bISME
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1 Issue 5 SUMMER 2019 Volume
THE BUSINESS OF IRISH SMEs
Customer & Community - Driven FBD’s CEO Fiona Muldoon discusses their approach to business and the importance of dealing directly with customers.staff.
GDPR TURNS ONE One year on, what does the GDPR have to say for itself? GENDER PAY GAP REPORTING What could this new policy mean for SMEs? PREPARING YOUR BUSINESS FOR BREXIT What can your business do to prepare and who can help? HOW MUCH DOES A WEBSITE COST The costs and stages of developing a website for your business.
www.creditreview.ie
take a closer look at the decision. If your business has had credit facilities refused, reduced or withdrawn by your bank*, we’re here to help. If you’re a small business, sole trader or farm owner who has had difficulty getting credit or loan facilities of up to €3,000,000, or has had an unfavourable change to your existing credit terms and conditions, get in touch with us for an independent review. Our process is independent, easy to complete and covers all applicants for new loans or restructured credit facilities. *banks covered are AIB, BOI, PTSB and Ulster
bISME
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Contents
bISME
THE
1 Issue 5 SUMMER 2019 Volume
THE BUSINESS OF IRISH SMEs
Customer & community driven
FBD’s CEO Fiona Muldoon discusses FBD’s approach to business and the importance of dealing directly with customers.staff.
GDPR TURNS ONE One year on, what does the GDPR have to say for itself? GENDER PAY GAP REPORTING What could this new policy mean for SMEs? PREPARING YOUR BUSINESS FOR BREXIT What can your business do to prepare and who can help? HOW MUCH DOES A WEBSITE COST The costs and stages of developing a website for your business.
17 Kildare Street, Dublin 2, Ireland. Phone : (01) 662 2755 E-mail: info@isme.ie Web: isme.ie
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Published by iSME Editorial: maeve@isme.ie Design: ciara@isme.ie Advertising: marketing@isme.ie
The bISME is the official publication of ISME. Individual views expressed in the magazine do not necessarily constitute ISME policy. Although every precaution has been taken in the preparation of this publication, the publishers assume no responsibility for errors or omissions. Copyright The bISME 2019. No part of this publication may be reproduced in any material form without the express written permission of ISME.
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A Message from the Chief Executive Neil McDonnell discusses insurance reform, budget 2020 and nore
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The b News News from the SME sector and the wider economy. GDPR turns one One year on, what does the GDPR have to say for itself? The Big Interview: Customer & community - driven Chief Executive of FBD Insurance, Fiona Muldoon talks about the challenging world of finance and the benefit of direct contact with customers. The b Issue: Gender Pay Gap Reporting What could this new policy mean for SMEs?
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ISME at work for you The latest updates on ISME activity The b Insight: Preparing your business for Brexit Alan Delany from Delany Performance Feeds on how IntertradeIreland helped his company prepare for Brexit Training Focus: Upskill & reskill your work- force Mary Lyons from Solas writes about the advantages of the Skills to Advance initiative that can help SMEs with the challenges of recruitment ISME Partnership with jobs.ie The announcement of details of the 12-month partnership Another side of… Marc O’Dwyer, CEO, Big Red Cloud
How much does a website cost? IE Domain Registry offer practical advice about web site costs for SMEs
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Volume 1 Issue 5 Summer 2019
bISME
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A Message from the Chief Executive
Insurance Reform has stalled We had high hopes with the publication of the second and final report of the Personal Injuries Commission by Mr Justice Nicholas Kearns last year that Government would acknowledge his call-to-arms for an urgent solution. Sadly, this has proved to be a false hope. There have been some minor actions, but it is important you are aware of them. Firstly, since 28th January last, a plaintiff must notify you within one month of a cause of action. If s/he fails to do so, a court must draw an inference from this failure. This does not affect claims of injury made before 28th January, so it will take until January 2021 for these to wash out of the system. Secondly, courts must also draw an inference where plaintiffs fail to provide a verifying affidavit within 21 days of the notice of action. Thirdly, and since 3rd April last, the PIAB Act requires plaintiffs to fulfil requests for medical examinations or risk award of costs against them. If you or your business are sued after 28th January, make sure your legal team knows and enforces the above on your behalf However, we’re not remotely happy that the pace of insurance reform has stalled. So we need you to make this an election item during the local (and European) elections. When the candidates land on your door ask them one or more of the following: 1.
Are you aware that insurance costs are closing small businesses and harming voluntary groups such as mine?
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2. What are you doing about this? 3. When will the established?
Garda
Insurance
Fraud
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Neil McDonnell, Chief Executive, ISME.
While we got a reprieve last month with the postponement of a no-deal Brexit, please don’t think that the problem is over. The six-month delay of resolution until Halloween was a compromise between France and Germany, which makes it highly unlikely that there will be a further extension, even if there is no deal. So please make a plan, if you haven’t already. Our research team has put together a useful Brexit information page here. We’ve already seen a local authority contract trying to push ‘Brexit-proofing’ (i.e. responsibility) onto suppliers. This is wrong - get in touch with us if you see a tender looking for it.
4. When will the huge level of awards for minor injuries be reduced?
If you’re not a member yet, or haven’t met any of the ISME team, check out our ISME Roadshow dates here.
5. Do you support Senator Anthony Lawlor’s bill to cap damages?
Lastly from me before I let you loose on the rest of our bISME, we have a great line-up for our ISME Annual lunch this year. Something for everyone, member or non-member. Find out more about booking your seat or your table of 10 here. Looking forward to seeing you there!
6. Do you support Senator Padraig O’Ceidigh’s perjury bill? 7. How do we know insurers will reduce premiums when reforms are carried out? We’re working on our key asks for Budget 2020. If you have strong views about what should be in there (even if you’re not yet a member, drop us a line to info@isme.ie
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Neil McDonnell Chief Executive, ISME
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The b News
We are delighted to be taking our Roadshows around the country in 2019. Already, in partnership with Jobs.ie we have visited, Dublin, Cork, Galway and Limerick. These events gave business owners the opportunity to network, learn and put questions to our expert speakers including Peter Boland, Alliance for Insurance Reform, Christopher Paye, General Manager of Jobs.ie, Paul McMahon, Principal, McMahon Legal and Derek Dunne, Custom Compliance Manager. The next roadshow will take place on May 30th in The Glasshouse Hotel, Sligo. Admission and breakfast is complementary. Find out more and register for the event here.
ENERGY EFFICIENT LIGHTING GRANT The Minister for Communications, Climate Action and Environment, Richard Bruton T.D announced €2 million funding for small and medium-sized businesses to invest in energy efficient lighting. The grant, administered by the Sustainable Energy Authority of Ireland (SEAI), will cover 30% of the cost of upgrade work and can help save up to 60% on lighting costs. Small and medium-sized enterprises with less than 250 employees across all sectors are eligible to apply. Annual turnover must not exceed €50 million. To find out hoe to apply click here.
INSURANCE REFORM SURVEY We are making progress in our campaign with the Alliance for Insurance Reform to get insurance costs down to sustainable levels. But one major barrier to progress is a lack of data. Could you please spare 2 minutes to give us your insurance feedback? COMPLETE THE SURVEY HERE Unless you otherwise consent, your responses will be confidentially aggregated into gross data for use in our dealings with Government and the media.
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ISME MEMBERS – WHAT’S ON YOUR MIND? THE LABOUR MARKET “Due to a severe shortage in skilled personnel we are having an horrendous time trying to hold on to people. We train our own staff here through a 4-year apprenticeship scheme and the top staff are been head hunted by the big pharmaceutical companies with salary packages including heath cover, pension contributions & options of further education to attain higher qualifications that we are unable to compete with. In the past 12 months we have lost 7 personnel. 3 to retirement and 4 moved on to much better paid jobs & extras. We have only 20 people employed and are a manufacturing company at the cutting edge where all cost increases affect us.” BILLY TYRELL- ARKLOW MARINE SERVICES
GIVING BACK TO COMMUNITY ‘‘Clear Treasury’s FX payments business, Clear Currency, is the Official Currency Exchange Partner for Cricket Ireland. We are delighted to be supporting the team and this month brings with it a busy schedule. We are delighted to have secured a 10% discount on tickets for all ISME members - enjoy!’’ To order contact: ticketsales@cricketireland.ie and quote Clear2019 PAUL REILLY, CLEAR TREASURY - HEAD OF IRELAND
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ISME ROADSHOWS CONTINUE
Are you a company director or company secretary?
If so, you have statutory obligations under the Companies Act
To help you meet your statutory obligations, the Office of the Director of Corporate Enforcement (ODCE): provides accurate and reliable information in a simplified format; promotes effective compliance and best practice; assists you make informed decisions by providing a FAQ section on our website with over 90 questions and answers; assists companies and their officers understand their duties under company law by providing; • •
a suite of 7 detailed Information Books a suite of 12 ‘Quick Guides’ written in Plain English
Visit our website for our publications, FAQs and activities
www.odce.ie
Office of the Director of Corporate Enforcement 16 Parnell Square, Dublin 1, Ireland, D01 W5C2 | 01 858 5800 | info@odce.ie
The b News
ISME ANNUAL LUNCH The 2019 Business Lunch of the year is sponsored by FBD Insurance. Join us on Friday 24th May from 1.00pm to mix and network with fellow business people. Following many successful years in Croke Park the event will now take place in the Leopardstown Pavilion. We have adopted a new approach to the speaker slot this year by introducing a panel discussion. The theme for the discussion is The Business of Sport. Linking with the venue, we have John Osborne, Chief Executive, HRI Racecourses Ltd who is joined by Sinead Galvin, Founder, Galvin Sports Management. The moderator for this discussion is Eoghan Ó Neachtain, Director in Heneghan PR and TG4’s rugby analyst.
ISME NATIONAL COUNCIL ELECTIONS What do we want in our next National Council? Most importantly we want diversity: in gender, in regions, in age, and in business sector. Irish SMEs are about 50% services, with construction, distribution, industry, and financial services following in size. Our Council membership should reflect that (and probably be a little less Dublin-centric). So if you are interested in standing, please nominate yourself before Friday 17th May. The nomination form is available here
Find out more about the event and purchase tickets here
ISME TELLS FINANCE COMMITTEE INSURANCE REFORM HAS STALLED ISME expresses its gratitude to the Committee on Finance, Public Expenditure and Reform, and Taoiseach for the consideration shown to them and the Alliance for Insurance Reform on 4th April.
ISME is calling all businesses in Laois and Offaly to join us on May 16th in Kavanagh’s Bar & Venue Portlaoise to raise the volume on the need for insurance reform. We want as big and as broad a sectoral representation as possible present on the day. The meeting is taking place in Portlaoise to ensure that Minister for Justice and Equality, Charlie Flanagan adequately understands the severity of this problem for businesses in the area. Speaking at the event will be Neil McDonnell, ISME CEO, Peter Boland of the Alliance for Insurance Reform and Paul McMahon a solicitor from McMahon Legal. We are also calling for any local businesses who might have a story to share to contact us in advance of the meet up. Tea and Coffee will be provided. Please register for the free meeting here and share this event with your network.
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ISME informed the Committee that there is no ‘silver bullet’ for the insurance issue. Some points raised included: • • •
•
Quantum is too high, and must be reduced by legislation. Our legal system is flawed, and must be reformed. Our judiciary requires oversight and continuous professional development, like any other group of professionals. This requires the early enactment of the Judicial Council Bill. Our insurance system is opaque. It needs transparency and robust regulation. The consumer protection mandate must be removed from the Central Bank and given to another
In view of the concerns we expressed about the legal system, the insurance market, and the judiciary, ISME has forwarded our Committee submission to the EU Commissioner for Justice, Consumers and Gender Equality, and to the EU Commissioner for Competition. authority. You can read the submission to the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach here.
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ISME HOLD INSURANCE REFORM EVENT IN PORTLAOISE
bISME
USEFUL EVENTS FOR SMES Go-2-Tender Workshop
15th & 29th May 2019, 9.00am - 5.00pm Wexford County Council Carricklawn, Wexford,
Challenge Briefing Event 23rd May 2019, 9.30am - 4.30pm Tipperary County Council, Clonmel, Tipperary
Retirement Seminar 27th May 2019, 8.30am - 5.00pm Conrad Hotel Earlsfort Terrace, Dublin 2
Growth Capital Summit
30th May 2019, 9.00am - 4.30pm Clayton Hotel, Burlington Road, Dublin 4 2 for 1 discount with code ISME
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Biz Expo 6th June 2019. 10.00am - 4.00pm Citywest Convention Centre, Dublin
Equity Advisory Clinic 13th June 2019, 9.30am - 4.30pm Rubicon Centre, Bishopstown, Cork
THE
The b News
TOP 5 AREAS FOR SME TRAINING As you may be aware ISME’s HR Advisor Mark O’Connor’s recently published the results of ISME’s first HR specific survey. The body of research provided some valuable insight into business owners and manager’s training requirements.
The top 5 areas for training: •
11%- Management Development
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10% - Health & Safety
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10% - Business Development
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9% - Sales
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8% - People Management / Leadership
ISME Skillnet provide a range of learning and development opportunities specifically designed with SMEs in mind and covering a range of business topics. At ISME, via the ISME Skillnet, you can save between 20% and 40% on your training costs. Get in touch today at Skillnet@isme.ie and find out how you can save and develop your business in 2019.
An Evening Workshop ‘Relaxaaon Techniques’ Presented by: Frank Scoo-Lennon, WellbeingForWork.ie Frank is a Wellbeing Coach with an inspiraaonal presentaaon style. This workshop will provide you with the opportunity for transformaaonal change in your daily life, leading to the probability of greater personal calmness. Does this sound familiar for you? Rushing from one priority to the next Constantly juggling your work, family and personal life OOen looking aaer others more than yourself, and Perhaps ‘running wearily’ or on ‘near-empty’ Your Likely Take-Away from the Evening? The Relaxaaon Techniques treated will allow you to develop a learned process that will help you beeer cope in the fast & heccc lanes of life that have become rouune for many of us. 21st May | 7.30pm | The Le Panto Room, The Radisson St Helens’s Hotel in SSllorgan Book by emailing mary@hrforbeeerworkplaces.ie or calling 086-811-9591. Corporate rate of €45 for one aaendee; discount available for mullple aaendees.
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The b Issue
GDPR Turns One
Edward Percarpio, Privacy Architect Leader, Sovy
At the end of May the GDPR will crawl out of infancy to take its first shaky steps of toddlerdom. One year on, what does the GDPR have to say for itself?
Individual action is a critical part of the GDPR’s enforcement model, so one would hope that this awareness would translate to better compliance efforts. Luckily, that seems to be the case. Individual complaints to Data Protection Authorities about GDPR violations neared 100,000 in January, leading to over 200 formal investigations. While it’s hard to say whether 100,000 is a high number or a low one, it’s certainly higher than it was before the GDPR. That’s good enough for me to tentatively say that the GDPR has made people more aware of and empowered to exercise their data privacy rights. The Babble On the other hand, the GDPR buzz hasn’t always led to individual enlightenment. False rumors and paranoia have led many astray. In Ireland, some schools have banned parents from taking pictures of their children at school events “because of GDPR”. (Note: it’s most likely ok to take pictures of your child at school events, provided you’re not using other children’s pictures for commercial purposes.). Many companies are over-reliant on consent as their lawful basis for processing when they probably shouldn’t, which increases the burden on both the company and the consumer. The Teeth From a business point of view, the GDPR has made a notable impact on data breach notification practices. During the first 8 months, over 59,000 data breach notifications were reported by organisations across the European Economic Area. The Netherlands, Germany, and UK led the EEA with about half of the total breach
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notifications. (when adjusted per capita, Ireland ranks second and Greece, Italy, and Romania are at the bottom.) This jump in data breach notification marks significant progress for corporate compliance and transparency with the public and the government. The GDPR has also made a significant impact on the regulatory environment across the world. 23 of the 29 EU countries have implemented the GDPR into their national laws, and countries such as the U.S. (California Consumer Privacy Act), Canada (PIPEDA), and Brazil (LGPD) have used the GDPR as a model for updating their data protection laws. The Gums
While individual complaints and data breach reporting have increased, Data Protection Authorities (DPAs) have gotten off to a slow start in terms of fines and penalties. To date, DPAs have issued €56 million in fines for over 200,000 cases, which feels substantial until you realise that almost all of it comes from a single instance. (French DPA CNIL fined Google €50 million in January.) Finally, despite the generally positive outlook, the fact remains that over 50% of regulated organisations are still not GDPR compliant. In fairness, the GDPR imposes many changes to businesses’ operational and technical infrastructure. But at the same time, citizens and DPAs are mobilising enforcement process at an unprecedented pace, so organisations would do well to kick their compliance programmes in gear. How can Sovy help Sovy have designed compliance software specifically for SMEs. Through their Compliance Hub with GDPR Privacy Essentials℠ they offer tailored policies, eLearning, personal data inventory tools, website cookie scan and consent manager and more. For more details visit the Sovy Affinity page.
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The Buzz For a dry piece of data protection law, the GDPR has generated an immense amount of chatter. In 2018, GDPR had 300,000 media mentions worldwide (compared to 100,000 for Mark Zuckerberg, for example), and Google ranked its birth trendier than both Beyoncé and Kim Kardashian.
bISME
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The Big Interview
Customer & Community - Driven Fiona Muldoon, Group Chief Executive,FBD Holdings PLC Talk us through your career and what has led you to this point? Enjoying what I do (most of the time!) and challenging myself along the way have been key motivators for me. I began my career in Insurance working in what was then the newly formed IFSC. I qualified as a Chartered Accountant straight from school and picked up a degree in English literature and Philosophy at night along the way.Working for 17 years with XL Group - NYSE listed Property and Casualty Insurance, meant that I had a number of roles in Ireland and internationally – working in Ireland, UK and Bermuda. I finished in July 2010 as Group Treasurer and after seven years in Bermuda, the family returned to Ireland during the financial crisis. Given what XL went through during the US sub-prime crisis in 2008, I applied to work with the Central Bank and was appointed Director of Credit Institutions and Insurance Supervision. To say the least, it was an interesting period to be there from August 2011 until May 2014. I joined the FBD Group in January 2015 and became Group Chief Executive shortly after. FBD has come through a very difficult but successful turn-around over the last few years.
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What do you enjoy about your role? Being CEO of the only truly Irish Insurance company while competing against global multinational giants, is something that gives me great pride. I enjoy our independent status and I enjoy our customers. Farmers and small business owners keep things real! I believe in the social utility of our product: No small business could hang a sign outside their door to open unless we took the risk of loss of property or being sued away from them. That is an important role to play in the economy, and with so much of Ireland’s economy reliant on SME employment, we can relate to the SMEs we insure. FBD has to be nimble and responsive to keep pace with our giant competitors - we have no foreign parent to call on if things go wrong and they sometimes do in insurance industry. What changes has FBD seen over last few years? FBD is a different company compared to 5 years ago. It has modernised and made big structural changes in response to some loss-making years and a capital crisis in 2014. However, the customer remains at the heart of all that we do in FBD. As a team, we have turned our business around and now posted profits two years in a row. It took a lot of very hard decisions and some unpopular price increase to achieve this but without it we had no future. Like all businesses we must make a profit and for our customers, our employees and our shareholders we are on a strong footing to pay our claims when our customers need us.
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On left, Fiona Muldoon at the opening of the FBD branch on Baggot Street, Dublin in 2018.
The insurance sector is highly competitive, in your opinion what makes a brand/service stand out in this busy space? There is no doubt about that; for a small country Ireland has all the major global insurers operating all kinds of products. FBD stands out because we are close to our customer, we sell direct, we provide good advice and we genuinely want to do right by our customers. Our 34-branch network means we are right there locally with our farms and SMEs. These two groups are 85% of our business. Most of our business is carried out directly so we have a direct long-term relationship built up with our customer. This is an important part of our commitment and is a crucial differentiator. Through the FBD Trust we also invest heavily in numerous sponsorships, scholarships and supports particularly in Agri and Food related areas each year.
We would like to be for Ireland’s small businesses what we are already for Irish farmers, a one-stop-shop for all insurance solutions. What can we expect from FBD over the next few years? I hope you will see more of us. We want to build our brand throughout Ireland. We are eager to further expand our offering for small business customers. We would like to be for Ireland’s small businesses what we are already for Irish farmers, a one-stop -shop for all insurance solutions. I believe our product and service will differentiate us
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The Big Interview Category Why did FBD decide to be a sponsor of Team Ireland ? FBD Insurance is proud to be Irish. What better way to celebrate our communities and our patriotism than to support Ireland’s young men and women as they go for Olympic glory? Our sponsorship of the biggest athletic global stage of all, reflects FBD’s unique origin in rural communities and its ongoing connection with Ireland’s local communities through our nationwide presence. It is indeed these local communities which provide the foundations for our athletes as they strive to reach the world stage. For me, this was a really strong partnership built on common ground with Team Ireland.
Fiona at the launch of Maintain the Hunger Lessons for Business event.
From your experience in business what are the major business challenges you have overcome? There is nothing new under the sun. Having been involved in very successful businesses and in ones that have almost failed, you have to do lots of the little things well along with being really clear on what direction you are going. Most insurance businesses that get into trouble do so because they stray into areas they don’t know and then price incorrectly. Unlike other businesses, we do not know the cost of goods sold on the day we write the business, and no customer ever thinks they will have a claim when they are handing over the premium, so it is a challenge to get right. Ours is an analytics-based industry so you must be smart and careful about the risks you take on.
Ours is an analytics-based business so you must be smart and careful about the risks you take on. Do you have a business mentor you admire? What business advice would you impart to an SME business? I admire different things about business models and about business leaders. I think that you can learn something new from most people. I dislike the ‘cult of the CEO’ that has built up over the last twenty years. I think teams make things happen. I wouldn’t presume to give advice to anyone without context and anyway someone once told me free advice is worth exactly what you pay for it: nothing!
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Passion, planning and people are the three ‘Ps’ that many business owners attribute to their success. Would you agree with this mantra? Never heard that before and I like it. On the first, as I say to my kids, it’s very hard to be good at something you don’t enjoy. Planning is key – it’s not that you should stick slavishly to it but the very activity of it forces you to think through where you are going, how much it will cost, what you will need to get you there. Without it, you are only dreaming! And as for the last ‘p’, well enjoying the people you work with and the customers you serve, is what makes it worthwhile work, and everyone needs that. Why did FBD decide to sponsor ISME’s Annual Lunch on 24th May? FBD protects 20,000 business owners and community groups across Ireland. This represents 35% of FBD’s turnover and we would love to see it grow! FBD has over 50 years’ experience and is uniquely positioned to offer good value, tailor-made insurance solutions to our SME customers. Sponsoring the ISME Annual lunch is a way to say thank you for your business. We are delighted to partner with ISME and we are committed to continuing to protect Irish business.
Click here find out more about the ISME Annual Lunch on 24th May and here to find out more about FBD Business Insurance.
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To make our way back from a very difficult situation in 2014, to where we are now, is something that we are proud of. But the world is changing all the time. Disruption could be just around the corner and in business you can never be complacent.
The b Issue
bISME
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Gender Pay Gap Reporting
Hot on the heels of our UK & UK counterparts, Ireland is currently taking steps to introduce gender pay gap reporting in Ireland. What does this mean for businesses? Gender pay gap reporting is a mechanism to identify the difference, if any, in pay rates between men and women in industry. A UK study started to return figures in the past twelve months with significant disparities identified. Some 80% of respondents confirmed that they pay males more than females in comparable roles. While this clearly identifies a major issue it also acts as a starting point to resolving what is one of the most basic equality issues in society. While the approach that the UK has taken has been widely welcomed, it has received some criticism, mainly around the lack of enforcement. This honour system has been attributed to claims that up to 800 companies missed the original deadline, a number of organisations failed to submit reports at all in the
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second year and that mathematically impossible figure being recorded by some companies. In Ireland there are currently two gender pay gap bills going through the Oireachtas; a government bill from the Department of Justice and Equality which was submitted in April 2019; and a private members bill from Senator Ivana Bacik that has been under review since 2017. Senator Bacik’s Bill is currently at the eight stage of the Oireachtas and it outlines that reporting will take place for all organisations with more than 50 employees. They will be required to report on the difference between mean and median hourly pay rates between genders; mean and median bonus payments between genders; provide a breakdown on the issuance of bonuses; as well as the differences in upper and lower pay quartiles.
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All of this is more or less in line with the UK model except in two key areas. The UK reporting started with organisations of over 250 employees with a scheduled plan to review smaller organisation in later implementation phases, and unlike the UK legislation, failure to comply could result penalties of up to a Class A fine (up to €5000). The Department of Justice and Equality’s Bill follow much the same reporting guidelines as Senator Bacik’s however, it does take a similar stance to the UK in terms of the implementation phases of the roll out. The proposal is to start with large enterprises of more than 250 employees for the first two years, include companies with more than 150 employees in the third year, and finally organisations with 50 to 150 employees in the fourth year of reporting. One of the key differences in the Departments Bill to the Private Member Bill is that there will be mechanisms in both the Workplace Relations Commission (WRC) and Circuit Court to address non-compliance. The Bill allows for the establishment of a division of enforcement officers within the WRC. While there is no clear indication how this would be applied, it does leave scope for awards of up to €75,000 in line with the maximum award allowable at the Circuit Court. While it’s hard to confirm which Bill will ultimately become legislation in line with EU requirements, organisations will need to prepare for this impending legislation one way or the other. When there is greater clarity on this matter, ISME will release supporting documentation to Members, however if you have any immediate queries in relation to this or any other People Management issues please contact the Human Resource team on HR@ISME.ie or 01-66 22 7 55.
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want to grow your business? Getting online is a crucial part of growing your business. .ie online addresses enable you to reach out to new local and international customers, and sell your goods and services 24/7.
h e r e’ s w h y y o u s h o u l d c h oo s e a . i e It’s identifiably Irish
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.ie
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It’s more likely to be available
.ie offers a wider choice of available names compared to .com, as significantly more of those names are already registered.
SMEs 89% of website s r a h it w ane ing nyssum ayoitf cpola roalet s s% t r s t u n fr orsta 69imp doe y idtriiv inagnnyew ite. sain ompssa. webs c a ifbushin avee not
It’s the preferred online address for businesses in Ireland 75% of all registered .ie online addresses are businesses which proves that they recognise the value of having a .ie.
It’s easy and fast to register a .ie – you only need to provide one document proving your identity and connection to Ireland. Returning customers do not need to re-submit any documents.
s say f SMEe and o % 77 onlin has being lly savvy ess a digit d awaren ss. raise ir busine e of th
Set up a branded email address with your .ie. Our research shows that 77% of consumers trust companies that have a professional email address such as peter@bestplumber.ie as opposed to peter@hotmail.com. Visit www.iedr.ie to find out more.
bISME
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Technology
How much does a website cost?
Oonagh McCutcheon, Operations Manager, IE Domain Registry
T H E B U S I N E S S O F I R I S H S M Es
One of the most frequently asked questions in the world of web design and digital marketing is ‘how much should I pay for a website?’ There is no magic formula for calculating the cost of a new website. After many years working with Irish businesses, we’ve compiled some of the information you need when deciding on a budget for your website. Our advice is broken down into practical and manageable tasks, showing you what you need to consider when going through the process. We’ve heard from industry bodies like ISME and the SFA, that website quotes for their members can vary from €5k to €20k. It is generally accepted that businesses should spend 5% of their turnover on marketing if they want to stand still and 10% to grow. Marketing statistics in the U.S. indicate that 62% of small businesses are investing 4% or more of their revenue in marketing. So how can an SME in Ireland decide on the right amount to spend? It will depend on the size and nature of your business, as well as the sophistication of the website itself in terms of the technical elements needed. It also depends on how the website is positioned within your overall marketing strategy. We know from our SME Digital Health Index 2018 that 89% of SMEs who own a website say it plays an important role in driving new business, and 72% of those surveyed now have a website. Three quarters of these websites are optimised for mobile devices. ‘Right-Sizing’ Your Website Time-poor onliners need expert guidance on prioritising their next steps online. SMEs often feel overwhelmed by the amount of information available and how to make the right decision for their business. We advocate ‘right-sizing’ your digital presence – not every business needs a full e-commerce website solution, but every business needs to be online and contactable online
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Step by Step Guide We’re here to provide relevant and up-to-date information for businesses that want to benefit from being online. The first step is to decide on the purpose of your website. Is your main objective to promote your business and brand? What are you trying to sell? Is it a product or service? This will determine the functionality, style and layout of your website. Then you are ready to move into the specification stage and hire an expert to help you build your website. You may choose to use a do-it-yourself website builder. The cost of the website will depend on the overall spec and complexity. It is important to note that the cost will be spread over time, so treat it as an investment for your business. Our guide ‘Website Costs for SMEs in Ireland’ illustrates four different business scenarios, from start-up, micro (2-3 staff), small (1-10 staff) and medium sized (10 – 20 staff) and their differing website requirements and costs. It also gives guidance on pulling together a brief to develop a website, and helpful hints on how to choose a web developer. Download the ebook here for a useful guide in helping you get started online. IE Domain Registry is the national registry for .ie domain names and aims to provide unique, identifiably Irish domain names, along with registry and related services to the local internet community. Currently, there are over 270,000 registered .ie domain names. Over 51,000 new registrations were added in 2018 by Irish residents and Irish business owners. The company is committed to being a digital advocate for the SME community. Find our more here.
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ISME at work for you
ISME CALLS ON GOVERNMENT TO ERADICATE ‘BREXIT-PROOFING’ CLAUSES FROM PUBLIC TENDERS. ISME received a complaint from a member company about a ‘Brexitproofing’ clause inserted in a Leitrim County Council request for quotation to fit-out vehicles with ‘fire service operational equipment’. Even if such a clause were enforceable by law, and ISME doubts that it is, we consider it reprehensible that any state agency or local authority would attempt to force the risks of Brexit onto small enterprise, when the Government doesn’t know them itself. Over and above the enforceability of this as a contract matter, it seems entirely inconsistent with EU procurement law’s proportionality principle. This issue has surfaced in some other public and semi-state contracts recently, and ISME now calls on the Local Government Management Agency (LGMA), Office of Government Procurement (OGP), other Centres of Procurement Excellence (COPEs), and all Ministers responsible for public tendering to eradicate these clauses from all public tenders immediately. Read more here
Sales Planning & Lead Generation Tuesday, 14th May Dublin Essential HR Fundamentals for SMEs Wednesday, 15th May Dublin ISME Insurance Reform Meeting Thursday, 16th May Portlaoise ISME Annual Lunch Friday, 24th May Dublin Time Management & Goal Setting Tuesday, 28th May Dublin
ISME’S ESSENTIAL MANAGEMENT COURSE IS UP AND RUNNING This exciting programme was developed in-house by ISME for SMEs and launched on Thursday, 25th April. This 6-month programme is designed to help owner managers and their staff to improve business through best practice management skills. The programme is assessed by the ISME Learning & Development team for QQI level 6 accreditation.
YOUNG PEOPLE IN EUROPE
ISME Roadshow Thursday, 30th May The Glasshouse Hotel, Sligo Team Management & Leadership Wednesday, 12th June Dublin Customer Service & Complaints Handling Tuesday, 25th June Dublin
ISME’S LATEST WEBINARS ISME’s HR Advisor, Mark O’Connor has launched a series of HR webinars on topics that are of interest to Irish SMEs.
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Adam Weatherley, ISME’s Learning & Development Manager, attended the first meeting of “Young People in Europe on 28th March in Brussels. The group discussed the topic how to reduce the number of NEETS?” (Not in Education, Employment, or Training). This event was organised by SMEunited, with whom ISME are members.
DATES FOR YOUR DIARY
You can catch up on previous webinars which cover the below topics here. 1.
Absence Management
2. The Miscellaneous Provisions Act 3. Conducting a Disciplinary Young People in Europe Meeting, Brussels on 28th March.
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4. Probation
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bISME
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The b Insight
Preparing your business for Brexit H
orses are in Alan Delany’s blood. He runs Delany Performance Feeds, based in Laytown Co Meath with his wife Lisa. The company supplies horse feed across the island and to Great Britain. “We also have a small family farm where we train and breed race horses with my brother and father. My wife sometimes tells me, that I look after my horses better than myself,” says Alan. It’s a proud heritage, evident in the pictures on the walls in his house, and one that has a claim to fame. “We are right on the beach at Laytown. My great uncle trained the 1898 Irish Grand National winner, Porridge, on the same beach.” Alan has continued in the winning tradition, for Delany Performance Feeds, suppling Aintree Grand National winning trainers, Gold cup winners and Champion Hurdle victors.
T H E B U S I N E S S O F I R I S H S M Es
The Performance Feeds part of the business was set up over a decade ago, when Alan was seeking a solution to help horses with ulcers. He came across a manufacturer in Co Tyrone that had a product which worked well. Alan could see the opportunity. “They didn’t have a whole lot of contacts built up so I took on the product and started selling it. We now have a big clientele that built up from a very small beginning” As an SME with a large proportion of trade in the UK, Alan was worried about the impact of Brexit on his business “We contacted InterTradeIreland as we had concerns about Brexit. We weren’t sure how, as a small company we should prepare. InterTradeIreland’s Brexit voucher scheme has been a huge help in making us familiar with what might happen. We were introduced to trade advisers who helped us through each aspect. They came to meet us twice for a detailed chat on our particular circumstances and very helpfully came to a meeting with our supplier.” “I found it very easy to apply for the funding and the level of knowledge available was exceptional. It made me feel a lot more confident and secure. It’s given me peace of mind. I also found their on-line training platform really useful; you can find out lots of information about customs, tariffs and all the other issues. For anyone who is running a business and has any concerns about Brexit, I would definitely recommend InterTradeIreland is the first place you should start.”
Alan Delany, Delany Performance Feeds
InterTradeIreland’s Brexit Advisory Service Earlier this year InterTradeIreland unveiled details of an enhanced Brexit Advisory Service, where businesses can secure up to €5,230 of funding, as well as benefit from a new bespoke on-line learning tool focused on practical help to prepare for Brexit. Businesses can now benefit from two Brexit vouchers. The first provides 100% financial support up to €2,250 (inclusive of VAT) towards professional advice to help businesses understand what exposure they have in relation to Brexit. This includes issues such as customs requirements and supply chain exposure, VAT and financial implications, as well as understanding complex tariff codes. The second voucher – the new Brexit Implementation Voucher - provides financial support up to €5,625 (inclusive of VAT), with InterTradeIreland paying 50%. This voucher will allow businesses to implement critical changes identified in the stage one process - making them better prepared to deal with a new trading relationship. As part of the enhanced support package, InterTradeIreland has developed a tailor-made online learning tool. It is designed to help crossborder traders understand customs requirements, in terms of moving goods and services cross-border with step-by-step guides. This service also provides information on the impact of Brexit on employers and employees. Aimed at busy SMEs, it makes high-quality, concise information available to them in their own time, in an accessible way. It is free and available to multiple users within a company. For more information on funding and wider supports please visit here.
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Training Focus
Category
Upskill & reskill your workforce through training
Mary Lyons, Director of National Innovation, SOLAS
When Adare Human Resource Management published its HR Barometer last year, it presented a startling fact, that the average cost of replacing a worker now stands at €13,100.
For employers, especially those running small and medium sized companies, Skills to Advance is a gamechanger. We know that 99% of businesses in Ireland are SMEs who are responsible for 68% of the workforce. We also know that the smaller the company, the less likely an employee is to receive training. I probably don’t need to point out that workers in lower skilled jobs are those most in need of training, and yet are the least likely to be offered an opportunity to reskill.
The Solution? Skills to Advance The Skills to Advance initiative can help SMEs retain, upskill and reskill existing staff in myriad ways. Providing support through your local Education and Training Board, the programme can help employers identify the skill development needs of staff and provide the necessary training. Up to 70% of costs are covered for your staff. Lower skilled jobs are the backbone of our economy. People in such jobs may be at risk of displacement due to technological changes or demands.
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But this shouldn’t be the case. Why can’t employees train and learn new skills that help them remain in employment and benefit their companies. For employees, the Skills to Advance offering is a lifechanging opportunity to reskill. For the employer, it means retaining a loyal and industrious workforce who can move with the times.
What are the benefits to you as an SME? 1.
For a start, you are supporting business growth;
2. You are developing and upskilling your existing workforce; 3. This will help retain employees; 4. Productivity and competitiveness will increase.
To Summarise Skills to Advance provides the means for you the employer to upskill your staff by providing: •
Minimal disruption to your business – training will fit in and work around schedules rather than take staff away from their jobs
•
You the employer can decide what training is relevant to your business, so you are maximising on the opportunities designed to boost your business and employee morale
For more information on Skills to Advance and ETB contact details in your region, visit: Skills to Advance.
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T H E B U S I N E S S O F I R I S H S M Es
This is double what it cost to replace staff in 2017, and with a skills and talent shortage in Ireland, the price tag can only go one way unless we make some changes – namely in upskilling the existing workforce. This is where SOLAS working with the Education and Training Boards (ETBs) around the country and the Skills to Advance initiative can help.
bISME
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ISME Partnership
Remote working, early summer finishes and free local coffee:
Even the smallest businesses can do more to attract, recruit and retain talent
Christopher Paye, General Manager in Jobs.ie speaks about a new 12-month partnership with ISME which includes nine national ISME Roadshows.” Small businesses can and must do more to attract, recruit and retain the best talent, according to Jobs. ie General Manager Christopher Paye. Speaking at the announcement of a new 12-month partnership with ISME, Mr Paye called on Irish SMEs to re-examine and refresh their employer brand strategies to make themselves more competitive when competing for talent against major multinationals. Three practical measures for consideration include: 1.
Ask yourself: what opportunities can I offer employees that are unique to my business? This might include flexible working, career progression or exposure to different elements of the business.
T H E B U S I N E S S O F I R I S H S M Es
2. Remember that even unsuccessful applicants can become advocates. The smartest employers realise this opportunity and treat successful and unsuccessful applicants with respect at every stage of the recruitment journey. People talk about their experiences, particularly when recruiting locally. If an applicant is treated with respect, given feedback and timely updates, this reflects well on the business and will be communicated to future prospective hires. 3. Bigger is not necessarily better. Employee perks don’t have to mean a free canteen. The advantage many SMEs have over larger employers is an ability to be more agile. What perks can you offer employees that will foster loyalty and goodwill? This might be the opportunity to finish early on Fridays during the summer or providing free take-out coffee from your staff’s favourite coffee shop. Jobs.ie take to the road with ISME ISME is the only independent representative association for small and medium enterprises and currently has more than 10,500 members nationwide. This new collaboration will see Jobs.ie sponsor and contribute to nine ISME Roadshows nationwide. As part of this roadshow series, Jobs.ie General Manager Chris Paye will address attendees and share his expertise on the key recruiting and employment
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trends facing the Irish SME sector. The ISME Roadshows provide businesses with the opportunity to network and attend a series of talks and discussions on the key challenges and opportunities facing Irish SMEs in 2019 and beyond. “Small- and medium-sized businesses today face a multitude of challenges, including staff shortages, rising commercial rents and insurance costs, and potential market, regulatory and supply chain disruption emerging from Brexit,” said Christopher Paye, General Manager at Jobs.ie. ‘‘Obviously, we can’t solve all these challenges, but we can look to provide insight into current employment trends and guidance for SMEs on how best to address their staff recruiting and retention challenges. As we all know, it was international investment in Ireland that helped us to climb out of recession in recent years, but it is home-grown businesses that hold the keys to developing a stable and prosperous economy. We must do all we can to provide small business owners and entrepreneurs with the resources and expertise they need to compete with larger corporates for the best talent, and to continue to innovate and invest across all sectors of the Irish economy.”
Christopher Paye & Neil McDonnell
Neil McDonnel, Chief Executive of ISME, said about the partnership: “It’s great to be working with Jobs.ie this year. While there are headwinds for Irish SMEs, we’re also closing in on full employment, and Irish businesses are still hiring. Getting the right people is absolutely central for those businesses who want to weather the challenges ahead.” Roadshows have already taken place in Dublin, Cork, Galway and Limerick, the next event will be in the Glasshouse Hotel in Sligo on 30th May. Details will be announced for future roadshows in Athlone, Kilkenny, Waterford, Letterkenny and Dublin. To register for the ISME roadshow, please click here
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www.studioline.ie
www.staffwellbeingproducts.com
bISME
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Another side of
Marc O’Dwyer, CEO, Big Red Cloud What interests do you have outside of work? I enjoy taking part in Ironman events and I am a Leinster Rugby supporter and season ticket holder and go along to all the matches When and why did you start participating in Ironman Triathlons? I started Triathlons in 2000 and in the race I was beaten into second place by Eamonn Coughlan!. I spent the next 10 or so years doing Duathlons and Triathlons, ending up getting a place on the age group Irish Teams for two World Championships and two European Championships. My brother suggested doing an Ironman (easy for him he lives in sunny California!), so I completed in my first Ironman in Austria in 2012
How often do you train and where? I train 6 or 7 days a week, sometimes twice a day, with 16-20 hours to fit in it takes a lot of planning. I swim in the 50 Metre pool in UCD, cycle in the Wicklow Mountains and run everywhere and anywhere, mainly south county Dublin. I am blessed to have such facilities on my doorstep. How many Triathlons have you participated in? I guess over 40 Triathlons, most of which were in Ireland except the World Championships and Europeans, which were in Budapest and Edinburgh. All my Ironman events were abroad - in Austria, Frankfurt, Nice, Mallorca and Copenhagen and I plan to compete in Frankfurt again this year.
T H E B U S I N E S S O F I R I S H S M Es
Do you have any interesting stories you’d like to share about the competitions you were in?
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On two of the Ironman swims I had panic attacks at the start which I had to overcome. Back then all athletes started at the same time, so 2,800 athletes all entering the water simultaneously! it was carnage and as swimming is the weakest of the three disciplines, this was extremely challenging for me. At another event my TT bars broke and couldn’t be fixed and finally in the Dublin 70.3 I nearly got knocked down by a car.
Which of the different disciplines do you like the most and why? I used to really like running, but as a huge percentage of an Ironman is spent on the bike, that has now become my favorite. I really like it because of the exhilaration you get from the speeds you can get up to during training/race. I also like the skill required to navigate around very technical courses. As a CEO of Big Red Cloud, do you find the physical activities you do therapeutic from your busy work life and how? I certainly do, I often come up with my best business ideas when I am out running or cycling. But more importantly, the upside of doing so much training really helps with my energy levels and drive within the business. I personally find it very therapeutic and it keeps me very sharp and on my game. Does all the training you do to compete in Triathlons, influence your discipline in other areas of your life? I have always been very disciplined and I think you need to come from that mindset to even attempt an Ironman. One area it does influence is “sleep” – it is impossible to recover properly from all the training unless you get enough sleep, so I do try to ensure that I am disciplined in that area. How important to you is work life balance? Massively important. I am very lucky to have a very supportive wife and four fantastic daughters. My office is very close to home and I have always ensured that I am home for dinner every evening when we all sit down to eat together. I know I am privileged to be able to do this, but I worked extremely hard to make this happen. I know that it’s not easy for everyone to be in a position to do this, but for me it’s the most important aspect of my life. How does this work for Big Red Cloud? As a Business to Business Company (B2B) our working day is 9am to 5.30pm. While staff will stay late to help customers, in general they get to leave at 5.30pm to go spend time with their respective families. This is important to me, we have a great vibe among the team here, it is very much a family atmosphere. As a result of this atmosphere, our customer support, is second to none. Ask any of our customers that use Big Red Book/Cloud what they think of our support and you will get a resounding positive response Find out more about Big Red Coud here.
A series that highlights the lives and interests of ISME members and staff. In this edition, The bISME talks to Marc O’Dwyer, CEO, Big Red Cloud, about his Ironman Challenges.
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Advert
Griffith College ‘Earn and Learn’ initiative to address tightening jobs market for employers Ireland is fast approaching full employment. New figures from the Central Statistics Office (CSO) report an unemployment rate of just 5.4%. Employers across the country face an increasingly difficult task sourcing high quality recruits. To tackle this issue, Griffith College piloted an “Earn and Learn” initiative in 2018 in partnership with the Central Bank of Ireland, whereby school leavers could work full-time while pursuing a degree part-time. Introducing the programme, Griffith chose to focus on two areas of concern for employers: • Sourcing motivated and ambitious Leaving Certificate students keen to enter the workforce after finishing their second level studies. As a national institution, Griffith College was in a position to utilise its four campus admissions teams in Dublin, Cork and Limerick. • Providing an educational experience that successfully combined full-time work with part-time studies. Crucial to its efficacy was a successful learning outcome for students entering onto the programme. The initiative with the Central Bank of Ireland received more than 400 secondary school applications. For 2019, the programme is now available to all employers and organisations who wish to participate. Under the initiative, students work a typical 40-hour week. They receive a salary from their employer while attending Griffith College two nights a week. The cost of their part-time degree is covered by the employer. Successful students are initially identified by the Admissions Team at Griffith College and undertake an interview process with potential employer firms. Commenting on the initiative, Central Bank Director of Human Resources, Liz Joyce said: “The students have an opportunity to make their mark in a progressive, multi-faceted organisation at the heart of the financial system, while also completing a three-year part time degree. It is our ambition that these students will progress to successful, long-term careers with the Central Bank.” If your organisation would like to learn more about this innovative approach to work and study, please contact Emily Watts at emily.watts@griffith.ie.
