As Ireland enters its third year of gender pay gap reporting, Andrew Egan and Aoife Newton outline legislative updates, bonus gap impacts and new reporting requirements As many employers in Ireland commence their third year of gender pay gap reporting, it is essential to understand the legislative changes and analyse bonus trends following the introduction of the Gender Pay Gap Information Act 2021, and identify important changes for employers to note as they begin this year’s gender pay gap reporting cycle. Bonus gap analysis A fundamental feature of the Gender Pay Gap Information Act 2021 reporting requirements relates to bonus gap calculations. These calculations are used to understand the disparity in bonus payments between genders within an organisation. Bonus payments can also considerably impact total remuneration (as bonus pay is built into ordinary pay results), affecting the overall pay gap within an organisation. As a result, the observation of a large bonus gap is often reflected in the overall pay gap. Pay gap trends More than 1,000 gender pay reports from 2022 and 2023 have been analysed by KPMG’s data team to identify key trends in Ireland across different industries: From 2022 to 2023, the average bonus gap in Ireland rose by 1.5 percent, up from 16.5 percent to 18 percent. In 2023, 87 percent of the employers analysed reported a bonus pay gap in favour of men. The most common reason cited by employers for their pay gap related to a higher proportion of men occupying senior roles. The bonus gaps are biggest in the insurance, real estate and construction, financial services and professional services industries. Senior roles are typically associated with higher bonus remuneration. We expect bonus and pay gaps to persist if women remain underrepresented at senior levels. Correctly determining the cause of an employer’s gender pay gap is critical in addressing the problem and improving the gap in future reporting cycles. We are seeing employers having to more clearly define their bonus pay models to ensure greater transparency and consistency of treatment of men and women to reduce or eliminate bonus pay gaps, which in turn will positively impact their overall gender pay gap. Gender Pay Gap Reporting in 2024 In late May 2024, the Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2024 (the 2024 Regulations) were introduced. Following this, the Department of Children, Equality, Disability, Integration and Youth updated its Gender Pay Gap FAQs for employers document (the FAQs) and the associated Guidance Note document. The 2024 Regulations amend the original Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 (the 2022 Regulations) to reflect the obligation of relevant employers with over 150 employees to report on their gender pay gap in 2024. This reporting threshold will expand to those with over 50 employees in 2025. The 2024 Regulations also provided an update on the definition of ‘basic pay’ to include payment when an employee is on certain types of statutory leave (adoptive leave, maternity leave, parents leave (or transferred parents leave) paternity leave (or transferred paternity leave), entitling them to a corresponding social welfare benefit. Employees entitled to the relevant benefit for each of these types of leave under the Social Welfare Consolidation Act 2005 shall now have these payments included as a component of their basic pay calculations. Employers should incorporate salary top-ups to employees on statutory leave as listed above when calculating employees’ pay. The FAQs guides employers who do not pay a top-up to employees to ‘report on the benefit the employee is paid where eligible.’ Online reporting We understand that the development of an online reporting system is underway. We expect this will consist of a central portal where all employer data will be uploaded. While we think it is unlikely this will be in place for 2024 reporting, we are awaiting further details on its implementation and whether its operation will move the reporting deadline from December to November in future years. This change would result in employers having five months from their June snapshot date to report on their gender pay gap, instead of the current six-month period. Gender pay gap and shares One of the most significant changes brought about by the 2024 Regulations was the shift in the approach to how share options and interests in shares are treated for gender pay gap calculations. After the 2022 Regulations were introduced, many employers struggled with the application of these elements as a part of bonus remuneration calculations. Share options and interests in shares are now included in the benefit-in-kind calculations rather than under bonus remuneration. The definition of benefit-in-kind now includes “any non-cash benefit of an estimated monetary value and, for the purposes of these regulations, includes share options and interests in shares.” Shares (distinct from share options and interests in shares) are still part of bonus pay and, as such, the value of shares issued during the reporting period should be included in bonus remuneration calculations. Andrew Egan is Director at KPMG and Aoife Newton is Director at KPMG Law

Here, Dee France, Member & Student Support and Well-being Lead at Chartered Accountants Ireland, explores what diversity and inclusion means in the workplace, the important role it plays for employee well-being, and why employers should foster a culture of belonging and inclusion. Diversity and inclusion (D&I) has become a driving force in the changing organisational landscape. Companies and business leaders are placing greater emphasis on their approach to D&I and are embracing policies and strategies to create a more diverse, fairer, and resilient workforce.  Employee well-being and D&I are closely connected. In fact, employee well-being awareness can be seen as an intrinsic element of a company’s effective D&I strategies and policies.  An essential and significant feature of good overall well-being is our feeling of purpose and belonging. Programmes and initiatives that promote inclusion, diversity, and belonging can support and cultivate positive employee well-being. In its entirety, D&I in the workplace can have an impact on our overall happiness at work.  Emotional tax Employees from diverse backgrounds who experience a non-inclusive workforce can face an additional burden of an ‘emotional tax’ – the experience of being treated differently from peers due to race/ethnicity or gender, triggering adverse effects on health and feelings of isolation and making it difficult to thrive at work. This emotional tax can have an extremely negative impact on employees’ mental health and wellbeing. Feeling undervalued, overlooked, or excluded due to your identity can heighten a person’s vigilance to protect themselves from acts of bias or prejudice. Thrive, Chartered Accountants Ireland’s dedicated well-being hub, continues to receive regular calls from our members and students who seek support from the damaging impact a non-inclusive workplace can have on their wellbeing.   Managing diversity and inclusion  Implementing effective and successful D&I strategies and policies can take time, but a coherent and structured approach to these ensure that work practices and values support an inclusive culture that embraces different people, views, and perspectives. Producing a D&I policy allows a company to go above and beyond legal obligations and set a standard of expectation for the organisation and for its employees.  There are several ways companies can begin to incorporate inclusivity into the workplace.  Leadership and employee training  Providing training for leadership, management and employees increases awareness, aids the understanding and engagement in the company’s values and policies, helps embed these initiatives into the culture of the workplace, and allows for the development of empathy for others.  Employee network groups  Building an employee network group is an effective way to allow people to connect with others from different groups, and raise a sense of belonging, affinity, and kinship.  For example, the Institute has several different committee groups such as Balance, our LGBTQ+ committee, Student Committee, and D&I committee.  Open communication and feedback  Developing open and clear communication channels that are easily accessible to employees breeds better dialogue. It ensures employees and managers alike feel safe in airing grievances, giving feedback, and the feeling of being heard and valued.  Employee surveys on D&I initiatives allow companies to take onboard employees’ experiences and action feedback. It permits companies to assess if policies and strategies are working and evaluate and benchmark their efforts from year-to-year.  The Thrive Wellbeing Hub provides counselling, wellness coaching, practical advice and more to all members of the Institute. You can contact the Thrive wellbeing team by visiting our website, via email at: thrive@charteredaccountants.ie, or by phone: +(353) 86 0243294. 

Thought leadership can be highly effective in professional services marketing, especially for accountancy firms. By showcasing expertise, firms can enhance their reputation and attract clients. Mary Cloonan explains how In today's competitive business-to-business landscape, thought leadership has emerged as a vital marketing strategy, especially for the accountancy profession. By establishing themselves as industry experts, firms can differentiate their services, build trust and attract high-value clients. Outlined below are seven steps you can take to enhance your firm’s marketing offering through the medium of thought leadership. Establish authority: thought leadership positions firms as knowledgeable leaders in their field. By consistently sharing insights, research and expert opinions, they demonstrate their expertise and reliability. Enhance brand visibility: regular publication of thought-provoking content can help firms stay top-of-mind among potential clients and industry peers. This increased visibility can lead to greater brand recognition and credibility. Build trust and relationships: clients are more likely to trust and engage with firms that provide valuable, insightful content. Thought leadership can foster long-term relationships by demonstrating a deep understanding of industry challenges and solutions. Drive business growth: thought leadership content can generate leads by attracting professionals seeking expert advice. It helps in converting prospects into clients by showcasing the firm's ability to solve complex problems. Validate and engage: content published by thought leaders acts as a validation point, which can reinforce your firm's expertise. This content can be shared on social media and forwarded to clients and prospects, further extending its reach and impact. Differentiation: in a crowded market, thought leadership sets firms apart. By sharing unique perspectives and innovative solutions, firms can differentiate themselves from competitors. Continuing Professional Development (CPD): Hosting, or offering to participate in, CPD events and workshops can help to educate clients on industry trends and also demonstrate the firm's expertise, fostering a culture of continuous learning and professional growth. How to implement thought leadership content To implement your thought leadership content, consider the following: Content creation: publish whitepapers, blogs and research reports regularly and bear in mind that this can be more effective if the research is industry-specific. Speaking engagements: participate in industry conferences and webinars. Social media: leverage platforms like LinkedIn to share insights and engage with your audience. Client education: host CPD events to educate clients on industry trends. The power of thought leadership For accountancy and advisory firms, thought leadership can be more than just a marketing tactic. It can offer a strategic approach to building authority, fostering trust and driving growth. By consistently demonstrating expertise and providing value, firms can create lasting client relationships and achieve sustainable success. Moreover, leveraging published content as validation on social media and for client communications amplifies its effectiveness with a view to building credibility with prospective clients. Mary Cloonan is the founder of Marketing Clever.