The gap is closing on gender inequality in Ireland’s boardrooms, but organisations must do more to promote female leadership. Meliosa O’Caoimh explains how Published this month, the Balance for Better Business Review Group’s fifth report brought welcome news, revealing that targets of 30 percent for women on all public listed boards in Ireland had been exceeded for the first time, now standing at 32 percent. Figures for the percentage of women on the Boards of ISEQ 20 companies rose to 36 percent through voluntary action, up five percent on last year. Ireland also now exceeds the EU27 average for the proportion of women on leading company boards for the first time. For other listed companies, the percentage of women on Boards stands at 26 percent, exceeding the 22 percent target set for the end of 2022 and up 16 percentage points since 2018. It’s fantastic that, after just five years of the Balance for Better Business initiative, we are seeing such strides forward in female board representation. Progress is not happening at the same pace in other spheres, however—particularly with regard to C-suite (CEO, CFO and Chair) roles. Here, women are still significantly under-represented in many large companies. It is critical that we continue to address this gap, because—in addition to providing an important pipeline for board talent—it is imperative that we have gender balance at all senior decision-making levels within organisations. To help redress the balance, individual organisations must take their own steps to promote gender equality on Boards and C-suite. Here are some recommendations: Set Diversity and Inclusion (D&I) as a standing agenda item at Board level, using topics like the Gender Pay Gap, Balance for Better Business, ESG and other related issues to promote genuine discussion, and track progress; Integrate diversity into the business agenda at C-suite and Board level, to include action planning and KPIs for outcomes relating to employees, product innovation and development, supply chain integration and customer experience; Set targets for senior roles of influence with a focus on Board and C-suite; Build succession planning for key roles and ensure that, in 3:1 cover plans, there is a gender balance in available talent or a plan to achieve greater gender balance. Such succession planning should be based on individual roles and functions, and not approached as a blanket team approach; Complete a process review of all board appointment systems—including, for example, a board diversity policy, a nomination committee standard, and a commitment to balanced slates for selection consideration; Carry out a process review of all C-suite appointment systems, including mandated balanced slates, open advertising, and reviews of merit standards and role accountabilities; Commit to career path planning across specialist functions, particularly in Finance or P&L portfolios, to ensure gender balance in roles that are the future pipeline for CFO and CEO—from graduate, through to middle management, and on to senior management, as part of a longer-term strategy. Meliosa O’Caoimh is Chair of 30% Club Ireland

The Government has signed into legislation a new tax credit for the digital games sector. Ian Collins and Arek Rojek outline what this will mean for the gaming industry in Ireland On 21 November, the Irish Government, on the back of European Commission approval, officially signed into legislation a tax credit for the digital games sector. This offers a refundable corporation tax credit to digital games development companies for expenditure on the design, production and testing of a digital game. Originally announced in Budget 2022, the new tax credit represents a fantastic opportunity for Ireland to become a powerhouse in the global games development industry. It follows the recent introduction of several university courses geared towards video game development, and clearly sets Ireland’s ambition of becoming a hub for the digital gaming industry in a sector estimated to be worth up to €260 billion. This incentive will be available at a rate of 32 percent of eligible expenditure ranging from €100,000 to €25 million per project. It will also require the game to meet a cultural test based on the contribution its development is expected to make to the promotion and expression of Irish and European culture. These parameters are similar to those already applying to the Irish film tax credit. Video games in Ireland have a vibrant history, and a significant number of indigenous and multinational gaming companies already have operations in the country. When you combine this incentive with the Irish talent in the audio and visual arts, you have a recipe for success. Many other jurisdictions have introduced incentives in this sector, so the launch of the digital games tax credit in Ireland is also very timely. The regulations will now be signed by Revenue, allowing digital games development companies to apply for an interim certificate from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media for a qualifying digital game. It is expected that certificate holders will then be able to apply for refunds under the scheme from 1 January 2023. The incentive provides a great opportunity for attracting, promoting and growing the digital games industry in Ireland. Only time will tell if the regime will be successful, however—and it should be noted that, while the tax credit is very welcome, some aspects could potentially slow the pace of growth in the digital games sector. Factors such as the proportion of development carried out in Ireland versus overseas, the rules governing the cultural test and the level of documentation required, will all no doubt play a pivotal role in determining how successful this regime will be. Guidance in this area will be very important to ensure the level of certainty needed to incentivise investors to choose Ireland as their place of business, as well as a healthy number of smaller companies looking to progress into the premium AAA games sector in cooperation with well-established game developers and publishers. Ian Collins is Partner/Principal, Business Tax Advisory (BTA) and Arek Rojek is Manager, Business Tax Advisory (BTA) at EY Ireland

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

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

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

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