Most office workers have proven they can work just as well – if not better – while working remotely. Why, then, are business leaders so keen to get people back in the office? Patrick Gallen examines the issue of trust and maturity in the workplace.   Flexible and remote working existed in Ireland by exception before COVID-19; today it is a way of working life. COVID-19 has enabled us to prove that flexible and remote working work, but why are so many leaders still keen to ‘get back to normal’? Why is there a belief that having your team in a common physical space between dictated hours allows for better measurement of performance, and how do we challenge this paradigm? I worked in London for seven years in a large multinational; flexible and remote working was an accepted way of working, it was embedded into the culture to work where you want, when you want – as long as the expected output was met. When I returned home to Ireland in 2018, I couldn’t believe the low level of flexible and remote working available. In one experience, I witnessed a senior member of a division ask if it was OK to leave 15 minutes early. One adult asking another adult permission for 15 minutes – this is the ‘aha’ moment. Maturity and trust are key factors to enabling an agile workforce. For this to happen, we must challenge our thinking as leaders on three points. 1. We are all adults As adults, why are we asking permission? Permission removes accountability and power. It is a safety mechanism to move responsibility from one person to another; but if we are not holding our teams responsible for managing their own time or empowering them to do so, what else are we not enabling them to be responsible for? Trusting our people to manage their own time and workload cultivates a mature and empowered culture; empowered people feel safe to be innovative and creative – without asking permission.  2. Attendance vs output: if I can see you, you’re working But if I trust them to manage their own time, how will I know they are delivering their work? Is work measured on attendance or output? In this new reality, establishing the measurement of work will be a major indicator in what the future of flexible and remote working will look like. If our approach as leaders is to look at output rather than attendance, we will need enhanced performance management frameworks, smarter objectives and measures. Processes and systems are just the mechanism; nothing will embed without understanding and working with your people and teams. As leaders, we need to focus on bringing performance management frameworks to life through value-adding conversation and feedback, and making performance management a meaningful experience.   3. Trust, evidence vs fear: if I can see you, I trust you And to come to our third point: is our lack of trust in employees working in a flexible or remote way based on evidence, or fear? For example: two members of your team doing the same job with the same output, but one is in the office and the other is at home – who do you unconsciously trust more? If it is the former, it might be fear-based trust. As leaders, it has never been more important to hold a mirror up to ourselves and find our own resistance: What comfort do I get when my team is in the office? What will I lose if my team works remotely? As humans, we all have insecurities and fears, and every day we do what we can to protect ourselves; most of the time unconsciously. We might be protecting our sense of control, position or status. If we can develop as leaders and bring understanding to this by looking in, we may be able to apply more freedom when we look out. There are many layers to effectively enabling flexible and remote working, but to start it’s important to understand and shift the resistance within ourselves. By bringing maturity and trust into the culture and establishing a consistent focus on output, we will open the gate to a fluid and effective remote working environment – without permission! Patrick Gallen is the Partner of People and Change consulting at Grant Thornton.

When hiring for business-critical roles, it is essential to do your research and plan extensively before you start the recruitment process. Paul O’Donnell explains. For many organisations, current hiring means focusing on business-critical roles (BCR). Uncertainty can put expansionary recruitment on hold; however, no firm can afford the escalating risk of leaving critical positions unfilled and the inevitable intensification of competition that arises for such talent.  Defining what is business critical varies from firm to firm. We know from our work in this area that the one constant in BCR acquisition is the need for a unique approach to identifying and assessing the talent, formed around three steps. 1. Do a deeper role analysis than normal A position becomes business critical if it falls into one or more of four categories: It is essential to business continuity; The role is core to elements of strategy implementation in the near- to mid-term; The skillset is always in demand in your organisation and is difficult to source; and The talent need is due to an important, unexpected and urgent business challenge or opportunity. Work out the key behaviours and values that you seek demonstrated in any BCR hire. Have clear measures for your expected outcomes and assess a candidate for a BCR, not just on what they achieved but how they worked with others to make it happen. As your organisation evolves, this BCR may change, so assess candidates for their stretch potential to meet new and oncoming challenges. 2. Create a unique hiring process for the role The solution to BCR hiring lies in the depth of understanding of the requirement by all stakeholders and the span of research that results. Research-backed hiring is essential for BCRs. We know that the quality of talent suited to such roles does not reside on databases, respond to advertisements or sit on basic networks. Research-backed talent acquisition requires a highly collaborative plan between your firm and the representative undertaking the search. Once sourced, the assessment of candidates must be extremely thorough and deploy several techniques. However, this does not mean seeking opinions from multiple stakeholders, which often dilutes ownership and stalls critical hire decision-making. It requires continuously testing, behavioural interviewing targeting the competencies you seek and rigorous in-market assessment.  3. Avoid the super halo  It is difficult not to get overpowered by the bias that can arise when an experienced candidate for an extreme hiring priority is identified. However, along with the essential core skills central to a business-critical need, suitable hires must also possess four key traits: The drive to perform at the highest standard and with authenticity; An action-oriented mindset with clarity and continuous focus on the required outcomes; The ability to view complex situations at a system level but bring solution tactics down to simple, bite-sized communications; and The capacity to encourage others to embrace new thinking and success orientation.  BCR holders are constantly required to make judgement calls. To do this effectively, they draw on a deep well of experience, rigorously tested data, a thorough investigation of options and great instinct for the right outcome. Your process to hire these key executives should do likewise. Paul O’ Donnell is the COO of HRM Recruitment.

There has been much debate over the future of work, but the most important element is the human aspect. Without humanising the future of work, argues Valerie Daunt, we won’t be able to move forward as a society. The COVID-19 pandemic has been talked about as a “time machine to the future.” This peak moment of accelerated change has created an imperative to consider the choices we will face when the constraints of the pandemic are removed. Where do we want to go? How quickly? And how will we get there? While every organisation will face its own set of challenges and opportunities to accelerate forward, the destination is clear: to humanise the future of work. A new era in work Redefining the human dimension of work in today’s world of perpetual disruption is a continuous process, without a single entry point. It is a way of transforming and evolving with a strategic focus on work and the organisation’s purpose, meaning, and value. It requires us to think and work differently and to constantly challenge the work orthodoxies of the past. Three keys to humanising the future of work It’s time to move from concept to action and focus on the path toward thriving, not merely surviving. To humanise the future of work, it is imperative that we: Re-architect work: This is the time to define new future work aspirations and outcomes and to focus on the “art of the possible” for what we can achieve using technology to enable and elevate human capabilities. Unleash the workforce: We must challenge how we think about the workforce and use technology to help identify and unleash human potential—within and beyond the organisation. Adapt the workplace: We cannot underestimate the organisational and cultural shifts that are demanded in the expanded work environment—which includes the ecosystem of physical and virtual workplaces—and the expectations around how to collaborate, engage, and relate to each other. There is no “waiting for a better time.” The time to start humanising the future of work is now. Valarie Daunt is Partner in Consulting at Deloitte.

When deciding to transfer a business to a child or other family member, it’s very important to understand all the tax implications involved. Mairead Harbon outlines four actions to consider before handing the reins over. The decision to transfer a business to a child is generally not one that is reached lightly. The consequences of such a transfer must be thoroughly considered as there can be unforeseen repercussions, such as potentially giving rise to several tax implications. So, both parent and child must understand the potential upsides and downsides of the transfer of a business, both from a tax and commercial perspective. Tax considerations for parents and children An individual aged between 55-65 can transfer their business to their children without giving rise to CGT, provided certain conditions are met. This relief is known as Retirement Relief. If that individual is over 65, then a lifetime limit of €3 million will apply to transfers to a child. This form of relief can also apply, but in more limited circumstances, to disposals of certain qualifying assets to a niece or nephew. A child can currently receive up to €335,000 from their parents tax-free; after this, CAT at 33% will apply. However, they may be able to avail of Business Relief, which reduces up to 90% in the value of the relevant business property taken by the child. Other tax considerations Stamp duty will most likely arise on the transfer of the business. Stamp duty of 1% will apply on the transfer of shares in a family company. Stamp duty of up to 7.5% will apply on the transfer of certain business assets. However, it may be possible to reduce the stamp duty, for example, by arranging for assets, such as plant and machinery, to transfer by delivery, by availing of stamp duty exemptions for particular asset classes etc. The four key actions to take now Consider the timing Are you approaching 66 years of age? If so, are you happy to transfer some or all of your business to avail of potential substantial tax savings? Relinquishing control Suppose you are content to take a step back from the business but would like to retain some element of control. In that case, it is important to consider if you would like to retain a certain percentage shareholding (notwithstanding the potential additional future tax liabilities) or if you would prefer to hold a "special" share to give you veto rights over certain aspects of the business. Who gets what? Whilst it might seem like a good idea to split your business equally between your children, in practice it could lead to conflict where some of those children don't work in the business. Instead, consider whether there are any investment assets you would prefer to transfer to those children instead. If those investment assets provide you with an income stream that will continue to be required post-retirement, consider whether you should pass on those assets but retain a life interest in them. Tax-efficient will If you are not yet in a position to pass your business to the next generation or have not decided on a succession plan, then you should, at a minimum, put in place a tax-efficient will. This should provide control over the payment of CAT and possibly help minimise the charge to CAT in the event of your untimely passing. Mairead Harbron is a Director at PwC.

Most organisations are pledging to embed net-zero into their strategies, but can they really pull it off? Michael Hayes outlines five pillars of action that every company can take on the journey to net-zero. Investors are acutely aware of the relationship between stewardship and financial performance. The message to leaders is clear: climate risk is viewed as a financial risk, a driver of business insecurity. In a world of concerned stakeholders, organisations that fail to mitigate their emissions face the likelihood of reputation damage. Many Fortune 500 companies have outlined decarbonisation strategies to achieve their targets. These strategies rely on several levers that include accelerating the shift to renewables, developing new product offerings, re-locating facilities, investing in carbon capture and optimising tax credits. The detailed strategies vary significantly across industries, but there are basic elements that apply to every organisation. Five pillars of action Organisations on the net-zero journey need to gather and analyse data that gives a clear picture of their emissions footprints. To build confidence in companies’ pledges, data should be objective, easy to compare and up to date. To achieve this, companies should look beyond simple reporting tools and consider a broader technology framework to manage the entire process, infusing trust along every step. 1. Decarbonise with strategic foresight Leaders across sectors must address several competing imperatives: recover from the COVID-19 crisis, prepare for a world of artificial intelligence (AI) and extreme automation, and grow in increasingly competitive markets, while achieving their net-zero pledges. Key steps toward low-carbon and net-zero operations include: Ensure decarbonisation aligns with your overall business strategy; Evaluate and develop a common understanding of the nonlinearity of climate change, competition for renewables and offsets, and the impact of decentralised energy in the marketplace; Define the reporting strategy for internal and external stakeholders, including public disclosures; Shift your capital structure to account for the increasing role of climate in finance; Align executive compensation with environmental performance;  Demonstrate provable progress through targeted emissions-reduction initiatives that support broader business goals. 2. Operationalise sustainable behaviour Understanding your carbon footprint is just the beginning. The key to ingraining sustainability in your operations is to focus on the business case for these initiatives. Further, incorporating decarbonisation into your existing in-flight and proposed organisational transformations may unlock additional benefits for the business and stakeholders. The fundamental shift that needs to happen when an organisation seeks to decarbonise can only be achieved if the people and cultural psychology of that organisation have fundamentally shifted as well. This is not something that can be easily compartmentalised. It must infiltrate every part of an organisation so that climate risk and opportunity become instinctive parts of business thinking at every level. 3. Gain regulatory agility Without the mechanism in place to reliably report emissions reductions, many organisations risk getting caught flat-footed as regulations and standards tighten. 4. Accelerate climate-focused partnerships Many of the world’s leading brands are setting the standard with ambitious goals of eliminating their GHG emissions. It is becoming increasingly common for leading companies to pursue their agendas in partnership with industry peers, industry groups, NGOs, and suppliers – all of whom can help leaders hone their strategies. All the mechanisms for achieving net-zero are not yet apparent. However, the pain points across organisations are similar. By looking outward for partners and alliances across sectors, organisations can collaborate on action, spark innovation, and accelerate broader progress toward larger societal goals. 5. Build trust and prove results Demonstrating provable progress is critical when it comes to capitalising on the strides made through decarbonisation programs. Customers, investors, lenders, and stakeholders are looking for transparent and high-fidelity data to support claims of progress, i.e., reputational and financial benefits.  The convergence of powerful technologies – cloud computing, machine learning, blockchain – to drive insights into emissions arrives at a tipping point when time is running out to prevent global atmospheric temperature from rising above the threshold marked by 1.5°C. The era of climate action demands climate accounting The era of climate action has arrived: stakeholders want to see net-zero strategies in place – and they will want to see proven results. The degree to which an organisation can pursue action-oriented strategies will depend on the nature of the business and how far the company has already advanced its efforts on net zero. At the centre of the effort is the ability to report mitigation results. The very technologies driving wholesale transformation are the foundations of a platform that serves up two key elements: traceability and accountability. Net-zero pledges won’t mean much to consumers and investors unless there is action and verifiable progress behind them. Regulators will want proof of compliance. A net-zero strategy that deploys emissions accounting can provide the trusted traceability and reporting that are the critical stepping stones toward honouring net-zero pledges. Michael Hayes is the Global Head of Renewables in KPMG.

Building your professional brand while working from home can be a challenge, but with the right set of tools under your belt, you can use it to your advantage. Sarah Lennon explains. Working from home, working from your couch, from the kitchen. Bliss… yes? But when it comes to building your personal brand – your professional brand – while working remotely, it can be a bit more complicated. First things first – why do it? Why bother building your personal brand when it comes to your career? As we move into the ‘new normal’, it’s clear that the benefit of being aligned to one organisation or brand is becoming less and less valuable. Becoming aligned to a purpose, a bigger picture, and your own growth, however, is part of a new way of working. How can you build your personal brand, then, while working remotely? Not having the face time, water-cooler conversations and informal ‘chit-chat’ might lead to stagnation in some roles and bring up those feelings of vulnerability for those who feel like COVID-19 has affected progression. So, here are five ways to build your brand even while working remotely. Use your voice  Stay in touch with people, focus on growing your network and commit to progress. Before entering any meeting, be prepared. Do your research both on the meeting topic but also on the people attending. Develop a tone of voice that works for your professional brand. Schedule regular ‘coffee chats’ Informational interviews are a gold mine. They are a great opportunity to get your profile in front of people who may not be aware of you or your brand. The bonus of working remotely now is that it is much easier for people to ‘give’ you 15 minutes of their time for a conversation. Conversations can lead to knowledge sharing which, in turn, could lead to potential opportunities for you to develop further. Conduct regular skills-audits and know your gaps You might have more time now due to the lack of a commute – use this wisely! Take this time to investigate your weak points and work to strengthen them. This can give you more insight into an area that you would like to progress in, deep dive into or potentially move out of. Set goals and be consistent  Ask yourself: what do you want to achieve? Do you want to become known as the go-to for product related questions in your organisation, or perhaps the coaching guru? Whatever the answer is, you need to spend some time focusing on this and clarifying the outcome. From there, reverse engineer. Share what you learn Cut through the clutter of email, instant messaging and share what you’ve learned with others through video. Show people your full self – rather than just a written reply or voice message. Perhaps you want to share tips about productivity while working from home or lessons from career conversations that you’ve had. Pick an area, theme and share these lessons with a chosen audience via internal communications or externally on social media. Either way (or maybe both), this effort and focus can go a long way towards establishing your credibility in a certain area. Sarah Lennon is Founder of Sarah Story Coach – a Career + Business Coaching Consultancy. 

To make hybrid working work, employers must be as open-minded and flexible as possible. Ger McDonough and Ciara Fallon outline four fundamental principles to keep in mind: remember, rebuild, redefine, and reimagine. The transition to remote working upended our traditional views of the workplace and the purpose it serves. Most organisations have shifted from the conventional view of the workplace as 100% on-site, some are considering 100% remote, and many are looking at a variation of the countless ‘hybrid’ models in between. Hybrid working brings complexities beyond a blanket’ 100% on-site’ or ‘100% remote’ workplace. However, this forced reimagination of how and where we work has provided a unique opportunity to redefine the role of the workplace in providing real added value for organisations, teams and their people. How can you lead your organisation in redefining the purpose of your office and redesigning your overall workplace of the future while also ensuring that any approach is inclusive and doesn’t have unintended consequences for cohorts of employees within your organisation? There is no correct answer here, and an agile approach will be critical to success. Leaders must recognise and accept this and implement regular ‘reflection’ points whereby you review and iterate your approach based on feedback from employees and managers. When preparing the office for hybrid working, it’s important to use the four Rs (remember, rebuild, redefine and reimagine) to help define the purpose of your future office. Remember Leverage the lessons from the ways of working throughout the pandemic. A thorough reflection on remote working can help you understand which elements you want to retain in your new workplace model and which you want to leave behind. The lessons from how your organisation has performed and what your employees experienced are valuable inputs into any design of a future workplace model. What elements of your organisation’s pre-pandemic workplace model need to be embedded? There are likely to be some parts of the ‘old’ workplace model that your organisation and employees wish to reconnect with. For example, some employees may have expressed a desire to return to the connectedness of a face-to-face ideation session, while others may feel that there is no replacement for in-person experiences when it comes to informal learning and coaching. The elements your employees are telling you they want or need in some capacity, combined with your organisation’s future strategy, should also be factored into any redefining of the purpose of your office. Rebuild Remodelling the workplace for your organisation requires consideration of the business strategy, people and culture, compliance and risk, and technology and learning – in addition to the physical environment. Understand employee sentiment, future business strategy, and management expectations. Discuss current challenges and future goals, and gather data and insights to co-create the best workplace model. While immediate COVID-19 safety precautions are non-negotiable, getting your future workplace model right means being comfortable with experimentation and a test-and-learn approach. If you’re not iterating and improving, your competitors may be. Your workplace will also increasingly become a critical factor in the attraction and retention of talent. Implementing an agile, flexible approach will enable your organisation to stretch and scale as lessons are learned and priorities pivot. Redefine Reimagine your workplace with collaboration at the centre and in a way that supports different types of work preferences. Once you’ve understood how your people want to use different workplaces and spaces, redesign accordingly. Think fewer cubicles and more hubs for collaboration, with enough variability to meet different needs and expectations, and continually evolve these spaces as use cases change. Strategically marry physical and non-physical elements to make your workplace one where employees actively want to be and not have to be. Whether it’s war-rooms for team strategy sessions, outdoor spaces for mental refreshment, or technology that lets you coordinate calendars simply, workspace design should incorporate both physical and non-spatial elements to create a seamless, supportive and healthy office experience. Reimagine First, acknowledge that COVID-19 isn’t the first pandemic the world has experienced – and it won’t be the last. Organisations have to future-proof their offices, from ensuring adequate spacing between staff to mitigating bottlenecks in high footfall areas, reviewing air conditioning infrastructure and implementing zero-touch technologies. Identify the permanent fixtures of your ‘new normal’ and undertake scenario planning so you are equipped with contingency plans and responses to future disruption. Agility needed While strategic planning must be undertaken to make hybrid working a reality, agility will be critical as lessons are learned and hybrid working models are refined. Flexible attitudes will be key, providing trust and room for modifications and amendments as required. Along with asking employees for their input into the design of the workplace of the future, being honest with your people about this evolving journey to hybrid working is crucial. A failure to simultaneously understand your employees’ sentiments and adapt your workplace strategy in line with the changing world of work will reap negative short- and long-term consequences. Instead, acting now will allow you to benefit from the unique opportunity granted by the pandemic to redesign your workplace in a way that will work for your organisation, your teams and your people. Ger McDonough is Partner of People & Organisation at PwC. Ciara Fallon is Director of People & Organisation at PwC.

In an ideal world, all our work would be perfect. However, Moira Dunne argues that, with time constraints on our days, we sometimes have to let that perfectionist mentality go and settle for just good. Most people pride themselves on the high standards they achieve in their work lives. While aiming for perfection can help deliver quality work, the downside of such pressure can often outweigh the benefits. It can cause stress if we don’t have the time or skill to achieve the standard we want and impact our schedule as we tediously try to work out the assumed problems. Is perfection the enemy of productivity? Spending too long on one task may mean missing a deadline on another. Attempting to create the perfect project or document can be counterproductive to the business. However, sometimes it feels like it’s the only way to work. We do this for a few reasons: the desire for perfection and being seen to be the best enjoying the work and getting caught up in the ‘zone’ fear of criticism from colleagues and leadership workplace anxiety unclear deliverables In today’s hectic workplace, many people have more work to do than they have time to do it. Therefore, it is important to make the right decisions each day to use time in the best possible way. There are a few ways to do this. When good is good enough Sometimes, the standards we aim for are not required. While quality is important, it can be more productive to progress two tasks or projects to an acceptable level rather than perfect one to a very high standard no one asked for. For perfectionists, letting go in this way can be hard to do. It can help to get agreement in advance from a manager or a client about expectations and what needs to be delivered. This gives the perfectionist permission to complete the job even if the standard reached is not perfect in their eyes. Effort versus impact Every piece of work takes valuable time out of your day, so it is vital to consider the value being added. Is 80% of the current effort enough? Is the last 20% the ‘nice to have’ aspect of the task? Ask yourself: will anyone notice the final 20% of the work I do on this task? will this extra effort add any benefit for my clients or my colleagues? am I adding additional features because that’s the part of the work I enjoy? Splitting your task into two areas can help: the essential work (80%) and the additional work (20%). First, work towards 80% completion in the time allotted for the task. Then, once that is completed, add the 20% if time allows. Or move on, but return at a later point if you have flexibility in your schedule. Be decisive with time To be productive, it is important to have a plan for each day. Put time blocks in your schedule to work on critical pieces of work. This will help you limit the time spent on each task. Use a timer if necessary. When your time block is up, consider what is the best use of your time – to continue with the task, or move on to your next priority? If you have 80% of the work done, it may be time to put this task to rest. The key is to make mindful decisions about your work instead of getting engrossed in one task and losing track of time. Moira Dunne is founder of beproductive.ie.

Data has always been an integral part of any organisation, but the pandemic highlighted its importance. Now, companies must invest in the correct infrastructure to reap the benefits of data. Eoin O’Reilly explains. Data and technology had an interesting and important role to play in the battle against COVID-19. We all grew accustomed to seeing medical experts and scientists produce statistical models and projections to help guide policy decisions. People became familiar with epidemiological terms such as R-numbers and gained new knowledge of statistical models. When governments spoke about following the science, they actually meant following the data. This was particularly interesting for companies that had been hit with a severe shock. They had to move quickly to understand the impact of the pandemic on their business and plan a way forward. Many companies saw data as key to that. They had to use data to gain a new understanding of their customers, get products to those customers, reshape their supply chains, and create new ways of doing business. That also brought about a recognition that their data infrastructure may not have been ready for the challenge. Many organisations thought they were well set up but found difficulties with data quality issues (with systems not talking to each other) and low quality reports. The new understanding of the importance of data has also brought about a willingness to invest in addressing infrastructural deficits. Organisations appreciate the need to invest in the foundations if they are to reap the benefits of data. According to the EY Ireland CEO Imperative study, 84% of Irish CEOs anticipate significant investment in data and technology in the next 12 months. This is positive news and indicates that executives now see the value of data and know that it will impact their business. Before, they had to be convinced that data was worth investing in; now, they say it will help them connect with customers. In addition, they say that data will be at the front end of the business, where it will help serve the customer better and achieve competitive differentiation. Utilising the data However, just 63% of Irish CEOs said their organisations can deliver timely data-driven insights, enabling better internal and customer outcomes. So while many organisations have made considerable progress, a significant minority do not yet have that level of capability. In most cases, the systems and level of analytics in use are pretty basic and do not offer the capability required to enable better customer outcomes. This somewhat inflated view of their organisations’ capabilities may be due to a misunderstanding of data analytics’ true nature and power. That said, all the indications point to an appreciation of the need to invest more in data. But it cannot just be an add-on for the organisation. If companies are to compete against the new breed of digital-first firms, they will need to become data-first enterprises. Traditional vs digital-first companies The acceleration in value of global technology giants over the last six to nine months has been off the scale. The critical difference between those companies and their more traditional counterparts is that they have data and digital technology at their core. When considering a digital and data strategy for any organisation, everyone should ask: what approach would a digital-first organisation take? Even companies in regulated sectors are looking over their shoulders at potential born-digital competitors. Banks are already seeing parts of their business being cherrypicked by new data-led fintechs. The open banking directive gives these new competitors access to customer data, which they can use in new and imaginative ways. Traditional banks will have to step up lest they end up on the losing side of this data struggle. Overall, the results of the EY Ireland CEO Imperative Survey are very encouraging. They indicate that data is valued for its ability to help an organisation differentiate itself and its offerings and win in the market. That will drive further investment in the coming years. Eoin O’Reilly is Assurance Partner and Head of Data Analytics at EY.

Professional learning and development is key to career progression, but asking for financial support from your company can be difficult. Dearbhla Gallagher outlines how best to approach your employer when it comes to requesting support. Learning and development are critical in the workplace. As dramatic changes in technology have changed the way we work, employees can’t afford to rest on their laurels and ignore their professional development. Ongoing training is key to everyone’s professional progress. However, professional training can be expensive and not always within our budgets. It makes good sense to request financial support from your employer: many firms and companies generously support professional development if they can see the value of upskilling their workforce. Requesting training support demonstrates to your employer that you are committed to developing and growing in your role. But simply asking for financial support is not enough; your employer needs to see the potential for a clear return on investment. So, let’s take a look at a good approach to identifying and requesting support for your learning and development from your organisation. Do your research Start by doing your research. Do a self-assessment. Consider your skills deficiency in relation to not just your current role but the skills you need for the next promotion. Get feedback, ask your colleagues what training they undertook to progress in their own careers. Ask a mentor if they can help identify potential skills gaps that could prevent you from progressing. Be prepared to listen and take on board what your mentor is saying. Research training options and the costs. Can you commit? Do you have the time and energy for 3,000-word assignments after work and after the kids have gone to bed? Demonstrate the benefits The next step is to be able to demonstrate the benefits to your employer. They will want to see a strong case for increased productivity and performance. They will want to know if the training will improve the quality of your performance and output. Link your request for education funding to specific performance objectives. Think about the bigger picture – how will the investment in your training benefit the broader organisation? Is it possible, for example, that you can share what you have learned afterwards with a wider group of your colleagues by way of a presentation, thus avoiding the cost of sending multiple employees on the same course? Make a commitment Finally, investing in employee training is generally seen to increase employee loyalty and commitment to the organisation in the future. By and large, employers are very generous with training budgets, but they will want some level of comfort that you are not going to jump ship at the first offer with your newly acquired knowledge. You are more likely to get a positive response if there is a strong sense that you are committed to a future in the organisation. Dearbhla Gallagher is the HR & Learning and Development Manager at Baker Tilly.

What leadership lessons can we learn from the COVID-19 pandemic? Tom Armstrong outlines six key takeaways for business leaders. During WWII, Winston Churchill was credited with saying, “Never let a good crisis go to waste”. The recent COVID-19 pandemic is a crisis of a different type, but nonetheless, a crisis. So, what leadership lessons have managers learned during the pandemic? Informal processes are crucial For many, especially in large multinationals, on-boarding processes for new staff effectively broke down while working from home. Throughout the pandemic, management worked hard to ‘patch up’ this area by focusing on defining tasks and roles. However, informal processes are critically important for the on-boarding of new staff and cannot be replicated with the same level of impact in the virtual world. When one considers environment, culture, cohesion, mentoring and human connection, this concept becomes clear. Check your processes Taking stock of what processes work well and which do not is a constant in today’s rapidly changing world. However, this can sometimes be more aspirational than real, given the pressure of day-to-day operations. Working from home left leadership teams with no choice but to address this issue quickly. When we return to the new normal, or maybe even before we get there, it’s important to regularly check your processes to make sure they are still serving the business. Have more, not less (focused) meetings “Too many meetings” is a common complaint that predates the pandemic. While the number of meetings increased during the pandemic, the outcome was more contributions from participants and quicker resolution of challenges and issues. This could be because meetings were virtual and, therefore, didn’t have any distractions that one might have in an office, resulting in an increase in participation and productivity. The key is to conduct meetings that have focus. Plan and organise While having more meetings may have positive outcomes such as resolving issues speedily, the method behind this is well-structured meetings with goal clarity and clear accountability. Planning and organisation skills have improved considerably, for both leaders and employees, due to remote working. Set clear boundaries It’s not a surprise to hear people say that working from home during the pandemic has blurred the lines between home and work. For most, this is not a good development in terms of health and wellbeing. This issue impacts employees and leaders alike. Several managers learned the value of having clear boundaries between work and non-work. Start work, finish it and make sure a line exists for you and your team. Be agile and act decisively for all stakeholders The pandemic has ‘screamed’ loud and clear the need to be agile. Most organisations have adapted remarkably well, given the enormous challenges posed by the pandemic. One senior accountant I spoke with mentioned the importance of acting with agility in the interest of all stakeholders. Given the world’s environmental and social challenges, this emphasis on “all” stakeholders was refreshing and a timely side-effect. Tom Armstrong is the Accountant’s Executive Coach at Armstrong Executive Coaching.  

Climate-related reporting is here to stay, but what does it involve? Lorraine McCann and Natalia Carvalho outline the TCFD framework and how it can help Irish organisations prepare for financial risks related to climate change in the long-term. The far-reaching implications of climate change are undeniable. The most recent IPCC Report calls out the grim fact that humanity is “unequivocally” responsible for climate change, and without urgent action, the world’s 1.5 ºC goal will slip beyond reach. However, what is less well understood is the impact and risk it can pose to businesses, now and in the long-term. With pressure coming from governments across the globe, not to mention Ireland’s green agenda, the private sector needs to stand up and take note. While we have seen some momentum in Irish businesses over the past 18 months, especially in making commitments to meet or exceed their own emission targets, there is still more that needs attention, including the increased reporting requirements required by new climate-led regulation.  Task Force on Climate-related Financial Disclosures The Task Force on Climate-related Financial Disclosures (TCFD), which provides recommendations and guidance to organisations on disclosing climate-related topics in their financial reporting, has driven much of the change in reporting for many years. By being among the first to guide organisations on how best to report their impact on climate change, the TCFD framework is widely becoming recognised as the global industry standard and the basis of much-needed regulation in this space. Comprising 32 task force members across the G20, the TCFD framework provides climate-related financial disclosures across four key pillars: governance, strategy, risk management, and metrics and targets. The framework also acts as a means of providing transparency about a company’s climate-related risk exposures to key business stakeholders, such as investors, lenders and insurance underwriters. This is becoming increasingly important, especially as investors seek to support organisations with strong ESG agendas. In an attempt to assess how global organisations, including Ireland, are faring when it comes to following the guidelines laid out by the TCFD, EY recently commissioned the EY Global Climate Risk Disclosure Barometer to provide a global snapshot of the increasing corporate focus on climate risks and opportunities. The research, drawing on public disclosures of 1,100 companies across 42 countries, found that companies have continued to make progress in addressing the quality and coverage of climate-related financial disclosures, largely due to the fact that more regulators are making TCFD reporting mandatory as well as increased pressure from investors. Furthermore, the response from CPD, the not-for-profit organisation that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts, now incorporates TCFD recommendations. The research also found that companies tended to score better on governance, metrics and targets than climate-related strategy and risk management. The results suggest that companies feel more comfortable sharing their carbon emissions targets than their carbon reduction pathways to get there.  The benefits of the TCFD framework There is no question that the way Irish organisations report key financial and non-financial data is changing, and the benefit is two-fold. First, more Irish organisations embrace sustainable business practices and operations due to the need to be more transparent about climate-related data. And second, by adopting the TCFD recommendations and including climate-related issues in mainstream annual financial reports, Irish organisations will be better equipped to quantify and prepare for the financial risks associated with climate change into the future.  Transparency is needed to educate organisations and their stakeholders about climate change’s far-reaching financial and macroeconomic impacts. Early preparation and transparency will result in market leadership, improved stakeholder relationships, and reduced risks.  Lorraine McCann is the Director of Climate Change and Sustainability Services at EY. Natalia Carvalho is a Senior Manager of Climate Change and Sustainability Services at EY.

With many of us preparing to go back to the office in some capacity, it’s important to be aware of the new work etiquette, especially when it comes to in-person meetings. Orla McAuliffe explains. Since March 2020, we’ve adjusted to masks, social distancing, hand sanitising, and working from home. Now, it’s time to readjust to public transport, social outings and in-house meetings. The changes in office life extend beyond the meeting room walls. Before you even enter a professional space – whether your own or someone else’s – you should take time to familiarise yourself with their interpretation of the guidelines. Wearing a mask in shared areas, sanitising at the appropriate place and time, maintaining distance, adhering to queues or one-way pathways, and ensuring you don’t overcrowd escalators or elevators are all now necessary basics of office etiquette. Helping people adjust to the new norm When scheduling a meeting in person, it’s important to remember that this will be a big adjustment for many. To cater for this, you must provide plenty of notice and make sure the meeting is necessary for everyone involved. Be clear about the running time so all parties can prepare accordingly. If it’s a longer meeting and refreshments are required, flag this in advance. People may want to bring their own or just not feel comfortable partaking straight away, as it inevitably involves removing one’s mask. Rules on the day On the day itself, your main responsibility as a host is to ensure that your guests are provided for, instructions are clear, and adaptations are made in a safe and non-judgmental way. As host, stand to greet people and let them know immediately what your preferred greeting is. Handshakes are still out, so whether you use a head nod or eye contact, clearly announce your intentions and give your guests time to respond. Make sure the room chosen is large enough for people to maintain distance, has been thoroughly cleaned, has visible sanitisation options and, ideally, can provide enough space so participants do not have to sit directly across from one another. If supplies are being provided, make sure they are clean and provide instructions as to whether guests are expected to dispose of them or keep them for repeated use. Guest etiquette As a guest, your responsibility is to follow the host’s guidelines and prioritise your own safety. Communicate your boundaries clearly and be aware that health and safety really do come first in the current climate. Nobody wants to be seen to cancel or postpone a meeting, but if you are sick, then that is absolutely what you need to do. Polite and prompt notice will always be appreciated, and people will be reassured that you are taking this seriously and respectfully. In general, many people are excited to see the return of in-person meetings. They are excited to see their colleagues again. Of course, this new frontier will be difficult – we won’t be sharing birthday cakes in the break room anytime soon, for instance – but well-managed meetings will be an important reassuring factor in a potential return to office life. Orla McAuliffe is the Founder and CEO of the Professional Training Centre.

To be prepared for this new legislation, eligible employers need to start analysing their data and planning accordingly. Aoife Newton tells us what needs to be done before 2022. Gender pay gap reporting legislation was recently signed into law in the Gender Pay Gap Information Act 2021 (the Act). However, when and how the information will need to be reported is as yet unknown. In this regard, the regulations to give effect to the Act are eagerly awaited. The Act amends the Employment Equality Act 1998 by requiring regulations to be made by the Minister for Children, Equality, Disability, Integration and Youth as soon as reasonably practicable after the commencement of the legislation. The regulations will place reporting and publication obligations on private and public sector employers regarding their gender pay gap. They will contain much of the detail on the practicalities of the legislation. Which employers are affected? The legislation will not apply to all employers. Only employers that satisfy certain employee thresholds will be in the scope of the legislation. Where an applicable employer reports that a gender pay gap exists, the employer will be required to explain why the gender pay gap exists and detail the measures being implemented by the employer to reduce or eliminate the gap. Both private and public employers will be affected by the mandatory reporting obligations, but they will initially only apply to employers with 250 or more employees for up to two years after the commencement of the regulations. The scope of the mandatory reporting obligations will widen further to include employers with 150 or more employees on or after the second anniversary of the regulations and those with 50 or more employees on or after the third anniversary. Employers with less than 50 employees will not be required to report on their gender pay gap. What is required? Applicable employers will be required to report on the difference in remuneration between male and female employees, as set out below: the difference between both the mean and median hourly pay of male and female employees; the difference between both the mean and median bonus pay of male and female employees; the difference between both the mean and median hourly pay of part-time male and female employees; and the percentage of male and female employees who received bonuses and benefits-in-kind. Employers will also be required to simultaneously publish the reasons for differences in pay in the context of the above and the measures being taken or proposed to eliminate or reduce such disparities. In addition to the mandatory reporting requirements, other requirements may be contained in the regulations once published, including: the class of employer, employee and pay to which the regulations apply; how the number of employees and remuneration is to be calculated; and the form, manner and frequency with which information is to be published. The information will not be required to be published more than once per year. Enforcement An aggrieved employee can make a complaint to the Workplace Relations Commission (WRC) if an employer is not reporting on its gender pay gap. On receipt of a complaint, the WRC will investigate the complaint’s merits and may order the employer to take a specified course of action to ensure compliance with its reporting obligations. However, the WRC does not have the jurisdiction to order the employer to pay compensation to an employee or impose a fine on an employer. The Act provides for the Irish Human Rights and Equality Commission (IHREC) to apply to the Circuit Court or High Court seeking an order forcing an employer to comply with its reporting obligations. Employers that do not comply with such a court order may be held in contempt of court. The Act also provides that the IHREC, on receipt of a request from the Minister, can carry out (or invite a particular undertaking, group of undertakings, or the undertakings making up a particular industry or sector to carry out) an equality review or create and action an equality action plan. What to do now Minister Roderic O’Gorman has confirmed his intention to have the regulations in force by the end of 2021. He has also indicated that employers may be required to submit their information through a central website. Given that the regulations will likely be in force by the end of 2021, the legislation will probably apply to applicable employers from some date in 2022. Employers can prepare by collating and analysing their remuneration data to assess the extent to which gender pay gaps exist. This will help plan how to remove or reduce any such gaps before they are publicly obliged to report, the reasons for them, and what they are going to do about them. Aoife Newton is the Head of the Corporate Immigration and Employment Law team at KPMG.

While we’ve all suffered from ‘Zoom fatigue’, it’s still important to know when to turn on your camera. Susan Moylan explains. From the onset of the pandemic, our ways of working have changed dramatically. Some of us are working from bedrooms and dining rooms, with some being lucky enough to have dedicated home offices. Remote working has impacted the nature of our interactions, and this is common to us all. As human beings, we are social creatures, and we need interaction with others in some form or another. But what form that communication takes, or should take, is the question. Even though we have had access to a range of technological channels to communicate for some time now, up until 18 months ago, most thought that face-to-face interaction was the most effective form of communication. Once face-to-face was no longer an option, we were all challenged with the same choice: embrace the technology or get left behind. And that’s what we did – from family Zoom quizzes to virtual escape rooms with work colleagues. Most of us have embraced it all. As the pandemic has continued, though, ‘Zoom fatigue’ has set in. The extra concentration and focus required to communicate effectively in a virtual world has affected us all. This has had an interesting impact on our behaviours. Instead of reaching out to colleagues using technology to enrich the interaction (i.e. using video conferencing tools with cameras turned on), many tend to avoid this whenever possible, instead choosing to send emails or send a message via Teams or Slack. Are these methods the best way to communicate? No. Are they the easiest way to communicate? Quite possibly. Body language is key For communication to be effective, a message that has been transmitted must be understood as the sender intended it. We can check understanding by picking up on all verbal and non-verbal clues. Body language is critical in this process. In an environment where face-to-face contact is not an option, video conferencing can enable this process. And if you are reading this thinking, “of course”, I ask you to cast your mind back to last Friday. What was your most-used channel for communication? I would guess the most popular response is email followed by instant message. While I am not suggesting that these aren’t appropriate to use, seeing someone’s body language is key to ensuring that your effort to communicate has been effective. And, yes, being on camera in every call can be exhausting. But again, consider the message you are trying to get across and the recipient – sometimes, a call with cameras off is just fine. Tone of voice can do a lot of the heavy lifting. However, when the message is important and you aren’t very familiar with the person on the other side of the call, turning on your video can help get that message across. So, for every email or message you are about to send, ask yourself if it is the best way to get your message across. Sometimes it will be, but sometimes you will find that your interactions with others could be much richer by turning on your camera. Susan Moylan is an Associate Director of People & Change Consulting at Grant Thornton.

Julia Rowan answers your management, leadership, and team development questions. Q. I get no feedback from my boss unless he’s unhappy about my work. I work hard and give the people on my team plenty of feedback, but I feel very unsure of myself. A. Of course, your boss should give you feedback. You could try to change him, but (and sorry for the cliché) the only person you can change is yourself. So, let’s look at what’s happening for you: your boss is not communicating with you and you are telling yourself a story (he doesn’t appreciate me, my work is sub-standard) that undermines your confidence. What if you trusted yourself and told yourself a different story? For example, ‘Isn’t it great that my busy boss can cut to the chase about my work?’ or ‘Isn’t it interesting that somebody that senior does not see the importance of giving feedback?’ These stories free you from feeling bad about your boss’s behaviour and allow you to be easier with the situation. Funnily enough, when we lose our anxiety, what we are searching for often manifests. As there is little communication, it could be an idea to write a short weekly email to your boss outlining, for example: Three main things your team progressed/achieved this week; Three main priorities for next week; and Issues impacting the team. That way, you build up a record of communication about progress centred on goals and priorities. Then, your boss will be aware of what’s going on and can respond if he chooses. On another note, it may be useful to pay special attention to your longer-term career development. Think about what you really want in the short- to medium-term (lead a team, manage a project, broaden your capabilities, specialise) and find someone who can be a listening ear. Also, focus on building relationships across your organisation to create a wider network of people who can support you. Q. I’ve just been appointed to lead the dream team. They’re hard-working and talented. But I can’t believe they gave me the job, and I wonder if I’m the right manager for them. A. If this team is experienced and motivated, they don’t need much direction – you could focus on coaching and facilitating the team, both individually and as a group. Here are a few things you could do: Develop your coaching skills. Coaching is a great way to build people’s competence and confidence through questioning and listening. It also helps the leader to work from a more strategic place. Help the team become more self-sufficient by locating and sharing resources and encouraging team members to share challenges and opportunities. Use your team meetings to challenge the team. Ask them where they want to get to – both individually and as a team – and start planning your way there. More importantly, you need to give that imposter syndrome the heave-ho. You got the job for a reason (if it helps, ask the interviewers why they chose you), but leaders need to develop a special blend of ‘confident humility’ – the confidence to acknowledge their strengths and the humility to keep learning. We do everyone a favour when we acknowledge our strengths; by acknowledging them, we make them available to others. Julia Rowan is Principal Consultant at Performance Matters, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie.

Bríd Heffernan provides an update one year after the Monitoring Group issued its proposed reforms to international standard-setting boards. In July 2020, the Monitoring Group issued its much-anticipated paper outlining reforms to the international standard-setting boards – namely, the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA). This article will reflect on the reforms proposed in the July 2020 Monitoring Group paper and analyse where the reforms stand one year on. The journey so far The Monitoring Group is a group of international financial institutions and regulatory bodies committed to advancing the public interest in international audit standard-setting and audit quality. The last set of reforms faced by the standard-setting boards were agreed to in 2003 by the International Federation of Accountants (IFAC) and the Monitoring Group. These 2003 reforms created the Public Interest Oversight Board (PIOB), which was tasked with increasing investor and stakeholder confidence in the standard-setting boards and ensuring that standards are responsive to the public interest. The 2003 reforms put IESBA and IAASB under the oversight of the PIOB, thus making them independent of IFAC. This, in turn, led to IFAC providing support to the standard-setting boards. The proposed July 2020 reforms do not change this structure, but they do propose changes to address the Monitoring Group’s concerns. Effectiveness reviews were built into the 2003 reforms. Every five years or so, the Monitoring Group conducts an effectiveness review and makes recommendations to improve the system. In the early reviews, the recommendations were made and agreed upon, and enhancements were implemented. However, the most recent review in 2015 resulted in the 2017 Monitoring Group consultation paper. Since then, there has been extensive discussion between the Monitoring Group, IFAC and other stakeholders culminating in the issuance of the July 2020 Monitoring Group paper. Monitoring Group concerns The July 2020 Monitoring Group paper titled Strengthening the International Audit and Ethics Standard-Setting System set out recommendations for reforming the standard-setting process. Below is an overview of the Monitoring Group’s main concerns that led to the recommendations, which are also discussed later in this article. The public interest is not given sufficient weight throughout the standard-setting process. Stakeholder confidence in the standards is adversely affected as a result of the perception of undue influence of the accountancy profession on the following two grounds: IFAC’s role in funding and supporting the standard-setting boards and running the nominations process; and Audit firms and professional accountancy organisations providing the majority of standard-setting board members. Standards are not as timely and relevant as they need to be in a rapidly changing environment. IFAC’s response As IFAC operationally runs the standard-setting boards, the Monitoring Group’s concerns and recommendations directly impact IFAC. In an update to its members, IFAC’s Chief Executive, Kevin Dancey, stated that IFAC was focused on agreeing on a workable set of changes that would enhance stakeholders’ trust and confidence in the standard-setting process. These reforms also provide an opportunity for IFAC to address its own issues with the current process, which are: That PIOB members are almost exclusively from a regulatory background. IFAC believes that the PIOB should have a multi-stakeholder composition and perspective. That the PIOB must be more transparent, and there is a need for clarity on its role and the role of the standard-setting boards and how the PIOB carries out its mandate. 2020 recommendations  The July 2020 Monitoring Group paper proposals retain the two standard-setting boards with the same mandates, and they will be retained in a similar size (16 members, down from 18 members). The respective roles of the PIOB and the standard-setting boards are also clarified. The Monitoring Group’s proposals clarify that the standard-setting boards are responsible for developing, approving and issuing the standards. The role of the PIOB is oversight. Combined with making the workings of the PIOB more transparent, this is a step forward. Responsibility for ensuring that the standards were responsive to the public interest was a source of confusion in the past. Was this the responsibility of the standard-setting boards or the PIOB? The July 2020 Monitoring Group paper contains a public interest framework, which confirms that it is the standard-setting boards’ responsibility to certify that the standards are responsive to the public interest. The PIOB will also have to certify that the standards are responsive to the public interest as part of its oversight function. Both the PIOB and the standard-setting boards will have a multi-stakeholder composition. For the PIOB, this means that its members will not simply be representatives of the Monitoring Group members. And for the standard-setting boards, this will ensure a diversity of views at the standard-setting table. Recognition of the significant role of both IFAC and the accountancy profession is a key improvement over the 2017 consultation paper. Current practitioners can still become members of the standard-setting boards, up to a maximum of five practitioners. Impact of the changes on IFAC With respect to IFAC, its ongoing role has been acknowledged in the July 2020 Monitoring Group paper: IFAC will continue to provide operational support to the standard-setting boards, the only difference being that it will be set out in a formal service level agreement. IFAC’s role in adopting and implementing the standards, promoting the standards, and monitoring their adoption and implementation has been acknowledged as an important ongoing responsibility. There will be a change to the nominations process for IAASB and IESBA members, however. The process is currently run by the IFAC Nominating Committee, which is chaired by the IFAC president. To ensure adequate independence in the nominations process and ensure good governance, the July 2020 Monitoring Group paper recommends that the nominations process sit under the supervision of the PIOB. The legal structure will also change. Currently, the standard-setting boards are committees of IFAC. The July 2020 Monitoring Group paper calls for the standard-setting boards to sit under a separate legal entity, independent to IFAC. Furthermore, changes have been recommended to the staffing model for the standard-setting boards. The proposals call for an increased staff complement and for staff to have greater responsibility for drafting the standards with less responsibility in the hands of the standard-setting boards. Since IFAC provides operational support for the standard-setting boards, this request for an increased staff complement will impact IFAC. Transition planning phase It was assumed by many observers that, with the issuance of the July 2020 Monitoring Group paper, all would be known. However, five years after the initial review, the reform process is only at the end of the beginning, seeing as many of the details remain unresolved. According to IFAC, the July 2020 paper is a significant improvement on the proposals outlined in the 2017 consultation paper. It is evolutionary rather than revolutionary. It sets out several high-level recommendations and principles that can be worked with. Right now, IFAC and the Monitoring Group are in the transition planning phase of the reforms – but many outstanding items must yet be worked through. The transition planning phase consists of IFAC and the Monitoring Group developing an implementation plan by participating in 26 workstreams. The goal is to work through all outstanding issues and finalise the recommendations in 2021. The implementation of the recommendations will then take place over the next three years, up to 2024. The changes will be phased in to ensure a smooth transition and no disruption to the current standard-setting process. Funding of the reforms  It is clear from the July 2020 paper that there is no new funding model. The profession’s resources were stretched before COVID-19, and this limitation will be exacerbated post-pandemic. This represents a significant fiscal constraint on implementing the reforms. IFAC’s funding for 2021 is down 13.5% from 2018, and there is no improvement anticipated in the funding outlook beyond 2021. Therefore, a key challenge is to reconcile the cost of the Monitoring Group’s recommendations to the funding available. Next steps As noted, the process is currently in the transition planning phase. The goal is to resolve all outstanding issues in 2021 while reconciling the cost of the recommendations to the funding available and reaching a deal on the phased implementation of agreed changes by 2024. While there is a long way to go before the reforms are implemented, it is positive to see progress that ultimately serves the public interest. Bríd Heffernan is Associations & Institutions Leader at Chartered Accountants Ireland.

Dr Margaret Cullen explains the characteristics of good directors, which in turn contribute to board effectiveness and sustainable companies. Although there is no comprehensive definition, the Companies Act 2014 describes a director as “any person who occupies the position of director by whatever name called”. While under previous company legislation, courts recognised some practical differences in capacity, role, duties and responsibilities, the distinction between categories of directors is not widely recognised in the Act. It is within governance codes and guidelines such as the UK Corporate Governance Code, the Code of Practice for the Governance of State Bodies, and the Central Bank of Ireland Corporate Governance Requirements for Credit Institutions that this distinction is made. Executive directors are those involved in the day-to-day running of the company. Non-executive directors, on the other hand, are not actively involved in the day-to-day running of the company. They are typically appointed because they bring particular expertise that can contribute to the company’s success and sustainability. Within the non-executive director element of the board, there are non-executive directors (NEDs) classified as non-independent directors and those classified as independent non-executive directors (INEDs) because they meet the independence criteria specified within the applicable code. NEDs can be further delineated into directors employed within the group to which the company belongs and those who do not work for the group but do not meet the criteria necessary to be deemed independent. A principle enshrined in many corporate governance codes is that at least half the board should comprise NEDs whom the board considers independent. Adam Smith wrote in 1776 that executive directors or managers of companies, “being managers of other people’s money, cannot be expected to watch over it with the same vigilance with which they watch over their own”, thereby articulating the classic agency problem. This agency problem and its solutions constitute the crux of the most articulated corporate governance theory: agency theory. At the heart of agency theory is the assumption of managerial opportunism: that managers are motivated solely by self-interest, not by moral obligation. Thus, agency theorists advocate for monitoring devices, incentive mechanisms, and checks and balances to ensure managers do not abuse power to the detriment of shareholders. INEDs are one such mechanism. The conceptual underpinning of corporate governance codes around the world is the need to respond to this agency problem. Therefore, it is not surprising that principles related to INED representation on boards and INEDs chairing board committees are typically front and centre in these codes. Interestingly, agency theorists assert that the sole objective of a company (de facto the board) is to maximise returns for the shareholders. However, this assertion is inconsistent with directors’ duties under common law. There are, of course, alternative theoretical perspectives that articulate more positive assumptions on the character of managers – stewardship theory, for example. Although they advocate for INED representation on corporate boards, stewardship theorists’ advocacy relates to the advisory and guidance dimension that INEDs bring to the board rather than the need to protect the company from managerial misconduct. Anyone who has sat in my corporate governance class will know that I sit in this camp. I say this not because I am naive as to the propensity for poor behaviour within organisations. On the contrary – we have seen enough corporate governance scandals over the years to know that unscrupulous and greedy people can do bad things. However, for every scandal, thousands of companies survive, prosper, and make significant contributions to society and the economy. I hope that the current gusto in relation to company purpose and environmental, social and governance (ESG) criteria will further influence companies’ societal and environmental footprint to the benefit of all. Sometimes, companies make headlines for a breakdown in controls or sub-optimal risk management rather than any deliberate attempt to defraud the company or customers. Unfortunately, the distinction between the former and the latter is not often made clear by – or to – stakeholders. NEDs are not involved in the day-to-day operations of the company. The entire board should work hard to create a governance framework (across the company and in the boardroom) bespoke to company context, where accountability is created and the board receives the information necessary to do its job. The board is entitled to rely on the integrity of information emanating from within this framework once it has no reason to suspect that the people providing this information are not fit and proper. Wilful blindness to inappropriate behaviour is, of course, not acceptable. If I start as an INED from a position of professional mistrust, however, I am starting from an impossible position. Trust must be at the heart of the board/management relationship. Therefore, the leadership qualities of the CEO/executive directors and the company’s culture are hugely influential on the standards of corporate governance within. INEDs must bring an appropriate balance of trust and professional scepticism to the boardroom. By taking on a pseudo devil’s advocate role, INEDs add an extra governance dimension, enabling the board to make effective collective decisions and/or determinations based on the information to hand that is considered in an honest and responsible way. Getting this balance right is the hallmark of a good director and requires INEDs to understand what being non-executive truly means. Stakeholders must also understand this. Readers of this article will be familiar with the long-standing debate on whether auditors should be viewed as watchdogs (who bark if they see something suspicious) or bloodhounds (who search for something suspicious). Confusion about this distinction serves to undermine the audit process. Equally, considering the collective responsibility of a board, the non-executive nature of INED roles needs to be understood for what it can – and should – entail. To quote my mentor and colleague, Professor Niamh Brennan, it’s “nose in, finger out”. Agency theorists look at corporate governance practices and behaviours through the lens of the agency dilemma. This is an abstraction at the level of the company and its governance structures rather than board behaviour. While recognising the different lenses that categories of directors bring to the boardroom (for example, the knowledge that comes with day-to-day executive involvement versus the information asymmetry attached to being non-executive), the most effective directors demonstrate objectivity and independence of mind. As so much governance is done outside the boardroom, this objectivity across executive directors and executive committee members sets companies up for long-term success. It manifests itself in executive meetings and discussion forums where challenge and debate are encouraged, management information is scrutinised, tactical and strategic opportunities and threats are acknowledged, alternatives are considered, and decisions requiring board approval and areas that would benefit from board-wide input are identified. In short, the executive directors and executive committee can go a long way towards setting the board and the company up for success. Apart from their specific domain of experience, INEDs bring an extra layer of objectivity (with the balance of trust and professional scepticism referred to earlier) to the board to contribute to collective board effectiveness. Group NEDs bring the group perspective (on strategy and risk appetite) and related challenge, requiring equivalent objective mindsets of other board colleagues. This is particularly important, as group NEDs must always act in the interest of the local company. While much is made of the concept of non-executive director independence related to a schedule of criteria, I have always argued that independence of mind across all aspects of governance and all categories of directors is critical to board effectiveness and sustainable companies. There are, however, other behavioural characteristics critical to board success. Several years ago, in the process of designing a governance programme, I had a brilliant discussion with another colleague of mine, Frank Ennis – an experienced independent non-executive director – on what makes a good director. We had previously agreed on the importance of independence of mind (the first ‘I’) for all directors. We explored the importance of technical skill, experience and knowledge to contribute to collective board strength, but determined that it is how these skills are harnessed rather than the skills themselves that are key. We landed on the second ‘I’, intelligence, referring to the capacity of each director not to allow anyone to insult theirs. This second ‘I’ reflects and extends beyond the professional scepticism discussed. Finally, we reflected on corporate governance failures related to fraud and deliberate, inappropriate actions by those in charge and questioned the lack of integrity. We also remembered a keynote speech made by Warren Buffet at Columbia Business School in 2009 when he observed: “Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without the first, you really want them to be dumb and lazy.” Thus, the third ‘I’ became integrity – never, ever compromise yours. We were mindful, of course, that living by the three ‘I’s can sometimes lead to a fourth ‘I’ in the form of isolation, but we agreed that this is a price worth paying. Dr Margaret Cullen is Founder and Principal of Think Governance Ltd. This article was written in collaboration with Frank Ennis FCA, independent non-executive director.

Jane O’Hanlon explains the common tax-related issues facing members in business and how to deal with them before Revenue comes knocking. As a tax advisor working in a specialised tax practice, I encounter similar tax issues in various businesses. This article will focus on the most critical issues and help ensure that your business is tax compliant. What should I do when Revenue knocks on my door? The answer to this depends on the nature of the knock! Any correspondence issued by Revenue must be looked at carefully to understand the purpose of the query. A letter might issue from Revenue with queries due to an incorrect entry on a tax return (referred to as an ‘Aspect Query’ letter). Where a business files a VAT return and is in a VAT recovery position, standard VAT verification letters are often issued by Revenue seeking documentation to support the VAT refund due. This type of correspondence is routine and while it should be dealt with promptly, it should not result in undue concern. If an error is discovered as you prepare your response, it is usually possible to make a ‘qualifying disclosure’ to Revenue. By making a qualifying disclosure, you can reduce the penalties payable, avoid prosecution, and avoid publication in the list of tax defaulters. A disclosure is unprompted if it is made before notification of a Revenue audit is received. Any disclosures in relation to items covered by the audit made after the audit notice is received is prompted, and the penalty reductions for unprompted disclosures are higher than for prompted disclosures. However, Revenue recently indicated that it intends to move disclosures made by a business under an ‘Aspect Query’ to the ‘Prompted Disclosure’ category. Although publication can still be avoided, higher rates will be applicable if penalties apply. When a Revenue audit letter issues, depending on the tax head and the period covered, the taxpayer should conduct a full review of all tax matters. Common problems include businesses making cash payments to casual staff without PAYE, incorrect claiming of VAT input credits, incorrect operation of benefit-in-kind (BIK), and incorrectly claiming a tax deduction for income or corporation tax purposes. When that audit letter is received, it is essential to at once consider whether the business will need to make a prompted qualifying disclosure. If it does, it can write to the Revenue auditor requesting time to prepare the disclosure. In my experience, the time spent at this stage is well worth it as it often results in the audit running more smoothly and concluding promptly. It is not in the interest of any business to have an audit process continue any longer than it needs to. Therefore, it is crucial to ensure that a full disclosure, if needed, is made and that all supporting documentation is gathered and available to the auditor. Cooperation is the best policy. * Review your tax compliance position on VAT and PAYE. Cooperation is the best policy when dealing with Revenue and, if necessary, make a voluntary disclosure. What VAT can I recover? At a high level, VAT can only be recovered by a business providing VATable products or services. This means that the business charges VAT on sales to customers. You may think that a business providing only products or services subject to VAT can recover all VAT charged by its suppliers. However, that is not the case. It is never possible to recover VAT on the purchase of food and drink items for use in an office kitchen. I frequently encounter cases where VAT is being reclaimed on bottled water purchased by the business, for example. Similarly, if a business owner purchases items for personal use, VAT should not be recovered as that purchase has not been made to provide taxable (i.e. VATable) supplies. Furthermore, if a company carries on a trade and owns several rental properties, you must determine if the expense relates to the trade or the rental properties. For example, if repairs are carried out on the business premises and all supplies by the business are liable to VAT, the VAT charged can be recovered. However, if repairs are carried out on a rented residential apartment owned by the business, the VAT cannot be recovered as the rental income from the residential apartment is not liable to VAT. In summary, consideration must be given to each invoice to determine if the business can recover the VAT charged. In addition, businesses can recover 20% of the VAT incurred on the acquisition or leasing of a car, provided it is used for business purposes at least 60% of the time. Businesses must also be aware that, in most cases, the supplier will not have charged VAT when the business purchases goods or services from outside Ireland. The business must self-account for Irish VAT at the appropriate rate and claim an input credit if it is entitled to do so. If foreign VAT has been charged, the business should satisfy itself that this is correct before payment is made to the supplier. A business cannot include an input credit in an Irish VAT return for foreign VAT charged. A business can only include a claim for a VAT input credit where a valid VAT invoice has been received. Accounts payable staff should be trained to ensure that all invoices are valid VAT invoices before settling them. It is easier to seek a proper invoice from a supplier when the invoice has not yet been paid. * Check that you are correctly claiming VAT input credit on cars and foreign purchases. How long do I need to keep documentation for? In general, documents must be kept for six years after the tax year in question. However, that is not as straightforward as it may sound. For example, I know of one situation where an individual claimed capital allowances on a building, with the capital allowances available over seven years. The tax return covering the sixth year in which the allowances were available was selected for verification three years after the return was filed, and Revenue sought copies of documentation to confirm the nature and the availability of the allowances. In this case, the taxpayer needed to provide documentation from nine years earlier. The key point from a tax perspective is that the burden of proof rests with the taxpayer. Therefore, you need to ensure that you can prove your entitlement to a deduction for any expenses or any capital allowance claimed in your tax return. Many recent tax appeals decisions have referred to this point. An Appeals Commissioner cannot decide a case in favour of a taxpayer where the taxpayer cannot discharge the burden of proof. Regarding an asset that is a capital asset, it will be necessary to keep documentation for six years after the property is disposed of. If a property was bought in 2000 and sold in 2021, for example, documentation regarding the purchase of that asset must be retained until 2027. Doing so enables you to prove your entitlement to a deduction for the costs of acquisition incurred in 2000 in determining the capital gains tax payable (or indeed the capital loss) on the disposal of the asset. The retention of documentation is also important in the context of VAT and the Capital Goods Scheme. When an asset is disposed of, the vendor is often obliged to complete Pre-Contract VAT Enquiries (PCVE) as part of the sales process. The PCVE contain full details of the purchase/development of the property, how it has been used since it was acquired, and how it is currently being used. To determine the correct VAT treatment of the sale, there can be no gaps in terms of how the property has been used. It is easier to maintain this information on a contemporaneous basis rather than pulling together information on all prior years as you prepare to sell the property. * Review your document retention policy as in some cases, you may need to keep certain records for more than six years. How do I ensure compliance with BIK rules on the provision of company cars? Employers who provide employees with company cars are obliged to keep contemporaneous records of business mileage. BIK operates by applying a percentage rate to the original market value of the car provided to the employee (other than electric cars, where different rules apply). The applicable percentage depends on the annual business mileage driven by the employee and ranges from 30% down to 6%. If any rate other than 30% is used, the employer must be able to prove the business mileage. Where an employee is provided with a car, they must complete a monthly log of the business journeys for their employers. While the tax is payable by the employee, the obligation is on the employer to operate the tax correctly. In addition, if the vehicle provided is a commercial vehicle or a van, the appropriate BIK rate is 5% regardless of the business mileage. * Review how you are calculating PAYE on the BIK on company cars and keep appropriate contemporaneous records of staff business mileage. What information does my tax advisor need to prepare my tax return? Where your accountant prepares your business’s financial statements, they will generally have sufficient information to prepare an accurate tax return. Where the financial statements are prepared by the business and provided to the tax advisor, however, they will generally need answers to the following questions: Are all expenses incurred wholly and exclusively for the purpose of the trade? For example, consider business entertainment, charitable and political donations, personal expenditure, and expenses paid for by the business that may not relate to that business. Was the employer’s pension contribution paid during the year, or is there an accrual in the profit and loss account? A tax deduction is only available on a paid basis. Can you provide an analysis of professional and legal fees? Fees that relate to capital transactions (e.g. asset purchases/sales) are not deductible in calculating trading profits. Can you provide a schedule of fixed asset additions to include the date of acquisition, the cost of acquisition, and the nature of the asset? Also, can you provide a schedule of fixed asset disposals so that accurate capital allowances claims and balancing charges/allowances can be prepared? Can you provide a reconciliation of any finance lease creditors from the opening position to the closing position? Can you provide a schedule of directors’ remuneration split by director? Can you provide details of any dividends or distributions paid during the year? Can you provide details of any non-trading income? Where medical insurance is paid on behalf of the staff, can you provide details of the tax relief at source (TRS) amount and confirm whether the gross or net amount has been included in the profit and loss account? * Save time and fees by completing the checklist your tax advisor will need to prepare your tax return. These issues occur in a wide range of businesses. You should aim to ensure that your business is compliant with tax legislation on an ongoing basis. Careful consideration should be given to amending any errors you discover – before you get that knock on the door. Jane O’Hanlon is a Director at Purcell McQuillan and a Fellow of Chartered Accountants Ireland.

In an age of information overload, what websites and internet resources can someone who wants to keep up-to-date with the world of finance and financial management rely on? Here’s Cormac Lucey’s selection. For daily business news… The RTÉ website offers us the opportunity to read the daily survey of business and financial news published by the main Dublin stockbrokers. This is not just a useful survey of the previous day’s financial economic news, it also offers readers the opportunity to understand how financially literate readers view that news.   Visit www.rte.ie/news/markets/broker_reports (and check out Goodbody Stockbrokers). For detailed financial data on leading Irish corporates… I opened up an account with Davy Stockbrokers largely to get access to the company’s Weekly Book. That is a compendium of corporate data for quoted companies covering recent financial history, near-term financial forecasts and key valuation metrics. For avid financial number crunchers such as myself, it’s the equivalent of crack cocaine! Visit www.davy.ie  For an up-to-date overview of the Irish economy… The National Treasury Management Agency (NTMA) borrows money on behalf of the State. That requires regularly updating international debt investors (who may buy Irish government debt) on economic developments here. Visit www.ntma.ie (and look for ‘Investor Presentation’).  For an overview of the Northern Ireland economy… EY’s Chief Economist, Neil Gibson, provides a regular and authoritative update on what is going on up North.  Visit www.ey.com (and search for ‘EY Economic Eye: Northern Ireland’). For a global economic overview from a monetary perspective… Simon Ward, Janus Henderson’s economic adviser, uses monetary and cycle analysis to assess economic and market prospects. Visit www.moneymovesmarkets.com For general trends in financial management… Two large international consultancies offer regular publications that combine a focus on the practical problems facing financial staff in corporations with intellectual rigour.  Visit www.mckinsey.com (and search for McKinsey on Finance, which offers readers a quarterly selection of useful and stimulating articles). Visit www.bcg.com/capabilities/corporate-finance-strategy/insights, which offers regular corporate finance updates. For current developments in international markets… The Financial Times has an excellent capital markets blog (www.ft.com/alphaville), and there is an offshoot of that (www.ftalphaville.ft.com/longroom/home) on which you can (once registered) access interesting research reports from the world’s top investment banks. Another website where you can access high-level research reports from investment banks is www.savvyinvestor.net (registration required). For the technical situation of main financial markets… Steve Blumenthal, executive chair of Capital Management Group, produces a useful technical survey of the main US markets each week.  Visit www.cmgwealth.com/ri-category/on-my-radar  For financial chatter, conspiracy theories and the occasional blinding insight... It’s all available here: www.zerohedge.com  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland.

Succeeding in your career is important, but so is your physical and mental well-being. Four Chartered Accountants describe their relationship with fitness and how it has benefited their lives in and out of the office. Barry Doyle Investment Director, MASV.com Running I was never really a big sports person growing up – I played a bit of tennis but that was about it. I found myself living in Australia back in 2010 and it was there that I started to get into running. It’s hard not to when the culture there is so outdoor-focused. I signed up to do a 10km and things progressed from there. By the time I left Australia three years later, I was running at least three times a week – if not more – and had even completed a few half marathons. Now, exercise is a huge part of my routine and it has only been heightened since the beginning of the pandemic. I won’t start my working day unless I have been for a run, swim, cycle or even a ‘morning commute’ – a walk around the neighbourhood after breakfast. Working from home has significant benefits, especially from a work-life balance perspective, but it’s so important to have a delineation between work and home.  I tend to try and follow a plan and set myself goals at the end of that so I can stay motivated. If there’s nothing to aim for, you always risk skipping your exercise; and while skipping it once is usually fine, having nothing to motivate you means you’re more likely to skip more often – believe me, I’ve been there!   There is no question about it, absolutely it has benefited me physically and mentally. I’m in good shape – I’m no Usain Bolt, but my routine helps to keep me in good shape (which is needed as I have a serious sweet tooth!) And from a mental well-being perspective, you only need to ask my wife who, whenever I start complaining or giving out, asks: “Have you being running yet today, or do you need coffee?” Exercise is a vital escape for me. I think it’s important to find someone to support you. Running can feel like a daunting task starting out, so being able to talk to someone while out running (even while walking or cycling) helps get you through it. What’s more, it’s a healthy, social interaction that’s good for the mind and body. Aisling McCaffrey Associate Director of Financial Services Advisory, Grant Thornton Rugby I play quite a lot of team sports; at the moment my focus is on touch and tag rugby. I train with my club once a week for two hours, play two or three 40-minute games during the week, and I have a session with the Irish Women’s Touch Rugby development squad on Sundays for two hours. Beyond training, I’m a big fan of a sea swim or a long walk with some good music to relax.   I only really found a love for team sports when I started working and was invited to play a social tag match. Prior to that, I would have gone to the gym to stay fit but I sometimes found it hard to motivate myself and if things got busy (in work or life), the gym was the first thing to be dropped. Being part of a team is so much more beneficial for my wellness – the interaction with my teammates on a regular basis is priceless and it allows me to let go of any stresses in my life, even if it’s just for the two-hour session. Unlike the gym, other people rely on me to be at training or a game, so it has also been really helpful to set boundaries and carve time out of my busy work schedule.  In terms of apps, I have been using a Whoop strap for the last few months to monitor strain and recovery and I’m really enjoying it. It puts more of an emphasis on recovery than trackers I’ve used before, so it has encouraged me to pay more attention to my sleep, hydration etc.  My advice for others would be to get out there and try lots of different things to find what works for you. Try to build a routine, but don’t be hard on yourself if it doesn’t always go to plan – focus on the benefits for you so that you will be keen to prioritise the activity. John O’Callaghan Senior Partner, BDO Triathlon/Ironman I was late to the party for fitness, not starting until my early 30s when I was living in Australia and my wife signed me up for karate to get me out of the house. When I came back to Ireland in 2003 at the age of 40, I really let things slide up to 2014. I was going to a gym in town and noticed indoor triathlon training. I joined and was immediately hooked. I set up a triathlon team in BDO and we had over 20 people training weekly with a coach. We all competed in Tri Athy in 2014. From there it progressed – I joined Belpark Triathlon Club and graduated to full distance Ironman in Hamburg in 2017 and again in Barcelona in 2019. I have qualified for the Irish age group team for European Full Distance (Iron) in Roth, Germany this September. As part of training, I started running marathons and qualified for Boston, Chicago and New York, which I will race over the next 12 months. I’m a strong believer in physical well-being, as it lets you shed the stresses of everyday life. It’s not about the races or winning, but more about a way of life. The races serve to keep you honest – you can’t miss sessions and you have to have some dietary control (a struggle) – but it’s really all about the training, which takes up 90% of the time. Technology plays its part in sport as in all areas. It’s useful as a guide, but I’m not fixated on the numbers. A former coach always said you need to be able to “race by feel” as tech breaks. I have a Garmin 935 triathlon watch and use the Training Peaks app with my coach as well as Strava. I also use a bike computer and power metre pedals, which measure power output. As a 57-year-old, I am at my fittest. It’s never too late to start. Pick some activity and don’t worry about being any good at it – if you enjoy it, that’s enough. You will meet a community of like-minded folk whatever you try.  Anastasia Myachina  Commercial Partner Manager, Chartered Accountants Ireland Cycling   Fitness and sport have been part of my life since early childhood. I was a professional rhythmic gymnast growing up, which is a very popular sport in my native Russia, and it has really instilled the importance of fitness in me.  I moved on to practicing martial arts when I went to college and trained my way up to second degree black belt in kick-boxing before discovering Crossfit, which was my passion for a long while.  My current routine and sport of choice is cycling, supplemented by strength training. I got my first road bike three years ago and never looked back. I joined a cycling club and go out for club spins at weekends, usually doing between 80-100km. I also have an indoor smart trainer, which was a lifesaver during the lockdown as it allowed me to do virtual cycles and even take part in racing. On top of that, I’m also a huge fan of walking and hiking so you’ll find me regularly scaling mountains (now that we’re able to venture out). It has hugely benefited not just my physical health, but my mental well-being as well. It allows me to clear my head and brings an enormous wave of endorphins, helping to relieve any feelings of stress and anxiety, which have been aplenty – especially during the pandemic. Whether I get up for a cycle first thing in the morning, go for a lunchtime stroll in between meetings, or finish the day off with a hike, I always make sure I get out and move.  Strava is my app of choice for tracking all my fitness activities. I use a bike computer to record my cycles and my watch for walks and hikes, which automatically upload to the Strava platform.  If I was to give any advice to others, I would say get outside and move no matter what your choice of activity is. Choose an activity because it makes you feel happy, and not because it’s a current fad and might make you ‘look good’. That’s the only way you will stick with it, and that’s the only way to get all the benefits.