Even with all the talk of recession, sourcing talent remains a challenge for many organisations. Niamh O’Brien explains how a strong employer value proposition can help attract the best candidates The current landscape is a complex one for employers. Amid the headlines announcing lay-offs and the threat of recession, the SME Sentiment Index 2022, released recently by BDO and Ibec, found that 80 percent of the businesses surveyed were having trouble retaining employees and spending more time hiring new staff. On top of this, employee expectations are also changing, with increased demands for hybrid working, better work-life balance, and calls for salaries to rise in line with inflation. Retention and attraction While the term employer value proposition (EVP) may sound like a marketing ploy, having a strong EVP can actually be very important for businesses, especially in the current climate. In much the same way an employer will require a CV providing an overview of a potential candidate’s experience, employees want an EVP to give them insight into what a potential employer can offer them. And it’s not enough to just talk the talk. To retain talented people, companies must be able to walk the walk. A strong EVP that is truly reflective of their working environment, can help them to retain talented people. Quite often, however, even when a business has a wide range of benefits and a strong company culture, you will find that this is not articulated well through internal communication. An EVP can act as a reminder to the existing workforce of the benefits they have access to. How do you define your EVP? An EVP should be truly reflective of the key selling points an employer can offer. To start clearly defining your EVP, consider the following: What is your working environment? There is rising pressure on companies to offer flexible working options, including hybrid working arrangements. In addition, potential employees will want to know what onsite facilities are in place and what work–life balance “looks like” for existing staff. What is your company culture? Most businesses have found that their pre-COVID-19 working practices and culture have had to evolve and adjust. There is more focus now on how businesses handle environmental, social and governance, sustainability matters, employee wellbeing, and diversity, equity and inclusion. These topics should be detailed within the EVP to give employees insights into how the company’s working culture is brought to life through policies and practices. Are there career opportunities? Being able to demonstrate how training and development is approached, what career paths are in place, and how career progression is facilitated will all add to a genuine and robust EVP. What are your compensation and benefits? In the current competitive market, basic salary and a comprehensive benefits package is vital to attract new talent. Not only that, but it can also help to retain your existing employees. Once you have defined your EVP, the next step is to ensure that it is, not only accessible to existing employees, but can also be used as a marketing tool to attract new talent. EVP for accounting professionals Many young accounting professionals are initially attracted to an employer with the promise of a training contract, but what happens when the contract is finished? Ask yourself these questions: Can your company offer newly-qualified accountants the opportunity to work across a range of areas to help develop their skillset? Does the company offer secondments into client organisations, allowing staff to gain exposure to new industries? What long-term career prospects can you offer once the training contract finishes? How is career development fostered and nurtured in your organisation alongside exposure to different parts of the business? Answering these questions will help you to attract the best talent during your next hiring cycle. Ultimately, a strong EVP should act as an attraction strategy. It can be included on job specifications, outlined on a careers page, and explained during the interview process. Niamh O’Brien is a Director of Talent Management at BDO

The Digital Operational Resilience Act offers a unified approach to digital risk management in the EU, writes Guy Warren Wide-reaching system outages, rising cyber threats, and the disruption brought by the pandemic have put operational resilience in the digital space on the priority list for financial services regulators. To keep pace, the European Commission published its Digital Operational Resilience Act (DORA) on 24 September 2020. This legislative proposal merges several existing EU initiatives into one regulation. It aims to build on current risk management requirements for information and communications technologies (ICTs) developed by other EU institutions. DORA is expected to come into force sometime in 2022 and will provide clarity for EU financial regulators and supervisors tasked with ensuring that firms remain financially and operationally resilient through disruption. Implications for EU-based firms For firms operating in the EU, there are several implications to consider and prepare for before DORA comes into force. The Act will establish EU-wide standards for testing digital operational resilience, which currently sits strictly with each EU state nationally. Third-party ICT providers, including cloud service providers, will be regulated by one of the European Supervisory Authorities (ESAs). These authorities will be able to request information, issue recommendations and requests, conduct inspections and impose penalties, such as fines, for non-compliance. To prepare for DORA’s requirements, financial services firms will need to: identify any compliance gaps in their ICT systems; determine which of their third-party providers will be considered critical vendors and map their level of risk; implement a testing framework for digital resilience; and determine whether their current recovery strategies align with the standards set by the new regulations, putting plans in place to improve them where needed. Building a resilient digital infrastructure   With the advent of legislation such as DORA, the pressure to build operationally resilient businesses and IT estates that can support them has become undeniable. The complex nature of today’s IT infrastructures, which combine legacy technology with cloud-based and dynamic environments, pose additional challenges for financial services firms. They must put processes in place to ensure operational resilience and prove to the regulators that they are doing so. The pressure to maintain the running of business-critical services, meet service levels and ensure short resolution times has never been higher for IT departments and senior leadership. And yet, the complex and often siloed nature of today’s hybrid IT estates has made it harder to rise to the challenge. Therefore, a unified IT monitoring approach is necessary. The optimal outcome for today’s financial firms is an integrated and customisable monitoring solution that satisfies both the demanding business needs of financial firms and their regulatory requirements. It is essential to map processes end-to-end within the IT estate and have real-time monitoring in place for business-critical processes. Having a complete view of the entire IT infrastructure will allow IT managers, business owners, and business service owners, to identify and track and trace any problems that occur, allowing them to locate the original problem and find a swift resolution with minimal impact on their business-critical functions and systems. By mapping out the exact path of an issue, companies are better equipped to deal with current challenges, and plans can be made for the future to minimise the impact. A monitoring solution that provides accurate and timely reporting is also crucial in this context. It will let IT teams answer to internal stakeholders while allowing the business to prove to regulatory bodies that they are compliant with regulations. In this time of digital disruption where operational resilience has taken centre stage, financial services firms that do not have a complete overview of their IT estate, will not only see their customers walk away, but may also face the substantial financial and reputational damage that can come with non-compliance. Guy Warren is CEO of ITRS

After the distractions and downtime of the summer months, autumn offers a chance to reset and refocus. Moira Dunne offers her tips on how to prepare for the months ahead With the relaxing summer months behind us, it’s time to settle back into our work routines and some of us may be feeling a little overwhelmed by all the tasks that need to be completed. It doesn’t have to be so, however. Below are some tips that should help you to prepare and focus for the months ahead. Tip 1: Reset your mind First, it is important to reset your mind. Take stock of the tasks you need to do, review the year to date, and outline any changes you want to make  before proceeding into the busy months ahead. Ask yourself the following: Have you made progress with your 2022 goals and resolutions? What is going well that you should continue to do? What has stopped you from making progress? This is all linked to your mindset and energy levels. Do you feel motivated or exhausted? If it’s the latter, consider productive changes you can make to your work-life balance or routine. Don’t dwell on tasks you haven’t done—this can be demotivating. Instead, look on autumn as a clean slate.   Tip 2: Reset your goals Review your work goals. Have new ones emerged? Can irrelevant goals be removed, replaced or updated? To prioritise your goals, consider where you want to be at the end of Q4 and ask yourself whether your current goals will help you get there. Be realistic with your expectations. Over-burdening yourself with extra projects will only add to your stress, not take it away. Tip 3: Reset your plans If your goals are being updated, you must also ensure your plans are. Planning doesn’t have to be complicated—work out what needs to be done to complete your goals and the actions required to get you there. This will help you to break down your goals into achievable chunks. Once you have a list of actions, add target dates for each. Consider the end date for the overall project or goal and then work backwards. This helps you spread the work over each month. Tip 4: Reset your work routine Now you have a realistic and achievable plan, but how will you find time in your busy schedule? Take control of your time by implementing a weekly and daily planning routine. The best approach is to dedicate a time slot each week – say, Friday afternoons for 15 minutes – to look ahead at what is coming down the tracks. Identify up to three key items to get done the following week. This can include work on your goals, projects, or essential operational tasks. Then proactively block time in your diary to get this work done. Label these time slots with your target task or action. Protect this time if other requests arise, particularly if the new requests relate to less critical work. However, if you need to drop your planned work, that’s okay. But make sure you reschedule the time slot. Remember, your goal is to achieve it by the end of the week. Tip 5: Time blocking ‘Time blocking’ is a productivity technique that helps you progress with your planned work. The key to successful time blocking is daily routine planning. At the end of each day, review your progress, assess new objectives and make a quick plan for the next day. This sets you up for a productive start the following day and helps you switch off and refresh each evening. Further, develop a good morning routine to get into a productive mindset. Try doing the same activity every day, such as a ‘commute’ to work, which will help create a defined separation between work and home life (even when commuting from one room to the next if you’re working from home). Be productive in Q4 How great would it feel to finish the year on a high? Now is the time to reset your focus for a productive final quarter of the year. If you achieve your goal, celebrate. If you reach the end of Q4 without completing all your planned tasks and goals – that’s okay, too. You still have a good plan in place to take forward into 2023. Moira Dunne is Founder of beproductive.ie

It’s time for treasurers to take environmental, social and governance activities every bit as seriously as other business risks and opportunities. Brian Delahunty explains why. Key performance indicators (KPIs) are designed to drive an organisation towards its goals and strive to ‘do better’ each year, which in many ways is also the aim of environmental, social and governance (ESG) initiatives. While treasurers are used to setting and achieving KPIs, ranging from forecast accuracy to retrospective hedge effectiveness, ESG-specific KPIs (often called ‘sustainability performance targets’ or SPTs) are a new concept for many treasury professionals. In fact, according to the TMI and Barclays’ European Corporate Treasury Survey 2021, a mere 25 percent of European treasury functions currently have SPTs in place, and only 33 percent of the 225 respondents were planning to include ESG measures in their treasury objectives. Driving ESG KPIs Over the past 12 months, ESG has become a true boardroom imperative. Looking back to 2020, ESG was a theme lingering on the fringes of the board’s attention – but the COVID-19 pandemic catalysed an intense focus on communities and social challenges, as well as global supply chains and supplier relationships and values. As such, ESG is now front and centre for boards, and this trend is set to accelerate as we head into 2023. With this renewed focus on ESG and the treasury’s growing role as a strategic advisor to the board, treasury teams can no longer leave matters to the sustainability department and must lend support themselves. There are many ways in which they can achieve this support. In the early days of ESG, green bonds and loans were the only options open to treasurers, making ESG appropriate for only a handful of treasuries. Today, however, they have access to a growing set of ESG solutions at their fingertips, such as green trade and working capital solutions like green loans, supply chain finance, and green bill of exchange and promissory note discounting, as well as ESG-compliant investments. In addition, traditional green bonds and green revolving credit facilities remain popular and, of course, treasuries can exert influence through talent selection and choice of business partner. Setting the right targets Sustainability works best when there is a specific ESG policy for the treasury team, built in conjunction with the rest of the organisation. This enables treasury to play its part and be on the same page as the c-suite. Having a standardised approach across geographies and treasury centres is also critical. When developing ESG KPIs and targets, treasuries may wish to consider the: percentage of financing that is ESG-linked; percentage of short-term investments held in ESG-compliant vehicles; carbon footprint of the treasury team; percentage of paperless workflows (and meetings); percentage of women on the treasury team; and percentage of ethnic minorities on the treasury team. Treasurers must collaborate with internal and external partners to set the right goals that adhere to industry best practices and guidelines while also using rigorous and measurable targets to mitigate the risk of ‘greenwashing.’ Disclosures and sustainability reporting While non-financial reporting might appear outside the treasurer’s traditional remit, they can play a vital role in communicating sustainability-related information to stakeholders and the market. Learning about initiatives happening in the market can give treasurers an edge. Important frameworks, standards, and directives to be aware of include: The European Commission’s (EC) Non-Financial Reporting Directive; The EU Taxonomy and Sustainable Finance Disclosure Regulation; The Global Reporting Initiative (GRI); and The prototype climate-related financial disclosure standard from the CDP, Climate Disclosure Standards Board, GRI, International Integrated Reporting Framework and Sustainability Accounting Standards Board. With progress still to be made among standard-setters and regulators, it is worth having early conversations with corporate banking partners, vendors, and third-party sustainability experts about treasury’s proactive participation in sustainability reporting. Next steps It may seem as though treasury has a long to-do list regarding ESG. While there are areas that will require attention from treasury leaders, many of the solutions are relatively simple to implement, and the potential benefits are not to be scoffed at. Arguably, the most significant ESG risk is failing to understand how critical sustainability is to the future of business – and failing to build it into the heart of the treasury function. Companies may find themselves disadvantaged as buyers or suppliers if they no longer satisfy their counterparties’ ESG requirements. Likewise, support from banking partners, vendors, and consumers may fall away if ESG criteria are not met. It’s time for businesses, and treasurers, to start taking ESG as seriously as they do other business risks and opportunities. The potential downsides of not doing so can seriously impact people, profits, and the planet. Brian Delahunty is the Head of Corporate Banking in Ireland at Barclays

Standing out among your competitors can be tough, especially in the digital age. Mary Cloonan outlines how visible expertise can help professional services firms gain a competitive edge The world is becoming increasingly digital by the day, meaning a shift in the way firms and organisations are viewed by clients and competitors. In this fast-changing landscape, one of the most important steps a professional services firm can take is to build visible expertise. Knowledge and expertise—once something that was only gained through years of experience in a field—is now just a few clicks away, and with this comes the challenge for businesses to maintain their edge. To stay relevant in professional services, businesses need to focus on building visible expertise. But, what is visible expertise, and how can it be acquired in today’s digital world? Visible expertise explained Visible expertise is the combination of thought leadership and relationship marketing. It’s about being known as an expert in your field and having the relationships to back this up. Thought leadership is about sharing your knowledge and ideas to educate and inspire others. It’s about demonstrating that you are an authority on a particular topic and have something valuable to say. Relationship marketing is all about building solid and long-lasting relationships with your current and potential clients and creating a connection that goes beyond simply providing a product or service to become a connection that lasts. Combined, thought leadership and relationship marketing make up visible expertise. And when it comes to professional services, visible expertise is critical. Visual expertise and accountancy There are four reasons why visible expertise is so vital for accountants: Visible expertise is a way to differentiate yourself from your competition. Businesses are constantly vying for market share, and being known as an expert in your field sets you apart. When you share your ideas and knowledge, you demonstrate your expertise and confidence, making you more trustworthy in the eyes of your clients. Prioritising market development efforts and budgets in a specific segment of your profession allows you to maximise returns from minimum investment. Finally, it’s a way to stay ahead of the curve. By sharing your ideas and thoughts on a given topic, you are positioning yourself as an authority – someone who is up-to-date on the latest trends and changes, allowing you to stay one step ahead of competitors and become the go-to firm when clients need an expert. Building visual expertise Building visible expertise is critical in a competitive market. Here are five steps you can take in your professional services marketing journey. Claim a sector or industry segment Narrowing your focus to a specific segment is the first step in claiming visible expertise. You need to identify the area you want to be known for and then start sharing your ideas and thoughts on that topic. Building knowledge in a specific area takes time and effort, but to truly ace it, you must put in the work. Read industry publications, attend relevant conferences, network, and learn. Most importantly – write about it. Sharing your ideas online is one of the best ways to build visible expertise. Understand target audience segmentation Now that you’ve claimed your sector or industry segment, you need to understand your audience. Understanding their specific needs and how your solutions can help them overcome the challenges they face is essential. Ask yourself who needs your expertise, what their pain points are, and how you can provide the solution to their problem. Sharpen your expertise As an expert in your field, you are responsible for sharpening your skills. Educating yourself on the latest changes and trends in your industry, such as reporting standards or tax rules, is crucial. Demonstrate your growing knowledge through LinkedIn posts, trade magazine or newspaper articles, interviews or conference speeches. Build your profile You need to have a plan for how you are going to share your expertise and ideas and what platforms you are going to use to do it. Discover the platforms that will work best for you and your business. If you’re unsure where to start, look at where your target audience spends their time online and consider using those platforms to share your content. Execute the strategy Creating visible expertise takes time and effort, especially in the beginning. However, if you are consistent with your content and remain focused on your target audience, you will start to see results. It’s crucial to track your progress along the way. Keep an eye on your website traffic and social media engagement to see how people respond to your content. This will give you a good indication of what’s working and what isn’t, and you can adjust your strategy accordingly. Mary Cloonan is the Founder of Marketing Clever

Budget 2023 will be delivered against a challenging backdrop, so what steps can the Government take to maintain and enhance Ireland’s FDI appeal? Kevin McLoughin explains The surge in Ireland’s tax revenues came when they were most needed, giving the Government valuable fiscal room to help people and businesses deal with the cost-of-living crisis. The record €9 billion in revenue from corporation taxes does, however, raise some concerns about its sustainability in the future and the concentration risk involved, as a significant proportion of the revenue comes from a limited number of taxpayers. While Budget 2023 will undoubtedly focus on the cost of living and energy, it is critically important that Ireland’s highly competitive position as a location for foreign direct investment (FDI) is kept firmly front of mind. In a competitive global landscape, Ministers should seek ways to enhance Ireland’s attractiveness to FDI, so that we might retain and grow investment from multinational enterprises. Ireland’s competitive edge Ireland’s competitiveness as a place to do business will become even more critical as economies move into anticipated recessions here and in key export markets such as the UK, regardless of the impact of Brexit. While Irish organisations might have diversified their export markets in recent years, those changes will not protect them from a global recession where margins are likely to be squeezed to the limit. This highlights the critical need to ensure that Ireland offers a cost-competitive, highly innovative and supportive environment in which businesses can continue to compete successfully in international markets. What will the Government’s role be in relieving some of the supply chain pressures businesses face? There is certainly very little direct action Ministers can take on Budget Day. Still, the Government should continue its indirect support for businesses through its network of embassies, Enterprise Ireland, and other government bodies, all of which are working to open new trade routes to facilitate a broader range of procurement options. The supports and incentives offered by the Government to indigenous Irish entrepreneurs will be of key importance to Ireland’s future economic success. These individuals are the bedrock on which the next generation of globally successful Irish companies will be built. Spotlight to remain on R&D scheme From a budgetary perspective, we already have an attractive research and development (R&D) tax credit regime and a Knowledge Development Box designed to encourage research, development, and innovation. In this context, non-tax measures, such as the young talent pool possessing the technical skillset and experience, are becoming increasingly persuasive. That said, Ministers need to be conscious of the impact of the personal tax burden on an individual’s working location. In particular, there should be no changes in the Budget that might make the current Special Assignee Relief Programme scheme less attractive. International mobility remains critical to supporting investment decisions by international businesses, and the level of personal taxation can be a significant driver of the cost of such mobility. Finally, with agreement on sectoral carbon budgets reached in July, there has been speculation that Budget 2023 will include new reliefs and incentives for green investments aimed at accelerating Ireland’s net zero journey. In this area, however, there have not yet been any radical moves on the tax front to either penalise or incentivise activities or investments. We expect the existing policy position to be maintained in this Budget and that the Government will resist pressure to reduce the carbon tax regime against increasing energy costs. Kevin McLoughlin is Head of Tax at EY Ireland

Payroll is critical, yet its operations are often overlooked and neglected. Jessica Webbley-O'Gorman outlines four common obstacles faced by the payroll function and how to overcome them Payroll is essential for both organisations and employees. Despite this, payroll is often neglected and overlooked until a crisis occurs. Instead of treating payroll as though it's the poor cousin of strategic internal business functions, organisations should instead critically evaluate the payroll function to reap an abundance of benefits. Here are four common stumbling blocks most organisations trip over when it comes to payroll—and how best to navigate them. 1. Payroll is often neglected until there is a crisis Anecdotally, it takes eight months for an employee to regain confidence in their payroll after just one error. The time payroll teams require to verify, adjust and readjust an employee's pay is vast—without adding value to the organisation or individual. Paying attention to payroll when it's business as usual is essential in avoiding errors, rather than hyper-focusing on the area when there's a problem. 2. Unclear roles and responsibilities Payroll generates changes and improvements from within the organisation and will be able to implement them. But, it is just one part of the organisation: identifying what happens upstream and what flows into payroll is important. Organisations should critically examine the overall organisation in which payroll operates. Remove silos surrounding your payroll team and ask yourself: what are the wider organisation's processes, operations and goals that payroll could support or that impact on payroll's ability to deliver its core tasks? 3. Lack of intentional inclusion of stakeholders Payroll is experienced in different ways by different people. Whether it's a new employee, an employee on sick leave, a line manager struggling to understand a new expenses policy, a finance director who needs to close this quarter's reports, a payroll administrator or an outsourced payroll provider—all have different priorities, experiences, and levels of authority affecting the outcome they want. You need to consider as many different experiences as possible regarding payroll. These multifaceted perspectives can help plan for – and navigate – potential obstacles that could otherwise snowball. Unless such diversity of these moments and needs is considered and planned for, payroll will not be appropriately resourced or prepared to respond, and the experiences of key stakeholders will not be positive. 4. One size does not fit all Payroll must be an overall process and yet accommodate each individual employee. Employee numbers, benefits packages, legacy systems, HR reporting capabilities, organisation culture, and individual circumstances will all impact the complexity of payroll. There is no magical 'payroll button' that can accommodate everyone across the organisation, meaning that the payroll function must be nuanced, robust and flexible. In practical terms, this could mean including payroll in planning new HR systems or processes; linking in with HR on employee experience programmes and priorities; and taking resource or system concerns raised by your team seriously. How to elevate your payroll function for good The following actions can help elevate the payroll function so it is seen as a vital part of any organisation. Being an active and visible part of the broader organisation is critical for payroll Communicating what is going into payroll and what is not is critical. It is not good business, nor a good experience, for an organisation to fail to consider how payroll operates as part of the organisation's employment tax, employment law and revenue compliance profile. The solution is to map out your payroll processes, identify your stakeholders, and communicate those findings. Payroll process mapping opens the opportunity to identify, discuss and alter how things are happening or who is responsible for them Clarity around roles and responsibilities isn't just for the benefit of payroll. Providing a clear structure around the roles and responsibilities regarding payroll is a proactive risk management strategy within the organisation that will also outline how payroll adds value to the organisation and the payroll function itself. There is a tension between the universality of payroll (everyone needs to get paid) and bespoke requirements (everyone needs to get paid their pay) The most urgent or essential challenges facing an organisation or payroll team will vary from organisation to organisation. Pick an easy win or the biggest pain point and promote payroll's positive capability. Jessica Webbley-O'Gorman is Tax Director at PwC

Challenging your bias is uncomfortable and takes effort, but it needs to be done to foster a truly inclusive workplace culture. Andrea Dermody explains how. Our brains are trained to make snap decisions that are not necessarily based on either facts or judgment. The key here, however, is what happens next. Do you act on your initial judgement, or do you take a step back, acknowledge the facts, and change your behaviour accordingly? This is a central issue around different types of bias. When we make a judgement and don't change our approach, no matter the evidence to the contrary, we're heading down a dangerous road towards unconscious bias. And, when we first become aware of unconscious bias, trying to do anything about it will feel uncomfortable.  Why uncomfortable matters When we learn a new skill, such as riding a bike, we're delighted to be uncomfortable. But in the professional arena, and especially for those in senior roles who are used to being regarded as well-informed, recognising that there are areas where we are ignorant is an uncomfortable place. However, to work towards eradicating biases, it is essential to be aware of these knowledge gaps and understand how important it is to start learning. By listening to what people with different experiences have to say, you will build this skill into a habit and eventually find yourself less uncomfortable and more informed. Be BRAVE to counteract bias One way to eradicate biases is to deploy the 'BRAVE' technique. Each letter of BRAVE stands for two actionable steps an organisation can take. Build relationships outside your in-group Hearing the story of someone else's different lived experiences can help promote empathy. Be consciously inclusive Ensure you build inclusion into every touchpoint and interaction you have with people by asking yourself what is missing: do we have differences represented? Do we hear different perspectives and voices? Recognise bias in yourself and others Look for people who will challenge you—and do the same for them. Request feedback from a broad group You have to leave your echo chamber to see the full picture of a situation. Consider 360 feedback requests from people outside your comfort zone, such as peers and direct reports. Advance all talent Don't just choose to mentor and sponsor people who have the same experiences as you. It is much more valuable to mentor and sponsor people who might have a different experience from your own to broaden your view and theirs. Accountability to drive progress Consider how you will hold yourself accountable for any changes you make to your way of thinking and question how your organisation holds people responsible for change. Without accountability, cultural or behavioural change is impossible. Being vocal the moment you see inequity If you don't challenge where you see inequity, you're telling everybody else in the group that you're okay with what's been said. Speak up. Add another viewpoint to your decision making Are you only making decisions based on input from a tiny group of people? Receive input from a variety of different types of people. Empower everyone to contribute and act Help people understand that inclusive culture is about how we treat each other, from the CEO down. Effort by everyone, every day Feeling and doing something that makes you uncomfortable, or doing something that feels initially counterintuitive, can feel like it's going against your gut. But, we must make ourselves uncomfortable to drive inclusivity within our organisations. Andrea Dermody is the Founder of Dermody Inclusive Organisations

Energy costs are rising, and people are looking for help from their employers. What supports can UK employers offer, and what are the tax implications? Caroline Harwood explains Very few people in the UK will not be impacted by the rocketing price of energy costs. So, understandably, employers may be faced with calls for help and will want to support their employees where they can. What can employers do, and what are the associated tax and national insurance implications? Additional pay or bonuses As with any other cash payments arising from employment, Pay As You Earn/National Insurance Contribution (PAYE/NIC) will be due. There are no reliefs or easements available despite the purpose of the payment. Reimbursing the employee for an energy bill Employers must be aware that reimbursing an employee for a specific energy bill will be treated as earnings for tax and NIC purposes at the time of payment. This means that the sum reimbursed will need to be subject to PAYE, and both the employee and employer will pay NIC at that time.  However, if the employee works from home, the potential to treat some of the energy costs as a business expense and be exempt from tax/NIC exists. Paying the energy provider It may be possible for an employer to arrange to pay the energy provider directly on behalf of the employee. This would be treated as a benefit-in-kind (BIK), and the tax treatment is the same as reimbursement. An energy provider may also be able to issue a bill in the name of the employer, but the underlying supply contract will remain between the employee (i.e. the energy customer) and the energy provider. This form of payment will also be treated as earnings for NIC purposes for both the employee and employer at the time of payment. If an energy provider is prepared to enter into an energy supply contract with an employer to supply an employee’s property directly, the same tax treatment will arise, but no employee NIC would be due. It is unlikely, however, that energy providers will wish to do this for regulatory reasons. Using salary sacrifice Salary sacrifice is a very common mechanism for delivering BIKs. However, if this is used to help pay an employee’s energy costs on a pound-for-pound basis, the tax treatment is the same as for BIKs.  The NIC treatment would repeat the position for paying the energy provider directly. In this instance, salary sacrifice is probably not worthwhile for employers to consider. Despite this, a longer-term option utilising salary sacrifice to deliver an electric vehicle (EV) car for an employee can be cost-effective, with the added benefit of helping with your organisation’s environmental, social and governance (ESG) agenda. Making a loan Perhaps the most tax/NIC effective way to assist employees would be for the employer to make an interest-free loan. If the loan is capped at less than £10,000, it has no tax implications and is not reportable as a BIK. It also has no NIC implications – this cap includes any existing loans the employee may have from their employer. Higher-value loans are a reportable benefit. An employer can agree to repayment over whatever terms it is comfortable with or write the loan (or part of it) off later. If a write-off occurs, the sum involved will be treated as a BIK and subject to NIC. However, it is essential to note that the loan terms must not include any intention to write it off at the outset, as HMRC will treat a loan as earnings. Caroline Harwood is Partner of National Head of Employment Tax at BDO UK

The right mindset, along with a robust support network, can do much to help women in their careers. Dawn Leane explains the four factors that have contributed to the career accomplishments of successful women in business In my last article, I shared details of a research study carried out by Fiona Dent and Viki Holton for their book, Women in Business: Navigating Career Success, in which successful women revealed the factors that either encouraged or inhibited their careers. Now, we need to look at the factors the participants in that study identified as crucial to promoting and supporting their achievements. Personal work attitude Resilience is essential for women as they navigate hidden challenges and barriers their male counterparts do not face. This includes a strong work ethic and the ability to manage adversity. In her book, Mindset: The New Psychology of Success, psychologist Carol Dweck contends that, from early childhood, we develop one of two mindsets: a fixed mindset or a growth mindset. People with a growth mindset believe that, with effort, we can develop our skills, abilities and talents. They also focus on learning from positive and negative experiences and persevere when facing adversity. In contrast, those with a fixed mindset believe success is based on innate ability. By understanding, challenging and adjusting our mindset, we can change our career trajectory, relationships and happiness. Supportive family and friends In her book Couples That Work, Jennifer Petriglieri discusses how dual career couples face challenges that are usually framed as a zero-sum game, where one partner succeeds at the expense of the other. Couples who thrive develop what Petrigilieri terms a ‘secure base’, meaning both partners are supportive and encourage each other to take risks. The support role is interchangeable. Sometimes, one person is the support, and at other times they are the one being supported. Many participants in Dent and Holton’s study valued the support of their partner, family and friends in achieving success. Having a ‘secure base’ is one of the ways in which women can gain support needed to thrive. Organisational support The support of managers and colleagues is also crucial to women developing their careers. In response to the question “During your career, please indicate the people who have supported you in achieving your goals?”,  87.6 percent of Dent and Holton’s study participants identified their bosses, and 79.9 percent identified colleagues. Almost all participants highlighted the importance of their manager offering encouragement, providing challenging opportunities and the psychological safety of being allowed to experiment and fail. The manager is also crucial to one of the most pivotal points in a woman’s career: maternity leave. Research carried out by Dublin City University, Re-Engaging Talent Post- Maternity Leave: Enablers and Barriers to Positive Reintegration, identified that: “one of the critical factors in determining how women experienced the transition back into work after maternity leave was the perspective management had on maternity leave and this transition in a woman’s career. We saw many positive examples where line managers and/or the organisation viewed their maternity leave as a brief interlude in the individual’s long-term career. In these organisations, the females often reported a positive transition back after leave”. Developmental opportunities, such as a willingness to study for more qualifications and continuing personal and professional development, were also identified as essential factors, as were moving regularly and gaining international experience. Self-awareness A strong awareness of individual skills, career goals and taking advantage of opportunities were also associated with career success. Being unashamedly intentional and strategic about their ambition can feel uncomfortable for women because of their experience and societal conditioning. Having a sponsor, coach or mentor at key junctures allows women to access experience, further develop self-confidence and judgement and remain on track when navigating barriers to success. Dawn Leane is Founder of Leane Leaders and Leane Empower. In October, she will deliver a workshop for aspiring female leaders, Women in Leadership, Navigating the Environment.

With a new UK prime minister in power and a major cabinet reshuffle, what lies ahead now for Northern Ireland? Gillian McAuley gives her take on what the region needs After a summer dominated by the Conservative leadership election, Liz Truss assumed the role of Prime Minister of the United Kingdom last week. For businesses in Northern Ireland, the prospect of a new UK Government represents an important step towards potentially restoring some political certainty in the region. At the British Irish Association Conference in Oxford last week, there were some cautious glimmers of hope for the Northern Ireland Protocol. We are hearing some encouraging noises from the new cabinet. If this opportunity is to be realised, however, all actors in the process must learn from past mistakes. The new UK government and European Union must together adopt a careful and sensitive approach to defining the issues to be addressed and, crucially, the process of resolution must include meaningful engagement with all relevant stakeholders in Northern Ireland, including businesses. The need for agreement could not be more apparent. One business told us recently that, for as long as Protocol issues remain outstanding, investment in the region will suffer. For this business, as inflation takes hold, there is no capacity to continue second-guessing what trade in Northern Ireland will look like six months or a year from now… This is not an isolated case. As inflationary pressures spiral, the need to resolve the Protocol becomes more urgent. To be sustainable, this resolution must be achieved by agreement. There are persistent rumours about an emergency budget in Westminster, suggesting that in the weeks ahead, a package of measures will be introduced to tackle inflation. Decisions also need to be made for businesses in Northern Ireland, however, and the people who live and work here — and, for this to happen, we need a restored Executive. NI Chamber has campaigned for many years for the introduction of multi-year budgets that would facilitate longer-term planning. The business networking group welcomed the move to a three-year budget cycle. Yet, almost halfway through its first year, we remain without a budget and an Executive to deliver it. This is not sustainable. We need urgent action from a restored Executive, with all policy leaders at the table tackling the challenges feeding this crisis – not least the urgent need to address business rates to free up cash flow, which is currently being absorbed by rising costs. Supporting businesses and protecting jobs must be at the top of the new Government’s priority list. Gillian McAuley is President of the Northern Ireland Chamber of Commerce and Industry 

Despite its potential benefits for businesses in distress, a relatively low number have so far availed of the Small Companies Administrative Rescue Process (SCARP) but that is likely to change in the months ahead, writes Hilary Larkin Given the economic headwinds facing businesses, the relatively low take-up thus far of the Small Companies Administrative Rescue Process (SCARP) has been surprising. This is perhaps because the impact of COVID-19 on individual businesses has been masked, to a large extent, by government supports, including Revenue’s debt warehousing scheme and other creditor forbearance. Similarly, Brexit is not fully implemented, and we have yet to feel the full impact of rising energy costs and interest rates on consumer spending and the broader economy. So far, there have been just 10 SCARPs with six having commenced in August. Insolvencies right now are at an artificially low level yet so-called “Zombie companies” continue to trade. It is likely that the level of insolvencies and restructuring cases (including SCARPs) will increase as the true impact of rising costs become apparent in the winter months, and Revenue’s plans to implement debt warehousing repayment plans take shape. What is SCARP? Introduced under the Companies (Rescue Process for Small and Micro Companies) Bill 2021, SCARP is a restructuring tool for SME’s who are facing temporary insolvency affording them the opportunity to restructure through a combination of a write-down of debt and new investment. SCARP is based on the key components of examinership and is subject to strict timelines and rules for meeting quorums and approvals. Careful planning and engagement with key creditors is essential, prior to commencing the process in order to achieve a successful outcome with the required creditor approval levels. Mazars acted as Process Advisor for the country’s first SCARP case in January. We have found that SCARP is ideally suited to small retail and hospitality operations. It is aimed at small and micro-companies and designed to act as a cost-effective restructuring option with limited court involvement. It is likely that many of these businesses will be heavily impacted by oncoming inflationary pressures and will require restructuring support if they are to survive. Process observations SCARP does have some notable limitations, such as no automatic stay on creditor action, and the fact that legal contracts (leases etc.) cannot be varied without court involvement. These issues can only be addressed in SCARP with legal representation and court supervision, adding substantial costs, which could price many small companies out of the process. Revenue can opt out of the process where there is a history of non-compliance with Revenue legislation. In our experience, however, Revenue has engaged constructively with the process to date, which can only positively impact the uptake of SCARP.  Nevertheless, SCARP can be a useful restructuring tool for small companies, allowing them to compromise legacy debt that would otherwise leave them with no option but to enter into liquidation. We would, therefore, strongly advise that all small companies concerned about their short-term solvency consider SCARP and its potential relevance to their circumstances. Hilary Larkin is a Financial Advisory Partner with Mazars

Budget Day is fast approaching, but this time against the backdrop of war in Europe. Neil Hughes gives his take on what the Minister for Finance should prioritise for 2023 The uncertainty the Russia–Ukraine war has brought about in terms of global inflation will undoubtedly add to the already difficult job facing the Minister for Finance in the lead-up to Budget 2023. But, the war is not the only issue.  The fallout from both Brexit and the pandemic has been hugely challenging for Ireland, our government and businesses — in particular, for SMEs and micro-enterprises. The government had to quickly bring in radical measures, such as subsidies, to deal specifically with the economic shock of COVID-19. Despite these measures, some companies needed additional help to prevent them going out of business. In December 2021, the Small Company Administrative Rescue Process (SCARP) commenced in Ireland and is already helping small companies that scraped through COVID-19 to pull through the recovery phase. Those companies that emerge successfully from SCARP will hopefully continue to provide employment and tax revenues in years to come. This shows how a process like this can protect businesses, jobs, and the economy. Now, however, Minister Donohoe faces the challenge of balancing the competing demands and priorities of government departments in Budget 2023. The housing crisis, inflation and energy independence are top of the agenda and, in a time of war in Europe, it is becoming increasingly apparent that incremental measures will not be sufficient. The pandemic has proven that emergencies require radical responses. Nudging tax bands or rates, small percentage increases in social welfare payments, or tinkering with subsidies, will appear lacklustre compared to the cost crisis unfolding in some households and businesses.  Now is the time for far-reaching initiatives that can influence and change the behaviours of people who are vital to solving the country’s problems.  This might involve radical measures that incentivise the development of housing schemes and speed up planning processes, and the introduction of headline-grabbing incentives to encourage both households and corporates to invest in renewable energies. Along with Scotland and Denmark, Ireland has some of the best renewable opportunities in Europe. In this upcoming Budget, the government must create a platform for those opportunities to be quickly exploited. Finally, those most vulnerable in terms of energy and commodity prices must be comprehensively protected as we face the prospect of energy rationing akin to World War II, when gas company-employed inspectors nicknamed “Glimmermen” went door-to-door in Ireland, seeking to catch anyone evading gas rationing.   It is extraordinary that, in 2022, the Minister for Finance must frame a budget that features the possibility of rationing energy in Ireland once again – but such is the scale of the task facing policymakers who must address the needs of an increasingly alarmed electorate. The best course to follow is clear. To borrow a phrase from the early 1990s: Minister Donohoe needs to be radical – or redundant.  Neil Hughes is Managing Partner at Baker Tilly and author of A Practical Guide to Examinership

With a commitment to halve emissions by 2030 and net-zero emissions no later than 2050, Ireland needs to consider how best to transition to sustainable energy. Russell Smyth explains how R&D can help A renewed ambition for an emission-free future—sparked by the launch of the Irish government's Climate Action Plan in 2021—has led to a rise in sustainable research and development (R&D) in both the public and private sectors. This R&D explores innovation as a means to support our transition to a low-carbon economy and utilise surplus energy, and these projects are not just about increasing yield, but also improving sustainability. The energy sector is increasingly looking at ways to come up with greener alternative fuel solutions. Mechanical and electrical engineering firms are examining ways to reuse waste products from large-scale industries, for example, with one Irish company researching methods of heating homes by recycling the hot water waste product generated from cooling data centres. In agriculture, several companies are working on using hydroponic farming—growing plants without soil—to produce nutritionally dense food. Hydroponic farming has the potential to be a much more energy-efficient way of producing food while also tackling issues like species conservation, land usage, soil pollution and deforestation. R&D and Ireland's climate targets Agricultural emissions are one of Ireland's biggest climate challenges, with proven technologies already in use only achieving an estimated 20 percent reduction in emissions. Unlike other sectors, which have identifiable net-zero pathways, agriculture relies on R&D and innovation to achieve a credible net-zero journey. This makes it a high-priority area for R&D investment. Furthermore, Ireland has highly ambitious home retrofit targets, with the retrofit scheme aiming to bring 500,000 homes up to a minimum B2 standard by 2030. Progress to date suggests this target will prove challenging using existing labour- and capital-intensive retrofit models. Significant innovation and R&D is required here. Opportunities for future activity AgriTech Advances in technology in agriculture could substantially help to reduce greenhouse gases. Machine-learning algorithms are being applied to increase farming efficiency through yield prediction, weed and disease detection, livestock welfare and water management, for example. In Ireland, several companies are preparing to bringing concepts such as computer vision, edge computing and the Internet of Things into arable and livestock farming. Quantum computing Though a novel field, some thought leaders in quantum computing believe that carbon emissions could be reduced using two-state-based systems — specifically, creating new complex chemicals, drugs and enzymes to reduce industrial carbon output. Google CEO Sundar Pichai believes that quantum computing could be used to come up with a replacement for the Haber Process—an artificial nitrogen fixation process responsible for around two percent of global carbon emissions—within the next ten years. Agricultural gene editing and selective breeding As we face a radically changing climate, food shortages will become one of society's biggest problems. Gene editing and the selective breeding of plants could offer several potential benefits here, including greater yield, higher nutritional quality and improved disease tolerance. While the EU currently prohibits gene editing, the EU Commission launched a public consultation concerning plants produced using new genomic technology in April 2022. The results of this consultation could see the EU's stance on gene editing in agriculture change, opening Europe up to a new and rapidly expanding field of R&D. Russell Smyth is Head of Sustainable Futures at KPMG

Many of us take water for granted without considering the emissions associated with its treatment and distribution. Stephen Prendiville explores these hidden environmental costs and what we can do to mitigate them According to Irish Water, we use upwards of 133 litres of water a day. This consumption is facilitated by hidden infrastructure that takes fresh water to treatment facilities, cleans it, pressurises and then pipes it to our homes and businesses where it is used for drinking, cooking, cleaning, washing, and flushing. These processes and infrastructure have a hidden CO2 footprint, driven by the energy required to make it all work. Even before we click on our kettle or start up the electric shower, our water already has a significant carbon footprint attached to it. Some observers have noted that our water and wastewater systems, and the energy required to power them, could account for as much as five percent of our total carbon footprint (more than three million tonnes of CO2 equivalent). And – shockingly – this may be a conservative estimate. Mind your water With this in mind, we must be mindful of our water consumption. How much more are we wasting through our own behaviours? Is there scope to improve? Without water charges and metres, our domestic water use in Ireland is somewhat unknown and underappreciated. To complicate matters, the past two years have necessitated abundant running water for hand washing as the world’s attention has shifted from one public health crisis (climate change) to another (COVID-19). Changing habits Coming out of some of the hottest days on record during the summer of 2022, the importance of our water resource and infrastructure has never been more apparent. It is not an infinite resource, however, and we must find ways to manage and mitigate against wasting it. There is great scope for climate change mitigation in how we use water at home. It can be as simple as filling the kettle with one cup of water when only making one cup of tea, or washing our car with a bucket and sponge instead of a hose. It might surprise us to know how little comfort we can forgo to make a real difference. Stephen Prendiville is Head of Sustainability at EY 

When an employee leaves a company, they can take a wealth of knowledge with them. So, what can companies do to help keep this knowledge in-house? Angus Gregory explains. Collaboration and communication between different departments matters as much for accountants as it does all professions. Sharing knowledge can be powerful, but as a tool in business, it continues to be underutilised. This has been exacerbated by the ‘Great Resignation’, with more employees taking ‘un-shared’ knowledge with them when they leave their job. A recent survey of  752 executives in the US revealed that 88 percent have seen higher turnover than usual in their organisations than normal. This only increases the danger that vital knowledge is being lost when employees leave. Here are three ways organisations can safeguard company knowledge when their employees leave for new roles elsewhere. Overlap the exit and onboard process The onboarding process is vital in helping new employees to learn the lay of the land, disseminate business knowledge, and demonstrate to new hires that knowledge is better shared. By creating an overlapping onboarding process, new and existing employees can work together from the get-go, allowing the new starter to ask questions and the existing employee they are replacing to show them the ropes. Too often, onboarding packs are put together by people without experience in specific roles. As such, the resigning employees should be encouraged to share what they see as the most critical aspects of their job. This will give the new hire reference points that relate to the reality of their new day-to-day work. Centralise your knowledge base Employee knowledge cannot sit in in one person’s brain, which doesn’t hold information that can be accesses,  downloaded or backed up like a hard drive. Investing in an integrated system will help your company share necessary information with colleagues, at the same time ensuring employees don't take all their knowledge with them if they leave. An exit interview is another ideal opportunity to facilitate knowledge transfer. Many large companies hold exit interviews to help them understand why an employee is leaving. Resigning employees should also use this space to share vital knowledge about their job with their line managers. Without an integrated system that collates knowledge, however, there is a chance this vital information will be lost.  An official process for employees who are leaving can help organisations to gain valuable insight into the employee experience and collate knowledge articles that will help the person taking over in that role to do the best job possible. A cultural shift towards collaboration Establishing healthy knowledge-transfer practices early on is essential for new hires, but it can require a cultural shift. No one should be 'hoarding' knowledge. Creating collaborative working conditions will mean that employees feel more comfortable asking questions and more confident teaching and sharing with others. Challenges arise when teams operate in silos, unwilling to interact and share with other departments. It must be made clear to new hires from the outset that collaborative working benefits the business—and, not only that, but everyone will be rewarded for doing so. To combat this, designate a knowledge manager, responsible for keeping your knowledge database up to date. This will involve monitoring frequently asked questions for knowledge gaps, plugging these gaps with additional resources, and ensuring any leaver processes are working efficiently. Creating a strategy for preserving business knowledge can help short-term business resilience when employees move on and can lead to more robust staff engagement. Ultimately, the goal is to help employees exit smoothly and leave a strong knowledge legacy. Invest in knowledge-sharing technology, forge a collaborative culture and overlap staff onboarding with exits. Doing so will result in a win-win for the company and its employees. Angus Gregory is CEO of Biomni

Changing habits is not easy, but it can be done. Shay Dalton outlines some simple steps you can take to rewire your brain’s behaviours and get the most out of life We spend most of our time on autopilot. Much of what we do—from breathing, walking or eating, to having a conversation—occurs automatically. This allows or brain to preserve energy for (what it considers to be) more critical tasks. It is the subconscious mind at work. The three-level model of the mind developed by Sigmund Freud is often represented as an iceberg. The conscious mind is the tip, the subconscious lies just beneath the surface, and the unconscious is buried below. The subconscious mind makes up 95 percent of the brain, while the conscious mind is only five percent. If we can learn how to access our subconscious, we have the power to unlock our full potential, personally and professionally. The Reticular Activating System The Reticular Activating System (RAS) is a network of neurons that act as a filtering system between the conscious and subconscious parts of the mind. As our brains cannot absorb everything around us, the RAS controls the information that surfaces in our consciousness. It exists as a mechanism for survival. If we had to consciously think about every small action we take throughout the day, our energy would be depleted when we need to be alert. The RAS reinforces behaviours we have learned to do automatically, meaning that the neural pathways must be reprogrammed to create a new response to change behaviour. If we want to start waking up earlier but believe that we’re not morning people, for example, it will be difficult to suddenly start waking up earlier. We have to first become aware of the thought that may be holding us back—‘I’m not a morning person’—and shift to a narrative explaining why we might enjoy the mornings, and what we want to achieve by waking up Researchers have also concluded that, to truly change a habit, we must see the value of our new goal and the potential reward. So, how can we begin to bring the subconscious into awareness, shift our habits, and set ourselves on the path to success? Visualising success The first step is to visualise. In his New York Times article, ‘Olympians Use Imagery as Mental Training’, Christopher Clarey explained that visualisation has long been used by Olympic athletes to prepare for the day of their event. This process involves imagining the exact conditions you will be in—how it will look, sound, smell and feel — and then envisioning how you will succeed. In his June 2011 Huffington Post article, ‘How to Use Visualisation to Achieve Your Goals’, Dr Frank Niles explains: ‘visualisation works because neurons in our brains, those electrically excitable cells that transmit information, interpret imagery as equivalent to a real-life action. When we visualise an act, the brain generates an impulse that tells our neurons to “perform” the movement. This creates a new neural pathway that primes our body to act in a way consistent with what we imagined. In other words: if we see it, we can believe it. Take the time to pause Meditation is a powerful tool for helping to bring the subconscious into awareness. Studies have shown that practising mindfulness and meditation can help with depression, chronic pain, anxiety, and other mental and physical conditions. Meditation can also aid in rewiring the brain’s circuits by increasing the amount of grey matter, which can improve emotional regulation and impulse control. It gives us more control over our subconscious behaviours and leads to better decision-making aligned with our goals. Write thoughts down Since the subconscious mind absorbs information the conscious mind does not have the capacity to process, it contains a wealth of data waiting to be accessed. Many high-achieving individuals swear by morning pages (the daily practice of writing in the morning) before starting their day. As you write, it’s important not to edit or get caught up in spelling and grammar. This is the time to see what may come up without the conscious mind interfering. Journaling is also a great way to define our goals. Unlike morning pages, this is best to do at night before bed to clear the mind for sleep. By writing down what we want to accomplish, our goals for the future, and how we want to achieve them, we bring them into awareness.   Get adequate rest We often underestimate the value of a good night’s rest. Sleep is essential to giving our minds and bodies the time to reset. It is when the brain recharges and processes information from the day. In fact, studies have shown that having adequate sleep, seven to eight hours a night, improves memory, regulates metabolism, reduces fatigue, and improves cognitive and behavioural function. The subconscious mind is more likely to repeat old patterns if it’s running on empty. Consistent practice Tapping into the subconscious and rewiring neural pathways takes time. Change will not occur overnight. By becoming aware of our subconscious thoughts and behaviours, implementing techniques such as visualisations, meditation, journaling, and getting enough rest, we will soon begin to see the positive impact on our daily lives and careers. Shay Dalton is Managing Director of Lincoln

In an uncertain business environment, more business owners will be considering an exit. Colm Sheehan shares five tips to successfully manage the sale of your business. Selling a business is time-consuming and, for many, it can be an emotional endeavour. The process can be lengthy and stressful, as you need to be in control of each stage of the sale from start to finish to ensure you maximise your return.  Here are five tips to support a successful sale: 1. Find the right advisors To achieve a successful sale, you need to prepare for your exit. There are complex legal, financial and tax implications that need to be considered and planned for. It is paramount that you find the right professional advisors, who understand your requirements and strategic goals and can guide you through the steps involved. Buyers want as much transparency as possible and will typically perform detailed due diligence. Spending time evaluating and presenting your company’s financial and business history and future projections is crucial. As a seller, you can avoid red flags by working with your advisor to ensure that everything is in order and that the right information is provided at the appropriate time, to facilitate a smooth process.  2. Maintain momentum The importance of maintaining momentum cannot be underestimated. To successfully conclude a transaction, you must have the resources required to move efficiently through each stage of the transaction. It is vital to pre-empt buyer concerns and to respond to their queries promptly. This will help to ensure you are on the front-foot and in control of the process. Spend time before going to market refining and preparing for the process ahead. 3. Create competitive tension  By creating a competitive environment for the sale of your business, you could help to drive up price, achieve better terms and a faster transaction. You can create competitive tension through a carefully managed and well-executed sale process which attracts more than one potential acquirer. Even if you are dealing with one party, you can maintain a strong negotiating position by being clear that, if they don’t put their best offer forward, they won’t get the deal.  4. Protect your business To sell your business, you may need to provide sensitive data to interested parties regarding revenue analysis, key contracts, employees and operating structures. In most cases, the interested parties will include some of your competitors who are eager to expand their own business. Include how? To protect the inherent value in your business, ensure that information is shared only with qualified parties who have signed a non-disclosure agreement. You should withhold commercially sensitive data until late in the sales process when it is more probable that the transaction will complete. 5. Compare offers When selecting a preferred buyer, price will be a key criterion. It is important that you critically compare all aspects of competing offers to ensure that they are assessed on a like-for-like basis, however. Offers may contain earn-out provisions and contingent consideration. Equally, there can be working capital or cash- or debt-free adjustments. How robust is the buyer and how are they going to finance the acquisition? These are all relevant factors when weighing up competing offers.  Given the stakes, it is vital that you are clear on the specific terms of each offer and that you have all the necessary support and expertise to enable you to make a clear and objective decision.  Colm Sheehan is Director of Corporate Finance at Crowe

Recruitment and employee retention has changed dramatically in recent years. Gary Notley explains how organisations can meet the needs of Millennial and Gen Z professionals Gauging what younger professionals really want and aligning the needs of Gen Z and Millennial candidates to the strategic and operational needs of your organisation can be challenging, but there is also great opportunity. Skills and labour shortages will be among the top challenges facing business leaders in the 12 months ahead, according to the 2022 CEO Priorities Survey, and we are still hearing about the ‘Great Resignation’, the term coined by US academic Anthony Klotz in May 2021. Although challenging, however, the recruitment outlook for employers also holds opportunity, and a chance to turn the ‘Great Resignation’ into the ‘Great Reimagination’ by rethinking how we work and respond to the expectations of younger professionals, including: Gen Z: Those born in the late 1990s and early 2000s; and Millennials: Those reaching young adulthood in the early 21st century. Deloitte’s recent Millennial and Gen Z report identified four key attributes younger professionals look for in an employer. 1. Work-life balance Fifty percent of the millennials and 33 percent of the Gen Z candidates in the Deloitte report identified work-life balance as their main priority when considering an organisation’s offering. In fact, 25 percent of millennials left their organisations in 2022 because of burnout. Here are practical steps organisations can take to create a positive work-life balance: Have a clear and transparent culture with policies in place to help employees to switch off outside work hours; Leaders also need to ‘walk the talk’ by role modelling what good work-life balance looks like, and openly advocate the importance of getting this balance right; Leadership must listen to their employees and understand their challenges and needs when it comes to work-life balance. This will help them to evaluate and redesign key processes in the organisation to help improve the employee experience; Analyse the frequency and nature of repetitive tasks and identify those that can be automated, consolidated or reduced in frequency. 2. Flexible working The high demand for flexible working has been driven by several factors, including the rising cost of living. With less than a quarter of those surveyed believing that the overall economic situation will improve over the next 12 months, this remains a concern for workers and organisations looking at people retention. Most Gen Zs (75%) and Millennials (77%) said they prefer hybrid or fully remote work, but less than half currently have these options. Organisations can support employees here by: moving to hybrid working and introducing digital tools to ensure that employees have access to appropriate support structures; offering competitive benefits that can help alleviate the cost of living; and focusing on base pay increments as opposed to providing optional benefits to employees. 3. Mental health Nearly half of Gen Z respondents say they feel stressed all or most of the time. While they acknowledge that their employers are now more focused on workplace wellbeing and mental health, many do not believe this has resulted in any meaningful change for employees. Organisations can help employees by: fostering a culture of openness to encouraging employees to share their concerns so they can be provided with the appropriate support; offering mental health assistance and wellbeing programmes and enabling transparent communication; and creating new work opportunities for existing workers, helping them to identify learning and development initiatives and supporting career progression. 4. Climate action Over 90 percent of all Millennial and Gen Z respondents globally are now actively trying to curb climate change by making positive choices. In the near term, they are focused on small, everyday actions, but longer term, they see themselves increasing their civic engagement and bringing sustainability into larger purchasing decisions. Just 18 percent of Gen Zs and 16 percent of Millennials believe employers are meaningfully committed to the climate change cause. Gen Zs and Millennials in Ireland feel their organisations can do more, such as: banning single-use plastic products at work/office locations; committing to net-zero within the next decade; offering sustainability-orientated employee benefits; and renovating office locations to be greener. Today’s upheaval is challenging, without a doubt, but there is also an opportunity for leaders to reimagine their workforce, what the workplace means, and how work can be done. With the right approach, this could bring positive change that delivers long term value. Gary Notley is Director for Human Capital Consulting at Deloitte Ireland

As inflation tops 10 percent across the UK, Claire Daly outlines the steps businesses in Northern Ireland can take to manage costs and protect profits Despite the challenges associated with the pandemic, the Northern Ireland economy performed well in 2021 and in the first half of this year. Now, however, the effects of spiralling inflation are starting to take hold. With UK inflation rising to 10.1 percent in July, its highest rate in 40 years, businesses in the North of Ireland are grappling with a sharp spike in business costs. Added to this, they must contend with more localised pressures, including uncertainties associated with the NI protocol, the collapse of Stormont and the subsequent inability to agree a three-year budget. In response to rising inflation, the Bank of England has raised interest rates by 0.5 percentage points to 1.75 percent, the most significant increase in 27 years, and inflation is predicted to hit 13 percent by the end of the year. There is no doubt that some businesses will face challenging times in what is forecast to be a year-long recession, according to the Bank of England. At times like this, business leaders need to consider what their clients find most compelling when it comes to value. To understand this, you need visibility and insight into your operations, data to inform decisions, quick thinking, and most importantly of all, you need to strengthen client relationships. For any business feeling the current pressures, our advice is to take a ‘root and branch' approach – review, plan, communicate and act fast!  We have outlined below some actions businesses can take now to tackle the twin effects of inflation and recession. Cash reserves Cash may be a questionable investment in times of inflation, as rising prices lessen its buying power, diminishing its value. Cash can be a critical asset for small businesses facing inflationary pressures, however. Cash reserves can serve as a buffer, as costs often increase faster than a business owner can raise prices. "Cash is king" even during inflation, so it is crucial to build and hold appropriate cash reserves to buy time until you can pass higher prices to clients if required. Protect profits Look at growing and protecting profits, not just your sales. Taking stock of your pricing structure and knowing the finer detail behind your profit margins will help you understand how inflation will affect your ability to break even or hit certain profit targets. It may also influence decisions to focus on higher-margin services to protect bottom line profitability. Research the market You may have to consider price hikes aligned with rising costs in the market. Before increasing prices, analyse your competition, however. Let their prices be a guiding point. Be upfront with clients about price increases and why they are necessary. Transparency will help clients adapt to new situations and prepare their own budget without compromising their loyalty to your business. Review credit terms Managing your working capital is always crucial, particularly at times of rising costs. Review credit terms as cash flow comes under pressure and maintain an awareness of the increasing base rate of interest and its potential impact on your business. Manage debt collection Ensure that your debt collection is efficient and take steps to minimise any long-standing debt. Don't let clients manage their cash-flow challenges at your expense. Reassess your suppliers In terms of rising prices, you can also save costs by pricing around other suppliers to diversify your supply chain if needed. Efficiency and productivity Eventually, inflation will begin to create wage and salary pressures. Smaller businesses can see profits getting pinched as payroll costs rise. When this happens, focus on the efficiency and productivity of your workforce.  What goes up must come down. At some point, inflation will subside and businesses that have been disciplined around capturing cost increases and focusing on efficiency, productivity and customer-service will be in a much stronger position to take advantage in the long-term.  Claire Daly is a Manager at CavanaghKelly

The Great Resignation is ongoing even as the pandemic recedes, so what can employers do to keep their best people on board? Getting them to stay comes down to understanding why they leave, writes Patrick Gallen As has been stated many times and in many ways, the workplace has changed tremendously since the onset of the COVID-19 pandemic in early 2020. There has been a global shift in the labour market, putting employees in the driving seat and prompting employers to increase pay and boost incentives to attract and retain the talent they need. Given the current climate, how do employers keep hold of their workforce? Looking at some of the reasons people resign can be a useful starting point. Here are three areas in which employers often fall down, leading to higher staff turnover. 1. The value of feedback When feedback is sought and no changes are made, this can cause employees to become disengaged over time, leading to resignation in some cases. While it is unrealistic for employers to act on every suggestion an employee makes, encouraging feedback and, more importantly, listening to this feedback can have a significant impact on their morale and motivation. Analysing the feedback can also reveal useful patterns. If you respond to concerns and challenges voiced by more than one employee, you are demonstrating to the group that your organisation cares and you are willing to put words into action. Issuing anonymous surveys or conducting a Net Promoter Score (NPS) review can provide a useful snapshot of how your employees view the organisation and their working environment, as well as a nuanced understanding of what they want from the organisation. As the feedback is anonymous, employees can be honest without fear of repercussion. 2. The importance of recognition Being valued and recognised for their work and commitment can carry enormous weight for employees, boosting job satisfaction. Often, it is not just the monetary value placed on their work that motivates people and improves morale, but also the sense that their effort and contribution is recognised and appreciated. 3. Invest in employee growth Consider the ways in which employees can develop their career within your organisation. Giving them opportunities to gain valuable experience will contribute to their career aspirations and performance. They will be more likely to stay where they know they can thrive. A mentoring programme, opportunities for further education, and internal training programmes, all offer valuable growth opportunities for employees at all levels — and these actions can make a real difference. By learning about the root causes of employee turnover, organisations can implement the changes they need to reverse the trend and retain the talent they need to thrive and grow. Patrick Gallen is People & Change Consulting Partner at Grant Thornton Ireland