Gone are the days when the responsibility for keeping your business secure from cyber security threats rested exclusively with your IT team. This burden now also falls to the CFO, says David Steele. Cyber criminals are no longer lone rangers couched behind their laptops in dark rooms. Today, cyber-attacks are designed by highly organised and profitable organisations. Many of these are powerful multi-million euro firms. As a result, your business needs buy-in from every individual in a leadership role to contribute to your cyber security plans, and not just the Chief Financial Officer (CFO) – although this role is integral to excellent cyber security. More than budget approval The CFO is in an essential role when it comes to mitigating the risk your business faces from cyber threats. Managing costs is a requirement for any business. However, penny pinching when it comes to keeping your business cyber secure is the fastest way to make yourself vulnerable to data breaches and system hacks. It is the CFO who will ensure that the investment your business makes in cyber security aligns with your company-wide infrastructure. Rather than being viewed as a cost drain, protecting your business from cyber threats needs to be viewed as an investment. The CFO is the leader in the boardroom who can recognise the devastating effect a cyber-attack would have, both financially and reputationally. However, the CFO plays a bigger role in your firm’s cyber security team than simply approving the budget for new software solutions. CFOs who are aware of the full spectrum of cyber threats are strategic in a few ways. Understanding the cost The technology and human resources required to keep your business safe from cyber threats come with a cost, but the cost of not having them in place is far higher. In 2022, the cost of a data breach for SMEs in Ireland was on, on average, €17,000 – double the cost from 2021 – but rose as high as five million in the most severe cases, according to Hiscox Cyber Readiness Report. The CFO is well placed to understand that the cost of reliable cyber security is lower than the cost to an organisation to fix issues arising from an attack. Long-term stability To win new clients, you need to show your business is diligent and trustworthy, and cyber security plays a massive part in securing an organisation’s reputation. Your existing clients are becoming increasingly savvy about how their data is looked after, and CFOs need to ensure their teams can demonstrate that the organisation’s data protection policies are strong and implemented—or risk losing out to competition. Your cyber security credentials will also reassure your shareholders and vendors. A hit to your organisation’s reputation because of a cyber-attack could mean a hit to its finances. Risk management framework It’s the CFO’s responsibility to allocate finance to areas that are business-critical for your firm. Cyber security protects your company’s assets, and so should be embedded into every element of your organisation. However, the CFO does not need to be a cyber security expert. Instead, it’s time to acknowledge that protecting financial data is essential to the CFO’s role. The CFO’s risk management skills are critical to asking the right questions around where data is stored and who can access it. As a result, there is a lot the CFO can add to cyber security best practice in your organisation. At the end of the day, it is important to remember that the CFO does far more than sign checks when it comes to cyber security. Instead, the role is critical to the strategic protection and sustainability of your organisation. David Steele is Managing Director and Principal Security Consultant SecuriCentrix.

Change can be difficult, especially for experienced professionals and established functions within an organisation. So, how can you persuade the nay-sayers to get on board with digital transformation? Laurent Charpenter explains. The term ‘digital transformation’ has been bandied about so much that it has almost lost its meaning, but the concept is simple. Digital transformation involves the use of technology to automate outdated, often manual, tasks and give corporate stakeholders better access to important data so that they make more informed and effective business decisions. The pandemic forced many organisations to adopt digital transformation by integrating video calls, video conferencing and remote working into their daily business practices. Not every finance professional is sold on operating smarter with technology, even if they really need to, however. Some are happy to stick with tried-and-true practices. So, how do you sell change to people who don’t necessarily want it? First, you need to get to the bottom of this resistance. Reluctance to change Several factors could explain a reluctance to embrace digital transformation. In accounts payable, for example, it is common for organisations to put off digital transformation because of the time needed to implement and train everyone up on the new processes. Some organisations fear the changes needed to automate will be too costly, especially when more ‘pressing’ challenges should take priority. At the same time, others might feel that they have been the industry leader for so long that they don’t see any immediate benefit to changing a process that has been proven to work. Getting buy-in Getting buy-in at all levels in an organisation can help to ensure a smooth digital transformation. The support of those who will use new technologies and processes regularly is crucial in gaining approval from the top decision-makers, because these everyday users are key influencers in the process. If you are introducing a new automating accounts payable system, for example, you will need complete buy-in from the finance team. As a finance team leader or CFO, it’s your job to educate the end-users first by talking through their existing problems, then providing valuable free resources such as white papers and industry reports to start conversations around how new technology can be beneficial. Digital transformation needn’t involve a significant change or the complete overhaul of a process in order to be effective. Organisations resistant to change can start small by targeting a department or function that is struggling, or one with the most potential to deliver a high return on investment. The organisation – and the people who oversee these processes – need time to recognise the benefits of the digitisation of one process or function, before proceeding to a complete digital transformation. By taking small steps, you are more likely to get buy-in as you progress. Making the leap Change can be hard sometimes, especially when making a technological leap. Some organisations will resist more than others. The leaders most likely to succeed are those who believe in the transition, and can educate those above and below them in the organisation about the benefits of digital transformation. Laurent Charpentier is CEO at Yooz.

The sun is out and people are heading off on holiday, leaving some businesses short-staffed at a busy time. So, what can they do? Rachel Gray gives her advice on how to overcome summer staff shortages. As a prime annual leave period, the summer months can be a tricky time for businesses reliant on seasonal business. This can put pressure on small- to medium-sized companies, in particular, as they struggle to balance increased demand with reduced team capacity. The loss of key team members can be detrimental to a business, even for a short time. A study published in the Harvard Business Review found that 78 percent of new business goes to the first responder, and Forbes reported that 96 percent of customers would leave because of poor customer service. Unanswered emails and queries can lead to a loss of potential new business opportunities, resulting in poor customer satisfaction and a damaged reputation. As companies grow and face busy periods, the client experience must not dip below their expectations. However, there are simple and cost-effective ways to maintain productivity and customer satisfaction during these busy holiday periods. Here are some tips to help keep business on track during the summer months. Automate Set an automatic reply to all emails to let clients know that you will get back to them within a specific time frame. This is worth doing even when staff members are not on leave as it maintains important communication with clients. The email can also direct people to your website or social profiles, where they can find the information they need. Plan ahead Be aware of your team's holiday schedule and ensure clients are informed of who their point-of-contact will be during this time. This might sound like obvious advice, but you would be surprised how often it is overlooked by busy managers at times when they are overstretched or understaffed. Hire smart By ‘hire smart,’ we don't mean replace or add to your full-time team. What we mean is that, by outsourcing jobs to fill in the gaps key employees leave during holiday periods, businesses may be able to save costs in the long run. Subbing experienced team members in for those on annual leave will help to maintain a seamless service for clients, making them feel valued. While outsourcing the company's everyday tasks to temporary personnel can cost a little upfront, it could also help to maintain relationships with clients during the leaner summer months. Answer the phone In a survey conducted by PwC, 78 percent of respondents noted their preference to interact with a human when they ring an organisation, especially as technology improves and clients are often forwarded to an answering directory. To ensure all clients' needs are met, consider hiring an answering service to cover the desks while operating with limited team members. Rachael Gray is Founder and CEO of Call Pal.

Ireland’s economy is highly reliant on Foreign Direct Investment from the US. But with labour costs and housing prices on the rise, can we continue to attract US multinationals? Feargal de Freine discusses. The fundamental importance to Ireland’s economy of Foreign Direct Investment (FDI) from US multinationals is difficult to overstate. US companies in Ireland employ 190,000 people directly and a further 152,000 indirectly. These companies — close to 900 in total — spend more than €12 billion on payroll, €8.8 billion on goods and services, and €6.5 billion on capital expenditure each year. They are responsible for an estimated 60 percent of Ireland's corporation tax income. Ireland’s continued appeal to US multinationals will be critically important to our future prosperity. So, how are we faring in these uncertain economic times? Fortunately, according to EY's latest European Attractiveness Survey, Ireland is maintaining its position as one of the most attractive countries in Europe for FDI. Ireland continues to punch well above its weight when it comes to FDI investments. A total of 152 FDI projects were recorded here in 2021, giving Ireland a three percent share of the FDI market among the more than 40 European countries surveyed. This result places Ireland in the top 10 locations in Europe for FDI and in first place when it comes to projects per head of population. The strength of the relationship between Ireland and the US is highlighted in the survey by the fact that American companies accounted for 59 percent of Ireland's FDI projects in 2021. With competition for investment intensifying, the question arises as to whether Ireland may be over-reliant on the US for FDI, however. While we must maintain and strengthen our attractiveness for FDI from all markets, it is crucial that we do not make the mistake of weakening our well-established business relationship with the US in our efforts to attract FDI from other countries. The attraction of Ireland Our survey of Irish decision-makers drilled down into the factors that make Ireland attractive for FDI generally. Unsurprisingly, top of the pile was our tax regime, highly-skilled and educated workforce, quality of life, and business-friendly environment. Thirty-nine percent of our survey respondents said that current and planned tax policies would improve Ireland's attractiveness. Labour costs and the affordability of housing were among the least attractive factors identified, however. No surprise here, but the findings highlight the importance of finding practical solutions to the housing crisis and avoiding a damaging inflationary wage spiral as the Government seeks to combat the rising cost of living in Ireland. Other areas that need to be addressed, according to our survey results, include: government prioritisation of the geographic rebalancing of the economy; increased investment in international connectivity; skills development; lower business taxes and; decarbonising the country's energy system. The high ranking given to international connectivity isn’t perhaps surprising, given that our survey respondents were drawn mainly from the multinational community. Recent events at airports across Europe highlight the fragility of international connectivity, however. As an island nation heavily dependent on inward investment and international trade, Ireland must redouble its efforts to enhance connectivity, particularly with North America. The FDI market is intensely competitive and highly dynamic. American companies do not choose to locate in Ireland for sentimental reasons. They do so because it makes sound financial and business sense. Countries worldwide are constantly seeking to improve their offering to inward investors. Ireland must preserve its existing strengths and build on them if we are to retain our position as one of the most attractive locations in Europe for US FDI. Feargal de Freine is Assurance Partner and Head of FDI at EY.

The war for talent is fierce and recruiters are struggling to get ahead of the Great Resignation, so why not look beyond the active job market to professionals outside the workforce? Niamh O'Brien explains. Faced with the global war for talent and the Great Resignation, employers are grappling with staff shortages and accountancy roles, in particular, are featuring prominently in job ads. So, what can employers do to attract more qualified staff? While we are in a competitive recruitment market, there are still some largely untapped pools of talent that could help to fill the gaps. One potential source is the pool of qualified and experienced accountants who exited the workforce for family commitments, sabbaticals, early retirement, or career breaks. According to the most recent CSO survey, the total rate of participation in the active workforce in Ireland is 65.1 percent. When you drill down into the numbers, you find that male participation is higher at 70.3 percent than for women, at 60.1 percent. This means that there is a significant number of women who are choosing not to work. Some are qualified and experienced yet choose to remain outside the workforce, but why? In some cases, managing family commitments while working full-time can prove to be an insurmountable challenge. With increased flexibility, hybrid work options and a greater focus on facilitating work-life balance, however, the working environment has never been better at facilitating a return-to-work for this group. Benefits of 'returners' For employers, developing a talent attraction strategy that targets ‘returners’ offers numerous potential advantages in addition to a bigger talent pool.   Many returners are women who have taken time out of their career because of family commitments, but now want to re-join the workforce at a mid- or senior management level. These women are often overlooked because of the gap in their CV, despite their experience. Tapping this pool of women returners can help to even out gender pay gap issues within an organisation. Early retirees are also returning to work, so organisations could potentially see better generational, as well as gender, balance. Attracting returners Employers who have emerged from COVID-19 embracing the benefits of flexible working will be in a solid position to lure experienced professionals back into the workforce. BDO has carried out research on the essential elements needed to ensure success for this group of returners. Unsurprisingly, flexibility is their biggest priority, but financial reward and a sense of purpose are also common themes. The research also shows that creating an inclusive and supportive working environment is critical to the success of both attracting and retaining returners. Those that have been out of the workforce for a long period are concerned about the support network they will have when they return. Providing mentoring and coaching programmes for these employees is, therefore, essential during the transition period. Our research also shows that bespoke training for IT and technical skills, as well as guidance with softer skills, such as confidence and self-esteem, are desired by returners. In return for accommodating these supports, employers stand to benefit from access to a valuable, and largely untapped, talent pool. Niamh O'Brien is Talent Management Director at BDO Ireland.

By asking the right questions now, private business leaders can navigate the rocky months ahead while also ensuring long-term success, writes Colm O’Callaghan. COVID-19 has accelerated global disruption on numerous fronts, influencing the key issues and challenges facing private companies. Digitalisation, workforce planning, cybersecurity, environmental, social and governance (ESG), and the intergenerational transfer of wealth — these issues will set the agenda for private business in the medium- to long-term. Recent developments globally have also given rise to immediate challenges, however, and business leaders must respond to these challenges while also thinking ahead to broader strategic plans. There is a lot to juggle. To help you get the right balance between immediate needs and long-term priorities, here are five questions you should ask yourself as you begin to plan ahead: 1. How can you put out fires while maintaining a long-term view? A good way to illustrate this question is to consider the short-term impact of the so-called ‘great resignation’ alongside the long-term issue of right-sizing the workforce. Workforce planning has been a key long-term priority for many business leaders for quite awhile. With the rise of artificial intelligence (AI) and other technologies, they have had to consider whether the size and structure of their workforce is aligned to their long-term business strategy, and plan accordingly. Businesses worldwide now must deal with the short-term impact of ‘the great resignation’ and the resulting need to recruit staff. Instead of responding with a short-term mindset and replacing ‘like with like,’ now is the time to adopt a longer-term approach to workforce planning. Think ahead to the skills you will need in the future and start replacing leavers with new hires who bring new skill-sets to the business. 2. Who in your business will own the big issues? When it comes to big issues, many businesses struggle to identify the natural ‘owner’ internally. Listed companies may have a Chief Sustainability Officer to manage the company’s ESG strategy, or a Chief Technology Officer to oversee technology investment and implementation. Private businesses may not see the need, or have the budget, to make such appointments, however. For some issues, there is a natural home. For others — ESG, for example — it’s not always clear who should take ownership. The upside here is that such issues offer an excellent opportunity for people to take on new leadership responsibilities. 3. Where will you obtain expertise? One of the disadvantages private businesses may face, compared to listed companies, is access to expertise. Take managing the effects of inflation as one example. Listed companies will often employ macroeconomists who have studied inflation and can develop strategies to address it. In contrast, leaders in private business may not have prior experience of inflation and may struggle to respond. This raises the question of where to access the expert insight needed to inform smart decisions quickly. Here is a good opportunity to consider the different ways in which skills can be contracted. One of the advantages private businesses have is that they are often embedded in their local communities. Using this network –  local business associations or academic institutions, for example — they may be able to uncover talent that was previously unavailable. Finally, when considering untapped skills within the organisation, look to ‘next gens’ for their digital expertise. Millennials and Gen Zers are digital natives. They have learned digital skills that are invaluable and may be underutilised. 4. How do you ensure your digital investments are good ones? Blockchain and cryptocurrency have come of age as challenges relating to speed, scalability and energy consumption are addressed. Electric vehicles have gone mainstream as car manufacturers prepare for an electric-only future. Doing business in the cloud has had the dual advantage of enabling a new generation of start-ups (some unicorns) and simplifying back-office processes for well-established businesses. One of the advantages private businesses have when it comes to technology is their licence to operate with a long-term perspective. Unlike listed companies, private businesses are not forced into short-term, sometimes kneejerk, decisions in response to the demands of stakeholders associated with the public markets. The ability of a private business to take a longer-term view can make it easier to invest in technology that supports innovation without having to immediately justify the return. 5. Where and how can you find the diverse leadership to address challenges? When considering the composition of the board or senior leadership team, private business leaders must identify their own strengths and appoint others who can complement them. Find someone who can respect the past while also deciding what needs to be modernised or retired, for example. Source an innovator who recognises that innovation does not always have to mean ‘brand new,’ but should instead be consistent with – and build on – a company’s history and traditions. These complementary strengths and perspectives will help you to protect your business today and plan for tomorrow. Colm O'Callaghan is Tax Partner of Entrepreneurial & Private Business Practice at PwC.

Karen Flannery and Níall Fitzgerald consider the critical points in the revised Chartered Accountants Ireland Code of Ethics, which came into effect on 1 March 2020. The revised Chartered Accountants Ireland Code of Ethics took effect on 1 March 2020. The revised Code was necessary to increase alignment with the International Ethics Standards Board for Accountants (IESBA) Code of Ethics, which underwent a significant restructure in recent years. While there are no changes to the fundamental principles, Chartered Accountants familiar with the previous Code of Ethics (effective September 2016 to 29 February 2020) will find the look and feel of the revised Code significantly different. While additional sections and emphasis were included, others were removed. This results in greater clarity and ease of navigation. Figure 1 provides an overview of the revised Chartered Accountants Ireland Code of Ethics. Added emphasis on fundamental principles The five fundamental principles of the Code of Ethics remain unchanged. These include integrity; objectivity; professional competence and due care; confidentiality, and; professional behaviour. The conceptual framework that describes the approach used to identify, evaluate and address threats to compliance with the fundamental principles also remains the same. However, there is now a heightened emphasis on the fundamental principles and the use of the overarching conceptual framework underlying each section of the Code. Before, much of the narrative was contained in a single section of the Code. Responding to non-compliance with laws and regulations New sections were added concerning non-compliance with laws and regulations (NOCLAR) for professional accountants in practice (Section 360) and professional accountants in business (Section 260). These bring the NOCLAR provisions of the IESBA Code of Ethics into the Institute’s Code. A vital feature of the NOCLAR provisions is the specific in-Code permission to breach the principle of confidentiality in the public interest. This permission has been explicit in the Institute’s Code for several years and so, the NOCLAR provisions can be seen as a change of detail rather than of substance. The new sections outline the required actions when NOCLAR is discovered and provide additional guidance in this area. Key points to note concerning the NOCLAR provisions are: The first response to identified NOCLAR is to raise the matter, and seek to address it, at the appropriate level within the relevant organisation (internally); Where NOCLAR is not dealt with appropriately internally, the professional accountant considers whether to report to an external authority in the public interest. The decision to report externally is (as it always has been) a complex one; and Where a report is made in the public interest and good faith, there is no breach of the confidentiality requirements of the Code of Ethics. However, there may be legal implications for the professional accountant to consider. Revised layout The most obvious change is the revised layout of the Code of Ethics, which now mirrors the structure of the IESBA Code of Ethics with additional material for members of Chartered Accountants Ireland. A new paragraph numbering format was introduced and as a result, sections were restructured (e.g. what was “Part C” (Professional Accountants in Business) is now “Part 2” in the revised Code).The revised layout facilitates more natural referencing and distinguishes between the Code’s requirements (in bold text and denoted by the letter ‘R’) and application material or guidance (indicated by the letter ‘A’). Complexity has been reduced by simplifying sentences and language in parts. Also a new ‘Guide to the Code’, explaining how it works, has been included. Other content changes Table 1 highlights other notable developments in the revised Code of Ethics and suggests where you might focus your attention depending on whether you are a member in practice or business. Retained Institute ‘add-on’ material Where existing Institute ‘add-on’ content created important additional requirements beyond the IESBA Code, these ‘add-on’ requirements are retained in the revised Code of Ethics. Such requirements include: Specific requirements regarding communicating with the predecessor accountant (Section 320); Particular obligations regarding transparency around the basis for fees and dealing with fee disputes (Section 330); and Agencies and referrals (Section 331). No new ‘add-on’ material was created. Additional support for members The Institute’s online Ethics Resource Centre is updated regularly with a range of supports and guidance for members. Additional information included in the old Code of Ethics, but removed in the revised Code and still considered useful, has been reproduced in a series of new Ethics Releases. The Ethics Releases are not a substitute for the requirements of the Code, but they do provide additional support for members in particular scenarios, including: Code of Ethics and changes in professional appointments; Code of Ethics and confidentiality; Code of Ethics and marketing of professional services; and Code of Ethics and corporate finance advice. Future updates The last substantial change to the Institute’s Code of Ethics was in 2016. While the Code does not change regularly, there is a significant body of work happening behind the scenes to ensure it remains appropriate, precise and effective in the context of the issues affecting the accounting profession. Members can, therefore, expect amendments from IESBA in the coming years; for example, considerations addressing the impact of technology-related ethics issues on the accounting profession. For members who are insolvency practitioners, a new Insolvency Code of Ethics is imminent. The current Code of Ethics for Insolvency Practitioners, appended as Part D of the Institute’s old Code of Ethics for members, remains in effect until then.  Actions speak louder than words It was evident from the Ethics Research Report, published by the Institute in January 2019, that members hold their professional and business ethics in high regard. While the Code of Ethics does not change regularly, it is a hallmark that establishes a minimum standard which is signed up to and shared by all members of the profession. It is useful to be familiar with its requirements and to remember that it is individual member actions that express commitment to the Code of Ethics in addition to a member’s personal ethics. The revised Code is available via the Institute’s Ethics Resource Centre.   Níall Fitzgerald FCA is Head of Ethics and Governance at Chartered Accountants Ireland.  Karen Flannery FCA is Head of Professional Standards Projects at Chartered Accountants Ireland.

SMEs hit hard by Brexit, the pandemic and the Ukraine invasion now face a spate of steep interest rates hikes as central banks grapple with rising inflation. Neil Hughes offers his advice on how small businesses can weather the storm. The past two years will be remembered as among the most challenging trading periods in living memory, but the story of the personal challenges ordinary business owners have faced and overcome during this time has yet to be written. And, just as the hardworking SME owner had perhaps hoped they might be out of the woods, interest rates are soaring after fourteen years of record low rates. On the face of it, it might seem counter-intuitive that Central Banks should react to the current commodity and food crisis by hiking interest rates. It’s true that, historically, their default response to high inflation has been to ramp up interest rates to reduce the money circulating in the economy by dampening demand—but the current rise in inflation isn’t down to excess demand. It’s down to the supply issues brought on by the war in Ukraine, and labour shortages prompted by the sudden upswing in post-pandemic business activity. Such external factors will prove stubbornly hard to change through interest rates hikes, and their impact on businesses in the second half of 2022 will be significant and two-fold. Firstly, business costs will rise when many can least afford it, taking more funds out of the working capital that is sorely needed to repay arrears that arose during the pandemic. The second impact may be even more hard-hitting. SMEs across many sectors depend on consumer confidence to reach their monthly revenue targets. When confidence falls in response to external factors, such as rising inflation—and, in particular, mortgage costs—discretionary spending tends to fall and SMEs reliant on consumer spending bear the brunt. So, how can they respond to this new threat? First, the agility and flexibility many business owners developed during the pandemic will continue to be essential in the day-to-day running of their business as costs rise. Shopping around has never been more critical. Second, for business owners that cannot see a way out, there are options. My advice is to look into the Small Company Administration Rescue Process (SCARP). Since its implementation, SCARP has seen schemes with creditors – including Revenue – supporting nominal dividends of around 2.5 percent, with the balance of warehoused arrears being written off in full. This is an unprecedented and very welcome show of support from Revenue towards fundamentally sound, viable businesses – who can continue to sustain employment, thereby saving jobs. After enduring a torrid two years, business owners need all the help they can get. For many, the SCARP process could be the lifeline they need if rising interest rate prove to be the last straw. Neil Hughes is the Managing Partner of Baker Tilly and author of A Practical Guide to Examinership.

Marketing has always been fast-paced, but over the last few years, it has gone into overdrive. Anna Stella outlines seven key marketing trends you should follow to stay ahead of the curve.                   Marketing is in a continual state of progression, escalating rapidly through the post-pandemic era. Thriving in the business landscape of today calls for a new approach and a shift in understanding client needs underpinned by a more accomplished customer experience.  Here are seven marketing trends you need to be aware of to ensure your practice stays ahead of the curve in the fast-paced world of marketing.           1. Digitise your services While e-commerce has been around for decades, it is now becoming more relevant to business services due partly to the pandemic and a shift to virtual and hybrid working models. Accounting practices can and should consider creatively digitising their services, reinventing new online services that can tap into unchartered geographies and sectors of their market. 2. Outsource your marketing Recent years have seen unmistakable demand for multi-channel activities and tailor-made service marketing growing in complexity. As a result, marketing strategies and activities have become more diverse as part of the complicated process of winning new clients.  Small accounting firms lacking in-house expertise and resources are increasingly outsourcing their marketing to boost efficiently and productivity.  3. Automate your marketing Automation does not require an advocate – it makes its own case – yet small firms can sometimes fall behind here. Automated technologies streamline marketing efforts by using a single platform for multiple channels— e.g. social media marketing, managing adverts, and reducing time spent on repetitive tasks. According to Nucleus Research, a Boston-based research institute, marketing automation can deliver a 14.5 percent increase in sales productivity and a 12.2 percent reduction in marketing overhead overall. 4. Customer-driven engagement While winning new clients is essential, most businesses make the majority of their revenue from existing clients and recurring contracts. Customer engagement is all about building a solid relationship with your customers, fostering loyalty and winning referrals. Strategies for busy practices include building and sharing your brand voice, using relationship marketing, personalising your customer experience, and creating content based on your customer history.  5. Content marketing Content is not just words strung along in a row – there must be a purpose. Your content must represent your firm's values of credibility, knowledge, trust, and integrity, encouraging confidence in your abilities.  Successful content requires the 'right stuff' – writing according to the client's needs and within the right time frame. It must be fresh, relevant, appropriate, and brief. Trending content marketing formats for accounting firms include industry and tax updates, thought leadership, and case studies. 6. Digital communication Another area impacted by the global pandemic has been the way we socialise and communicate. With in-person gatherings and meetings severely limited under social distancing measures, we went from face-to-face interactions to digital communication.  This opened up a myriad of opportunities in digital communication for accounting firms. To really reap the benefits here, you must think strategically. Marketing must focus on the strengths of digitalisation to better reach new clients and potentially upsell to existing ones. In a recent study by McKinsey, business-to-business clients were shown to have a minimum of six interactions across various marketing channels before committing to a purchase. Before a client gives you a call, they might Google your business, read through your social accounts or visit your website. Your digital footprint must be pristine, therefore, and your marketing targeted appropriately.           7. Social responsibility – a paramount priority Sustainability is one way an accounting firm can be recognised as a different kind of organisation. If you demonstrate fervent and genuine public support of sustainable practices in business, clients can be influenced to discover their own green footprint. Aiding in the race to meet climate goals, your firm's sustainability legacy will stand alongside eco-influencers and content creators in raising awareness of the need for change for the next generation. Anna Stella is CEO of BBSA, a marketing outsourcing agency.

2022 is the year of the long-awaited overseas holiday for many. But how do you switch off before you go, and how do you switch on once you’re back? Moira Dunne has the answers. For the first time in two years, many of us are finally able to take that much longed-for holiday overseas. We will soak up the sun or visit a city we haven’t seen in a while, and it will be a tremendous relief after two years of caution. The days leading up to holiday are often the busiest of the year, however. We become super-productive as we crack through our to-do list in an attempt to clear everything before we leave. We want to ensure that we have communicated with everyone, turned on the out-of-office message and tied up any loose ends. We become super-focused, less likely to get distracted and intent on making the most of our time. In contrast, our focus is usually low during the first few days back at work. After switching off during our break, it can be hard to get back into it. My advice for getting around this is to capitalise on the high-focus period before your break to plan ahead and make your return to work a little easier. Here are some more tips to help you be productive before and after a holiday. Capture everything before you go Before you finish up for your holiday, take note of what needs to be completed. This is a great time to make your ultimate to-do list – a central place for all those tasks, ideas and plans. A good to-do list will allow you to switch off quickly once you finish work and not worry about your tasks while you’re away. When you return to work refreshed, this list will also help you get back up to speed more quickly. Plan for the first week back Think ahead to how your first couple of days back at work are likely to pan out before you finish up. Some people like to ease into it with a low-key schedule, while others prefer the opposite approach. I recommend arranging a couple of key meetings to kick-start you into productivity mode more quickly. The first morning back at work can be especially challenging, but by the end of the day, you can be proud of your productivity and feel confident that you’re back into the swing of things. Resume your routine It can take some time to get back into productive habits when you return to work. The most important thing you can do is try to resume your daily routine on the first day back. Set your alarm for your normal wake-up time, follow your typical morning get-ready schedule, and catch your regular train or bus to the office. Help yourself return to healthy eating habits with a visit to the supermarket to stock up on lunches and snacks for the work week. And why not motivate yourself to return to good routines by arranging a treat at the end of the week? This will give you something to look forward to as the post-holiday blues take hold. So, have a great holiday and enjoy it, safe in the knowledge that you’ll be on top of everything once you’re back. Moira Dunne is Founder of beproductive.ie. Productivity and personal effectiveness have never been more important as people try to manage their workload between work and home. Moira provides one-to-one coaching programmes and now has a self-paced productivity masterclass.

The EU’s IORP II Directive is drastically changing the landscape of pension plan management and trustees. But what are the changes, and what are the impacts of these regulations? Munro O’Dwyer dives in. The IORP II Directive (IORP II) is reshaping the management of pension plans and represents a perfect opportunity for employers to challenge the status quo. Employers are rethinking how they can deliver a quality pension plan that makes a real impact for employees with a focus on design, performance and support. The status quo The management of pension plans involves time, resources and money. The ultimate responsibility lies with the trustees, whose fiduciary duty is to act in the interests of the pension scheme members. Employers, as sponsors, will nevertheless have a vested interest in the overall management of the plan and the appointed service providers. In an IORP II world, we will see the need for more trustee and subcommittee meetings, newly established risk and internal audit functions, own risk assessments, assessments of fitness and probity, and a comprehensive suite of policies and procedures that must be maintained. Employers must also factor in the additional time needed to prepare for supervision and/or intervention by the Pensions Authority as it rolls out its inspections. The additional level of work—and possibly cost—required to coordinate these services should not be underestimated. This cost will be borne on top of the usual annual compliance costs that come with benefit statements, the trustees' annual report and accounts, audit and European Central Bank (ECB) reporting, for example. This begs the question: could an alternative approach to managing pension plans be at least as, if not more, effective? Employers deciding to transition to a master trust see the change as a means to revisit their pension governance model. A new (and improved?) governance model So, what would pension plan management look like in a model where all the regulatory burden is dealt with by a master trust? In brief, very different. Let's consider some of the key differences: 1. Outsourced regulatory compliance This is fully outsourced to the master trust trustee board, which is supported by advisors from the master trust founder. The trustees will oversee compliance, and the Pensions Authority will look to regulate master trusts closely as they continue to scale. 2. Reduced regulatory workload There would be an immediately reduced workload as services are bundled through the master trust. For example, there would no longer be a requirement to produce an audited trustee annual report and accounts. Nor would there be ECB reporting requirements or a need to appoint key function holders – all of which would be addressed by the master trust. 3. Monitoring and oversight This takes on a new light as a newly established pension committee can focus on the performance of the pension arrangement and the benefit it is delivering for employees and pension scheme members. Employers can spend time creating a pension proposition for staff and ensuring that the master trust remains market-competitive. 4. Clear separation In a master trust framework, there can be a greater division between those providing the advice and those providing the solution. This avoids potential conflicts of interest and allows for a more independent monitoring framework, which can be created through an employer-established, non-statutory pension committee. The reduced regulatory workload allows for the time invested in supporting pension provision to be focused on the employee experience – ensuring that communication programmes are tailored, that engagement levels are high and that the pension arrangements are delivering the outcomes expected. There is now an opportunity for employers to challenge the status quo and rethink how their pension plans will be managed. In doing so, it could bring about positive change for all stakeholders. Munro O'Dwyer is Pensions Partner at PwC.

Despite the recent doom and gloom around a looming recession, it may not be as bad as we think. Mark Nash explains why. "The report of my death was an exaggeration," Mark Twain quipped after newspapers mistakenly published his obituary. We can probably say the same about the prognosis of recession swirling in the financial markets now. There is no doubt the backdrop for growth is challenging. China's stringent zero-COVID policy continues to disrupt supply chains, and the Russia–Ukraine war has pushed up commodity and food prices. However, recent indicators from the world's two largest economies have not been encouraging. The US economy unexpectedly contracted in the first quarter, while a survey of purchasing managers signalled a deceleration in business activity. Meanwhile, China's growth engines are stuttering, with industrial production and retail sales declining in April, reflecting the COVID-19 lockdowns. Consumer behaviour A full-blown recession is unlikely as the labour market is still very tight, and the reopening of the world will also spur demand. Consumers have amassed a war chest of savings during the pandemic, and governments have not stopped spending as they seek to address the cost-of-living crisis stemming from high food and energy prices. Even the travails of some retailers could be due to overly optimistic demand projections rather than a lack of purchasing power. Another factor we need to account for is a switch in consumer behaviour as the world emerged from lockdowns. At the height of the pandemic, many developed countries saw increased consumer durables spending, straining supply chains and boosting inflation. Now, we are seeing an increase in spending on services, which may rise further in the summer months as travel and tourism pick up, resulting in spending on airlines, hotels, and restaurants. This shift in consumer behaviour from goods to services can mask demand and confuse policymakers. The strength of commodity and energy prices that we see now could reflect underlying demand and scarcity. Energy prices could rise further if China stops enforcing its strict COVID-19 policy, releasing an extra uplift to the global economy. Inflation conundrum  China’s slowdown will be due, primarily, to its COVID-19 policy. Therefore, there is some chance that it will end up looking slightly better than current expectations. Global growth would get a considerable boost if China reduced restrictions, eased financial conditions, and opened its economy. I expect inflation to ease in the year's second half as central banks focus more on lifting real rates than growth. The statistical base effect and weaker growth in China and Europe may help subdue headline numbers in the coming months, which could trigger a risk rally. However, inflation could be stickier than the market generally expects and may remain above target as we head into 2023. Financial conditions in the US have tightened as inflation concerns pushed yields up and most of the world reeled under weaker growth, strengthening the dollar. But the strength of the world's main reserve currency may begin to fade if growth also picks up elsewhere, prompting the Fed to increase rates. Yield curve  Many investors point toward the flat/inverse nominal bond yield curve as a predictor of recession. But the real yield curve, which is still upward sloping, suggests the central banks need to tighten more. Considering heightened geopolitical tensions and the threat of higher energy prices, the next few months will be crucial. Mark Nash is Head of Fixed Income Alternatives at Jupiter Asset Management. The article are the sole views of the author. This article was originally published in FM Report.

The gender pay gap has always been on the agenda, but now that Government are introducing legislation around reporting and regulations, it’s a necessity rather than a luxury. The topic of the gender pay gap isn't anything new, but what is new is the Government's introduction of the legislative basis for gender pay gap reporting and regulations. On International Women's Day 2022, Minister for Children, Equality, Disability, Integration and Youth, Roderic O'Gorman, announced the introduction of gender pay gap reporting in the Republic of Ireland. Employers will choose a 'snapshot' date of their employees in June 2022 and must report on the hourly gender pay gap for those employees on the same date in December 2022. This will need to include the mean and median hourly wage gap, data on bonus pay, the mean and median pay gaps for part-time employees and employees on temporary contracts, and the proportions of male and female employees in the lower, lower-middle, upper-middle and upper quartile pay bands. This reporting requirement will help ensure pay transparency exists in organisations and will play an essential role in achieving gender equality in the workplace. The reporting is a landmark victory for the fair pay campaign, but it will not be without its challenges for employers. Gender pay gap reporting in Northern Ireland The UK's law concerning gender pay gap reporting was set out in 2016. However, due to the collapse of the Northern Ireland Assembly in 2017, the subsequent publication of the regulations did not happen. There was hope that there may have been some movement on this critical issue after the recent assembly elections, but as it stands today, it looks like we will still be waiting.  It is now regarded as good practice, with or without the legislation, to publish gender pay gap information, and many organisations in Northern Ireland have already been doing this. However, to get the complete picture and to be able to have the data required to ensure fairness and equality throughout the workforce, we do need to see some legislation enacted.  Challenges facing organisations There are a few challenges facing organisations reporting on their gender pay gap in the north and south of Ireland. Reporting results will either have a negative or positive impact on your organisation, especially regarding staff retention and hiring. Gender pay gaps will likely influence a candidate's assessment of your commitment to diversity and inclusion. Resourcing this reporting requirement will need to be considered – which department is going to handle this? Most will land on HR or payroll, but will they be able to cope with this added workload? Imperfect reporting will also be a challenge. The Chartered Institute of Personnel and Development (CIPD) has compiled research into this area with UK organisations and suggests that inexperience and insufficient technology can mean the output quality is not great. Finally, internal structures, such as flexible working arrangements and child care, etc., are factors that will need to be addressed. The benefits of reporting Even though gender pay gap reporting will challenge organisations, benefits come from this hard work. For one, there can be a cultural transformation through communication, transparency and a policy of fairness and equality that transcends not just pay but every aspect of the organisation. On top of that, by collating and analysing the data gathered for reporting, an equal workforce with equal opportunities, new and improved hiring and promotion methods could be gained to ensure a fair approach. Patrick Gallen is Partner of People and Change Consulting at Grant Thornton.

What can a manager do when they discover that remote working is having a negative impact on one or more of their team members? Rachel Davis outlines five steps they can take to bring about positive change. Remote working has been a boon for some but, for others, working apart from colleagues has led to longer hours, greater stress and mounting burnout. So, what should a manager do when faced with this challenge? Put simply, integrating practical solutions that promote wellbeing within remote team culture is really the only way to bring about sustainable positive change. Since the idea of wellbeing can seem abstract to some, however, there tends to be a lot of corporate jargon surrounding the topic. On top of this, each individual may define wellbeing differently, so cookie-cutter solutions are unlikely to work in any scenario. It is also crucial to note that, where stress and burnout have had serious repercussions on an individual’s mental health, there is no substitute for professional medical help. Ideally, organisations should explore and provide a range of initiatives to meet the wellbeing needs of a diverse team, taking into consideration which combination of the following actions might best suit the their own team.  Let's talk in more practical terms, though. Here are five actions leaders can implement today to help bring about positive change. 1. Communication Start simple and promote open communication within the team at all levels. Start with weekly leadership-endorsed team meetings. These provide structure for a team and help showcase leadership commitment to ongoing wellbeing conversations. Layered on top of these formal meetings, more casual placeholders, such as bi-weekly cyber coffee catch-ups, can provide a safe space for open conversations without the pressure of an agenda. 2. Sports and social Encourage clubs and groups which are not necessarily related to work. Team members can create long-lasting connections and improve their physical and mental wellbeing by coming together to support their common interests. For example, the KPMG Cyber Running Club popped up quickly once the lockdown set in. As team members used their lunch hour to post about their daily run, conversation flowed more easily in team catch-ups as there was already an established connection. 3. Mental health toolkit As mentioned, wellbeing is a very individualistic notion, and some people prefer an approach that isn't focused on socialising. Apps provided by corporations to their employees and families can be a great tool to help improve mental health and wellbeing. Key features to look for include: self-guided programmes and bite-sized interactive courses to help improve sleep and relationships, reduce stress or manage anxiety; in-the-moment exercises, including mindfulness meditations, sleep melodies, healthy recipes and more, which help boost your day-to-day wellbeing and health; and insights to assess how well you're doing, such as questionnaires and mood diaries. 4. Team challenges Endorsing team challenges such as step-a-thons, 30 days of meditation or yoga, and bake-offs can spark friendly competition and encourage communication. It also can break down the barriers of team hierarchy and inspire all levels to learn from each other. These challenges can bring a sense of community, motivating teams to monitor and support each other's wellbeing.  5. Surveys and feedback Visibly responding to, and following up on, feedback from monthly workplace satisfaction to wellbeing surveys could show team members that leadership values and trusts their opinions. To help achieve a cultural change, team members may need to feel empowered and supported by leadership to take responsibility for their wellbeing. The positive feedback loop should not be underestimated and can support long-lasting positive change within a team.   When it comes to the package of wellbeing initiatives, the most important thing to recognise is that these are long-term efforts. Give them time to materialise. Often, you won't realise you have a strong wellbeing culture until you're already deep into it.  Rachel Davis is Senior Consultant in Cyber Security at KPMG.

With the rise of cryptocurrency, crypto-assets, and NFTs, the tax treatment of these transactions is coming under increasing scrutiny from both Revenue and asset holders. Cormac Kelleher explains. Ever since Bitcoin launched in 2008, the concept of a decentralised currency has continued to gather pace among certain segments of the online and trading community. This, along with the advent of newer crypto-assets, such as NFTs, has brought gains and losses incurred in the crypto sphere to the attention of Revenue. Right now, over 7,500 cryptocurrencies and thousands of NFTs are available to buy or invest in. While the market for crypto-assets is growing, however, asset values are highly volatile, and profits and losses can be substantial.     Income vs corporation tax The oft-asked question about transactions involving crypto-assets is whether the transaction should be subject to income/corporation tax or capital gains tax (CGT). CGT should apply to transactions involving crypto-assets where the asset has been held for investment purposes. The “Badges of Trade”, the well-established set of guidelines laid down by the courts in various cases decided over the years, should be consulted when determining if the income should be treated as a trading transaction.  Case law on the sale of traditional shares provides that, even if shares are traded regularly and in an organised fashion, the transaction may still be considered an “investment” instead of a “trade.” The position will depend on the exact fact pattern of the disponer.  Where a company is deemed to be a trading entity and carrying on a trade of investing in crypto-assets, the profits from the sale should be subject to corporation tax at the standard rate of 12.5 percent. If the trade is carried on in a personal capacity, the individual may be taxable at their marginal rate of up to 55 percent. Capital taxes Should a transaction be subject to capital gains tax, the chargeable gain should be taxable at the standard rate of 33 percent. The gain may be mitigated by any other capital losses the disponer may have carried forward or realised in the tax period. A return should be filed with Revenue noting the value of all crypto-assets on acquisition and disposal. As these assets may be viewed as investments, the inheritance or gift of crypto-assets should be subject to capital acquisition tax (CAT), which is charged at the rate of 33 percent. The reliefs that apply to acquiring any inheritance or gift should also apply in this instance. Importantly, individuals must remember to include crypto-assets as part of their estate and not merely consider “traditional” assets.    Stamp duty  As the currency exchanges most used are not based in Ireland, such transactions should be outside the scope of Irish Stamp Duty. It is recommended that this be reviewed on a case-by-case basis, however.  Cormac Kelleher is an International Tax Partner at Mazars.

With climate action leading the policy agenda in both Ireland and the EU, all businesses must start to think carefully about how they can cut their own carbon consumption, writes David Cashman. Decarbonisation of all areas of Irish society is at the forefront of public discussion as the economy recovers from the pandemic and energy costs rise. The Government has laid out ambitious climate action objectives aligned with the EU’s transformative vision in the European Green Deal. The Climate Action Plan 2021 translated carbon budgets and climate objectives into actions, incentives, and multi-annual carbon budgets kickstarting the roadmap to the 2030 ambition. The plan puts five-year carbon budgets at the core of the transition to net zero carbon emissions by 2050, and further demonstrates the decarbonisation trajectory businesses can pursue in support of this transition. Carbon reduction in business Making your business more green can have benefits beyond the net zero mission. It can also increase resilience and help to reduce costs. To get the most out of the transition here are five key areas to bear in mind: New ways of working and transport: Investing early in electric and low-carbon fleets will lead to more sustainable operations. It will also help you to avoid future carbon-related taxation for petrol and diesel vehicles. Hybrid working arrangements can furthermore help businesses to reduce their travel carbon footprint. More efficient operations: Understanding your energy consumption and gaining insights into your energy profile can help to support more targeted early investment in energy efficiency. EU and Government support for energy efficiency and retrofit programmes will allow organisations to make worthwhile investments. Empowering customers: We can expect customers to become much more active participants in the transition to a greener future. Businesses need to prepare for more sustainability-conscious customers and the need to support a just transition in communities. Embedding digital at the core: Harnessing digital technologies can enhance business resilience to possible disruptions in the future. By accelerating digital adoption, businesses can have the opportunity to deliver innovation in core operations. Holistic sustainability strategy: Considering all elements of the sustainability strategy holistically will ensure that businesses realise the most significant benefit from their investments. Just targeting compliance will lead to incremental improvement, but proactive companies will achieve greater returns over the longer term. As businesses adapt to a world that is transitioning to a decarbonised future, there are opportunities to transform operations centred on sustainability. Ultimately, those businesses that adopt a coherent strategy in responding to the challenges of climate action will be positioned to benefit the most. David Cashman is Business Consulting Director at EY.

The financial year-end can be an overwhelming and stressful time for the audit function. Amy Cradock sets out some steps you can take to help lessen the load and ensure an efficient financial year-end. A well-prepared audit can help to minimise the risk of missed reporting deadlines, added costs and the demands on management. Here are some steps you can advise clients to take when preparing for an audit. Set out a clear project plan In advance of the financial year-end, meet with your auditors or clients, and work out a clear project plan for timelines and deliverables. This can act as a tracker throughout the audit process. Allocating responsibilities A critical part of audit readiness is allocating responsibilities internally. This includes scoping the level of resources and expertise necessary and setting a timeline for project management. Documentation and filing Advise clients to keep all documentation in a secure, easy-to-access location to avoid a scramble when the auditors arrive. They should keep track of debt agreements, leasing arrangements, lawsuits, complex transactions, technology modifications, and contracts with major customers and vendors. Don't leave everything until year-end The financial year-end can often be hectic when trying to complete  month-end and year-end reconciliations. Avoid leaving everything until this very busy time to prepare for your audit. Complete reconciliations and prepare any required information for the audit in the lead up to the year-end. Once you do reach year-end, you will only need to complete reconciliations from that month and any additional required accruals. By doing the work in the lead-up to year-end, you will be able to conduct the audit efficiently and with the proper resources. Identify significant changes Organisations preparing for an audit should consider how their financial situation has changed in the past year. For example: Are there new projects or agreements? Is there more revenue coming in? Have you accesses grants or government supports over the past 12 months? It is also important to note any non-financial changes in the company. Have internal control systems been altered, or have new processes been introduced? Organisations should note these changes as they could indirectly impact the fiscal findings for the financial year. Incorporate lessons from the previous year's audit Most year-end audits will have adjustments made and management letter points. These can be a great starting point to help  draw more accurate conclusions for the current year's audit. Schedule a planning meeting with those performing the audit and other decision-makers to see how you can navigate the previous year-end recommendations and improve the accuracy of this year's audit. Communication The auditor and the client should be in constant communication. Frequent communication is key to ensuring queries, questions and requests are addressed promptly to prevent delays while minimising the pressure on everyone. I recommend weekly calls throughout the audit process, with an audit project plan and the use of a tracker to help oversee progress. Inventory For companies performing a year-end physical inventory count, my advice is to plan carefully and educate your teams. Consider counting before year-end and doing a roll forward, with approval from the auditor. Like your year-end sales cut-off, you should also have a solid process in place to ensure proper shipping and receiving cut-off. Amy Cradock is Director of Financial Accounting & Advisory Services at Grant Thornton Ireland.

New laws set to come into place in Ireland will bring significant change for both employees and employers. Moira Grassick looks at pending legislation and what employers can do to start preparing. Employment law is constantly changing, so employers must keep track of what is on the horizon. Current changes to employment laws are a top priority for both Government and the Oireachtas, with a raft of new laws being proposed to deal with everything from domestic violence to probation periods.  Although many of these laws are in their early stages, they are expected to pass, meaning employers must prepare for the changes they will bring about. There is a clear indication that cross-party support on several Bills will have a direct impact on the employment relationship by as early as July and August of this year. Paid leave bills underway The Government recently approved a publication of the draft Sick Leave Bill 2022 providing for up to three paid sick days per year. This is planned to increase to five days in 2024, seven days in 2025 and 10 days in 2026. Under the new rules, employers will need to pay 70 percent of normal wages up to a maximum of €110 per day. This isn't the only new type of paid leave that has been proposed, however. The equality committee is set to discuss a bill to introduce paid leave for survivors of domestic violence. This would allow time off for medical visits, criminal and civil legal proceedings, counselling sessions, or for victims to look for a new home. Tips and gratuities Amendments to the National Minimum Wage bill may soon mean that employees in the service sector will be entitled to all tips and gratuities paid by customers. Up until now, it has been up to an employer to pay customer tips to employees. Service charges could be used to subsidise employee pay, so employers may need to make changes to their payroll system in anticipation. Retirement Older workers in Ireland will also be receiving better government support. Although there is no mandatory retirement age in Ireland, an exception allows employers to introduce it if the reason for doing so can be objectively and reasonably justified. The new Employment Equality (Abolition of Mandatory Retirement Age) Bill 2022 would abolish this loophole, meaning that it would be less likely that older workers would be forced out of work before they chose to leave. Redundancy Lengthy legal battles have led to proposed changes in the rules surrounding redundancy. An amendment to the Companies Bill (2021) and the Protection of Employment Bill (2017) aims to provide preferential creditor status to employees in collective redundancies. It follows the campaign by Debenhams employees to receive their full redundancy pay after the company went into liquidation. Right to disconnect With so many people still working from home, many employees will be happy to hear about the Right to Disconnect Bill. Thirty percent of home workers in Ireland have stated that they regularly work past their contracted hours. This bill would allow all home- and office-based employees to have the right not to work routinely outside normal hours. Stay aware Changes to company climate policies, potential changes to pay rates in specific sectors and a drive to ensure clarity around working conditions will all soon be discussed in the Dáil. Every employer must be aware of these potential changes to comply fully with all legislation. Moira Grassick is COO at Peninsula Ireland. 

To be truly successful in the fast-changing world of work, employers must start to think more strategically about the skills they need now as well as the skills they will need in the future, writes Niamh O’Brien. We are hearing a lot these days about emerging workplace trends and disruptors, such as Artificial Intelligence, smart working, and the gig economy. While it’s clear that all are having a marked impact on how we work and experience the workplace, what is less clear for many employers is how best to factor these far-reaching changes into their ongoing approach to people management. Evolution of technology, processes and skills Technology not only influences the work employees do but can also change the entire working environment—by facilitating remote working and providing access to a broader talent pool, for example, or transforming everyday processes and procedures. As a result, employers must start to think differently about their people, the skills they need right now, and the skills they are likely to need tomorrow. For many, this will require a more strategic, agile, and future-focused approach to managing their talent pool—not just for ‘right now’, but also for the future. Adding to this challenge are the evolving needs and demands of today’s workforce. More people are looking for greater opportunities to experience meaningful work, greater flexibility in their working lives, and more opportunities for personal development, training and upskilling. Employer value proposition To be truly successful, your people strategy must therefore encompass and build on all of these elements, but—no matter how complex or demanding the process of putting it together may be—your future-focused people strategy won’t, in itself, be enough.   As with any strategy, the real challenge often lies in bringing it to life, and it’s impossible to talk about people strategy without touching on Employer Value Proposition (EVP). Your EVP – that is, your employee branding and the way your organisation markets itself to attract talent – is integral to your people strategy. Without robust employee branding, you will lose people to your competition. The only way to gauge an active and engaged EVP is through measurement and KPIs. Keep on top of this and you are far more likely to achieve the desired results. This is because a measurable strategy, with clearly defined KPIs and a cyclical model of assessment and realignment, is far more likely to deliver results. Future-proofing your people strategy Your strategy should also span your entire talent ecosystem, including permanent employees, temporary or contingent staff, contractors, consultants, and gig workers. Only by mapping flexible solutions, which allow you to fill skills gaps in your organisation today and plan for the future, will you be able to implement a truly effective people strategy that can support long-term growth. Niamh O’Brien is Director of Talent Management at BDO.

Over the course of a successful 30-year career in international business, Shane Fitzsimons has refined a tried-and-tested approach to hitting the ground running in any new role. Now CFO and Executive Vice President at AIG Inc in the US, he talks us through the most important professional lessons he has learned over the years. “Keep your ears open, talk to people, pay attention to how things are done around you and adapt.”  For Shane Fitzsimons, the recently appointed Chief Financial Officer and Executive Vice President at American International Group (AIG) Inc, showing curiosity, trustworthiness and commitment to the business’ success really matters in any new role.  Over the course of a highly successful 30-year career in global business, Fitzsimons has refined a ‘go-to’ approach to hitting the ground running in a new position—no matter the business, industry or location. “In a lot of ways, you could say that getting off to the right start comes down to being a good listener. It’s important to go into any new situation with an open mind and be willing to learn about what’s around you,” he says. “Preconceptions will only ever get in the way and, when it boils down to it, people the world over generally share the same motivations. They want to know that they can trust you, that you can get things done, and that the success of the business is your number one priority.” Born in Belfast and raised in Cork, Fitzsimons has risen through the ranks at global companies like General Electric, Tata Group and now AIG over the course of a career that has taken him from Ireland to Europe, and on to the US, and Asia. Profound advice Every step of the way, he has continued to heed the “profound” advice he received at a pivotal point in his early years at General Electric while he was an analyst at the company’s headquarters in Connecticut. “I was about four months into this one-year assignment in Financial Planning and Analysis and I was gung-ho about the role, working 14- to 16-hour days, because here I was at the company’s corporate headquarters with the opportunity to be noticed by Jack Welch (then Chair and CEO of General Electric) and other senior people,” he says. “I wanted to demonstrate my commitment and my work ethic. Then, one day, the head of FP&A called me into his office. He’d noticed the long hours I’d been working. I was expecting praise.  “Instead, he sat me down and said: ‘I see you’re working these long hours and I’ve got to tell you: if you can’t manage the job I’ve given you in less than the working day, I can’t give you anything bigger to do.’” This advice has since become Fitzsimons’ guiding philosophy, he explains: “If you can’t take a job – even the most difficult job – boil it down, simplify it, and improve how it’s done, you’re not ready to move to a more senior role because you haven’t demonstrated a capacity to grow.” Productivity & performance That conversation prompted Fitzsimons to re-think his approach to productivity and performance.  “I had to reflect on how I could use my working time more effectively to do the job at hand while also getting to know other parts of the business. From that point onwards, I started to look at everything from the point-of-view of efficiency,” he says. “It was really quite profound. Even now with my team here at AIG, we have a major focus on supporting efficiency in the wider business.  “We obviously focus on the numbers—on traditional activities like accounting, treasury and tax—but we also see ourselves as an operational partner to the wider business with an important role to play in driving efficiency and supporting strategy and process improvement.” In this respect, Fitzsimons sees finance as an operational ‘enabler’ in business. “We play a very important role in control and governance, obviously, but we don’t see ourselves as the ‘checkers’,” he says.  “That’s why words like ‘expediting’ are so important to me – because finance is an enabler. Our role is really to help the wider business to be successful in the markets in which we operate.” Even at the earliest point in his career, Fitzsimons was already aware of the need to gain hands-on experience in the cut and thrust of the commercial world.  While completing his training with Chartered Accountants Ireland, he worked with Fitzsimons Flynn & Co., the practice run by his late father Garry, also a Chartered Accountant, from three locations in Cork city, Kinsale and Bandon. “I left Ireland pretty quickly. At the time, there weren’t many options to progress your career unless you were willing to travel and accountancy seemed like a very good career to take on the road with you.” From practice to industry Fitzsimons first moved to the Netherlands in 1990 for a six-month assignment with Coopers & Lybrand (now PwC) and would go on to spend a decade in the country, moving out of audit practice in 1994 to join GE Plastics in Bergen op Zoom.  “My father had always said that, to be a really good accountant, I would need experience in industry. He encouraged me to make the move early in my career, so, when I came across a finance role with GE, I decided to take it,” he said. Then a $5 billion subsidiary of General Electric, the US-headquartered multinational, GE Plastics had opened a manufacturing plant in Bergen op Zoom in 1971. By 1994, the site had become a key part of GE’s global operations, serving customers internationally. “I started in general accounting, consolidation, things like that, and quickly realised that, to progress my career, I would need to relocate to GE headquarters in the US and gain experience in areas like FP&A and commercial finance,” Fitzsimons says. He made the move in 2000, spending a year at GE’s Fairfield headquarters in Connecticut before heading southwest to Ohio to take up the role of Group FP&A Leader for Aviation. “That was a huge step up for me in terms of role and responsibility. It was a very formative period in aviation. The industry was heavily impacted by 9/11 and I learned a lot working with leaders like Dave Calhoun (now CEO and President of Boeing),” says Fitzsimons. “I worked very closely with Dave and other great leaders for four years, learning from them, and I was then asked to return to GE’s Connecticut headquarters as FP&A leader for the company. I stayed there for seven years.” Having weathered the worst of the financial crisis helming GE’s FP&A function, Fitzsimons was ready for “something new.” Now aged 44, he had already forged a successful career spanning industry and practice in Europe and the US.  So, what next? “Asia,” says Fitzsimons. “It was missing on my resume.”  When an opportunity came up with GE in Hong Kong, he decided to take it and, in all, spent six years in Hong Kong, initially as GE’s Chief Financial Officer for Global Growth and Operations, followed by Senior Vice-President of Global Operations.  “Then I turned 50 and decided to do what I’d always advised people never to do. I took time off. I’d been working since I was 18. I kind of needed a break. It was the right choice for me,” he says. After his sabbatical, Fitzsimons was on the move again—this time to Mumbai on India’s west coast.  There, he took up the position of Chief Synergy Officer at Tata Sons, the private principal investment holding company for Tata Group, India’s diversified “coffee-to-cars” conglomerate with operations in more than 100 countries. “I’ve moved around a lot over the years and what I’ve found is that there are more similarities between businesses and people around the world than you might expect,” Fitzsimons says.  “Often, you’ll find that the overriding priority for most people is to create a better future for their kids. That’s a very unifying motivation. “Another unifier is that you will always find people in a new company or situation who are willing to help you. Sometimes these folks will be buried in the organisation. They are the people who really want to help the company succeed. They’re willing to accept you early on and help you find your way.” This experience has taught Fitzsimons the importance of getting to know people in any new organisation he joins “at all levels.” “I don’t just want to get to know my direct reports, I want to get to know the people who work for them. I want to get to know people working in other parts of the business. Demonstrating your interest, your curiosity, is really important – and really valuable. People notice it.” An early win An early win can also help to create the right impression in a new role. “It’s important to be able to make a visible difference at the outset,” Fitzsimons says.  “It doesn’t have to be a big win, but it matters that people see it. It lets them know that you have the right intentions; that you’re here to execute and make the company better.” Fitzsimons spent 18 months with Tata Group, leading efforts to create synergies across the group’s diverse set of businesses. “At that stage, it was time to go back to the States. My family wanted to be in the US. The opportunity to join AIG came up in July 2019 and I jumped at it,” he says. Fitzsimons’ first role with AIG was as Global Head of Shared Services, based in New York. At the time, AIG’s Global Chief Operating Officer and Chief Executive Officer of General Insurance was Peter Zaffino, who is now the company’s Chair and CEO. “The shared services role attracted me, but, more than that, I really wanted to work with Peter,” Fitzsimons says.  Global Head of Shared Services was a newly created role at AIG, established to act as a single point of accountability for all key operational and financial capabilities across the organisation. “My biggest motivator right the way through my career has been the opportunity to just dig in and solve complex operational problems as part of a team, and I knew this role would be very operational, which would allow me to get involved in a lot of different aspects of the business,” says Fitzsimons.  “I enjoy breaking problems down into little pieces, finding the right operating cadences and rhythms, and the pure satisfaction you get when you find a solution—especially when you’re working at a pace that’s not necessarily comfortable, but it works.” The value of joining AIG in the shared services role and working with Peter Zaffino as a leader became quickly apparent.  Within five months, Fitzsimons took on the additional role of Global Head of Financial Planning and Analysis and three months after that, he joined the highest ranks of AIG senior management when he became Executive Vice President and Chief Administrative Officer in March 2021—and a member of the company’s 12-strong executive leadership team.  In October 2021, AIG announced that Fitzsimons would transition to the role of Executive Vice President and Chief Financial Officer by January 2022. In his new role as Executive Vice President and Chief Financial Officer, he leads hundreds of financial professionals across the globe who are supporting AIG’s priorities—from delivery on AIG’s financial performance objectives, to the separation of the Life and Retirement business from AIG, the execution of AIG’s budget and capital plans, and proactive engagement with investors and other stakeholders. Future plans & priorities “My biggest career goal now with AIG is to be the best CFO I can be; to cultivate and lead our diverse finance team in a way that allows each member to meet their own aspirations; and support the leaders who have placed their trust in me to be successful,” says Fitzsimons. A member of the Institute of Chartered Accountants Ireland since 1993 and a fellow since 2003, Fitzsimons’ career has taken him from Ireland to Europe, and on to the US and Asia. Despite his success in different industries, however, he didn’t have a “concrete” career plan starting out. “I always had ideas about the experiences I wanted to collect along the way, but I don’t think I ever had a set plan,” he says.  “My father had taught me the importance of gaining industry experience as an accountant, so you would have domain knowledge as a business advisor working in practice, but I found my niche in industry and that’s shaped my career. “Now, ultimately, my priority in my current role with AIG is to eventually leave the business better than I found it. It’s also very important for me personally to build a diverse and high-performing team within the finance function.  “My team is about 60 percent gender-diverse already, which is a high figure for leadership teams in financial services. The goal now is to build on all diversity within the finance team and right the way through the organisation.” Team dynamics For Fitzsimons, a healthy, diverse, and balanced team dynamic is essential to achieving successful outcomes – and there is no place for ‘hands-off’ leadership in this respect.  “Everything is about the team and how the team works together. I actually never use the word ‘manager’ in the sense that colleagues need to be constantly instructed,” he says. “Everyone needs to play an active role. Everybody’s got to have defined responsibilities. They must see themselves and their role as part of the team.” As Fitzsimons sees it, the ideal team should comprise a group of people with diverse experience and backgrounds. “They need to be able to communicate well with each other to be successful and ambitious,” he says.  “I always say that a perfect team has five people on it who think they can do my job and two who probably can. What’s important is the belief that they’re not working in silos and that they’re paying attention to the big picture. It’s a good dynamic.”

Russia’s War in Ukraine changed many assumptions held by European governments, but Judy Dempsey asks is Europe prepared to embrace significant strategic issues that will change the status quo? Russia’s full-scale invasion of Ukraine in February could radically re-shape the European Union.  And it’s about time.  For too long, the EU and most member states were content in the comfort zone that did not have to deal with issues that would fundamentally change their way of doing things. These included energy, security, the future of enlargement and Russia. Until Russia’s second invasion of Ukraine, there was a tactic consensus that Europe could continue along the path of perceiving Eastern Europe through the prism of Russia and depending on Russian energy. The EU accepted the independence of Ukraine, Moldova and Georgia, not to mention Belarus. However, among many big member states, their sovereignty and independence were ambiguous.  While it was never publicly stated, this part of Europe, whose history and culture are unknown to many EU member states, was considered in Russia’s sphere of influence. In several ways, Russia’s all-out attack on Ukraine has changed that perception. First is the energy issue. It is only a matter of time before Europe will wean itself off Russian gas and oil. This dependence had given President Vladimir Putin immense leverage and blackmail over several EU countries, particularly Germany.  The EU, and German Chancellor Scholz’s Green coalition partners, say they now want to become independent from Russian energy as soon as possible. Despite the considerable pressure from German industry and its business lobbies tied to Russia, who wish to retain the status quo with Moscow, don’t underestimate this goal.  The reality is that Russia’s war in Ukraine has become the catalyst for speeding up Europe’s transition to renewable energy and alternative sources of supplies. As dependence on Russian gas decreases, so will the Kremlin’s geopolitical influence. Another impact of Russia’s aggression is security. Neutral Finland and Sweden are poised to join NATO. These two countries that have long cherished their neutrality now recognise that their security needs to be boosted. Joining NATO would fill a big security vacuum in Northern Europe, where Denmark and Norway are members of the US-led military alliance. The Baltic (NATO member) States will be more than reassured with Finland and Sweden on board. In short, Putin’s aggression in Ukraine has given NATO and the transatlantic alliance a new lease of life. It is changing the geo-security architecture of Europe. It will be interesting to see how Ireland deals with its long-standing neutrality stance.  Another big issue is enlargement that is tied to the future direction of Europe. President Emmanuel Macron’s speech at the conclusion of the Future of Europe conference set out how to make the EU more efficient by having a qualified majority voting system for certain policy issues and having a much closer, structural relationship with Eastern Europe.  But what about making the EU more politically integrated? This would require a treaty change that several member states oppose. However, this is where the war in Ukraine comes into play. European governments cannot retain the status quo when its own security and that of its eastern neighbours are at stake.  For a union with ambitions to be a global player, muddling through is no longer an option. It’s going to require a major shift in the mindset of EU countries to end Europe’s comfort zone that, until now, didn’t take its – nor Eastern Europe’s – security vulnerability seriously.  If it doesn’t make that shift, Europe will fail to use the war in Ukraine to develop a strong, integrated and secure Europe – with Eastern Europe as part of that house.  Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe.