Dr Claire Guy explores how Irish companies can reduce costs, boost reputation, and gain market share through eco-friendly practices Being environmentally friendly is not only good for the planet, but also for the bottom line. Businesses that adopt sustainable practices can reduce their costs, improve their reputation, and gain a competitive edge in the market. Additionally, sustainability is increasingly becoming a legal requirement, as both Ireland and the EU have set ambitious targets and regulations to combat climate change and environmental degradation. Regulatory framework Ireland’s Climate Action Plan 2024 outlines Ireland’s commitment to achieving a 51 percent reduction in greenhouse gas emissions by 2030, compared to 2018 levels. The European Green Deal commits to delivering net-zero GHG emissions at EU level by 2050; with Ireland committed to achieving net-zero emissions no later than 2050. These ambitious targets require significant investment and changes across various sectors, including energy, agriculture, and transport. For businesses, this means adapting to stricter environmental regulations and investing in sustainable practices. Companies now need to innovate and adopt greener technologies to meet these targets, which may initially increase operational costs but also present new opportunities for growth and competitiveness in a low-carbon economy.  The transition to a more sustainable business model is not just a regulatory requirement but also a strategic move to future-proof businesses against the impacts of climate change. To meet the 51 percent reduction in greenhouse gas emissions by 2030, Ireland has agreed to several specific sectoral targets, including: Electricity: 75 percent greenhouse gas reduction by 2030; Transport: 50 percent greenhouse gas reduction by 2030; Industry/enterprise: 35 percent greenhouse gas reduction by 2030; and Agriculture: 25 percent greenhouse gas reduction by 2030. Meeting these target reductions is a journey which presents challenges and opportunities for Irish businesses.  Businesses are now encouraged to set science-based targets (SBTs) and develop comprehensive company-specific climate action plans, covering everything from resource efficiency to supply chain, to achieve these goals and transition to a low-carbon, circular economy.  These targets involve measuring and reducing emissions across all scopes (Scope 1 relates to direct emissions from an organisation’s facilities, Scope 2 relates to emissions from energy purchased by the organisation, and Scope 3 relates to other indirect emissions, such as those from suppliers and the use of the organisation’s products), investing in renewable energy, improving energy efficiency, and innovating sustainable practices. Benefits to Irish businesses Going green offers several benefits to Irish businesses, both economically and environmentally. Here are some key advantages: Economic resilience: The need to reduce our reliance on fossil fuels was especially highlighted by global events like the war in Ukraine. By investing in green technologies and practices, Ireland aims to build a more resilient and self-sufficient economy. Circular economy: Ireland is promoting a circular economy, which involves reusing and recycling materials to minimise waste. This approach not only benefits the environment but also offers significant cost savings for businesses. Companies like IKEA are now transitioning towards a circular business, aiming to give products and materials a longer life through reuse, refurbishment, remanufacturing, and recycling. The company designs products with circular capabilities and uses renewable or recycled materials. Their sustainability strategy includes becoming a fully circular business by 2030. Cost savings: Implementing sustainable practices can lead to significant cost reductions. For example, energy-efficient technologies and waste-reduction strategies can lower utility and disposal costs. Attracting talent: A survey by IBM showed that 67 percent of people are more willing to apply for jobs from organisations they consider to be environmentally sustainable and environmentally responsible. By going green, businesses can attract and retain top talent who value sustainability. Customer demand: 75 percent of Irish consumers think that climate change and its consequences are the biggest challenges for humanity in the 21st century, and have turned to sustainable products and services. Meeting these demands can help businesses win new customers and increase loyalty. Investment and funding: Sustainable businesses are more likely to attract investment and funding. There are various grants and supports available for businesses that commit to green practices in Ireland. Compliance and futureproofing: As regulations around environmental impact become stricter, businesses that adopt green practices early will be better prepared to comply with future laws and standards. Reputation and brand image: Being known as a sustainable business can enhance a company’s reputation and brand image, making it more appealing to both customers and partners. For example, Kellogg’s aims to use 100 percent recyclable, reusable or compostable packaging by the end of 2025 to align its business with circular economy principles, as well as strengthen its green reputation and brand. Global market access: Many international supply chains now require sustainability from their partners. Going green can open new markets and opportunities for Irish businesses. Whether a business is furthering its journey towards sustainability or just beginning to take serious steps in that direction, various aids are available from Ireland and the EU. These supports facilitate progression towards more eco-friendly operations and foster employee participation in these initiatives. Dr Clare Guy is a Senior Consultant at KPMG

As some companies pivot back to full-time office work, Mark Fallon examines the sustainability of remote work and its impact on business culture and talent retention The first few months of the year changed the landscape of the professional working week. From the onset of the COVID-19 pandemic up until 2022, office workers were predominantly ‘working from home’ (WFH). Then came the shift to a hybrid working model, with professionals working part-time in the office and part-time at home. Today, in thew fourth quarter (Q4) of 2024 and trending into 2025, the dynamic is changing once again with many companies doing a U-turn on their WFH policies, demanding their employees to return to the office five days a week. Resurfacing culture concerns In 2020, Coopman Search and Selection ran a survey of more than 400 professionals in Ireland about working from home in the first winter of COVID-19. Out of several interesting findings in this survey, the biggest fear from corporations at this time was the ‘lack of collaboration’ and ‘loss of culture’ with employees not being present in the office environment. Fast-forward to Q4 2024 and this concern has come to fruition, with business leaders ‘feeling’ that employees need to be in the office more , as stated by Andy Jassy, CEO of Amazon, in September 2024, “to be better set up to invent, collaborate and be connected to each other”. There is mixed data on the advantages and disadvantages of WFH. Some claim productivity has dropped since its introduction, while employees who benefit from hybrid working feel more empowered, better at balancing personal and professional responsibilities. Flexibility remains key to talent attraction Flexible remote work policies can significantly impact the quality of talent they attract. Companies based in major cities might miss out on top talent by requiring full-time office attendance, as many skilled workers are located outside of the commuter area. Offering hybrid or remote work options can help businesses remain competitive in the talent market. While studies have shown mixed results on productivity, some report up to a 13 percent increase in output from remote workers, though others suggest a drop in collaboration and engagement. Looking ahead to 2025, many large companies are expected to increase mandatory office days, while smaller businesses may stick to hybrid models. Employees unhappy with stricter office requirements will likely seek more flexible employers, giving those companies a chance to secure top talent. Fully remote workers may face more challenges securing roles as the trend shifts toward in-office work. A future of retention and growth As the debate over remote work continues, companies that balance flexibility with in-office collaboration will likely be best positioned to attract top talent and meet employee needs in Ireland for talent attraction and retention. Organisations must carefully assess their policies to foster environments that encourage both individual efficiency and collective creativity, ensuring a sustainable future in the evolving work landscape. Mark Fallon is Director and Co-Founder at Coopman Search and Selection

AI is reshaping the workforce, blending human creativity with technology. Tim Bergin explores how organisations can leverage generative AI to unlock potential and drive transformation Generative artificial intelligence (Gen AI) may be perceived as a risk to human employment, but it can also be viewed as a catalyst for redefining the contribution of individuals in the professional environment. Increased access to Gen AI is allowing workers to fill capability gaps in creativity, team dynamics and content generation with a new technology-driven assistant. The challenge now lies in encouraging our organisations to embrace the advantages while unlocking the potential for workforce workplace restructuring. Unlocking human potential Gen AI provides the ability to rethink how work is organised at operating model, functional level an team level. How can employers unlock the full potential of their workforce at these levels? Team AI is a proven catalyst for better communication, how we interact with colleagues and customers, and how we collaborate and get work done. For example, virtual and augmented reality allow real-time collaboration with people across the globe, facilitating richer conversations, skill sharing and exposure to other areas of the organisation. According to the EY Workforce Reimaged 2023 survey, there is a 33 percent net positive sentiment of employers and employees who believe Gen AI will boost productivity and new ways of working, and an even greater 44 percent net positive of those who expect the technology to enable greater flexible working. Aside from additional capacity, AI systems can provide insights into team performance, sentiment and connection by tracking and analysing data. This could give employers insight into how their team is feeling through survey feedback. This can help promote a more productive, collaborative environment, enabling employers to proactively address employee issues. Organisation The adoption of AI at an organisational level can revolutionise current ways of working from front-line customer-facing functions, to operations and corporate functions such as finance and HR. The transformative impact can be seen on all fronts, demonstrating the potential to improve not only efficiency and effectiveness but also employee experience. For example, using Gen AI to predict consumer needs can help organisations refine their stock systems and supply chain to ensure products are ready at the point of need, rather than stockpiling and incurring unnecessary storage costs. This use case can also free up time for consumer-facing staff to have more considered conversations with their customers about potential future purchasing needs, and demonstrates the rounded positive impact we can expect to see if Gen AI is used responsibly, and thoughtful consideration is given to the workforce impact and opportunity. It is clear from a team and organisational perspective that AI’s role is pivotal in the evolution of the workforce and the increasing requirement for upskilling and reskilling. Success lies in the coming together of emerging technologies and vital human interventions; releasing the power of technology while emphasising the importance of what makes work human. Collaborative partnership While AI's rapid proliferation might trigger fear of unprecedented changes in the working environment, organisations must remember that by embracing AI and investing in the upskilling of their workforce, they are fostering a collaborative partnership between human creativity and artificial intelligence. Tim Bergin is Partner of People Consulting at EY 

When an employee resigns, handling the process smoothly is crucial. Moira Grassick outlines key steps to manage both formal resignations and sudden departures in your business Occasionally, employees resign. In doing so, they usually give full contractual notice of their resignation. However, an employee sometimes resigns in the heat of the moment. As you can imagine, quitting a job with no notice given doesn’t exactly follow the typical resignation process. Regardless of whether an employee submits a resignation letter or rage quits their job, you need to handle the situation properly.   What is resignation? Resignation is when an employee informs their employer that they’re quitting. The employment relationships can end in various ways, including: An employee gives you their notice of resignation by speaking with you or handing in a letter of resignation; The business ends the contract of employment; or An employee reaches a justifiable contractual retirement age. Once an employee has notified you of their intention to resign, they must complete a notice period. The length of this notice period can be found in the employee’s employment contract. During this period, you can begin your search to find a replacement for the role. It’s also worth noting that you can pay the employee to not work through their notice period. Notice periods in Ireland Notice periods in Ireland vary by each employee’s employment contract and often their length of service. There are, however, two common types of notice to keep in mind: Contractual notice: You can decide the amount of contractual notice an employee must give. For instance, two months’ notice may be required for an employee who has worked with your business for two years. Statutory notice: This is the length of notice an employee is legally required to give. This will depend on their length of service. If an employee has worked with your business for at least 13 weeks, they must give you at least one week’s notice. However, one week’s notice is generally too little time to arrange a replacement. This underlines the value of an appropriate contractual notice period that works for your business. Next steps When an employee of yours decides to resign, it’s only natural that you may try to convince them to stay. After all, they could be one of your highest achievers. If instead you accept the resignation, there are some key steps to follow: Get the resignation in writing: Written confirmation of the resignation must include the employee’s name, the date, and a signature. Seek a resignation letter regardless of the length of employment. Respond to the resignation: Acknowledge your acceptance of the resignation. This can be a written or verbal response. You can also send a resignation email with the notice period confirmed. Decide on the notice period: Do you want the employee to work their full notice period? Confirm your decision with the departing employee. Prepare a handover pack: A handover pack for the departing employee’s replacement will come in handy when they arrive. Conduct an exit interview: This interview allows you to understand the employee’s reasons for resigning. You’ll also be able to make improvements to their role or management practises based on that feedback. Retrieve business property: Retrieve business property from the departing employee. These items could include computers, devices, or their uniform. You must also arrange the employee’s final wage payment. Failing to do so can result in a Workplace Relations Commission (WRC) claim. Finally, try to end the professional relationship on a positive note. After all, the departing employee may return to your business down the line. Moira Grassick is Chief Operating Officer at Peninsula

Finance Bill 2024 introduces key updates on tax reliefs for employers and private businesses. Pat Mahon breaks down the most significant changes From an employment and personal tax standpoint, the majority of the legislative actions contained in Finance Bill 2024 are aligned with announcements made on Budget Day. However, some newly announced measures in the Finance Bill are likely to be of interest to employers and private businesses. Employment Investment Incentive Finance (No. 2) Act 2023 brought several changes to Employment Investment Incentive (EII) relief to ensure the relief complied with amended EU state aid rules. The most fundamental change concerns the rate of tax relief. Finance (No. 2) Act 2023 restricted the maximum effective rate of EII relief for follow-on investments to 20 percent. This change was implemented based on an initial interpretation of EU state aid rules. However, on further developments, it appears that there is flexibility in the EU state aid rules for the 35 percent rate to apply to follow-on risk finance investments where the company has been in existence for less than ten years or within seven years of its first commercial sale. Finance Bill 2024 has recognised this rate of relief on a retrospective basis for shares issued on or after 1 January 2024. This is a welcomed change for the Irish scale-up sector. Other relevant changes to the regime were: An extension to the deadline for processing the relief from four months post-year-end to 31 December in the year following the year in which the shares were issued. The extension of the operation of the relief to 31 December 2026. The amount upon which an investor can claim tax relief under the scheme has increased from €500,000 to €1 million. Start-Up Refunds for Entrepreneurs The amount of Start-Up Refunds for Entrepreneurs (SURE) relief that an investor can claim annually has been increased from €100,000 to €140,000. This results in a total maximum of €980,000 over seven years. For SURE relief being claimed where a loan is converted to eligible shares, a business plan must be in place in advance of the date of the issue of the loan. The same change for the rate of relief from 20 to 3 precent for follow-on EII investments also applies to SURE claims.   Start-Up Relief S486C TCA 1997 For accounting periods beginning on or after 1 January 2025, in addition to providing the current relief relevant to the amount of employer’s PRSI borne by the company, relief will also be available by reference to the amount of Class S PRSI paid by a director of the company. This is subject to a maximum of €5,000 employer’s PRSI per employee, €1,000 Class S PRSI per company director and €40,000 overall. R&D tax credit  The amount of refundable R&D tax credits that can be paid to a company in a year has been increased from €50,000 to €75,000. CGT retirement relief Finance (No. 2) Act 2023 increased the age limits for CGT retirement relief purposes from 65 to 69 years. However, it also introduced a new maximum limit of €10 million on disposals of qualifying assets to children up to and including the age of 69 years. These changes were due to take effect from 1 January 2025. While the increased upper age limit will remain in place, amendments introduced in Finance Bill 2024 propose a clawback period of 12 years in relation to disposals of qualifying assets in excess of €10 million made by an individual between the ages of 55 and 69 years (inclusive) from 1 January 2025. The relief will operate to defer any CGT which would be due by the parent disposing of the asset to the earlier of: the date on which the shares are disposed of by the child; or the expiration of 12 years from the date of the disposal. Where a qualifying asset on which retirement relief is claimed is subsequently disposed of by the child within 12 years of the transfer, the child will be assessed on the deferred CGT in addition to any CGT arising in respect of the gain accruing to the child. However, if the qualifying asset is held by the child for at least 12 years, the CGT will be abated. This change is to be welcomed and will ensure that transfers of successful businesses to the next generation are not penalised subject to a number of requirements being satisfied. Angel investor CGT relief Angel investor CGT relief was introduced in Finance (No. 2) Act 2023. The relief provides a reduced CGT rate for qualifying investments made by a qualifying investor in a qualifying company. The reduced CGT rate is 16 percent for direct investments or 18 percent for investments made by a partnership. The relief was restricted to a lifetime limit of €3 million on gains. The new Finance Bill increased the lifetime limit on gains from €3 million to €10 million. The commencement of the relief is subject to Ministerial Order. Small benefit exemption Finance Bill 2024 confirms the increase in the small benefit exemption threshold to €1,500 per annum. There is also a very welcome increase in respect of the number of vouchers or benefits that qualify for the relief, with five gifts or vouchers now being eligible for relief providing the cumulative value does not exceed €1,500 per annum. Surprisingly, the Bill also states that the exemption will cease with effect from the year of assessment 2030 onwards. PAYE statute of limitations There is a provision to amend the time limits within which the Revenue Commissioners can raise PAYE assessments against employers for tax years 2025 et seq. However, there are some uncertainties in relation to the effect of the changes and further clarity will need to be provided once the draft provision is debated. Pat Mahon is Tax Partner at PwC

One of my direct reports manages a team of five. Nobody has complained about her, but there is a fairly high level of turnover on her team. She works incredibly hard to (mostly) very high standards. She sometimes spends too much time on unimportant issues and loses sight of the bigger picture. I have sat in on some of her team meetings: she is very task and deadline focused and quite tense. They are not bad meetings, but something is missing. She is very defensive around feedback and can get upset. A. It can be hard to help somebody who is well-intentioned, hard-working and, in their own eyes anyway, doing the right thing.  It sounds like she is quite anxious about her work or performance and the trick will be to find a balance between encouraging her (commitment, high standards, work rate) while ensuring that her singular focus does not hinder productivity or well-being.  While feedback may be part of the response, you may also need to broaden out her sense of what it is to be a manager, i.e. it’s not only about getting the work done, but also about motivating and developing people along the way.  It might also be useful to reflect on whether your direct report is clear on expectations, goals and priorities. It could be worth going back to first principles and discussing what else is important in their role (e.g. developing their direct reports).  You might also reflect on whether you keep them in the loop so they know what’s important for you. Weekly meetings where you (jointly) clarify priorities may be useful.  Assuming you have more than one direct report, and that you meet with this group from time to time, look at how you build connection and trust with them – creating a place where they can share challenges, reflect on learning (from failure as well as success), and discuss how they are working with their own reports, etc.  Each person’s real-life challenges can be a case study for the group to discuss. This encourages a growth-mindset and will help her, and her peers, reflect on what it means to be a leader. Share a resource on leadership (the book recommended below, maybe?) and discuss the ideas. You will probably also need to share feedback to encourage behavioural change. The success of this feedback will be dependent on three main factors:  Your relationship with the person – is there trust between you?   Their self-esteem – are they open to feedback and resilient?   Your skill in sharing feedback – ensuring feedback is balanced, using the right language, etc.  Building trust may allow you to find out what is driving her behaviour (e.g. perfectionism, anxiety, fear of failure, habit) which may open a deeper conversation. The BOFF model provides a useful framework for giving both positive and developmental feedback:  Behaviour: what have you observed? (heard, seen, experienced). This helps you describe rather than judge. Outcome: the impact of the behaviour Feelings: what you are happy about (or concerned about). Future: Next steps (for you, for them). It will be useful to approach the feedback with her, not from the point of ‘what’s not working’, but placing it in the context both of her career aspirations as well as developing her team.  Her development, her team’s development, her work-life balance, etc., should be standing items in your one-on-ones – and this will help you role model the type of behaviour you want from her. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie