Share Schemes: A Review of Recent Developments

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3 May 2024

by Gillian Dully, Associate Solicitor, Corporate & Commercial Law at LK Shields Solicitors LLP

There are a wide range of share-based remuneration schemes available for employees in Ireland.

Revenue approved arrangements qualify for tax advantageous treatment whereas unapproved arrangements tend to provide greater flexibility. Some examples of these schemes are listed below.

Unapproved schemes

Unapproved share option schemes
Restricted shares
Free and discounted shares
Restricted stock units
Phantom shares and stock appreciation rights
Growth shares
Key Employee Engagement Programme (KEEP)
Forfeitable shares

Revenue approved schemes

Approved Profit-Sharing Schemes
Save As You Earn

Department of Finance Public Consultation

With many businesses in Ireland offering their key employees share incentive arrangements, the Department of Finance held a public consultation on share-based remuneration schemes in Ireland, which ended in January 2024.

The aim of the public consultation was to gain an in-depth understanding of stakeholder and industry views on Irish share schemes and to ascertain whether the administration of these schemes, and the legislation governing these schemes, is fit for purpose in the current business and wider economic environment.

Employers, employees, industry representatives and other interested parties submitted recommendations and provided feedback on the practical operation of the Irish tax regime applicable to share schemes.

The outcome of the consultation process has not yet been published but it is a positive development and recognises the increased importance of share incentive arrangements as critical tools for incentivising and retaining key staff amid the ongoing globalisation of the workforce.

KEEP Scheme Improvements

The Key Employee Engagement Programme (KEEP) share scheme is a tax advantageous share option incentive arrangement introduced in 2018 for start-ups and SMEs. Subject to satisfying relevant conditions, no income tax arises on the exercise of a KEEP share option and instead capital gains will arise on disposal of the KEEP shares. To date, there has been a very low uptake of KEEP options, partly due to the perception that the conditions which must be satisfied by the employer and the participating employees under the KEEP scheme are overly restrictive.

A report by the Commission on Taxation and Welfare, Foundations for the Future, also examined share-based remuneration in Ireland in 2022 and recommended some key changes to the KEEP scheme.

A number of improvements have been introduced to KEEP in recent years including:

the extension of KEEP relief until 31 December 2025
the extension of existing ordinary fully paid-up shares as qualifying KEEP shares
the increase of the KEEP limit for the total market value of issued but unexercised qualifying share options for qualifying companies from €3 million to €6 million

These measures are welcome developments.

Changes to the Taxation of Employee Share Options

A significant new measure was recently introduced whereby employers are now responsible for ensuring payment of tax due on the exercise of share options granted to employees. This shifts the burden of collecting income tax, the Universal Social Charge and employee PRSI onto the employer through the company payroll. Prior to the introduction of these measures the employee granted the share option was responsible for the payment of tax and for the filing of a self-assessment tax return, which was considered by some to be an unnecessary burden on employees.

Future Reforms?

We await the outcome of the recent public consultation process and are hopeful that further measures will be introduced to simplify the share-based remuneration regime for employers and employees so that share incentive arrangements will become an even more attractive option for businesses in Ireland in the highly competitive environment of attracting and retaining key talent.

*This article first appeared in the March 2024 edition of Legal Island.

About the author

Gillian Dully is an Associate Solicitor at LK Shields Solicitors LLP. Gillian has considerable experience in advising Irish and international clients on a broad range of employment, pensions and employee benefits matters. She advises on corporate governance, regulatory and shareholder issues arising from the establishment and operation of share plans and incentive plans.

Gillian’s employee benefits work also involves advising employers in relation to Revenue approved schemes and unapproved schemes to include share option schemes, long term incentive plans, clogged schemes and phantom share option schemes.

Gillian has extensive experience in the structuring of share incentive schemes and the treatment of share options and other employee benefits in mergers and acquisitions. She has worked on the employee benefits and pensions aspects of many high-profile commercial transactions.

Gillian also has considerable experience in advising on pensions law with a particular emphasis on pensions issues arising in the context of corporate transactions including acquisitions and disposals and other commercial transactions. Gillian also advises on various pension matters including advising on the establishment and amendment of pension schemes, compliance with pensions legislation and Revenue practice and drafts and amends relevant scheme documentation.

Housing shortage bites for Dublin businesses

By

HRHQ Editorial Team

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2 May 2024

by HRHQ Editorial Team

Two out of every three Dublin businesses have either lost employees or had prospective employees decline a job offer due to the lack of affordable housing.

Dublin Chamber’s latest survey for Q1 2024 shows that the availability of affordable housing remains the greatest concern for Dublin businesses. About two out of every three firms (62%) have lost employees or had prospective employees not take a job due to lack of affordable housing in Dublin. The lack of affordable housing, in turn, makes it difficult for firms to attract, retain and upskill staff.

The Q1 Business Outlook Survey shows that 30% of firms have temporarily subsidised or provided accommodation for employees to allow them to take a job in Dublin. Flexible and remote working remaining the most effective measure in attracting and retaining staff, followed by competitive salaries.

Aebhric McGibney, Director of Public and International Affairs, commented, “despite the extensive and substantial government supports to promote the construction of affordable housing, the volume of construction is insufficient to meet demand. Government should revisit the effective ban on building in certain parts of the Greater Dublin Area, which are based on outdated population figures, and encourage local authorities to provide for more residential zoned land in towns that are well served by public transport options. In addition, transport planning for the region needs to be revised for the region to keep pace with housing and population growth, with a view to bringing forward public transport services and projects that have been placed on the long finger in existing plans.”

Dublin Chamber is Ireland’s largest chamber of commerce with over 1000 member companies. It is the most representative and broadly-based business group in the Greater Dublin Area.

View the Q1 Business Outlook Survey here

The Essential Role of HR for Achieving Gender Equality in SMEs

By

Crystel Robbins Rynne

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2 May 2024

by Crystel Robbins Rynne, Chief Operating Officer at HRLocker

On March 8th, we marked International Women’s Day (IWD). This annual event is recognised globally as a celebration of women that aims to highlight the social, economic, cultural and political achievements of women worldwide. This year’s theme—Inspire Inclusion—foregrounds women’s participation in society, championing the idea that we forge a better world when we inspire others to understand and value women’s inclusion.

It’s a movement with a long history—the first was held over a century ago in 1911. In Ireland, the women’s movement began even earlier, in the mid-to-late 19th century, with the formation of prominent organisations, including the Irish Women’s Suffrage Society and the Dublin Women’s Suffrage Association.

Yet, more than a century later, and despite wave after wave of activism and legal reforms that promote equal rights and protection from discrimination, we still live in an inequitable society.

Gender equality in Ireland – where we’re at

The World Economic Forum, for instance, estimates that gender parity is well over a century away—and the bad news doesn’t stop there. According to the latest Global Gender Gap Report, women’s economic participation and opportunity levels fell between 2022 and 2023, meaning gender parity stagnated.

Even more worryingly, attitudes are shifting away from progressive equality ideals. Just one week before IWD, a global survey from Ipsos in collaboration with the Global Institute for Women’s Leadership at King’s College London revealed that more than half (54%) of people believe that when it comes to giving equal rights, things have gone far enough in their country.

In Ireland, attitudes were slightly better. Yet one in four people (38 per cent) agreed with the sentiment. Most striking is that almost half of all people (45 per cent in Ireland, 46 per cent across the 31-country average) now believe we’ve gone so far in promoting women’s equality that we’re discriminating against men.

It’s a less bleak picture when considering gender balance in business. According to the Central Statistics Office (CSO), in 2023, a quarter of board directors in Ireland were female, up from 22 per cent in 2021. Female chairpersons increased from 14 per cent to almost 19 per cent, and women Chief Executive Officers from 13 per cent to 19 per cent across the same period.

Still, despite increasing numbers, women are far from on par, as seven in ten Irish executives are male. This troubling statistic isn’t limited to Ireland. It’s seen all over the world. As the Global Gender Gap Index reports, women occupy less than 30 per cent of senior management roles across the globe.

Gender parity in big business

Corporations around the world are all too aware they’ve been found lacking when it comes to female participation in senior leadership. Many have introduced levelling-up initiatives and committed themselves to doing better.

In Ireland, the second annual Elevate Report published in 2023 by Businesses in the Community Ireland (BITCI)—a group set up to inspire and enable businesses to bring about a sustainable, low-carbon economy and a more inclusive society—reported that women made up 30 per cent of staff in senior management and executive roles in its 60 member companies.

With a combined workforce of over 150,000, each member business is a signatory to the Elevate Pledge, a practical demonstration intended to assist companies in achieving diversity, equity, and inclusion targets while tackling societal inequalities. However, while the data report suggested higher levels of participation at senior and executive levels than the national average, the majority of members are large national and multinational enterprises.

Large companies with more than 250 employees are notable for being more proactive in addressing diversity shortfalls. In fact, most have gender-specific initiatives, like setting KPIs and targets for female representation, and the report suggests these have had a positive impact.

Slower progress in small and medium-sized enterprises (SMEs)

SMEs are a critical pillar of the Irish economy. In 2023, the 309,000 SMEs operating in Ireland employed around 1.2 million people and added €120 billion in value. The latest statistics released by the CSO suggest SMEs in Ireland account for 99.8 per cent of all enterprises, 69.2 per cent of employment, and 34.8 per cent of Gross Value Added. Yet, despite employing the overwhelming majority, businesses with fewer than 250 employees are not obliged to complete gender pay gap reporting.

The gender pay gap, an assessment of gender representation at each level of an organisation characterised by overall differences in pay, is a key measure for gauging gender equality in business and employment. In Ireland, the gap currently stands at 11.3 per cent, equating to about one month per year when a woman essentially works for free. However, mandatory pay gap reporting is being extended to firms with more than 150 employees this year and those with 50 or more next year.

Time will tell if the positive statistics on gender parity we see in large enterprises, which make up the minority of employers, are reflected by the majority. Or if, as is suspected, the results will shine a light on the many structural, cultural, and policy causes of gender inequality and discrimination. As Ibec CEO Danny McCoy makes clear in Ibec’s guide to gender pay gap reporting, “Gender pay gap reporting is one part of a much-needed wider strategy to address female participation rates and employment gaps between genders”.

Gender equality – why all the fuss?

International and national statutes make clear that all employers, regardless of size, industry, sector and location, have certain responsibilities to applicants, trainees and employees. In Ireland, this responsibility covers all types of discrimination and affirmative actions as they relate to nine particular grounds, also known as protected characteristics—gender is one of those protected characteristics. Businesses in breach of these obligations risk sanctions, fines and reputational damage.

Naturally, this means employers cannot treat people differently based on whether they are male, female, transgender, or non-binary. However, it also means workplaces are responsible for taking positive action and making reasonable accommodations that promote wider inclusion and participation. For example, flexible and remote working arrangements make it easier for women to work and balance their disproportionate level of caring responsibilities.

Numerous studies have outlined the business advantages of a diverse workforce, including higher-quality work, greater team satisfaction, and more equality. The relationship between diversity on executive teams and the likelihood of financial outperformance has also become more robust over time. Companies with diverse management teams are, for instance, more innovative and, as a result, have 19 per cent higher revenue, meaning the business case for inclusion is robust.

How HR helps to bridge the gender equality gap

To change the status quo, employers need to focus on recruitment, retention, and promotion. HR teams ensure SMEs are better able to attract women, retain and support them in their career development, and prevent barriers to them reaching the most senior and best-paid roles.

Key areas where HR plays a significant role in implementing change include mentorship programmes, flexible working arrangements, and unbiased recruitment processes. All are vital for attracting and retaining women to leadership roles and essential when creating an inclusive and welcoming workplace culture.

Removing biases like gendered job titles from job descriptions and having mixed-sex interview panels are just two practical ways HR can set the tone before employment begins. Studies indicate that early career support greatly influences women’s aspirations for leadership roles, meaning HR is also well positioned to cultivate an environment conducive to gender equality in leadership from the outset.

HR is also in the ideal position to implement policies specifically designed to support and enable women to remain in work. Over the last decade, many SMEs have introduced positive initiatives around previously taboo subjects considered predominantly women’s issues, like fertility, pregnancy loss, parental leave, and menopause. Normalising work-life balance to attract a diverse talent pool is another actionable way proactive HR teams work toward a fairer future.

Driving gender diversity by effecting real change

Achieving gender equality is a collective effort. Men have a crucial role alongside women in creating a more inclusive workplace for all. HR professionals can and should encourage male allies to champion inclusive policies, act in mentorship roles, challenge stereotypes from within and advocate for equal representation.

It is clear that the drive for gender equality, particularly in the workplace, is improving in Irish SMEs, but there’s still a way to go. By recognising and openly addressing the complexities and challenges that women face, SMEs will not only comply with legal obligations but also improve business outcomes. It is up to HR professionals to drive gender diversity by effecting real change.

To learn more about promoting inclusive workplaces, you can download our Diversity, Equity, and Inclusion white paper.

About the author

Crystel Robbins Rynne has worked with HRLocker since its inception. As COO, she is responsible for maintaining and driving operational results within the company. She is part of the executive management team and is also an Employee Experience advocate and host of the popular HRLocker Podcast.

May Happiness Calendar

By

Production Editor

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1 May 2024

Reconnect with Friends & Family to make a Meaningful May

Our friends over at Action for Happiness ask us to reconnect with friends & family in May. Let’s spend some time making a positive impact on our loved ones.

Action for Happiness - Meaningful May Calendar — Download the free May 2024 calendar from Action for Happiness and bring more meaning into your month.

The World is Designed for Men – Is the Workplace Guilty of This Too?

By

Anne Marie Walsh

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1 May 2024

by Anne-Marie Walsh, Business Director at Hays.

We live in a world designed – mostly – by men, for men. Caucasian men, at that. Throughout history – and still to this day – the lives, statistics and perspectives of men have frequently been used to represent the entirety of the human race. This phenomenon is known as the ‘gender data gap’ and it impacts most aspects of our world, including the built environment, medical research, technology and the workplace.

For a woman living in a world designed to meet male data requirements, this means she’s more likely to face inconveniences in her day-to-day life, some of which can even jeopardise her health and safety.

In 2019, feminist author, Caroline Criado Perez, created waves with her groundbreaking book Invisible Women, which shone a light on the gender data gap. So, how does the gender data gap impact women in their day-to-day lives, including in the workplace? And what can we do to address this issue?

Don’t overlook the progress we’ve made so far

The Gender Equality index ranks gender equality with a score of between 1-100, with 100 meaning full equality between men and women has been achieved. This score is based on metrics including work, money, power, health and knowledge. Ireland currently has an overall score of 73, a solid improvement of 7.6 since 2010. This impressive progress should certainly not be overlooked; we’re a long way from where we used to be.

Notable progress has been seen within the metric of power, which measures gender representation in decision-making roles across politics, economic and social domains. This category alone has increased significantly by 27.5 points since 2010. Gender equality in the category of knowledge – partly measured by looking at the number of men and women who have reached third-level education – has also increased since 2010 by 4.2 points.

However, despite seeing significant improvements since 2010, it should be noted that Ireland’s score has in fact decreased since 2020 by 1.3 points. It’s clear that we must celebrate the wins, but also be aware of where we still need to make progress before we can achieve true gender equality – and the gender data gap is one area that needs to be addressed.

The barriers women face in a male-designed world

Many smart phones are designed to be the largest they can be – for optimum screen viewing experience – while still comfortably fitting into the ‘typical’ hand. But that ‘typical’ hand is a man’s hand, and ‘typical’ (a word we use cautiously) male and female proportions vary significantly; the average male hand is almost one inch longer than the average woman’s! So, it follows that smart phones are often too big for women to hold securely in one hand.

And we’ve all noticed the disparity between male and female public bathroom queues. Men walk straight into the toilet, while women often wait in a queue that extends far beyond the bathroom door. This is because male and female bathrooms are usually allocated the same floor space, failing to consider the fact that it takes women an average of over two times longer to use the toilet and that a greater number of men are able to use the bathroom concurrently (as urinals take up less floor space). We could go on…

Underrepresentation of female data can have grave consequences

The issues extend far beyond daily inconveniences. In fact, a recent study found that women are more than twice as likely to die after a heart attack than men. The study noted that atypical heart attack symptoms in women could be a factor – could this be because their symptoms have not been studied as extensively? Given that approximately 85% of participants in clinical trials for cardiovascular disease are men – and the women who do participate are generally postmenopausal – this could well be the case.

“Women are more than twice as likely to die after a heart attack than men.”

Further, there’s an alarming gender disparity in serious injury and fatality rates following car accidents – women are 73% more like to be seriously injured and 17% more likely to die. This is partly as a result of male dummies being used as the standard for testing vehicle safety. In fact, the first female crash test dummy was only created in recent years: a much needed step in the right direction.

The workplace is an ideal environment for men

This disparity also infiltrates the workplace. For office workers, most air-con systems are designed based on a so-called ‘typical’ worker’s body temperature and metabolism. This ‘typical’ worker, however, is an 11 stone, 40-year-old man, meaning office environments are an average of five degrees colder than the ideal temperature for women.

Outside of the office environment, ill-fitting PPE – as a result of PPE being standardised to male measurements – impact some female employees’ ability to work, and even their safety. Unfortunately, women working in industries such as construction, emergency services and the police force are subject to ill-fitting equipment and safety gear designed for the male anatomy. Perhaps unsurprisingly, only one-in-twenty (5%) female emergency services workers said their PPE had never hampered their work.

Aside from office temperatures and PPE, the workplace is designed for men in countless other ways: open office layouts that are disproportionately unpreferable for some women, adjustable desks that are ideal for an average-height male worker, archaic working hours that don’t allow flexibility for traditional caregiving duties, and more all contribute to the gender data gap within the workforce. Clearly, more needs be done to address these issues and make the workplace a more equitable environment for women.

Diverse leadership teams encourage different perspectives

Only one-third (33%) of workers in Ireland believe their organisation has equal gender representation within the senior leadership/C-suite team, according to our recent LinkedIn poll. How can we expect to foster a workplace that caters to everyone’s needs if there aren’t enough leaders giving their perspective through a female lens? Diverse senior leadership teams allow the voices of underrepresented groups to be heard, so issues can be uncovered that may have otherwise remained a blind spot, allowing companies to grow.

“Only 33% of workers in Ireland believe their organisation has equal gender representation within the senior leadership/C-suite team.”

Our data shows that more than one-third (36%) of professionals in Ireland believe their current organisation doesn’t offer equal opportunities for men and women to succeed. A lack of flexibility or remote working options could be a factor in this, with almost half (44%) of workers believing women had fewer barriers to progression during the pandemic when remote working was prevalent.

If your organisation is lacking female representation within leadership roles, consider if your female employees may be facing more barriers to progression that their male counterparts, then try to alleviate these barriers where possible.

We must drive change all year round

Annual awareness events such as International Women’s Day shed light on gender inequity and encourage change-driving conversations, but that’s not enough. We must keep these important conversations going beyond just awareness days and shed light on these issues all year round. It’s vital that we don’t stall on the progress we’ve made so far. Stand up and speak out if you notice or experience gender disparity, whether that be in the workplace or not. Challenge the bias we have historically accepted as the norm – or perhaps never even considered. Together, we can continue to push for true gender equity and inclusion.

About the author

Anne-Marie Walsh is a Business Director at Hays and specialises in recruitment for Engineering professionals within the Building Services sector in Dublin. Working with exceptional customers within the Construction & Property industry, Anne-Marie’s primary focus is to partner with candidates and clients, using the depth and breadth of her expertise and market knowledge.

The Role of Learning & Development in HR

By

Emma Anglim

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30 April 2024

by Emma Anglim, Director, Brightwater

In today’s rapidly evolving workplace landscape, the importance of Learning & Development (L&D) initiatives cannot be overstated, especially in the realm of Human Resources (HR). According to a recent poll conducted among HR managers, 21% emphasized that L&D, particularly in upskilling and reskilling, stands as a major focus within their organisations. This statistic underscores a pivotal shift in HR strategies, where providing and developing continuous learning has become synonymous with staying competitive and adaptable in the face of ever-changing industry demands.

Addressing Skills Gaps Through L&D Initiatives

One of the most pressing challenges facing organisations today is the presence of skills gaps within their workforce. As industries evolve and technology advances, traditional skill sets may become obsolete, leaving employees and organisations alike at a disadvantage. HR professionals have recognised the urgency of closing these gaps to maintain productivity and drive innovation.

Enter Learning & Development initiatives. By investing in training programs designed to upskill or reskill employees, HR departments can proactively address skills gaps within their companies. Whether through online courses, workshops, or specialised training sessions, these initiatives provide employees with the tools and knowledge needed to thrive in their roles and contribute meaningfully to organisational success.

Moreover, L&D initiatives foster a culture of continuous learning, where employees feel empowered to enhance their skills and stay abreast of industry trends. This not only benefits individual career growth but also cultivates a dynamic and forward-thinking workforce capable of tackling new challenges head-on.

Attracting Talent Through Promising Training Opportunities

In today’s competitive job market, attracting top talent requires more than just offering competitive salaries and benefits. Jobseekers are looking for organisations that prioritise their professional development and offer opportunities for growth from day one. This is where promising training initiatives during the interview stage can make all the difference.

By highlighting the organisation’s commitment to L&D during the recruitment process, HR professionals can position their company as an employer of choice for prospective candidates. Promising training opportunities not only demonstrates the organisation’s investment in its employees but also signals a supportive and nurturing work environment conducive to long-term career advancement.

Furthermore, emphasising L&D initiatives during interviews allows HR professionals to align candidates’ career aspirations with the company’s strategic objectives. By showcasing the available training programs and career development paths, talent acquisition specialists can attract candidates who are not only qualified for the role but also aligned with the organisation’s values and vision.

Conclusion

The role of Learning & Development initiatives in modern HR cannot be overstated. From addressing skills gaps within the existing workforce to attracting top talent through promising training opportunities, L&D initiatives serve as a cornerstone of strategic HR planning. By prioritising continuous learning and professional development, employers can position themselves and their organisations for success in an ever-evolving business landscape.

In essence, investing in employee growth isn’t just about bolstering skills or filling in a skills gap; it’s about fostering a culture of innovation, adaptability, and long-term success for both the employer and employees.

About the author

Emma Anglin is a Director with Brightwater with over 16 years market leading recruitment experience, Emma works with with a wide remit of organisations across multiple sectors supporting their HR recruitment requirements.

The Changing Skill Set of the C-Suite

By

Christine Hayward

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29 April 2024

by Christine Hayward. Executive Director for IIC Partners

What does it take to be an effective leader?

A decade ago, the answer would have been technical knowledge, experience across the c-suite, business acumen, and the ability to make tough decisions.

Today’s answer looks different.

Executives still need technical knowledge and business savvy. However, they also need an expanded skill set that includes navigating change, digital expertise, motivating a diverse workforce, and displaying empathy to employees, customers, and shareholders.

A recent survey from IBM found that executives are shifting their priorities to be better prepared for uncertainty in the future — the pandemic highlighted how soft skills such as compassion and effective communication are must-haves for any business leader.

However, these changes have been coming for some time.

For example, Satya Nadella beat out other existing CEOs for the position of Microsoft CEO in 2014, including Microsoft’s COO.

He was an internal hire with deep technical knowledge but also had the soft skills needed to succeed. Microsoft saw his clear vision, open and transparent communication, courage, humility, and empathy as essential skills to lead the organisation on a new path of transformation.

Nadella embraces a growth mindset, which means employees are allowed to make mistakes without fearing severe repercussions. Further, he communicates effectively, delivering company-wide emails with honest, tangible thoughts, not just corporate fluff.

Since Nadella became CEO, Microsoft has experienced massive growth. It is once again a leading player in tech and among the most valuable companies worldwide.

Other companies are recognising the need to rethink what a CEO looks like. For example, Starbucks is searching for a “different type of leader” who will bring new expertise, skills, and experience to the CEO role to help the company rethink its future.

What does it mean to have soft skills?

Unlike technical skills acquired through knowledge sharing, soft skills are personal traits and characteristics that define how a person interacts and builds relationships with the people around them. Some examples include:

Empathy
Critical thinking
Problem-solving and decision making
Effective communication
Teamwork and collaboration
Stress management (on individual and team levels)

Soft skills can be hard to identify since they do not readily appear on a resume or job application. So, how can you find a leader who meets these new standards?

Many organisations have developed advanced assessment and recruiting techniques to evaluate and track soft skills. A recent whitepaper by IIC Partners on shaping culture and assessing candidate fit gave a few examples:

AI and candidate self-assessment tools
Conversational interviews that evade canned responses
Extensive references with a soft-skill focus
Chemistry observations between employer and candidate

Expanding beyond standard recruitment processes can lead to great results, like the method suggested by Allan Laurie, Managing Partner of NOVUS Search Partners, “A client/candidate scenario work through during interviews draws both the candidate and client stakeholder group closer, and also reveals much about how each might work or react.”

Undoubtedly, it takes more effort than evaluating technical knowledge. But a failed hire is far more costly. In LinkedIn’s 2019 Global Talent Trends Report, 89 percent of recruiters said failed hires were due to a lack of soft skills.

Can soft skills be developed in existing leaders?

While soft skills are more associated with an individual’s personality than hard skills, the right approach can enhance these traits in executive leaders. The core requirements are a commitment to self-awareness from the employee and an effective measurement and development process from the employer.

An article from McKinsey highlighted how HR teams need to embrace entirely new frameworks to match shifting requirements and employ a wide range of techniques beyond training videos, such as peer coaching and “stepping-stone” development paths.

The impact of this work cascades through the organization as behavior modeling by upskilled leaders encourages the desired traits and ways of working in other employees.

However, developing soft skills in leaders and influencing culture is a long-term process. Like the Starbucks example given earlier, there are many times that organizations need an injection of new talent with specific experiences and skill sets.

Article first appeard on HRM Search Partners

Managing Poor Performance

By

Louise Campbell

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26 April 2024

by Louise Campbell, Head of Learning and Development, EMEAA at Robert Walters Ireland

When it becomes apparent that an employee is not performing to the standard required it is important to identify the underlying causes for poor performance.

Poor performance could be related to:

Lack of application to the role and tasks
Lack of capability/skills in general
Lack of capability due to illness or injury

Each of these situations will call for different remedial actions thus emphasising the importance of correctly identifying the cause of poor performance.

But what happens when the usual performance management process breaks down and what steps should you take? Firstly identify the issue and secondly look at the causes of poor performance, only then you can decide what steps to take to improve the situation.

Identifying poor performance

In order to make a determination that an employee is not performing to an acceptable level it is essential that some sort of performance measure/standard has been identified in advance and the employee has been informed of and understands what is required of them. There are a range of measurement tools you can use:

Detailed job description – to set out the outputs/outcomes of the role
Targets – the use of pre-set targets (common in a sales role) which are realistic and achievable can enable an employer to determine whether an employee is achieving the standard required of them
Quality controls – may be useful where the provision of a quality service is essential, eg, customer facing roles
Competency frameworks – which focus on the key behaviours that are required to achieve competent performance

Correcting poor performance: setting clear targets

Have an informal meeting with the employee outlining the areas where their performance is in decline and agree goals/targets and a review date
Review the performance at the review date and determine if there has been any improvement. If there has been an acceptably significant improvement then no further action should be necessary. If there has been some improvement then perhaps the employer could identify the areas where the employee needs further improvement and set a further review date
If there has been no significant improvement the employer may contemplate the use of the disciplinary/dismissal procedure. The appropriate penalty will vary with the relevant disciplinary procedure but it is strongly recommended that dismissal for a first occurrence is inappropriate. To ensure fairness of dismissal in these circumstances the employer must demonstrate that an employee was given sufficient opportunity to improve

About the author
Louise has held overall responsibility for the Irish operations of Robert Walters since 2003. Passionate about training, developing and retaining talent, Louise is also the Director of European training for Robert Walters and an advocate for the “Empowering Women in the Workplace” program, which delivers insight to employers and businesses on how they can best create strategies and policies to ensure gender diversity in the workplace.

Building a Strong Company Culture

By

HRHQ Editorial Team

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25 April 2024

by HRHQ Editorial Team

A strong company culture is the foundation of a thriving organisation. It encompasses shared values, behaviors, and attitudes that shape the work environment and employee experience. Here are key strategies for building a robust company culture:

Define Core Values: Identify and articulate the core values that define your organisation’s identity and guide decision-making. Communicate these values consistently to align employees with the company’s mission and vision.
Lead by Example: Cultivate leadership behaviors that exemplify the desired company culture. Leaders play a crucial role in setting the tone and demonstrating values through their actions.
Promote Open Communication: Encourage transparent communication across all levels of the organisation. Create channels for feedback, suggestions, and discussions to foster a sense of inclusivity and collaboration.
Prioritise Employee Well-Being: Demonstrate genuine concern for employees’ well-being by offering wellness programs, flexible work arrangements, and resources to support work-life balance.
Encourage Diversity and Inclusion: Embrace diversity and create an inclusive workplace where employees from diverse backgrounds feel respected and valued. Diversity of thought fosters innovation and enriches company culture.
Celebrate Successes Together: Recognise team achievements and milestones through celebrations, rewards, and public acknowledgments. Positive reinforcement reinforces desired behaviors and strengthens team spirit.
Promote Continuous Learning: Encourage a culture of continuous learning and improvement by providing opportunities for skill development, knowledge-sharing, and cross-functional experiences.
Support Social Responsibility: Engage in corporate social responsibility initiatives that align with company values. Participating in community projects or sustainable practices can strengthen employee morale and pride in the organisation.

By intentionally cultivating a strong company culture, organisations can attract top talent, enhance employee engagement, and ultimately drive business success through a unified and motivated workforce.

Performance Management Best Practices

By

HRHQ Editorial Team

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24 April 2024

By HRHQ Editorial Team

Effective performance management is essential for maximising employee productivity and achieving organisational goals. It involves setting clear expectations, providing feedback, and recognising achievements. Here are some best practices for successful performance management:

Set SMART Goals: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for each employee. Clear objectives provide direction and motivation, guiding employees towards success.
Regular Feedback and Coaching: Encourage ongoing feedback and coaching sessions between managers and employees. Constructive feedback helps employees understand expectations, identify areas for improvement, and celebrate accomplishments.
Use Performance Metrics: Define key performance indicators (KPIs) that align with organisational objectives. Regularly measure and evaluate performance against these metrics to track progress and identify areas needing improvement.
Implement 360-Degree Feedback: Gather feedback from multiple sources, including peers, subordinates, and clients, to provide a holistic view of an employee’s performance. This comprehensive feedback helps in identifying strengths and areas for development.
Provide Development Opportunities: Support employees’ professional growth by offering training, workshops, and skill development programs tailored to their needs. Investing in employees’ development enhances performance and job satisfaction.
Recognise and Reward Achievements: Acknowledge and reward outstanding performance promptly and publicly. Recognition reinforces positive behavior and motivates employees to excel.
Address Performance Issues Proactively: Identify performance issues early and address them promptly through constructive discussions and action plans. Delayed intervention can lead to prolonged problems and decreased morale.
Review and Adjust Performance Goals: Regularly review performance goals and adjust them based on changing business needs or individual circumstances. Flexibility in goal-setting ensures relevance and engagement.

By adopting these best practices, organisations can create a culture of continuous improvement and accountability, resulting in higher performance levels across the board.