Given the remote and hybrid working circumstances in which society is now largely operating, maintaining a strong and cohesive team culture is more challenging than ever. Dearbhla Gallagher outlines how delegation can create trust and enable communication between a leader and their team. The ability to delegate is an essential leadership skill, but often a forgotten one. Failure to delegate can make a leader less productive, turning their attention away from big-ticket issues that need attention towards more mundane tasks. On the other hand, great leaders have the ability to naturally delegate to their teams and, in doing so, empower their members to step up and take on more challenging and interesting work. Let’s look at some of the outcomes a leader could expect from employees if they master the ability to delegate successfully. Trust A good leader does not ‘do’; instead, they strategise, plan, coach and then delegate responsibility for specific tasks, confident that the employee will complete the task. By these actions, they are implying a level of trust that the employee almost always appreciates. Engaged and ambitious employees want more challenging tasks and want to be trusted to do them. This increased sense of trust by the employee leads to improved team culture, a win-win for everyone. Communication Communication, never an easy thing to conquer in the workplace at the best of times, has become even more challenging in the remote environment. Face-to-face contact and the use of body language is not present anymore. Endless Zoom and Teams meetings are pointless if very little has changed by the end of the meeting. Successful delegation can lead to improved communication. Leaders actively work with team members to discuss projects, brainstorm ideas, and share tasks, thereby keeping the remote team engaged and interested in a particular project. Time In a remote world where team members are not sitting nearby, it is all too easy to get bogged down by everyday repetitive and mundane tasks and not spend enough time on the more strategic planning and business development elements of the role. Effective delegation allows you to dedicate more time to more important tasks, moving the whole team towards its goals. Employee retention Certain commentators have begun to discuss the concept of the ‘great resignation’. Although statistics have yet to bear out the theory in Ireland, retaining good employees is increasingly challenging as employees begin to question the value of their work and look for ways to have a better work-life balance. Think about some of your best employees currently trying to juggle childcare, schooling and their home while attending Teams meetings, all in a very structured nine-to-five environment. It is very challenging trying to keep it all together, so it may become easier to walk away for some. Effective delegation can make a difference to valued employees and give senior team members more control over how and when they work on a particular project. It empowers them to be decision-makers, allows them more control over their schedule, and maintains that necessary work-life balance, leading to an increased sense of self-worth and value in the organisation. Dearbhla Gallagher is the HR and Learning and Development Manager at Baker Tilly.

Now we are bedding in new, permanent work arrangements, it’s a good time to ensure that you and your staff have the skills to thrive in a remote or hybrid work environment. Anne Phillipson explains. Conversations about returning to the office, adopting hybrid, or going fully remote are currently being held in every organisation worldwide. But I don’t hear so much chat about how we need to upskill employees at every level to help them navigate this new world of work. Last year, as the pandemic took hold, upskilling was the last thing on people’s minds as organisations rushed to send workers home with a laptop. We created our make-shift offices in our homes, logged into our accounts as best we could and got on with it. One month became a quarter, a quarter became a year, and before we knew it, we became remote workers. But that doesn’t mean we have implemented remote working as effectively as possible. Now, new habits have set in – and not all of them are healthy. Helping staff and leaders develop the skills necessary to be effective while continuing to work remotely or in a hybrid situation means, in some instances, introducing new approaches and, in others, breaking bad habits. Think of it as a refresher driving course: if you’ve had your license for some time, you would all likely benefit from a driving lesson or two to highlight the bad habits that have crept in over years of being on the road. If you were to do your driving test tomorrow, would you pass? Working remotely for the past 20 months doesn’t mean that we are doing it as best as possible. Personal effectiveness The first step could be to look at personal effectiveness. What routines help you start and end your working day well? Do you drift from the breakfast table to your desk and let Outlook direct your day? Or is it blocked out in advance, with focus time set aside for priority projects? Do you unplug from all distractions when doing focus work (reading, writing, thinking)? If not, your productivity will suffer as your brain switches back and forth from focus to distraction to focus again. Each shift takes longer for your brain to get back into the groove. As much as we like to think we are brilliant multi-taskers, our brains are not wired that way. We are far better off setting a timer, disconnecting, and focusing on the task at hand for a good block of time. Managers should ensure that their staff practise good time management and achieve work-life balance to ensure productivity. This is best achieved by leading by example. Book a time management course for all staff, attend yourself, and adopt those practices for you and your team. Communication mediums For collaboration with others, are you choosing the best medium for each type of discussion? Just because we can have a Zoom meeting with cameras on doesn’t mean we have to! If a call will do, then pick up the phone. Staring at ourselves on-screen is contributing to our fatigue. Notice your default behaviour and that of your team. Then, consider what habits have formed and how to improve the experience for people in and out of the office. Supporting leaders Finally, how are leaders being supported to lead teams in the new context? We know from companies that have embraced remote working for many years that leaders must also develop new skills to lead remote and hybrid teams. Less time together means that leaders must be intentional about connecting and communicating with their team, both in one-to-one and team settings. Distance means that there is more opportunity for confusion, so clarity of expectation is even more critical. Checking in, not checking up, is a good habit for leaders to develop. By investing in upskilling and talking about working practices, organisations will ensure that their people have the skills to succeed – whatever choices they make for the new world of work. Anne Phillipson is Director of People and Change Consulting at Grant Thornton.

Many trustees are planning to ensure that their occupational pension schemes will fully comply with IORP II regulations by the end of 2022. Munro O’Dywer explains how companies, as sponsors, should use the remainder of 2021 to strategically assess their existing pension value proposition and determine if they should consider a different approach. Pensions represent a significant component of the employee benefit value proposition. However, employees often do not see the actual value in their pension arrangements due to their inherent long-term nature. Those companies who can convey the value of their pension structures to their employees, both in the short- and longer-term, will drive increased loyalty. But what does value mean in the context of the pension scheme for the employee? This should not simply be viewed as the level of employer contributions being made. Adequate contributions are only a small part of the overall retirement planning jigsaw. Other aspects that should come into consideration include: scheme participation; investment options; investment performance; charges; member outcomes at retirement; member support to make optimal decisions; and the use of technology. The changing needs of employees Delivering a pension scheme that meets the needs of all five generations that exist in today’s workplace is by no means easy. Each generation has its own set of preferences. In addition, many will have different pension makeups (e.g. defined benefit only; a mix of defined benefit and defined contribution; and defined contribution only). Defined contribution pension schemes are becoming the norm. There is a greater focus on the adequacy of retirement savings and broader financial wellness. Employees can also have multiple pension sources, potentially across different countries. This creates added personal portability and taxation challenges. Furthermore, how employees expect to be supported on their retirement savings journey varies. There are different preferences around communication channels and the level of support (self-guided, group, or one-to-one). Achieving the right mix of pension components – structure, contributions, employee support and communications etc. – to maximise their effectiveness for all employees is more critical than ever. The market evolution In the same way generational needs and preferences differ, the pension providers, their propositions and the regulatory and taxation environment in which they operate continue to evolve. Operational changes, technology enhancements, investment thinking, and member engagement innovations are only some of the areas providers continue to adapt to, each of which has a knock-on impact on costs. For companies, it is essential to benchmark existing structures relative to the broader market. This will likely become a feature of the new regulatory regime, as outlined in the draft Code of Practice. The impact of the new regulatory regime The past ways of governing and managing trust-based pension schemes are expected to change under IORP II regulations. There will be a greater focus on risk management, value for members, and the ongoing monitoring of outsourced arrangements. As well as the culture and the ability of the trustees to look after member interests, risk, time and cost will increase when it comes to operating a single trust-based pension scheme. Many pension schemes can spend a disproportionate amount of time on regulatory compliance. This can come at the expense of those aspects that are likely to be valued higher by employees. This imbalance has the potential to be heightened by the new regulations. Areas include the adequacy of contributions, achieving strong investment returns, and making the right decisions at the right times before, at, and after retirement. What employers should consider before 2022 Companies have until the end of 2022 to be compliant with the new regulations. 2022 will be a year of pension changes. Companies need to ensure that their changes in 2022 are well considered in the context of the broader pension value proposition and look to enhance, rather than diminish, it. An effective way for companies to use the remainder of 2021 is as follows: Document your existing pension value proposition for employees (benefits/costs) Companies should document all benefits that employees receive from the pension scheme (e.g. employer contribution, tax relief, strong governance, investment options, help and support etc.) and the associated costs. Understand your employee needs and how these will evolve The next stage is to consider your employees and their particular needs. This will help companies understand if the employees’ views on what is valuable to them about their pension scheme are consistent with the benefits/costs documented and, if not, where the gaps lie. Consider the impact of the new regulatory regime IORP II regulations will mean more time and cost spent on regulatory compliance. This could affect the employee pension value proposition, where the elements most valued are neglected due to regulatory pressures. Consider how the existing proposition can be adapted or modified Companies should explore alternative pension structures (e.g. consolidation of pension schemes or master trusts), which will help mitigate the regulatory impact but where the employee pension value proposition remains intact or is indeed enhanced. Munro O’Dwyer is Pension Partner at PwC.

The IASB is proposing changes that may be of interest to finance leaders. Emer Keaveney takes a deep dive into who will benefit from them. To date, the International Accounting Standards Board (IASB) has focused on the requirements for publicly traded entities rather than group companies or standalone statutory financial statements. My interest was piqued by two recent publications from the IASB, which suggest a change in this focus. Widening scope to include group restructuring In November 2020, the IASB issued a discussion paper proposing how to account for business combinations under common control (BCUCC). A BCUCC is one in which all the combining entities are ultimately controlled by the same party, before and after the combination. This type of transaction is sometimes called a group reorganisation or a restructuring. Who will this affect? In today’s dynamic business environment, group reorganisations are very common across all sectors, from large public entities to small and medium-sized enterprises. They can be structured as transfers of shares or transfers of trade/business. There are a number of reasons for a group to restructure. It could be to facilitate the sale of a part of the business, for succession planning, for banking or tax purposes, or to simplify the legal structure. There is currently no International Financial Reporting Standards (IFRS) that address how to account for BCUCCs. In fact, common control transactions are specifically excluded from the scope of IFRS 3 Business Combinations. This has caused a great deal of diversity in practice, making it difficult for users of financial statements to understand the effects of these transactions. It certainly drives the need for more clarity. Currently, there are two allowable methods of accounting by the entity receiving the transfer of shares or trade/business: the ‘acquisition method’ and the ‘book value’ method. There is no consensus on which method is appropriate in which situation. This discussion paper aims to reduce this diversity in practice. IASB’s view is that there is no single method that can be applied to all scenarios. The discussion paper proposes detailed prescriptive rules, reducing the scope for policy choices and bringing clarity to which method should be applied in each scenario. A new take on reduced disclosures In July 2021, the IASB issued the exposure draft that proposes to allow eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement, and presentation requirements in IFRS. The board’s aim here is to reduce the cost of preparing IFRS financial statements for subsidiaries that are not publicly accountable while maintaining the usefulness of the information provided. The election is optional and can be revoked at any time. So, which entities will benefit from the proposals? This will be any entity which, at the end of the reporting period: is a subsidiary as defined in IFRS 10 Consolidated Financial Statements; does not have public accountability. That is, “its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market” or it “holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses”; and has a parent that prepares consolidated financial statements available for public use that comply with IFRS. If you work with entities meeting these above criteria, I encourage you to provide feedback to the IASB through comment letters until 31 January 2022. The intent of this proposal is similar to the existing FRS 101 reduced disclosure framework applied by many group companies in the UK and Ireland. FRS 101 differs significantly in the details from the proposals in IASB’s exposure draft, and it is currently unclear how the two will interact in practice. Globally, a number of national standard-setters have implemented different national IFRS-based reduced disclosure regimes. However, IASB’s exposure draft has the potential to enable a radical streamlining of the preparation of statutory financial statements for organisations operating across multiple jurisdictions – for example, in a shared service centre environment. Emer Keaveny is an Associate Partner in Financial Accounting Advisory Services at EY.

Being a small business owner in the current economic climate can be difficult, but every new year presents new opportunities. Sven Spollen-Behrens explains what SMEs should consider when planning for 2022. After an unpredictable two years, 2022 is right around the corner. Next year is about the return to proactive planning and expansion as we continue to adjust operations and budgets to a post-pandemic business environment. Here are seven things SMEs should consider when business planning for next year. Setting goals Even though we don’t know what the future will bring, you must stay in future-thinking mode – focused on growth, deals and opportunities. Identify what generates business, set targets, and always push to improve yourself, the business and the performance of the people around you. Operations review Do you have the proper procedures in order? How efficiently do you keep spending under control? Is it possible for supply chain issues to let you down? These are all questions SMEs should ask themselves in this calendar year. Prepare your operations for changes coming down the track. Customer experience You win customers over with excellent service, and there is always something extra you can do or say that doesn’t necessarily add cost but adds immense value to the relationship. This could come in the form of follow-up communications, sharing expertise informally, or reassessing clients’ needs regularly. Marketing When it comes to your brand, a social media presence is ideal. Images or videos for LinkedIn and Twitter (among others) are inexpensively produced and customers relate well to visuals. Depending on your service or market, a local radio ad, door drops, or ads may be just as effective. Marketing planning begins by asking yourself who the customer is and how you can reach them. If your business is large enough, contract a marketing manager or PR professional to help. Create an online presence If you haven’t already, explore getting a mobile-friendly webpage and, if appropriate, e-commerce platforms. People increasingly source their products and services online. It’s handy to peruse the goods in comfort and hit the ‘buy’ or ‘contact’ button. Track finances Always have an up-to-date balance sheet tracking your company’s assets, inventory and liabilities. You must be clear on the figures, whether you carry more debt than assets or, hopefully, own more than you owe. Stay on top of accounts receivable and payable, available cash, and payroll commitments. Don’t be a busy fool; ensure your efforts are generating the right return and, if not, question why. Delegation It’s important to delegate the tasks outlined when setting out your goals. It’s common for small business owners to take on the brunt of the work themselves, but one person can’t be all things. Build a plan with your team and transfer ownership of tasks and goals to appropriate employees. Be sure to track the plan’s progress throughout the year and adjust as needed. Sven Spollen-Behrens is the Small Firms Assosciation (SFA) Director at MentorsWork, a free, Government-funded scheme created to help support business analysis and planning. This is delivered by the Small Firms Association and Skillnet Ireland.

To help the next generation reach their goals, parents and grandparents often want to ensure some financial security for their children. Leanne McCrystal outlines three investment options for parents in the UK. With the ever-increasing financial challenges faced by the younger generation, parents and grandparents often find themselves wondering how they can invest for their children’s futures. Whatever hopes and dreams you have for your children or grandchildren, it’s reassuring to know you can take steps now to help put them on the path to achieving their goals. Perhaps your goal may be to help them purchase their first home or contribute to the rising costs of further education; taking small steps while children are young can help achieve these goals. The power of compounding Today’s low-interest-rate environment has created challenges for investors seeking adequate returns on savings, particularly for the younger generation. While cash may seem like the safe option, the negligible interest rates currently available for savings, coupled with inflation, has exposed the actual cost of holding cash. One cash-alternative option is investing designated savings to give your children or grandchildren a head-start in their investing career. The old adage of “time in the market rather than timing the market” still holds, particularly for the younger generation for whom compounding can be their greatest asset. The power of compounding can be easy to overlook. However, regularly investing small sums while letting the funds compound over the long-term can make a monumental difference to a savings pot for your children or grandchildren. Possible investment vehicles There are various ways to invest for the next generation, depending on the quantum of funds you wish to invest and the level of control you would like to retain over how and when the funds are accessed. Junior ISA For children under 18, a Junior Stocks and Shares ISA is a popular choice. Under the 2021/22 UK tax rules, up to £9,000 can be invested in a Junior ISA each year with no tax payable on the interest, dividends or gains accrued. While the account needs to be opened by a parent or legal guardian, anyone can add funds to it. One potential area for consideration for those thinking about a Junior ISA is that the minor will become fully entitled to the funds upon reaching 18. It will automatically convert to an ISA in their sole name. If giving a young adult unfettered access to a substantial amount of money is a concern, alternative investment vehicles can be considered. Pension If you wish to consider a longer-term investment vehicle, pensions are among the most tax-efficient investment vehicles available for savers in the UK. A stakeholder pension can be a highly tax-efficient way of investing for children or grandchildren. While contributions are limited to £2,880 per year for children and non-taxpayers, pensions have the added advantage of receiving an additional 20% top-up from the UK government in the form of basic rate tax relief (i.e. £720 based on a contribution of £2,880). The overarching benefit of a pension is the long-term investment horizon, with access limited until the beneficiary reaches age 57. The long-term investment horizon provides an opportunity to invest funds in higher-risk investments, thereby targeting a possible higher return over the long-term. This, coupled with the benefit of compounding, can build a significant nest egg for young savers to help them in later life. Trust planning Consider trust planning if your principal objective is to gift larger sums of money to your children or grandchildren. Trusts can be useful vehicles for transferring wealth to the younger generation while allowing you to retain control of the assets should you wish to do so, even after your death. Effective trust planning also has the added benefit of potentially reducing your estate for inheritance tax purposes. Trusts can be administratively simple to set up. Still, careful consideration should be given when considering your overall financial objectives, including who you would like to benefit, when, and how much control you wish to retain over the assets. Leanne McCrystal is a Chartered Wealth Manager at Davy UK.