Permanent TSB’s Norma Conway tells Accountancy Ireland why neurodiversity must be part of every organisation’s diversity, equity and inclusion strategy Employers who embrace neurodiversity stand to benefit from new ideas and fresh thinking that can boost the bottom line. So says Norma Conway, Diversity and Inclusion, Wellbeing and Engagement Manager with Permanent TSB. As Conway sees it, the neurodivergent community is currently a largely untapped resource for employers in Ireland, many of whom are unaware and unprepared for the strengths and capabilities this cohort can bring to the talent pool. “The benefits of neurodiversity are undeniable. Companies with neurodiversity programmes already in place report improved retention rates, reduced turnover and increased productivity and innovation,” Conways says. In “Neurodiversity as a Competitive Advantage”, an article published in The Harvard Review in 2017, for example, authors Robert D Austin and Gary P Pisanom reported that neurodiverse teams were 30 percent more productive than their neurotypical counterparts. Similarly, a still oft-quoted survey commissioned back in 2003 for the BBC series Mind of a Millionaire found that 40 percent of the UK’s self-made millionaires were dyslexic. Neurodiversity: what it means So, what is neurodiversity? The term was coined in the late nineties by Judy Singer, an Australian sociologist, to recognise that everyone’s brain develops in a unique way.  Harvard Health defines neurodiversity as, “the idea that people experience and interact with the world around them in many different ways; there is no one ‘right’ way of thinking, learning, and behaving, and differences are not viewed as deficits”. While Singer primarily views neurodiversity as a social justice movement, research and education in the area is also increasingly used by clinicians to understand numerous conditions, according to Harvard Health. These conditions range from autism spectrum disorder and attention deficit hyperactivity disorder (ADHD) to dyslexia, dyscalculia and dyspraxia. The upside for business For Conway, the benefits of these different ways of thinking are obvious for employers.  “Neurodivergent people bring a ‘business upside’ literally because they think differently,” she says. “In general, people with dyslexia are better at visual thinking and they are more creative. They have an approach to looking at data and problem-solving that I wouldn’t see myself.  “People with ADHD bring creativity, energy and passion. That’s built into the mindset of how they think and how they approach problems.” For employers, this can mean valuable access to better problem-solving capabilities and a more effective approach to strategising. “In most workplaces, we are generally trying to solve problems, improve things or find solutions, so having someone in the room who thinks differently automatically brings a new approach,” Conway says. “If you’re trying to brainstorm ideas and you bring someone into the mix who thinks differently, is more creative and asks questions nobody else is asking, the power in that is phenomenal.” Understanding and embracing neurodiversity in workplaces, schools and communities can also improve inclusivity for everyone, Conway adds.  “Every human is unique, with a unique combination of abilities and needs. Creating an environment that is helpful to neurodivergent people and that recognises everyone’s individual strengths and talents embraces this idea,” she says.  While she sees growing awareness of neurodiversity in society generally, Conway says the majority of employers continue to adopt a one-size-fits-all approach to recruiting, managing and supporting their employees.  “We have students in Ireland now receiving supports and accommodations throughout school and college, but they reach the workplace and hit immediate barriers as these supports and accommodations don’t exist in most companies,” she says. There is a “huge opportunity” here for employers to access a talent market that is thus far largely untapped, says Conway. The Same Chance Toolkit: A Step by Step Guide to Becoming an Autism Friendly Employer, published earlier this year by AsIAm, Ireland’s national autism charity, revealed that 85 percent of autistic individuals are either unemployed or underemployed.  “This is an opportunity for companies, not only to fill roles, but also to contribute to social justice and employment equity,” says Conway. The Permanent TSB experience As a large organisation employing 3,000 people nationwide, Diversity, Equity and Inclusion (DE&I) first became a key strategic priority for Permanent TSB back in 2017. Neurodiversity has been part of this strategy from day one and continues to evolve in line with developments in the wider world. “The focus on neurodiversity has changed in more recent years and there is an awareness that we need to do more, which has been captured as part of our latest DE&I Strategy for 2023 to 2025,” Conway says. “We now understand the complexities of neurodiversity, how neurodivergent colleagues are impacted by the work environment and the multiple potential business advantages to having diversity of thought in teams.” Ability is one of the main areas of focus in Permanent TSB’s DE&I strategy. “In May, we announced the establishment of our Ability Employee Resource Group (ERG) encompassing both physical ability and neurodiversity. We wanted to hear from colleagues and get their input as we plan to increase awareness and supports,” Conway says. “We’ve worked with the Trinity Centre for People with Intellectual Disabilities (TCPID) for a number of years and more recently we started working with Specialisterne (specialisterne.ie) and AsIAm (asiam.ie) to help understand what a positive experience should look like for candidates and colleagues when hiring neurodiverse talent.  “We have taken their advice on how we can improve our existing processes, onboarding and training and they have also helped us to understand accommodations that may be needed.”  AsIAm is currently working with Permanent TSB’s Digital and Direct Office teams on a sensory review of the banks’ premises and facilitating training for managers.  “It’s important that managers have a core understanding of the realities of neurodiversity and have the strategies needed to respond and take action,” Conway explains.  “Our first Ability ERG workshop will be facilitated in October by the Irish Centre for Diversity and, from there, we will have a clear plan of action based on our colleagues’ feedback and their needs.” Best practice advice for employers Based on her own experience with Permanent TSB, Conway’s advice for other employers is that supporting the needs of employees who are neurodivergent starts right at the beginning of the employment relationship – the recruitment stage. “Standard recruitment practices can be a barrier. Aptitude tests or complex job descriptions and formal interview processes can be challenging – so working with external experts who can advise on any adjustments needed has been a big help for our team,” she says.  Accommodations should be considered relative to the built environment, communications and sensory supports.  “Simple adjustments, such as the lightbulbs we use, or having a decompression room available away from the open-plan office space if needed, can make a difference,” Conway says. “We’re also in the process of rolling out Microsoft 365 and a team of neurodiverse colleagues and allies have worked with IT to ensure that all accessibility features are switched on for all colleagues.  “To complement this, we aim to introduce a support toolkit to include, for example, noise-cancelling headphones and screen readers colleagues can order online.”    Also key to supporting employees who are neurodivergent is buy-in and input right from the top of the organisation. “The support of our own leadership at Permanent TSB has been very important for us,” Conway explains. “It’s great to try to start initiatives and broaden communications and training but without their support – and a willingness to be visible in their support – it would be very challenging.” Start today: first steps  So, what are the first steps employers can take now to begin implementing a workforce strategy that encompasses neurodiversity? “First, listen to the experts,” Conway says. “There are many organisations out there that understand the complexities and supports needed that can guide you – they have the answers so ask for advice as you map out a plan.”  Second, listen to your employees. “Most people now have a personal interest in making the workplace more neurodiverse inclusive, whether it’s from their own perspective, a family member’s or a friend’s,” Conway says.  “Listening to these employees, encouraging them to share their stories and helping them shape your strategy will build trust that is invaluable.”    Ultimately, implementing a workforce strategy that accommodates neurodiversity benefits everyone, Conway says: “It has a knock-on effect on how we interact with each other, our openness with each other, and comfort in sharing information. It is well worth the effort.” Written by Tess Tattersall and Elaine O’Regan  

Julia Rowan answers your management, leadership and team development questions I work in HR and recently helped a partner recruit a manager to lead a team of six people. The team had been without a manager for about a year and there are issues which need tackling. We wrote a very specific job description which highlighted the people management aspect of the role and focused on this a lot at the interview. The new manager has not stepped up to the people management aspect of the role; they say that they don’t have the time as there is too much work. The partner has asked me to intervene – but the new manager is very defensive.  Managing people is wonderful. It is also tough, and it can be much easier for managers at all levels to focus on the work than on the people.  In many organisations, there is a lot of aspirational talk about people/culture that does not translate into the lived experience of employees. So, sometimes people ‘talk the talk’ to get a role and then step back when faced with a challenge.. I love that you paid so much attention to the job description and interview – you laid a solid foundation for future conversations.  When the new manager came on board, did the partner sit down with them and draw a red thread between the interview and the role, explaining why they were given the role? This type of conversation builds on the foundation and provides real clarity about desired behaviours. It is not too late to do this, and probably very important that it happens. The partner has asked you to intervene – is this due to lack of time, misperception of HR’s role or avoidance of the issue? Certainly, you can help, but this is a great opportunity for the partner to role model how to step into leadership and deal with a tough issue.  I think your first call is to explore how the partner is supporting their new manager. Do they have regular one-on-one meetings? If so, are they all ‘business’, or are they talking about the people issues too? If the partner cannot offer support, at the very least they need to let the new manager know that you are acting on their behalf and they need to stay involved. You and/or the partner may need to have a few meetings with the new manager to explore what is happening, build trust around the issue and ensure that they are bought in.  You will need to ‘listen like crazy’ without explaining or advising so that you can get to the heart of the matter.  Ask them what support they need to tackle the situation. Make sure they are connected to other people managers across the organisation who may be able to support them. Let us not forget that there are legacy issues at play here, and perhaps the ‘ask’ of the new manager is too big. A well-run team session could help the team to disentangle issues and move on. But these issues can run deep, and professional help may be needed. Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie

Three Chartered Accountants share their perspectives on the changing role of the Chief Financial Officer in today’s fast-paced business, regulatory and societal environment Johnny Harte Founder True Fund Solutions  The Chief Financial Officer (CFO) in a company has long been considered the chief bean-counter whose job has been to say ‘no’ more than ‘yes’.  And in the past, this has been true. CFOs today still have responsibility for the core finance function in an organisation, but they are now increasingly regarded by management and key stakeholders as value-creation partners in a business, and their expanding role reflects this. As a starting point, to realise more efficiencies, CFOs are now investing more in technologies to assist the finance team. Transactional activities are being replaced by artificial intelligence and machine learning technologies, and the way in which financial information is being presented, shared and consumed has changed in line with the expectations of end-users. The CFO may have responsibilities outside the core finance function, too, like human resources and IT, so collaborating with many other departments in the business is more important than ever.  New initiatives to address issues such as environmental, social and governance (ESG) concerns fall under the remit of the CFO as well.  As an example, the financial implications and reporting obligations of ESG are felt company-wide, but they ultimately feed into the finance function. Companies find themselves in times of rapid change that offer potential opportunities, like product innovation, access to new markets, and even the development of new business models. Change can also result in potential risks such as cyber security, geopolitical and environmental concerns, however.  CFOs, by necessity, find themselves at the heart of all of this and play a vital role in navigating the landscape and advising on strategic decisions that can shape the future of the business. CFOs are in a unique position in a company in so far as everything that is important eventually gets reflected in numbers. The old line of “you can’t manage what you can’t measure” still holds true. Karen Sugrue Hennessy  Sustainability Consultant and CEO Real Leaf Farm As our nation, along with the rest of the world, faces mounting pressure to fulfil its climate change commitments, Chief Financial Officers (CFOs) are stepping into a critical leadership role.  According to the Environmental Protection Agency (EPA), Ireland is currently on track to achieve just 29 percent of its committed 51 percent net zero target by 2030. Finance stands as a pivotal enabler in the acceleration of climate action, as emphasised by the Intergovernmental Panel on Climate Change report (AR6).  CFOs, accountants, bankers and directors are primed to lead the charge by shifting their focus away from financing environmentally detrimental projects and redirecting their efforts toward funding initiatives that bolster the transition to a sustainable economic model. By 2029, all businesses, including SMEs, will be mandated to enhance transparency and accountability concerning corporate sustainability, operating under the Corporate Sustainability Reporting Directive.  Significant challenges lie ahead, however. Recent research conducted by LinkedIn revealed that close to 95 percent of financial professionals in 48 countries, including major European nations, lack essential green skills.  Shockingly, Ireland ranks at the lowest end of the spectrum in Europe, with just 0.16 percent of finance job postings related to green skills, according to LinkedIn data. So, where should CFOs begin their journey to upskill in this pivotal area, which is undeniably becoming a sought-after area of expertise?  An excellent starting point is joining Chapter Zero Ireland – a collaborative initiative between Chartered Accountants Ireland, IBEC and the Institute of Directors.  Chapter Zero’s primary purpose is to ensure that companies are well prepared for the future and that global net-zero aspirations translate into robust plans and measurable actions.  The evolving role of CFOs in Ireland is not merely a response to regulatory demands; it represents a unique opportunity for financial leaders to champion a more sustainable and responsible future for both their businesses and the nation.  Embracing this transformation is not only a strategic imperative but a moral obligation that can reshape Ireland’s path toward a greener, more prosperous future. Mark Mulqueen CFO KPMG Ireland Like other C-suite roles, the Chief Financial Officer (CFO) role has evolved significantly, reflecting the evolving landscape of business, technology, regulation, global markets and shifting expectations from internal and external stakeholders.  In addition to the traditional CFO responsibilities as financial ‘gatekeeper’, the role has broadened beyond core topics to become more like that of a strategic partner. At the centre of this evolution is a business appetite for greater insights, data-driven commercial partnering, and a more significant focus on profitability and an organisation’s need to transform operating models and core supporting technology.  Consequently, CFOs must keep up to date with the changing landscape of data, technology, taxation and compliance while also managing the organisation’s financial health. As business models continue to transform, looking to the future, this presents opportunities and challenges for CFOs. The value of data – going beyond traditional finance data to provide valuable insights to enhance forward-focused decision-making. Embrace the challenges of data – overcoming disparate systems with multiple data sources to ensure reliability and accuracy is critical to the role. Automation – managing the changing role of technology and staff in traditional finance processes. Talent retention and acquisition – with a broader set of new challenges, it is essential to have the right skills in the team to leverage the opportunity presented by data and technology. Risk – managing risks posed by fraud and cybercrime. Expectation gap – managing the strategic role of the CFO versus the volume of traditional finance work. Leveraging technology, adding new skills to finance teams, and managing this change will allow CFOs to help companies become more agile and responsive to market changes.  The result will provide more value through greater insights on a broader range of topics and the ability to support faster data-driven decisions through automation and technology while simultaneously supporting business change and managing new risks posed by regulation toward sustainable, profitable growth.  The one constant that will remain for CFOs is change.

Ireland’s true gender pay gap will only emerge when SMEs begin reporting and now is the time for this crucial business cohort to start preparing, writes Padraic Hayes Dr BJ Fogg, a renowned behaviour scientist at Stanford University, postulates in his book Tiny Habits that small but frequent incremental changes are often the safest and most effective approach to delivering extraordinary results. One hopes this hypothesis will ring true for the SME sector when it comes to preparing for gender pay gap reporting.  The first gender pay gap reporting obligation came into force in 2022 for companies with over 250 employees.  This will extend to SMEs with over 150 employees next year and even further in 2025 when companies with over 50 employees will also be obligated to commence reporting their first gender pay gap. These milestones are very significant when you consider that, according to the most recent Central Statistics Office figures, SMEs with fewer than 250 employees make up 99.8 percent of active enterprises in Ireland and employ 68.4 percent of the workforce. Gender pay gap reporting thus far has only covered the other one percent of Irish enterprises. We can therefore infer that we have yet to see Ireland’s true gender pay gap figure.  As a result, SMEs are going to be in the full glare of both industry and the media once their first reports are published in 2024. This could be Ireland’s de-facto ‘silver bullet’ solution to truly move the needle on the gender pay gap.  What is the gender pay gap? There continues to be a lot of confusion surrounding what exactly the gender pay gap is. It is defined as the difference between the average hourly wage of men and women in the workplace.  The gender pay gap is an assessment of the gender representation of men and women at each level of an organisation characterised by the overall difference in their pay.  For example, how many males and females are in the top quartile of an organisation’s earners versus the lowest quartile – i.e. how well-represented are females by comparison to males?  It is important that the gender pay gap is not confused with “equal pay for equal work”, which is already a legal obligation for employers in Ireland.  The gender pay gap can be caused by a variety of factors such as unconscious bias, company policies or the division of caring responsibilities in the home. According to the United Nations, women worldwide earn 77 cents for every dollar earned by men.  This suggests that over their lifetime, women’s earning potential is significantly less, a staggering realisation in the modern age.  In Ireland, the gap stands at 11.3 percent, which is slightly more favourable than the EU average of 13 percent (Eurostat). This still equates to about one month a year when a woman essentially works for free. It is important to point out also that this is not just a ‘female’ issue, but an economic issue that affects us all. The reduced earning potential for females affects the overall household income.  It is common for women to find it more cost-effective to stay at home to offset childcare costs, for example, and this places downward pressure on household income in an escalating cost-of-living crisis, and thus the cycle repeats.  For this reason alone, we should all feel motivated to proactively figure out the root cause of this socio-economic issue and break the chain once and for all.  Who needs to report and when? Currently, the obligation to report remains solely on organisations with over 250 employees. The first gender pay gap reports were published in December 2022 and the second are due in December 2023. Next year, however, the obligation will extend to all employers with more than 150 employees. The employers will pick a ‘snapshot’ date in June 2024 and report their gender pay gap metrics for the previous 12 months.  Crucially, the employer will also be required to provide the underlying reason why the gender pay gap exists and, more importantly, what actions they are planning to take to rectify it.  Furthermore, they will need to publicly publish their report either on their website or on the government portal planned for introduction later this year.  As SMEs look ahead to this new landmark reporting requirement, they will be taking the steps needed to ensure they meet these first-time obligations. Here is my advice on the steps you should take and the pitfalls you will need to avoid. Challenges for SMEs  Data collection from disparate systems The gender pay gap report will require inputs from a range of data sources. It is rare for any organisation, no matter what size, to be in a position to extract the data they need from a single source. Finance, payroll and HR systems are disparate in nature and contain data of differing quality. This challenge is amplified where spreadsheets persist in place of systems as the book of record. It can be time-consuming and challenging for non-technical users to extract, organise combine and compare this data and significant effort may be required to cleanse existing datasets in preparation for reporting.  Resourcing The amount of time and effort required to complete the gender pay gap report will be significant – it should not be underestimated. For SMEs, this could prove especially challenging because they are more likely to need to divert attention away from regular activities in situations where there is no dedicated reporting team. This may be especially challenging for the leadership team, who will be required to input into the report and sign it off. All of this increases the risk of introducing ‘bias’, akin to someone correcting their own homework so to speak, which you should avoid at all costs. Availability of expertise  Smaller organisations are highly unlikely to have access to the broad range of expertise needed to complete the gender pay gap report. To create a detailed report requires independent expert skills from a range of disciplines such as data analytics, visualisation and organisational change specialists.  Navigating legislative nuances The guidance in relation to how to report has evolved since the initial introduction of gender pay gap reporting. While many issues have been ironed out through the FAQs available on the government website (gov.ie), there are still nuances in the preparation of the report. My advice is to carefully study the available guidance to ensure you are compliant.  Comparing results While many organisations will be tempted to compare and contrast how they ‘measure up’ against their peers, it is worth bearing in mind that there is no right or wrong answer per se. The gender pay gap is a broad, multifaceted and pervasive issue that goes far beyond the numbers. Focus instead on assessing and improving the aspects of your own company practices, policies and culture that influence the gender pay gap – and your gender pay gap result will follow.  Best practice recommendations for SMEs Fail to prepare, prepare to fail It is important to be prepared for the questions you may get from your employees once your gender pay gap report is published. It is critical that you communicate the result of the report and ensure they fully understand what the data is saying and, more importantly, what it is not saying. It is very common for people to misunderstand the metrics contained in the gender pay gap report. As they say, good news travels fast, but bad news travels twice as fast – lead the narrative. Action planning In your final report, you need to provide a list of actions that you are going to follow to improve your gender pay gap in the 12 months ahead. Set goals for the next year in your report using the SMART (Specific, Measurable, Attainable, Relevant and Time-Bound) technique. It is worth noting again here the importance of focusing on your company practices, policies and culture – and take advantage of the opportunity for a yearly reset. Remember, “what gets measured gets done”.   Get help early on I cannot overstate this enough: get help early on. The requirements of your gender pay gap report may look straightforward at the outset, but do not be fooled.  Preparing such a report can be a time-consuming and intricate process requiring expertise in both data analytics and visualisation and organisational psychology, which together provide a complete assessment.  Moreover, significant input from departments and teams across the organisation will also be needed – typically human resources, finance and payroll, and senior management.  Final word Numerous organisations have come to us seeking help having realised just how complex preparing a gender pay gap report can be.  The best approach is to view it as an in-depth reporting process akin to an annual audit of your workforce analytics, practices, policies and culture.  Padraic Hayes is an Associate Director on Grant Thornton’s digital transformation advisory team and heads the firm’s gender pay gap service offering

First impressions suggest that identifying the Irish companies required to comply with the CSRD will be a straightforward process, but first impressions can be deceptive, writes Fiona Hackett The European Union (EU)’s Corporate Sustainability Reporting Directive (CSRD) was published in its Official Journal in December 2022.   The CSRD replaces the Non-Financial Reporting Directive (NFRD), which in Ireland was applied by companies with more than 500 employees that are public limited companies or regulated by the Central Bank of Ireland. The Irish Government is currently working on the amendments to the Companies Act 2014 that will enact the requirements of the CSRD in Ireland. It is required that these amendments be reflected in Irish law by 6 July 2024. GAAP for sustainability reporting Once enacted in Ireland, the CSRD will require a significant number of Irish companies to prepare a sustainability report subject to assurance by a third party. The sustainability report will need to comply with the suite of 12 European Sustainability Reporting Standards (ESRSs) issued by the European Financial Reporting Advisory Group (EFRAG). These 12 ESRSs have been directly written into EU law and are effectively GAAP for sustainability reporting, covering general sustainability requirements and topical matters under the ‘E’ (Environmental), ‘S’ (Social) and ‘G’ (Governance) pillars.   The ESRSs run to over 350 pages and EFRAG has estimated that there are over 1,000 quantitative and qualitative data points necessary to comply with the more than 80 disclosure requirements of the ESRSs. The CSRD and companies in Ireland The EU has estimated that the number of companies across the EU that will apply CSRD requirements is about 50,000 as opposed to the roughly 11,000 companies that apply NFRD – almost a five-fold increase. However, I would argue that due to the large number of Irish special purposes vehicles, the large population of Irish regulated entities and the popularity of Ireland as the location for intermediate holding companies in large multinational groups, there will be a greater than five-fold increase in the number of companies impacted by the CSRD in Ireland compared with those complying with the NFRD. First impressions of the CSRD suggest that identifying the Irish companies that will be required to prepare a sustainability report and comply with ESRSs is straightforward.   At its simplest, for financial years starting on or after 1 January 2025, large companies, for the purposes of the Companies Act 2014, will be required to prepare a sustainability report that complies with the ESRSs (with some of our large listed companies reporting from 1 January 2024).  We all know that first impressions can often be misleading, however. Identification of what entities will be required to prepare a sustainability report and comply with the ESRSs requires careful consideration and analysis of the type of entity, and – if the entity is a subsidiary company – how the group structure impacts on the preparation of a sustainability report that complies with the ESRSs. Why is type of entity relevant? At present, the Irish enactment of the CSRD is focusing on companies incorporated under the Companies Act 2014.   The Department of Enterprise, Trade and Employment (DETE) indicated in a July webinar that it intends to exempt credit unions and friendly societies from the requirements of CSRD.   Future developments in sustainability reporting and later government policy decisions may see such entities, not subject to the Companies Act 2014, required to prepare sustainability reports that comply with the ESRSs.  The DETE webinar also indicated that not-for-profit companies (often incorporated as companies limited by guarantee) are not in scope of CSRD. They may consider voluntary adoption of the requirements, however.   What should subsidiaries consider? For companies that are subsidiaries, the wider group impact of the CSRD needs to be considered and understood. Whether the subsidiary has a parent in the EU or outside the EU will be crucial in determining the level of sustainability reporting required by the subsidiary. For a large company that is a subsidiary of an EU parent company, it is likely that the EU parent company will be required to prepare a consolidated sustainability report that complies with the ESRSs.   This consolidated sustainability report of the EU parent should include the activities of the Irish subsidiary. It is likely the Irish company will be required to report sustainability information to its parent for inclusion in the consolidated sustainability report.   Such an Irish subsidiary, included in the consolidated sustainability report of an EU parent that complies with the ESRSs, will likely be able to avail of an exemption from preparing its own sustainability report, unless it has debt or equity listed on an EU regulated market. This will be a welcome relief for such companies. On the other hand, in the case of a large company that is a subsidiary of a non-EU parent company, the non-EU parent company is very unlikely to be preparing a consolidated sustainability report that includes the Irish company and complies with the ESRSs.  The large subsidiary company will, therefore, be required to prepare its own sustainability report and comply with the ESRSs in this report.   If this large subsidiary of a non-EU parent company has its own subsidiaries, its sustainability report will be a consolidated report for the group of companies it controls.   It is important to understand that the exemption regime for preparing consolidated financial statements differs from the exemption regime for preparing consolidated sustainability reports.   In Ireland, I expect we will see many intermediate parent companies that have never prepared consolidated financial statements – such as intermediate holding companies that are ultimately subsidiaries of parents in the UK or US – being required to prepare consolidated sustainability reports that comply with the ESRSs when the CSRD becomes effective.   The preparation of a sustainability report that complies with the ESRSs is a significant challenge for a single entity, a bigger challenge for a group of companies and, arguably, an even bigger challenge for an intermediate parent company that has previously never prepared consolidated financial statements, and which does not have an established system or procedures of gathering information for consolidation purposes. Independent exemption regime The exemption regime for companies with respect to preparing a sustainability report that complies with the ESRSs operates independently of the exemption regime for preparing consolidated financial statements.   This appears to be a conscious policy decision made by the EU in developing the CSRD and has been acknowledged in paragraph 26 of the preamble to the CSRD which states: “It should be specified, however, that the exemption regime for consolidated financial statements and consolidated management reports operates independently from the exemption regime for consolidated sustainability reporting. An undertaking can therefore be exempted from consolidated financial reporting requirements but not from consolidated sustainability reporting requirements where its ultimate parent undertaking prepares consolidated financial statements and consolidated management reports in accordance with Union law, or in accordance with equivalent requirements if the undertaking is established in a third country, but does not carry out consolidated sustainability reporting in accordance with Union law, or in accordance with equivalent requirements if the undertaking is established in a third country.” I believe this policy decision demonstrates the importance the EU has placed on sustainability reporting, and both its efforts to be at the forefront of top-quality sustainability reporting and expectation that sustainability reporting will play its part in helping users of annual reports evaluate the sustainability performance of EU companies. The policy decision is also an example of how the CSRD forms part of the European green deal. What action should companies now take? For some Irish companies, there won’t be a lot of complexity involved in understanding whether they are required to prepare a sustainability report that complies with the ESRSs.   We know that an Irish company that has debt or equity listed on the main market of Euronext Dublin and more than 500 employees will have to prepare a sustainability report that complies with the ESRSs for financial years beginning on or after 1 January 2024.   We also know that a large Irish private company that is a standalone company or the ultimate parent company of a large group will be required to prepare a sustainability report that complies with the ESRSs for financial years beginning on or after 1 January 2025.   On the other hand, we also know that a small or medium Irish company will not be required to prepare a sustainability report that complies with the ESRSs while it remains small or medium.  For other Irish companies, the impact of the CSRD is perhaps not as clear-cut. These companies should discuss the requirements of the CSRD with their professional advisors and auditors.   If an Irish company is part of a large multinational group, that company should engage with other parts of the group to understand what work is being done in relation to the adoption of the CSRD and whether there will be exemptions available to the Irish company. Fiona Hackett is Director of Corporate Reporting Services at PwC Ireland and Chair of Chartered Accountants Ireland’s Financial Reporting Technical Committee

It is hard to see how the EU can become a major global player without embracing the reform that would lead to greater integration, says Judy Dempsey The European Union is not in good shape.  There is no agreement over migration or refugees, two issues raised more than two decades ago. The longer member states delay reforming the entire migration and asylum system, the greater the opportunity for anti-immigration and xenophobic parties to capitalise on these delays.  Current trends show that support for the far-right in France, Germany and Poland is increasing in the polls. Instead of co-opting some far-right policies, mainstream parties across Europe need to confront their rising prominence sooner rather than later.  Then there is the unending dispute over how to tackle climate change. This is linked to a radical overhaul of the energy infrastructure across the EU.  Germany and France are at loggerheads about the future of nuclear energy. Germany’s Green coalition party wants to end nuclear energy once and for all, while Berlin has plans to subsidise industry, both of which will delay the country’s transition to renewable energy.  France wants to expand nuclear power for environmental reasons, and Poland is grappling with its coal industry.  Other countries are making the costly and challenging transition to renewable energy sources. This is just the tip of the iceberg.  Eurozone countries cannot agree on further integration of the capital markets and banking system to deepen economic integration.  Take a look at the conflict between the EU Commission and Poland, Hungary and Slovakia. In September, these countries banned Ukrainian grain imports to Europe, going against the European Commission’s authority over trade matters.  As a result, it appears that Member States now hold more power than the commission itself.  It is difficult to see how the EU can become a major global player without embracing the reform that would lead to greater integration – or, at the very least, a bloc that will be more manageable when it expands to incorporate Moldova, Ukraine and the Western Balkans. Enlargement, Russia’s war against Ukraine, the uncertainty of the transatlantic relationship, the results of the 2024 US presidential election, and the rising power of China are all issues that affect Europe’s future.  A new Franco-German paper, put together by a working group of experts and released on 19 September, proposes ideas for making the EU more manageable and governable against a backdrop of pessimism. Based on the premise that there is no agreement on changing the EU treaty – which requires unanimity and, in most cases, a vote from the national parliaments (remember the Nice Treaty vote?) – the paper proposes the following: First, that a coalition of countries move ahead with a “supplementary reform treaty” and, second, that the EU be reorganised around four concentric circles consisting of: the inner circle (presumably eurozone countries);  the rest of the EU;  associate members (Ukraine, Moldova and the Western Balkans); and  the European Political Community (a loose association of European leaders that meet regularly). Given the current state of the Franco-German relationship and its impact on EU integration, it seems unlikely that this paper will be accepted.  Additionally, there are concerns about the democratic legitimacy of the EU and the accountability of its institutions. While the EU parliament has gained some influence, many citizens feel disconnected from the process.  In the face of continued uncertainty, now is the time for smaller and medium-sized countries to propose their plans for the future functioning and sustainability of the EU. Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe

The launch of CleverCards marks the latest chapter in Kealan Lennon’s entrepreneurial story and the FCA has ambitious plans for his latest venture It was while taking part in an IDA Ireland trade mission to China in 2019 that Kealan Lennon hit upon the first spark of an idea for CleverCards, the payments platform provider that would, four years later, bring to market what the serial entrepreneur calls “Ireland’s first tax-free digital Mastercard”. “It all goes back to that trip because that’s when I noticed that no one around me was using plastic cards to pay for anything,” Lennon explains. “People in shops and restaurants were using their mobile phones to pay wherever I went and, at the same time, I could see neobank players like Revolut, N26 and Starling starting to gain traction in Europe. The shift was obvious, but the main focus was the consumer market.” Lennon saw a gap in the market for a payment processor that would focus on businesses rather than consumers and set about developing the technology that would underpin the CleverCards platform. “We agreed a partnership with Mastercard pretty much right at the beginning; becoming a payment processor is effectively the foundation of the entire business,” Lennon says. “For a small company trying to integrate with one of the world’s biggest financial service providers – it was a very tall order. We worked with Mastercard in Ireland, then London and Belgium. It took three years.”  CleverCards launched its first product – a digital prepaid employee gift card – just over a year ago on the back of the Small Benefit Exemption introduced by the Irish Government in 2022.  This exemption allows employers to give their employees up to two small benefits each year, tax-free but capped at €1,000 overall. These benefits cannot be made in cash, nor can they be redeemed for cash. They can only be used to purchase goods or services. “It amazes me how few employers actually know about this benefit,” says Lennon. “It’s frustrating. The Government brought this in, and people just don’t know about it.” Cue CleverCards: “We’re the only game in town here. Employers can order our gift cards online on clevercards.com and email it out to their employees loaded with credit of up to €1,000 tax-free,” says Lennon. Employees can, meanwhile, use CleverCards to pay for goods or services anywhere online or in-store using Google or Apple Pay contactless technology. “They can use the cards for cost-of-living expenses and they can use them in small shops and restaurants the length and breadth of the country, whereas traditional plastic gift cards are restricted to a limited selection of retail networks.” Business strategy So far, CleverCards has signed up over 5,000 businesses and 250,000 cardholders. The company generates revenues via a Mastercard fee on all transactions and also charges clients a small handling fee.  Lennon’s ambitions for the business stretch far beyond employee gift cards and the Irish market, however. “Right now, our focus is Ireland but also the UK. We’ve seen pretty rapid growth and we’re expecting to do significantly more business in the run-up to Christmas,” he says. “Looking ahead 18 months, our goal is that every employee in Ireland and the UK has one of our digital Mastercards on their phone.” In the New Year, Lennon also plans to launch CleverCards’ second product – a digital Mastercard for employee expenses. “We want to start expanding further into Europe from late 2024 and, ideally, we want our existing multinational clients in Ireland and the UK to carry us into new territories by recommending CleverCards to other offices in their European network,” says Lennon. “It’s much faster and more cost-effective than spending millions on marketing in each new market. You’re letting your existing customers bring you there instead.  “That’s our strategy and our USP is that our digital cards can be used for all sorts of expenditure, they give control to the financial controller who has visibility of where spend is going, and transactions are automatically authorised because we are the payment processor.”  Early career Lennon’s confidence in CleverCards’ potential is drawn from a longstanding career in entrepreneurship and a seemingly insatiable desire to identify a gap in the market and run with it. Originally from Leixlip in Co. Kildare, the FCA has had an “eye out for opportunities” almost from the very beginning of his working life as a Chartered Accountant. Lennon initially qualified with Simpson Xavier and worked in corporate finance before leaving the firm in 1992 to strike out on his own. “I took the commencement route to becoming a Chartered Accountant. My first choice on my CAO form was commerce, but I missed it by one point and I couldn’t wait around,” he says.  “I was lucky that I started my career under the leadership of Anthuan Xavier at a very entrepreneurial firm. Being able to get in front of clients straight away was a buzz for me.” Lennon decided to leave the firm aged just 23, however, so he could set up his own financial consultancy, offering corporate finance, tax and accountancy advisory services. “I took an office with a big brass sign on the door and I landed my first client, quite honestly I’d say simply because I was a one-man show so I was cheaper than any of the bigger firms,” he says. “That client owned Kartoncraft, a pharmaceutical packaging business, and he had an offer on the table to sell his business to Inistech, an Irish plc at the time. He hired me to manage due diligence.  “The guy they had hired on the corporate finance side was also a one-man show. Once I had a full understanding of his selling price, I said to the client one evening ‘don’t take this the wrong way, but I think your business could sell for a lot more’. “I got the whole textbook explanation of ‘well, it’s an x percent discount on PE multiples and so on’, but he listened to my advice and came back having doubled the price of the business. He fired his corporate finance advisor and hired me instead.  “The Government and IDA Ireland at the time were focused on bringing more pharmaceuticals into the country. I looked at this strategy, put a five-year plan together for my client and, about six weeks later, we went back to the plc and we doubled the selling price again.  “My client made four times his asking price from the time I started working with him. He paid me £100,000. I was able to buy my first house for cash at just 23 and I had a red BMW. I really thought I’d made it.” Kartoncraft and MeadWestvaco But more was to come for Lennon, who was subsequently asked by Inistech to join the board of the newly acquired Kartoncraft in the role of Finance Director. Within 18 months, aged just 25, Lennon had led the management buy-out of Kartoncraft from Inishtech Plc, backed by AIB in Ireland and Dresdner Kleinwort Benson, a London-based private equity house.  He sold Kartoncraft five years later for $20 million to the NYSE-listed MeadWestvaco and joined the US packaging company’s Board of Directors as Head of Mergers and Acquisitions for Europe. “I was the youngest board director of MeadWestvaco Europe, which had 35,000 employees worldwide,” Lennon says. “It’s interesting now to see the media reports about MeadWestvaco and Smurfit Kappa merging, because when I sold Kartoncraft, Smurfit was the underbidder. “It’s quite a ‘full circle’ feeling to see them coming together to become the biggest packaging group in the world, and those early connections are still part of my life today. Both Michael and Tony Smurfit are investors in CleverCards all these years later.” By the time he left MeadWestvaco in 2007 to set up investment firm K Partners, Lennon was ready for a new challenge. “That corporate role was kind of like an on-the-job MBA. I learned so much about strategic development, people management, motivation and incentivisation. “It gave me an incredible insight into how large corporates work, but, deep down, I am an entrepreneur and I wanted to build something again from the ground up. I had an eye out for potential acquisitions and decided to go for it.” K Partners went on to participate in private equity and VC-backed investments spanning the media sector, publishing, telecoms, leisure and hospitality. Its interests included education publisher CJ Fallon and broadcaster Wilton Radio, now trading as iRadio and recently acquired by Bauer Media. The Netflix of payments Lennon’s vision for CleverCards is to see the venture become the “Netflix of payments”. “Our focus isn’t streaming obviously but I see our market opportunity in the same way,” he says.  “It’s pretty clear to me that everything is moving to the mobile phone and our focus is the configurability of payments. The market is wide open. There’s a big blue ocean of potential there and nobody else is doing it.” That said, he is under no illusion that crossing this “big blue ocean” will be plain sailing all the way. “It can be tough going in any early-stage business when you are trying to spot a gap in the market, launch a new product or service to fill that gap, and keep driving it through in the face of the forces that might be going against you,” he says. “There are challenges every day in business. People talk about an early-stage business being a rollercoaster and that is so true because it implies ups and downs,” he says.  “What people don’t realise is that there can be an up and a down in just one day. I don’t mean a small move in either direction. I mean really big ups and really big downs. You just have to deal with it and move on. You have to be resilient.” Interview by Elaine O’Regan

Despite housing and health and climate crises, our experience living and working in Ireland has never been so good, writes Cormac Lucey Come election time, the positions political parties advocate for can generally be classified into either continuity or change.  With a general election looming in the Republic no later than March 2025, the battlelines are already emerging. The parties of the outgoing Government will campaign for continuity. The parties of the opposition will seek change.  Ironically, despite the Government’s many policy failures (housing, health, etc.), it has a strong story to tell.  If a person were to choose when they would live in Ireland over the last thousand years, the rational choice would be today.  Life expectancy Take the very simplest index of national well-being. The average life expectancy in 1950 in the Republic of Ireland was 60. Today, it is just under 83 years old. This staggering progress reflects healthier lifestyles, better diets, safer workplaces and improved healthcare.  Income Income levels today are far ahead of those our parents and grandparents could aspire to. Last year, Ireland’s modified gross national income (the measure of national income designed to exclude globalisation effects) was €273.1 billion. This equates to income per head of €54,600.  The key to this is productivity growth. If productivity output per person grows at a rate of two percent per annum – the general experience over the 20th century – people should be 7.2 times as well off after a century.  If annual productivity growth is just one percent – roughly what we’ve experienced since the millennium – people will be just 2.7 times as well off after a hundred years. It is the slowdown in underlying productivity growth which is the most serious economic issue facing the global economy today. Employment We must also consider the range and depth of job opportunities available today. When I graduated from university in 1981, many of my classmates had to emigrate as the economic conditions were so poor in Ireland. Today, Ireland has record low unemployment. Young people travel the world for fun and to expand their horizons rather than out of financial necessity.  Ireland’s successful policy of attracting foreign direct investment to these shores means that people can work for the world’s largest and most financially successful companies without leaving the country.  Climate Young people may argue that, by presiding over damaging climate change, older generations have eaten the seed corn they will need.  A 2021 global survey led by the University of Bath in the UK illustrated the depth of anxiety many young people feel about climate change. Close to 60 percent of the young people approached said they felt very worried or extremely worried. Three-quarters said they thought the future was frightening. Fifty-six percent said they believe humanity is doomed. These widely held viewpoints illustrate the degree of public hysteria surrounding the debate over climate change.  Bjorn Lomborg (The Copenhagen Consensus Center, Copenhagen Business School and the Hoover Institution, Stanford University) recently made the point in Science Direct that scenarios set out under the UN Climate Panel (IPCC) show human welfare “will likely increase to 450 percent of today’s welfare over the 21st century. Climate damages will reduce this welfare increase to 434 percent”.  Lomborg expects that, in the context of general human progress, climate change will represent a speed bump rather than the end of the road.  To quote the former British Prime Minister Harold Macmillan, we’ve “never had it so good”.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the October/November issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

Accountants will be the profession best placed to bring the necessary rigour to the analysis and governance of critical data in the age of AI, writes Sharon Cotter Canadian philosopher Marshall McLuhan has suggested: “We become what we behold. We shape our tools, and thereafter our tools shape us”. This is important to remember today, when the spotlight is on the potential consequences, intended and unintended, of the artificial intelligence (AI) tools being shaped by humans. The rise of AI AI encompasses a vast range of computer science research. Since the 1950s, scientists have pursued the goal of building machines capable of completing tasks that normally require intelligent human behaviour.  Machine learning (ML), a subset of AI, enables machines to extract knowledge from data and to learn from it autonomously.  In the past decade, the exponential increase in the volume of data generated, captured, stored and available for analysis, coupled with advances in computing power, have created the impetus and means to rapidly advance ML, which in turn has facilitated the development of narrow AI applications.  In essence, narrow AI applications are computer programs, or algorithms, specifically trained, using very large datasets, to carry out one task, or a limited number of tasks. Best suited to tasks that do not require complex thought, narrow AI algorithms can often accomplish such tasks better and more swiftly than humans.  Most of the AI capability we use today is narrow AI – from Alexa and Siri, which carry out human voice commands, to ChatGPT and Bard, which generate output based on conversational text prompts, and Dall-E2, which generates visual images based on text prompts, to name but a few.  In the field of accounting, we can utilise coding languages and software tools such as Python, ‘R’ and Alteryx to generate predictive forecasts and models.  We often use these tools without realising that we are using elements of narrow AI. For example, these programming languages and software tools embed many of the statistical algorithms that allow us to easily carry out linear regression analysis, a common method of predicting future outcomes based on past data. Adapting to broaden our role The word ‘computer’ was first coined by the English poet Richard Brathwaite in 1613 to describe a person who carried out calculations or computations. For the next 350 years or so, most humans who needed to perform calculations used mental arithmetic, an abacus or slide rules until the widespread availability of electronic handheld calculators in the 1970s. As accountants, we have seamlessly adapted to the tools available to us – whether these are an abacus, double-analysis paper, a totting machine, or computer software tools like Excel and Alteryx.   The use of these tools, and the time saved by their use, have allowed us to broaden our role from recording, summarising and presenting the underlying economic transactions to providing a much wider range of useful information to decision-makers both within, and outside, organisations.  This is reflected in commentary from the professional accountancy bodies emphasising the importance of good organisational decision-making and suggesting that the core purpose of our profession should be to facilitate better decisions and identify the business problems that better decisions will resolve. Asking the right questions In 1968, Pablo Picasso is reputed to have said: “Computers are useless. They can only give you answers”. While the remark may have been dismissive of the then cumbersome mainframe computer, it does encapsulate the notion that the real skill lies in figuring out the right question to ask, as this requires both judgement and creativity.  Useful, timely and relevant information for decision-making can only be produced if the right question is asked of the right data at the right time. On the face of it, this seems simple and straightforward, but in practice it is often much more difficult to achieve.  Deciding what question to ask requires knowledge of the business context, and an understanding of the issue being addressed as well as an ability to clearly articulate the issue. Critical thinking is key to identifying what answers are needed to identify the range of solutions for the issue at hand. Deciding what data is appropriate to use in the analysis requires an understanding of what data is available, where it is stored, how it is stored, what each data element selected represents, how compatible it is with other data, and how current that data is. It also requires knowledge of the limitations posed by using particular sets of data. Being able to generate the answer to the right question using the right data is only relevant if it can be produced at the point at which this information is needed. Sometimes, not all the data needed to answer the question is readily available, or available in the required format. Data from several sources may need to be combined and, where data is incomplete, judgement will be needed on the assumptions necessary to generate a relevant and timely set of data. Accountants are well-positioned The skills, experience and mindsets we develop as part of our professional training positions accountants well to provide the best possible decision-enabling information to decision-makers.  Scepticism is a key tenet of our profession. We look to spot anomalies in data and information, and to question the information by asking “does it make sense?” We are trained to be methodical, thorough and to look beyond the obvious. Training and experience enable us to develop our professional judgement, which we apply when determining what is relevant, appropriate and faithfully represents the underlying economic transactions.  We are adaptable and flexible in the tools we use, and aware of the need to stay up to date with the law and regulation applying to the storage and use of data. In short, we are valued problem-solvers and critical thinkers. Accountants’ ‘jurisdiction’ In his book The System of Professions: An Essay on the Division of Expert Labor, Andrew Abbott uses the term ‘jurisdiction’ to represent the link between a profession and its work.  Jurisdiction is an important concept, as the acknowledged owner of a task is likely to be able to shape the characteristics of that task. In the context of accountants’ work, the term ‘jurisdiction’ means the extent to which organisations, and society, accept that due to their professional expertise, only specific roles and responsibilities should be carried out by accountants.  Within organisations, accountants’ jurisdiction is not static. The roles and responsibilities that fall within their remit can, and do, change.  The jurisdiction of accountants can be encroached upon. Others within the organisation may also have expertise allowing them to claim work once exclusively identified with accountants. Challenges to jurisdiction The emergence of new roles, such as data or information specialists, who collect, clean and analyse data, has meant that complex analysis of financial information can now be done by non-accountants.  Some organisations have explored ways in which operational managers and decision-makers can be given direct access to financial systems.  Known as ‘self-service’ menus, such direct access to information allows decision-makers to drill down into the detail of transactions – for example, to identify the underlying causes of deviations from budget, all without the need to consult with their colleagues in the finance department.  If an organisation transfers responsibility for data analysis and decision support to data specialists and/or decision-makers, then the jurisdiction of the accountant may be narrowed or reduced. Opportunities for role expansion Equally, however, accountants’ roles and responsibilities can be increased, resulting in their jurisdiction being broadened or expanded.  The expansion of an accountant’s role requirements can either result from increased job tasks and responsibilities, or from changes in the tools and technologies available to carry out these tasks and responsibilities.  Recent research and professional body commentary has, for example, explored the extent to which management accountants have embraced changes in their role or taken on wider responsibilities, such as business partnering.  Multiple elements such as role identity, the ability to embrace change in a positive way and developing strong communication skills, to name but a few, all contribute to the successful adoption of additional responsibility. Futureproofing with digital fluency The rapid and on-going development, enhancement and availability of software tools that can be used to capture, store, identify, slice and dice data, and present information in visual graphics, are forcing accounting professionals to consider the level of IT competency required to operate efficiently and effectively in today’s digital world.   Professional accountancy bodies emphasise the importance of digital skills in futureproofing the accountant’s role while many of the larger multinational companies espouse the need for finance staff to have good digital fluency. Challenges and opportunities Both encroachments and expansions to the jurisdiction of accountants bring their own set of challenges and opportunities.  Maintaining, and expanding, accountants’ jurisdiction over the integrity of data, and the provision of information for decision-making, should be a key part of the profession’s strategy in the digital age.  I believe that the ‘governance’ of data, rather than the use of specific AI tools, should be the focus of the accountancy profession when formulating strategies for its future direction. In addition to enhancing our digital skills, we need to consider strategies such as adapting and changing the role of the chief financial officer to include overall direct responsibility for data analytics.  The governance, management and analysis of data should be as important as traditional responsibilities in finance.  Governance of data requires rigour and objectivity to ensure that its integrity is preserved. We should noticeably stake our claim as the profession best placed to bring that rigour and objectivity to the governance and analysis of data used for decision-making.  Failure to consider such strategies may mean we increase the risk that encroachments rather than expansions to our role – our jurisdiction – will become a reality. We should strive to ensure that our future role is shaped by us rather than by these new digital tools and techniques. Sharon Cotter, FCA, lectures in accounting and finance at the University of Galway

Ronan McGovern, FCA, barrister and Stanford Scholar, talks about his experience living with ADHD and why more support is needed for neurodiversity at work  He is a Chartered Accountant, barrister and strategy manager with one of Ireland’s biggest banks but, for Ronan McGovern, the title he is most proud of is Stanford University Scholar. It was while studying for his MBA at the prestigious US university in 1996 that McGovern was first diagnosed with attention deficit hyperactivity disorder (ADHD). And it was through his continued work with Stanford that McGovern would go on to discover what he calls his “life purpose”. “In 2019, I was invited to work for six months on the Stanford Neurodiversity Project at Stanford Medical School, and it changed my life,” he explains.  “I discovered my unique offering to the world – what I was put on this earth to do; to be a neurodiversity champion and innovator.” His path to learning he had ADHD and discovering the world of neurodiversity was a long one, however. McGovern was already well into his thirties by the time he received his diagnosis. Although, these days, he views ADHD as the fuel powering “all the amazing things I have done in my life”, his experience growing up with the condition was not always positive. “I have been given these amazing gifts – academic excellence, creativity, ideas, energy, productivity – I stand out and I am authentically myself. I think differently but thinking differently wasn’t a good thing in the Ireland I grew up in,” he says. “In Irish society in the sixties and seventies, there was a very homogenous culture. Being different generally meant you were punished.” Early years McGovern grew up in the west Dublin suburb of Palmerstown and started primary school in 1965.  “It was long before there was any recognition of neurodiversity and I have to say I learned very little because my mind was always wandering,” he says. “Everybody’s mind wanders, but for an ADHD person, the inattention and mind-wandering are pronounced. The teachers had no idea I wasn’t learning anything. I just basically sat in class not telling them.” By the time he was ready to progress to secondary school in 1975, corporal punishment was still very much part of “the school culture” in Ireland, McGovern says.  “Some teachers saw me as what, in those days, they might have called a ‘a bold boy’, disrupting the class and with no apparent interest in learning,” he reflects. “During my time at secondary school, I would say corporal punishment was used on me maybe four or five times more often than my peers. “There was also shaming of different descriptions – I remember being put outside the door of the classroom as punishment – but that kind of treatment wasn’t exclusive to my secondary school at that time.” Despite this, McGovern’s academic performance remained strong throughout his school years with his exam results “ranging from average to top of the class”. “I believed in myself,” he says now. “Sometimes I was made to feel ‘less than’; I was shamed and ridiculed for being honest and straightforward, but throughout it all, I always believed in myself.” Path to diagnosis After leaving school, McGovern went on to train with a small accountancy practice and joined PricewaterhouseCoopers’ Dublin office in the early eighties. “In 1993, I was accepted into the MBA programme at Stanford Business School. The tuition at that time was about €30,000 per quarter so I decided to apply for a transfer to PwC New York for the sole reason of earning the money I would need to join the Stanford programme,” he says.  McGovern began his MBA studies in 1995 and was about eight months in when he was approached one day by one of his classmates.  “She said to me, ‘Ronan, I want to ask you a question. Have you ever heard of ADHD?’ I said no. She explained the condition and said that she had been watching me in class and believed I may have it,” he explains. “She was a doctor, and she knew a lot about autism and ADHD. She gave me a reference to the Stanford Medical Centre and told me they would point me in the direction of an educational psychologist who could assess me.”  Following a 10-hour assessment by an educational psychologist in Palo Alto, McGovern received a 15-page report.  “It told me that I had what was called Combined ADHD; a combination of hyperactivity and inattention. That was in early June 1996,” he says. “At the time, I felt a bit of sadness over the fact that I had not been diagnosed earlier, but I also felt a bit of relief and then excitement. My final observation was: Let me see what I can do in the future now that I have this diagnosis.” In the years since, McGovern has come to view his ADHD as “a gift”. “I bring creativity and ideas to the table,” he says, “an understanding of how everything is connected, be it biology, business or machine learning. That has really stood to me in my life and work.” Stanford Neurodiversity Project McGovern took a six-month career sabbatical in 2019 and returned to California to take part in the Stanford Medical School Neurodiversity Project. Led by Dr Lawrence Fung, the aims of the Stanford Neurodiversity Project include maximising the potential of neurodiversity and establishing a culture that treasures the strengths of neurodiverse individuals.  It defines neurodiversity as “a concept that regards individuals with differences in brain function and behavioural traits as part of normal variation in the human population” and says, “the movement of neurodiversity is about uncovering the strengths of neurodiverse individuals and utilising their talents to increase the innovation and productivity of society as a whole”. Following his six-month stint on the neurodiversity project, McGovern took part in Stanford Rebuild Innovation Sprint, launched in 2020 to help develop solutions for the challenges and opportunities society would face in the wake of the COVID-19 pandemic. “Stanford invited alums and others to initiate an entrepreneurial project aimed at rebuilding society,” he explains. “Professors gave their time to assist volunteers and I volunteered to do something on neurodiversity in business and formed a core team with Susan O’Malley, an Irish Stanford business school alum, and Tiffany Jameson, a neurodiversity consultant.  The group recruited 50 other volunteers and, “over three months in the summer of 2020, we all co-authored our Stanford Rebuild Report,” McGovern says. “When our Rebuild project drew to a close that August, we formed NDGiFTS to prevent this work coming to an end.” NDGiFTS stands for Neurodiversity Giving Individuals Full Team Success and is, McGovern explains, a movement dedicated to building a “global community whose aim is to increase the inclusion and celebration of neurodiversity at work”.  To this end, NDGiFTS has produced a 78-page report, available at ndgiftsmovement.com, with input from 70 contributors and insights from 300 stakeholders worldwide. NDGiFTS’ mission “The mission of the NDGiFTS movement is to prove that neurodiverse individuals are worth investment from organisations who stand to reap the reward of innovation,” McGovern says. “Our core belief is that the neurodivergent individual, when appropriately supported and embraced, brings cultural and economic advantages to the workplace, including creativity, innovation and entrepreneurial energy.”  According to McGovern, as many as 20 percent of people worldwide have neurodivergent conditions ranging from ADHD and autism spectrum disorder to dyslexia, dyscalculia and dysgraphia. “Even now, all these years since my diagnosis, the sad truth is that society has not yet built the structures to support and service people who are neurodiverse,” he says. “This applies as much to the business environment, apart from a very small minority of companies, Goldman Sachs being a particular exception to the rule.” In 2019, the US banking giant launched the Goldman Sachs Neurodiversity Hiring Initiative, an eight-week paid internship for people who identify as neurodiverse. “It went on to hire more than 50 neurodivergent people over three years. Every one of the participants in that internship programme was made a permanent employee,” McGovern says. As it stands, however, Goldman Sachs remains the outlier with few organisations having made the same strides in neurodiversity inclusivity. McGovern is, meanwhile, once again partnering with Stanford University to publish a book in 2024 that will detail his experiences growing up and living with ADHD. “My own experience of work was that my experience at school carried through to my professional life. When I was challenged to progress in a certain role, I found the perception was that I didn’t fit the mould of my other colleagues,” he says. “My message now is that we need to focus on the intentional recruitment of the neurodiverse talent base, similar to the Goldman Sachs model. “I would like employers to look at my personal journey and start thinking seriously about neurodiversity and the potential of people like me.  “My story is not unique, but I think I can help to open a serious conversation about neurodiversity in Ireland and around the world. We should not have a society where people spend all their time swimming against the tide.” Written by Elaine O’Regan

Donal Whelan outlines six essential steps to foster openness, support and well-being in your organisation during Mental Health Awareness Month October is Mental Health Awareness Month, and while the stigma around mental health issues may be decreasing, disclosing problems to others in your organisation might not be getting easier. Many employees hide mental health concerns for fear of being labelled ‘unstable’ or ‘unreliable’. With increased awareness about mental health and a movement toward removing the negative stigma associated with mental conditions, many workplaces are stepping up to change their policies. Improving mental health awareness in your office begins with these six key steps. 1. Increase awareness Training sessions for all employees, particularly those in management positions or who could potentially need to oversee employees with mental illnesses, can make it easier for everyone to communicate, build rapport and react appropriately to situations involving mental health. Topics should include a basic understanding of mental health problems like depression and anxiety and how to recognise signs of mental health issues in yourself and your colleagues while explaining that symptoms can vary widely and may not always be obvious. 2. Provide tools for support The biggest surprise for many leaders when dealing with employees who suffer from mental health issues is that they aren’t expected to ‘fix’ them.  Instead, it’s necessary to provide tools to support those employees, much like the tools and accommodations provided to employees with differing needs. This might include, for example, providing a more flexible work schedule for employees with depression or anxiety concerns. Written instructions, not verbal ones, may prove to be the only accommodation an individual with memory problems needs while removing environmental triggers (such as smells or certain noises) can solve many problems for individuals who have panic attacks. 3. Create a mental health policy See Change has put together a great sample mental health policy that will help you establish clear guidelines for your business. Keep in mind that your mental health policy needs to include information about: Avoiding discrimination due to mental illness; How to establish mental illness and what criteria are required; and How to create accommodations for employees with mental illnesses. Remember that each individual is different. Unique accommodations will be required based on the individual’s skills and strengths, as for employees with physical disabilities. A flexible policy will make meeting every employee’s needs easier. 4. Encourage a healthy work-life balance Employees who have a poor work-life balance are more likely to show signs of depression, anxiety and instability. Promoting good mental health includes preventing employees from working outside their contracted hours, encouraging and supporting life events outside the workplace, and creating policies that do not penalise employees for taking accrued time off. Life outside the office can significantly impact life within it, so supporting employees in their everyday lives is critical. 5. Recognise signs of stress Alongside mental health awareness training, managers and supervisors throughout your business should receive training in recognising signs and symptoms of stress in employees. Learning to alleviate that stress will help make healthier, more productive employees. Some common signs of stress include: acting consistently tired; irritability; an increase in the need to take sick leave, particularly in an employee who has not previously been ill regularly; sudden difficulty completing regular work tasks; and indecisiveness or insecurity. 6. Create a culture of openness Mental health concerns or stresses can appear without warning. In many cases, employees will hide or minimise those concerns to prevent discrimination. On top of worrying about the condition itself or the things that have led to it, they’re also concerned that they’ll lose their job or be labelled incompetent as a result. Encouraging a culture of openness throughout the office will enable employees to open up , from admitting when they’ve taken on too heavy a workload or have been working too many hours to keep up to sharing mental health concerns with their supervisors. Supporting mental health in your office is critical to maintaining a safe, healthy environment for all your employees. By creating an environment where people are encouraged to thrive regardless of mental health concerns, you’ll find happier, more productive employees who are firmly committed to your organisation. Donal Whelan is Managing Director at Lincoln Recruitment

As Budget 2024 approaches, the Irish Government  must grapple with a looming election and the need to ease the burden on citizens, explains Doone O’Doherty Budget 2024 will be delivered against a backdrop of record-breaking corporate tax receipts, an upcoming general election and continuing cost-of-living challenges. The Government is under pressure to deliver substantial tax savings. However, with just €1.1 billion set aside for tax cuts – down slightly from last year’s €1.13 billion – there isn’t much to play with. The balancing act for the Government is to put more money in people’s pockets without further fuelling inflation. Budget 2024 will likely include a number of once-off cost-of-living measures that support families. This gives the Government the opportunity to improve household finances without long-term consequences for the Exchequer or the economy. Income tax and the Exchequer For the first seven months of 2023, income tax yielded €18.2 billion in tax receipts for the Exchequer – up 8.8 percent on the same period last year.  Against this robust backdrop, the Government must respond to taxpayers who want to know how much less tax they will pay in January 2024 compared with today. However, with only €1.1 billion set aside for tax cuts, we shouldn’t expect to see any major giveaways. No decreases likely in income tax rates  We probably won’t see any decrease in income tax rates as cuts to both the 20 percent and 40 percent rates would, by themselves, exceed the €1.1 billion available. There was much debate in 2022 about the introduction of a third rate of income tax. However, there is little expectation that we will see it with the Government opting instead to increase the standard rate band. Last year, the threshold at which people moved into the 40 percent tax bracket increased by €3,200 to €40,000. A further increase of €1,500, as modelled by the Tax Strategy Group (TSG), would cost €298 million in the first year (€343 million for a full year). Increases to tax credits are also on the table. Budget 2023 increased the Personal Tax Credit, the Employee Tax Credit and the Earned Income Tax Credit by €75 each and the Home Carer Tax Credit by €100. The TSG estimates that a €50 increase in each credit this year will cost €242 million. The TSG also examined the concept of refundable tax credits. However, this would be a fundamental change to the Irish personal tax system, requiring careful consideration of policy, administration and cost implications. Linking the personal tax system with inflation The Programme for Government undertook to index-link bands and credits from Budget 2022 onwards. A recent report from the OECD on income taxes showed that 17 of the 38 OECD countries already automatically adjust personal income tax systems in line with inflation. Such a move would be expensive, but it would keep take-home earnings in line with inflation. Otherwise, it is hard to see how proposed tax cuts would be actual tax cuts, given the levels of inflation seen in the economy of late. USC burden likely to fall  We expect the Universal Social Charge (USC) burden to fall. A USC rate cut would be expensive, however. A more likely (and cheaper) option is widening USC bands. The abolition of the 3 percent USC surcharge for self-employed people would be positive. Retaining Ireland’s attractiveness Ireland’s personal tax system must compare favourably with other countries around the world to retain the country’s attractiveness. Special Assignee Relief Programme (SARP) continues to have a temporary placement on the statute book (it currently runs to 2025). A signal in Budget 2024 of the Government’s commitment to extend and enhance SARP would be welcomed by businesses. Higher employer PRSI There is a continuing need to raise more social insurance revenue as the population ages. Options include a higher PRSI charge for the self-employed and employers. However, this would not go down well with small businesses, who face increases to the minimum wage, high energy bills, additional sick pay provisions and upcoming pension auto-enrolment for employees, which will be introduced in 2024. Higher employer PRSI in some form seems inevitable in the years ahead, though perhaps not in this budget. Easing the cost of living and housing  The €1.1 billion set aside for tax cuts excludes once-off spending measures to help people with the cost of living. These are expected to include a repeat of last year’s energy credits. For landlords, the Minister for Housing has stated that he will consider “efficient and effective” measures to attract and keep them in the Irish market. For renters, we may see a repeat of (and maybe an increase in) the €500 rent credit introduced last year – although uptake has been lower than expected. Mortgage holders will be looking for some relief considering recent rate increases, which could include a targeted form of mortgage interest relief. And for first-time buyers, an extension of the Help to Buy Scheme (due to expire at the end of 2024) could be on the cards. Widening of the capital acquisitions tax-free threshold At present, children can inherit €335,000 tax-free from their parents, but there is an acknowledgement that this may not be enough to cover the cost of a typical family home. A widening of this tax-free threshold would be favourable. Budget 2024 comes at a time when the business community is focused on supporting the workforce with the cost-of-living crisis while managing the increasing costs of doing business. At the same time, businesses are focused on attracting, incentivising and retaining key talent and upskilling their workforce to meet changes in business practices – particularly technological disruption. Businesses need support through this challenging period.  Doone O’Doherty is Partner of People & Organisation at PwC Ireland

Gemma O’Connor outlines practical tips for maintaining employee connections during illness-related absences Keeping in contact with an employee who is off work due to illness can be a delicate balancing act. On the one hand, you need to know when the employee will be fit to resume work. Conversely, you don’t want the employee to feel pressure to return to work before they’re better. If an employee is absent for an extended spell, they may feel out of touch and undervalued if you don’t reach out to see how they are recovering. As this can be a sensitive issue, here are some ground rules around contacting staff who are absent through illness. Making contact It is usually the responsibility of line managers to keep in regular contact with any of their staff who are absent. They typically know the individual best and are equipped to discuss sensitive issues. If it’s a minor illness likely to end within five days, contact is not usually necessary. No matter the duration of the absence, however, a return-to-work interview should be carried out to update people about the status of their work. This meeting also gives your employee a private opportunity to discuss concerns about their health or other matters affecting their performance or attendance. In the case of an employee’s sudden or traumatic illness, communicate your sympathies and use your discretion until a firm diagnosis is made. Call vs text Once you have a diagnosis and time has passed, you will want to contact the employee for further information about their health and return to work. All contact about an illness-related absence is typically by phone. Some employees might prefer to text. To give them time to prepare for a call, managers should send a message to set up a suitable time for a conversation that works for the employee. The discussion The call must focus only on the employee’s health and return to work. Before you pick up the phone, consider what organisational matters need to be in place before the employee returns to work (for example, if a temporary employee has been put in place, will a handover be required, etc.) or what support the employee might need to encourage a speedier return. It’s important not to make assumptions about the employee’s situation. Remember to listen and be flexible and consistent. Recovery times for the same condition can vary significantly from person to person. Do not mention the workload being taken on by other people or strained resources because of their absence. Once you get an absent employee on the phone, ask them how they are getting on and explain it’s a routine call to see how they are and when they will likely be well enough to return to work. If the employee makes it clear they don’t want to talk, remain polite and end the call. Keep records of conversations Keep a note of your conversation with the absent employee. If any subsequent claims arise from the employee’s absence, you must have a paper trail supporting your management of the situation. Ongoing assistance If the employee’s absence is stress-related, try to find out if it’s connected in any way to the employee’s job, conflict with a colleague or some other workplace concern and address any issues when the employee returns to work. Direct the employee to the Employee Assistance Programme if you think a confidential third-party discussion with a counsellor will help. Gemma O’Connor is Head of Service at Peninsula Ireland

With Budget Day approaching, Tom Woods outlines his recommendations for ensuring this year’s measures support social and economic progress With Budget 2024 just two weeks away, Ireland is experiencing mixed economic fortunes. On the positive side, near full employment and significant exchequer receipts would suggest that the Government has an unprecedented range of policy choices to consider. Nevertheless, the economy is also facing constraints. Inflation and interest rates offer limited room for manoeuvre, making selecting the right policy choices much more difficult. Housing KPMG suggests introducing a new low VAT rate on the sale of new builds to help with the affordability of purchasing a new home. We also support the reintroduction of mortgage interest relief to help homeowners with rising interest rates and growing mortgage repayments. We recommend that the taxation of professional landlords be reformed to put them on a similar footing to trading businesses. This would help to attract and retain more landlords and boost the supply of housing stock in the rental market. Reintroducing a controlled and targeted Section 23-type rented residential relief (tax relief applying to rented residential property in a tax incentive area) would also promote housing investment in less sought-after areas. The workforce As a small, open economy, our successful tax policy has helped make Ireland a location of choice for multinational business. As a country at close to full employment, we need an attractive personal tax regime to keep and grow mobile talent to support the growth of domestic and international businesses in Ireland. There is a range of budgetary measures that would help us in this regard, including the widening of the personal tax bands and credits, consideration of a new intermediate tax rate of, say, 30 percent, and the automatic indexation of credits and bands to help dampen the impact of inflation and protect the value of wages. The taxation of share-based remuneration could also be simplified, and we would like to see some improvements to the Special Assignee Relief Programme (SARP). Innovation and entrepreneurship The impact of foreign direct investment (FDI) on the Irish economy can’t be overstated. However, the ongoing changes to the international tax landscape emphasise the importance of having the most enticing regime within the new rules. As mentioned above, an inviting personal tax regime will become more critical, as will having an appealing research and development (R&D) regime to promote and foster more innovation. Several measures could be introduced to promote more innovation, including an upfront entitlement to cash refunds of R&D tax credits for smaller businesses. The R&D tax credit of 25 percent could be improved to either 30 percent or 35 percent to make it more attractive internationally. Moreover, the rules and the application process to qualify for this credit should be simplified. Other jurisdictions continue to refine and improve their R&D offering, so it has never been more important for Ireland’s regime to be as inviting as possible. International changes also underscore the need to support the growth of the domestic sector.  We have made several recommendations to support SMEs. These include introducing a new 20 percent capital gains tax (CGT) rate on the sale of shares in SMEs and some improvements to entrepreneurs’ relief to promote investment in SMEs. We advocate simplifying the rules underpinning the Employment Incentive Investment Scheme (EIIS) to make it more accessible and easier for businesses to raise capital. We also propose that the standard income tax rate of 20 percent be applied to dividends paid by SMEs. This should encourage promoters of SMEs to remain committed to growing their business and enable companies of scale to emerge from the domestic SME sector without the need to sell down equity. Climate Ireland’s ambitious climate goals will present challenges and opportunities for individuals and businesses. Several tax supports could be considered to help Ireland achieve its climate goals. These include measures to promote private finance for green investments via ESG bonds and pension funds. We also believe that tax measures could be introduced to help accelerate the move to electric and hybrid vehicles and support the agricultural sector in its transition to more sustainable practices. Inflation While the exchequer receipts are in rude health currently, this revenue may be vulnerable in the future, and a measured approach will be needed when deploying the available resources. While there is potential for some measures to impact inflation, the significant benefits of achieving policy objectives need to be weighed up against their inflationary impact. The measures unveiled in the forthcoming budget will signal the Government’s direction of travel across many issues. The good news is the resources are there to help sustain our social and economic progress. Tom Woods is Head of Tax at KPMG

Shadow boards can unlock innovation, bridge generational divides and boost profits. Stephen Conmy explains why Many businesses struggle with two seemingly unrelated issues: disengaged younger employees and a lack of response among senior executives to shifting market trends. Some companies have tackled these problems by creating a “shadow board” – a group of non-executive employees who work with senior executives on strategic initiatives so the organisation can gain insights from the younger generation while broadening the view of senior executives. The specific roles, responsibilities and authority of a shadow board can vary widely depending on the organisation and its goals, however. So what exactly is a shadow board? Generational perspective A shadow board is typically sponsored by the CEO and consists of nine to thirteen younger people (either millennials or Gen Z) from a cross-section of the business whose primary purpose is to provide insight, feedback and ideas to senior decision-makers in the company, representing their generation’s perspective. Members of the shadow board learn about the company’s strategy and decisions so that they can share with their peers and network. The shadow board at work Harvard Business Review (HBR) reported that when Gucci created a shadow board of younger employees, its profits soared. By contrast, when Prada didn’t pay attention to the creative input of its younger employees and failed to recognise the growing power of digital influencers, its profits fell. The tale of these two fashion giants is a valuable lesson for all companies regarding the potential creative energy of a shadow board. As reported by HBR, in the past, Prada had high margins, a legendarily creative director and good growth prospects. Since 2014, however, sales have declined. In 2017, the company admitted that it had “been slow in realising the importance of digital channels and online influencers disrupting the industry”.  Meanwhile, during the same period, Gucci created a shadow board.  Gucci’s shadow board is made up of millennials, and in 2015, met regularly with senior management. The shadow board’s insights have “served as a wake-up call for the executives”, and Gucci’s sales grew by 136 percent. This growth was primarily driven by the success of both its internet and digital strategies.  In the same period, Prada’s sales dropped by 11.5 percent.  Types of shadow boards There are three different types of shadow boards: Developmental shadow board Shadow boards are used by certain businesses to prepare and promote younger or less-experienced staff for future leadership positions.  A shadow board, in this context, is made up of people who do not have formal authority inside the organisation but participate in board-like conversations to provide new perspectives, develop novel ideas or gain experience in board-level decision-making.  It’s a learning experience for these people, as well as a method for the organisation to gain diverse perspectives. Checks and balances shadow board In other situations, a shadow board might act as a separate, unofficial group that reviews and critiques the decisions of the official board of directors. It can offer alternative perspectives or point out potential flaws in the board’s decisions. This structure is less common and can sometimes arise in activist or oversight situations. Perspective shadow board Especially in larger or more complex organisations, a shadow board can be formed to offer viewpoints from different parts of the company or from different stakeholder groups. For instance, a non-profit might have a shadow board made up of the people it serves rather than employees. Mutually beneficial arrangement Shadow boards provide younger workers with the visibility and access they desire, which can often lead to significant career advancement. Notably, the impact and insights of the shadow board can drive valuable offshoots more senior executives might otherwise miss. Not only is a shadow board beneficial to both the members and its organisation, it can also contribute significantly to effective governance, innovation and leadership succession planning. Stephen Conmy is Head of Content at the Corporate Governance Institute

In the face of high inflation and looming challenges, Budget 2024 should focus on supporting Irish SMEs, writes Neil Hughes As we look ahead to 2024, there remains much to be optimistic about. Despite high inflation, the latest Azets SME Pulse Survey reveals that fewer than one in five SME leaders anticipates a decrease in revenue and profits this year. This points towards the positivity that surrounds the future of SMEs. It’s not the time to be complacent, however. Challenges lie ahead. Rising prices are putting a squeeze on already tight margins while many businesses are facing difficulties in attracting and retaining talented people. Employing more than a million people and accounting for two-thirds of firms in the private sector, SMEs are the backbone of the Irish economy, and this group should be a major consideration for Government in Budget 2024. SME Innovation Fund We propose the Government set aside €2 billion to establish an SME Innovation Fund, so Irish SMEs can harness the opportunities of the twin digital and green transitions. Putting aside €2 billion from the recent record tax take, taken in conjunction with other measures, could provide an important step in diversifying Ireland’s economic model and ensure that SMEs are nurtured and can thrive long into the future. National minimum wage SMEs across Ireland are concerned with the increasing cost of doing business. We recommend limiting any increase in the national minimum wage next year to the rate of inflation prevailing on the date of the Budget rather than the 12 percent increase recommended by the Low Pay Commission, which would place a significant burden on SMEs. SME Talent Taskforce We urge Government to consider the creation of an SME Talent Taskforce to address the significant challenges facing SMEs in attracting and retaining talented people within the domestic economy. Featuring representatives of Government, Enterprise Ireland, Local Enterprise Offices, employment bodies and the SME sector, it would be tasked with developing a dedicated roadmap to address bottlenecks in the labour market. Bringing together a new SME Talent Taskforce would help ensure that SMEs have a level playing field in attracting and retaining talented people and help them to succeed in a tight labour market. These measures should help SMEs ease the rising cost of doing business and staff shortages, as well as develop sustainable firms. Neil Hughes is the Managing Director of Azets Ireland

The ‘social’ facet of ESG is gaining more prominence with the evolution of gender pay gap rules, consumer trends and employee priorities, writes Doone O’Doherty The ‘social’ elements of environmental, social and governance (ESG) are rising in prominence, having played a secondary role to the environmental and governance pillars for some time. This lack of focus is partly because environmental and governance issues are much more clearly defined, and regulations in these areas are better developed – but things are changing. Local gender pay gap reporting regulations and the EU Pay Transparency Directive are game-changers. These, coupled with changing consumer preferences and employee attitudes, are prompting companies to increase their focus on social issues. The ‘S’ and tax contributions The social pillar of ESG looks at an organisation’s contribution to societal fairness. Total tax contributions are key in this regard, as tax is a key indicator of an organisation’s contribution to society. While the media often focuses on the level of corporation tax earned by the State, it is important to remember that companies are responsible for collecting income taxes via the PAYE system. In 2022, PAYE income tax and the universal social charge (USC) amounted to €25.46 billion. This equates to 30 percent of total Exchequer receipts. In addition, by paying employers’ PRSI (11.05%), employers are a significant contributor to the Social Insurance Fund, which funds social welfare benefits and the State pension. These are important components of an employer’s role in contributing to society via the tax system. This can increase trust in the market and promote an organisation’s overall purpose and values. The ‘S’ and pay equity When it comes to ESG and pay, the focus tends to be on linking executive pay to ESG goals. However, through an employment lens, an ESG strategy isn’t complete unless it addresses issues relating to all employees and supports the growth of a truly diverse workforce that is treated fairly, paid equitably and without bias. Equal pay In Ireland, equal pay provisions are contained in the Employment Equality Acts 1998 to 2021. Under this legislation, an employer is prohibited from paying an employee less (either directly or indirectly) in the same employment doing ‘like work’ on nine different grounds of discrimination. Although an organisation may be fully committed to equal pay, businesses must review their pay systems and consider carrying out an equal pay review to highlight issues they may not be aware of. If there are equal pay gaps, organisations must explain why. If no reasonable explanation can be found, steps must be taken to close the gaps. Gender pay gap Even if employers comply with equal pay obligations, they may still have a gender pay gap. Our analysis of 500 of the country’s largest employers that published gender pay gap reports in December 2022 found a mean gender pay gap of 12.6 percent. Firms must file new reports in December 2023 based on their situation in June. Progress in closing the gap will require a concerted effort that is enabled by HR, but led by business leaders, to improve the representation of women in their businesses. Pay transparency While many organisations already monitor pay equity, the EU Pay Transparency Directive – which must be transposed into national law by 2026 – introduces additional pay transparency measures. Key features of the Directive include: Recruitment: an obligation on employers to provide information concerning pay levels as part of the recruitment process and a prohibition to prevent organisations from asking candidates about their current or historic pay. Pay philosophy: a requirement for employers with more than 50 workers to share information on the criteria used to determine pay levels and progression. Pay information: a right for workers to request information on the average pay level split by sex for workers doing the same work or work of equal value. The ‘S’ and worker classification Spurred by COVID-19, on-demand labour platforms have grown. These offer new job opportunities for workers and convenient, more affordable services for consumers. The gig economy has become a hot topic in many societal and political debates. The debate primarily focuses on the workers’ working conditions and social security status. In Ireland, there are many ways to work and operate a business. Specific legislative protections for workers apply to each type of employment. For employers, it is important to ensure workers are correctly classified in a way that matches the reality of the relationship between the worker and the business. The misclassification of an individual can impact tax, social security and employment law rights and obligations. It can also lead to reputational damage if a company is perceived as treating workers inequitably. Acting as responsible corporate citizens With more focus on the social element of ESG, employers must make the following a priority for their organisation: Understand what legislation requires and the financial and reputational implications of getting it wrong. Ensure that their strategy, processes and systems around the changing regulations that underpin fair pay and workers’ rights are robust and accurate. Validate their organisation’s ability to produce the necessary statistical data to ensure compliance with the legislation. And if they cannot, identify the gaps. Employers should also begin crafting the narrative to explain how they support social progress – treating employees fairly, driving equality and acting as responsible corporate citizens. Doone O’Doherty is Tax Partner of People & Organisation at PwC

Afraid to negotiate? Ornaith Giblin outlines her top tips to help you overcome your fear and come out on top If negotiating a 10 percent discount on a store-spoilt item in a shop makes you feel uneasy, negotiating a large, complex business deal, asking for a pay raise or haggling with a vendor is probably your worst nightmare. Here are five useful strategies to help get what you want in any negotiation. Define your walkaway point and understand your variables Preparation is king, not only to become comfortable with your demand, but to fully understand and equip yourself with a self-made negotiation toolkit. Work out your lowest or highest walkaway point by asking yourself: when would it become financially unviable to continue the conversation? You should also consider what else you can offer your opposition, perhaps intangible, to get the best deal possible. Is it an introduction to another area of your business? An opportunity to tender for next year’s service agreement? These are your variables, your secret armour in the negotiation process. Own, command and use them. Decide what’s at stake Before going into any negotiation, understand two things: there are people, and then there are problems. Without managing both, you won’t agree to a solution. To negotiate effectively, it is important to distinguish your counterpart's underlying motivations from superficial bluffs. For instance, if you find out that their main motivation is to ensure you buy at least 25 laptops because they know they will cut a profitable deal at that volume, you may find that asking for free additional items is the best way forward. Minimise conflict How many times have you entered into a negotiation that has become tense or has even disintegrated because of personality conflict? Negotiation is outside of (nearly) everyone’s comfort zone, which means that, for most, these conversations are approached with mixed emotions. Add to this, the emotional pressures negotiating may bring to the table (perhaps performance-related), and you have a potential recipe, not just for tension, but also aggression and defensiveness. It is imperative that you go into a negotiation with your feathers unruffled. Be sure to watch your tone, try to build rapport and always be polite. No one has ever had a successful outcome by being rude. Don’t let price win or lose you the war You’re going into a negotiation with a walkaway point based on price, and likewise, your counterpart has come into the conversation from the same viewpoint. If you are both stuck on this walkaway point, you have to ask yourself what can be brought into the mix. If the price can’t be negotiated, what can you ask for as a compromise? If you have already identified what’s of value to the other party, and know what is of value to you, you can let that be your bargaining chip. Understanding your variables and theirs is key to optimising a negotiation situation. Find a win-win solution A wise person once said to me that a good deal is in your head. If you’ve achieved your objectives within your boundaries, and you are happy you’ve agreed to a good deal, then you could class yourself as a winner. However, if you’ve done that by derailing your negotiation counterpart, that’s a win-lose. By not finding a middle ground everyone is happy with, you’ve probably ruined your relationship with your vendor (or boss or organisation), leading to other issues down the line. In business, it’s important to never burn a bridge, and agreeing to a win-win solution is key to building mutually productive partnerships. Ensuring your solution is well-balanced and meets enough of both parties’ expectations is key to making sure you walk away from a negotiation with an actual good deal. If you really negotiate rather than barter with your counterpart, your relationship can produce longer-term mutual gains and a situation that can provide lasting returns for both parties. Ornaith Giblin is a consultant of mid-senior qualified accountants at Barden. You can get more information at Barden.ie

Remote and hybrid work is changing employee eating habits, productivity and work-life balance. Deirdre O’Neill explains how employers can foster healthier and more productive teams Employees who work from home are more likely to eat indulgent foods, snack between meals and work longer hours than their workplace-based colleagues, new research from Compass Group indicates. More than half of workers globally said they struggle to maintain a healthy diet while at work, with employees who work from home finding it hardest to resist temptation. Figures from Compass Group show that 53 percent of home-based and hybrid workers in Ireland admit to regularly eating indulgent foods during their working day. They were also found to snack on average 1.9 times a day, almost 20 percent more than workplace-based employees. Healthy eating expectations and realities The survey found that most workers recognise the productivity and well-being benefits of a healthy diet during their working week. Sixty-seven percent of respondents said that what they eat and drink at work directly impacts their productivity, and, of the Irish respondents, 77 percent said the food and drink they consume has a direct impact on how they feel. Hybrid workers are making the effort to maintain their health while in the office. Seventy-five percent in Ireland said they make a concerted effort to eat healthier foods when they are in the workplace. With snacks readily available in the kitchen cupboard and the hassle of planning and preparing balanced meals, employees working from home find it hardest to maintain healthy eating habits while working. Age-related eating habits Healthy eating has a generational component, as well. Younger workers in Ireland are most interested in healthy eating and its impact on productivity. Millennials are likelier to choose a healthy snack during their breaks (48 percent versus 44 percent of Baby Boomers), and Gen Z snacks more than any other demographic, averaging 2.3 snacks per working day, sometimes replacing a main meal. Despite their snacking, however, 87 percent of Gen Zers agree that what they eat and drink at work directly impacts how well they work, compared to just 56 percent of Baby Boomers. Work-life balance The survey revealed that home-based workers are nearly three times more likely than workplace-based colleagues to exercise during the working day. However, 66 percent of hybrid workers said they work longer hours when working from home, detracting from their work-life balance. The research also highlighted that hybrid workers miss the opportunity to socialise with colleagues during their working day, with 60 percent saying they would like to eat lunch with colleagues more often. Employers can enhance the health of their people by offering wellness programmes, encouraging regular exercise and providing nutritious food options while hybrid employees are in the office, and creating a supportive work environment that values work-life balance, ultimately fostering happier and more productive teams. A healthy bottom line In a world where remote and hybrid work has become the norm, maintaining healthy eating habits and work-life balance presents unique challenges. Employers are pivotal in promoting employee wellness through tailored programmes, nutritious offerings and a balanced work environment, ensuring a healthier and more productive workforce. Deirdre O’Neill is the Managing Director at Compass Ireland

Navigating the evolving cyber threat landscape demands vigilance. Aaron Hambleton explores four critical vulnerabilities shaping the second half of 2023 In the ever-evolving landscape of business technology, the second half of the year presents a host of challenges that demand the unwavering attention of organisations and cybersecurity experts. As organisations navigate this dynamic environment, it is imperative to be acutely aware of the vulnerabilities that loom large on the horizon, poised to test the resilience of businesses and their security measures. As we delve into the nuances of these vulnerabilities, it becomes evident that vigilance and proactive measures are the keys to safeguarding organisations. Here are four vulnerabilities organisations and businesses should be aware of going into the second half of 2023. 1. AI-powered social engineering attacks Artificial intelligence (AI) has entered almost all spheres of the business world. While AI brings numerous benefits and advancements, it also introduces new cybersecurity risks, such as social engineering attacks. These attacks use manipulative tactics to deceive the victims into revealing sensitive information or trespassing organisations’ security infrastructure. To execute these attacks, cybercriminals rely on AI-based natural language processing (NLP) algorithms to generate more realistic and human-like phishing emails, chatbot interactions or voice calls. According to Forbes, “AI technology is advancing so rapidly that hackers are very possibly developing their own custom AI applications specifically designed to take social engineering to the next level.” Detecting these malicious campaigns is getting harder for the average employee, which is why significant training is required to know what to look for and how to prevent escalation. 2. Cloud-based breaches Cloud computing has become the norm in today’s digital landscape, offering scalability, flexibility and cost-efficiency to businesses. However, the widespread adoption of cloud services exposes organisations to new cybersecurity threats, making them a major concern in 2023. Cybercriminals target cloud environments to exploit misconfigurations, weak access controls or insecure application programming interfaces (APIs). A recent example of the consequences of cloud misconfigurations is the Toyota data leak, in which the personal information of over two million customers was exposed after an access key was leaked on GitHub for almost five years. “Upon discovering the GitHub [repository], Toyota immediately made it private. Two days later, the company changed the access key to the data server. The Japanese giant commissioned an investigation into the blunder and was unable to confirm or deny whether miscreants had spotted and used the key to pilfer data from the server,” reports The Register. 3. Enhanced phishing attacks Phishing attacks involve cybercriminals posing as trustworthy entities with the intention of deceiving individuals into divulging sensitive information or performing malicious actions. With over 500 million phishing attacks reported in the US in 2022, this number is expected to rise further this year. Threat actors are continuously refining their techniques to make phishing emails and messages appear more genuine and convincing, which takes a trained eye to spot. 4. Zero-day vulnerabilities in supply chain attacks With the increasing complexity of supply chains and the interconnectivity of various systems, zero-day vulnerabilities are expected to be a significant cybersecurity threat in the second half of 2023. A zero-day attack is a strategic exploitation that involves the use of previously unknown vulnerabilities in the supply chain and has no available patches or fixes. These vulnerabilities in the supply chain can have severe consequences, allowing attackers to compromise the integrity and security of products and services. They can lead to data breaches, unauthorised access, and the potential for sabotage or manipulation of systems. Aaron Hambleton is Director for Middle East & Africa at SecurityHQ You can read their full white paper, Global Threat Forecast: H2 2023 Predictions, at securityhq.com

From flexible workspaces to scheduling brainstorming sessions, Mark Fallon outlines five strategies to ignite innovation and inspire your hybrid team It can be challenging to spark creativity when working from home and even more difficult to encourage creativity among your team members. Here are five steps leaders can take to encourage remote creativity that supports organisational success.   1. Facilitate workspace flexibility A change in scenery is often a great way to recharge the creative batteries. This might include encouraging your team to move their office setup to a new room that has a great view or colourful paintings, or even a complete shift in location to a relative’s house or outside to a park bench. Whatever the choice, the change will be sure to enhance their creative process.   2. Find your creative hours Depending on their role or personal circumstances, members of your team may find the best time to be creative is first thing in the morning or last thing at night before going to sleep. It is important to adjust work hours accordingly to allow for this time, ensuring that the appropriate resources are available when team members are at their peak creativity (even if it is just a pen and notebook on the bedside locker!).   3. Schedule brainstorming sessions Ideas often develop and build in-depth as you discuss them with people either face-to-face or over a video call. Carve out time in your working week to run your thoughts by team members together in one place – either online or in the office together. Encourage healthy discussion and ask for their input and feedback – they may have a unique viewpoint you have not yet considered.   4. Use your commute time When you and your team commute to and from the office, you will often find yourself thinking through a project or solution to a problem. You might jot notes on your phone about a new idea or send an email to yourself to remind you of an important action or next step. If working from home and stuck in a creativity rut, ask your team to recreate this headspace by using the commute time to think by going for a walk or dedicating an hour of their day to deep thinking and creativity.   5. Take time off If team members have the time to take a day (or more) of annual leave, encourage it! Our best ideas often come to us when we least expect them. Taking some personal time to relax will let the mind freely wander and help the team feel rejuvenated and re-energised when returning to work – hopefully with a few new ideas. Whether you are looking to get into that creative mindset or inspire your team members to think outside the box, keep these tips in mind and implement them in everyone’s working day. Most importantly, lead by example – when you focus on creativity and innovation, the people around you will feel motivated to do the same. Mark Fallon is Director and Co-Founder at Coopman Search and Selection