, as Crowe Ireland. Newmarket Partnership, a specialist corporate firm, joined Crowe Ireland in 2014—followed, in 2015, by Newmarket Consulting, a boutique strategy and marketing consultancy business—and Phelan Prescott + Co, a Dublin-based accountancy firm, the following year. As part of the Crowe Global network, the Dublin firm is one of over 220 independent accounting and advisory members in more than 130 countries worldwide. “Our services are pretty comprehensive. We provide tax, audit, corporate finance, consultancy and outsourcing services,” says Cosgrove. “We work with private clients, sole traders and owner-managed businesses, alongside financial institutions, government agencies, not-for-profit, and multinational organisations.” This broad spectrum is, says Cosgrove, a big part of what makes Crowe Ireland a vibrant organisation. “We have been around for a long time, and I think a lot of our success has been down to our focus on client service—on developing deep lasting relationships with clients and colleagues,” he explains. “We have a holistic understanding of what their business is about. It’s not ever just about simply executing a task. It is about creating real value for them.” Vision for growth Notwithstanding the economic turmoil prompted first by the pandemic and, more recently, the war in Ukraine, Cosgrove is optimistic about the future. “There are clouds on the horizon—inflation, supply chain issues, and rising energy prices—but change is the one constant,” he says. “The Irish economy has been performing well and you would like to think that gives us a strong foundation to move forward, whatever the wider circumstances. Growth through acquisition is something we are looking at. The last time we brought in another practice was in 2017. “We would like to think there will be a level of consolidation in the market, which had maybe been slowed down by the pandemic, and that we will be playing an active role in that. Whether or not it happens in the next 12 months given global events is hard to say.” Corporate finance As well as his role as Managing Partner, Cosgrove also leads the corporate finance team at Crowe Ireland, specialising in the buying and selling of private companies, and acting for purchasers, sellers and funders. “I have always had an interest in business, even back when I was growing up in Waterford. I had a very good accounting teacher at secondary school, and I really enjoyed the subject,” he says. “I did a Business Degree at UCC and, from there, progressed into the world of accounting. I suspect, like many of my peers at the time, I didn’t necessarily know what accounting was all about—there were no accountants in my family—but I found I really enjoyed it. “I trained with Deloitte, in an audit environment mainly. I was fortunate enough to have a number of secondments during those four years, and I was keen to get into corporate finance.” In his corporate finance work with Crowe in the years since, Cosgrove has led transactions ranging from trade sales to private equity and MBOs, advising clients on strategy, valuations, joint ventures, finance negotiation, transaction structuring, and due diligence. “I enjoy being involved in deals and transactions—being able to make an impact, maximise value and look to the future for the businesses I work with, rather than in the rear-view mirror,” he says. Attracting talent Crowe Ireland currently has 14 partners and employs 140 people—and the firm is continuing to grow, recently appointing Aidan Ryan as a director of its audit and assurance department. A Chartered Accountant, Ryan joins Crowe from Moore where he was Audit Director for three years, having joined the firm in 2008. “We are very active in terms of recruiting at the moment across all departments—that is a constant,” says Cosgrove. “There is huge demand for talent. Everybody is feeling it. We get natural enquiry through the positioning we have in the market, through word-of-mouth and referrals. Attracting talent can still be challenging, however, and that has been exacerbated by COVID-19. “Now more than ever, I think the culture of an organisation really matters. The world has become very transactional in terms of how people connect and communicate. We interact in a very scheduled way through Zoom and Teams calls. We log on, we log off. There isn’t necessarily much room in that for the spontaneous ‘watercooler moments’ that can help to establish and build working relationships in a more organic way.” Crowe’s response has been to consciously create forums at its new Mespil Road premises that help people to feel more connected to the organisation and to each other, Cosgrove says. The office was officially opened last July by Minister for Finance Paschal Donohoe, TD. “Our investment in our office has centred on creating an open, inviting space, to give people a sense of the wider organisation and their part in it,” says Cosgrove. “We know that people need a reason to come into the office now. For some, that’s about learning. For others, it is about social connection. These are the forums we’ve focused on to help people feel more connected to the organisation and to each other.”

Julia Rowan answers your management, leadership, and team development questions I manage a large team which is split into three functions, each with a Team Leader, but I end up doing a lot of the TLs’ work.  When there is an issue to be resolved, they will summarise it in an email and ask ‘what do you want me to do?’. I have spoken to them about this several times, but they keep doing it. There are words, and there are actions. And ‘actions speak louder than words.’ A lovely pattern has been established here: they ask you for guidance, you tell them they shouldn’t—but you give it anyway. And off we go again. The longer this has been going on, the longer it will take to change it. You may need to be patient while a new pattern is established. Email is a lovely place to avoid conversation, so the first step might be to reply to these messages with something like ‘Delighted to talk this through with you—when suits?’. Then have a few great questions ready: ‘what’s important in this situation?’, ‘what are your options here?’, ‘how can I support you with this?’. These questions encourage the TLs to think through the issue themselves, while you offer support. If this does not change the pattern, you could reflect on what might be sustaining their dependency on you and ask questions about that: ‘We’ve talked about this a few times, and I notice you are still coming to me for direction. I feel that your instincts are good and I’m wondering what’s preventing you from suggesting a way forward / tackling this yourself….?’. If you meet with your three TLs as a group—which I hope you do regularly—you could make this an agenda point, encouraging them to report in on successes and challenges, supporting them in advising each other, etc.  Remember, they need to create a new pattern with their team members too. Two members of my team have had a dispute and are refusing to talk to each other or work together. It arose out of a simple enough miscommunication with ‘fault’ on both sides. I have been acting as a go-between in the hope that the situation would resolve itself, but it hasn’t. Team meetings have become very difficult as nobody speaks. Often there is huge hurt behind conflict – so go tenderly in this space. You could begin by reflecting on ‘what is reasonable?’. Is it reasonable for two adults (in their roles, on their salaries) to refuse to engage with each other in a way that other people must pick up the pieces? I might also reflect—as you are—on whether I am colluding with them and keeping the dynamic going. You could talk to them about the impact their behaviour is having on you and the rest of the team. Have a reasonable ‘ask’ worked out in advance. Offer support, or to get support (e.g. from HR), but be led by the requirements of the role. Make sure to notice, and give feedback in response to, even small improvements. But, be prepared for one, or both, to move on. If you read one thing... Turn the Ship Around – A true story of turning followers into leaders  by  David Marquet. Marquet was made commander of a submarine he had not been trained to run and had to rely on his crew—a huge challenge in a ‘command and control’ culture. You can find him on YouTube—‘What is leadership with David Marquet’. I recommend the animated Mindspring version. Julia Rowan is Principal Consultant at Performance Matters, a leadership team and development consultancy. To send a question to Julia, email julia@performancematters.ie