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What to know about Pensions in 2024

Major changes are on the horizon for pensions, with the Social Welfare (Amendment) Bill 2023 paving the way for enhanced flexibility and revised state pension calculations. From January 2024, individuals can opt for state pension between 66 and 70, with additional PRSI contributions accepted after 66. A shift to the ‘total contributions approach’ (TCA) from 2025 aims to simplify pension calculations, acknowledging earned and credited contributions. Employers should brace for increased demand for later and phased retirements, and as auto-enrolment legislation looms, careful consideration of eligibility and exemptions becomes crucial.

Read more here.

Business Planning – Why bother?

Get ready for success in 2024 and beyond! Crafting a plan may seem time-consuming, but it’s a crucial investment. Mark Fielding highlights five key reasons to prioritize planning, emphasizing the leader’s pivotal role. From setting direction to driving alignment, a well-communicated plan ensures everyone is on the same page, simplifies decision-making, and maximizes strategic success. Don’t just aim for success—strategically plan for it.

Now is a good time to prepare a plan for 2024 and beyond.  Developing a plan takes time and resources. It requires the time and commitment of you, the owner/manager, and some of the most experienced people in your business. So, why do you need a plan? Why take time for planning?  Here are five excellent reasons.

 1. To set direction and priorities

Primarily, you need a plan because it sets the direction and establishes priorities for your business. It defines your business’s view of success and prioritizes the activities that will make this view your reality. The plan will help your people know what they should be working on, and what they should be working on first. Without a clearly defined and explained plan, you may very well find that your priority initiatives—the ones that will drive the highest success are being given secondary treatment.

2. To get everyone on the same page

If you find that you have people working to achieve different aims, or going in different directions, you need a plan. Once you define your strategic direction, you can get operations, sales, marketing, administration, manufacturing, and all other departments moving together to achieve the business’s goals.

3. To simplify decision-making

Plan priorities make it easier to say no to distracting initiatives. If your team has trouble saying NO to latest ideas or potential initiatives, you need a plan. Why? Your plan will have already prioritized the activities necessary for success.

4. To drive alignment

Many businesses have hard-working and diligent people putting their best efforts into areas that have little to no effect on strategic success. They are essentially concentrating on the wrong areas —because their activities aren’t aligned with the priorities. Your plan serves as the vehicle for answering the question, “How can we better concentrate and align all our resources to maximize our strategic success?”

5. To communicate the message

Many business managers/leaders walk around with a virtual plan locked in their heads—they know where their business needs to be and the key activities that will get it there. Unfortunately, the plan isn’t down on paper and hasn’t been communicated thoroughly. As a result, few people are acting on it. When your staff, suppliers and even customers know where you’re going, you allow even greater opportunities for people to help you maximize your success in getting there. You will have noticed that this article is very much focused on YOU, the leader of the business, and on the vital role YOU play in facilitating plans throughout YOUR business.  So, once YOU recognize the need to plan, YOU now have the role of becoming the catalyst: for facilitating the buy-in and commitment of YOUR team and the rest of YOUR business.  And, more importantly, if you or your team aren’t willing to invest in what is needed, I recommend that you don’t bother. Poor planning is often worse than no planning at all.

Mark Fielding

Make 2024 the year of the BEHAG for your business

As the new year begins some of us are looking into the future and wondering, with crossed fingers, what’s in store for us in 2024 and beyond. Others of us have already thought out their plans and forgotten to write them down. While the smarty-pants have a written and costed plan in months and quarters with the usual hieroglyphics M1, Q2, H2 etc. There is no doubt in my mind that the use of business planning is the cornerstone of business success.  I’m a great believer in the great philosopher Marx statement that ‘without a plan you can only start two things successfully, a riot and a family’ – (Groucho not Karl.)   So, business plans are important, however, the GOLDEN RULE for business strategy is that before you have a plan you MUST HAVE a BEHAG. i A BEHAG is a big, enormous hairy audacious goal, or in Irish parlance, a Big Enormous Hairy Assed Goal.  A BEHAG is a visionary and ambitious long-term goal that stretches an organisation’s capabilities and inspires collective effort. I set out here, from my experience, the importance of having a BEHAG and how it contributes to business success.

Sets a Clear Direction

One of the primary benefits of having a BEHAG in business is the establishment of a clear and compelling direction. In a world of rapid change and uncertainty, a well-defined and ambitious goal serves as your guiding NorthStar. It gives a purpose and direction, aligning the efforts of individuals and teams toward a common objective. This clarifies decision-making, resource allocation, strategic planning and fosters a sense of unity among employees.

Motivates & Inspires

When the team (employees, board) is presented with a goal that goes beyond the ordinary it sparks enthusiasm and a sense of purpose. The audacity of the goal creates a shared belief that achieving it is possible and well worth the collective effort. This motivation is essential for sustaining momentum over the long term.

Builds Resilience & Adaptability

The journey toward achieving a BEHAG is rarely smooth as unforeseen obstacles are inevitable. However, having a BEHAG instils a resilient mindset within the organisation, and encourages teams to persevere in the face of adversity. This adaptability is crucial in a business environment where change is constant, and the ability to navigate uncertainties determines long-term success.

Fosters Innovation & Creativity

When given a BEHAG, teams are encouraged to think outside the box, explore unconventional solutions, and push the boundaries of the ordinary. The pursuit of audacious goals often leads to breakthroughs, driving a culture of innovation that is essential for staying ahead in competitive markets. The BEHAG process forces teams to question assumptions, experiment with new ideas, and embrace a mindset of continuous improvement.

Attracts & Retains Talent

Ambitious individuals are drawn to companies that have a clear vision and a commitment to achieve something significant. A BEHAG serves as a powerful recruiting tool, positioning the organisation as a place where individuals can contribute to a greater purpose, be part of a transformative journey and it creates a sense of loyalty and pride among those who are aligned with the organisation’s bold aspirations.

Conclusion

As businesses navigate the complexities of the modern world, the strategic significance of setting Big Enormous Hairy Assed Goals becomes increasingly evident. From providing a clear direction and motivating teams to fostering innovation and building resilience, a BEHAG serves as a catalyst for organisational success. It is not merely about achieving a specific outcome but about inspiring a collective journey that transforms both the organisation and the individuals within it.  So, get yourself a BEHAG. Embracing the BEHAG philosophy is not just a strategic choice; it is a commitment to reaching for the extraordinary and shaping the future of your business.

Mark Fielding

Payroll Enhanced Reporting From Jan 2024

Effective January 1, 2024, Irish companies must report tax-free payments, such as small benefits and remote working allowances, to Revenue under the Finance Act of 2022. Reporting is done online before payment using Revenue’s system. Companies should update record-keeping, ensure system compatibility, and educate relevant departments. Employees can view reports separately in online tax accounts. Compliance with the new rules is required by January 2024.

Read more here.

Minister Coveney announces €257m in Grants to help meet Increased Cost of Business

The Irish government, led by Minister Simon Coveney, has approved a €257 million Increased Cost of Business (ICOB) grant, benefiting 95% of enterprises. This one-time grant, part of Budget 2024, aims to alleviate the rising costs faced by small and medium businesses, providing a crucial cash injection in early 2024. With adjustments to include more businesses, the scheme reflects the government’s commitment to supporting businesses and targeting small and micro enterprises across Ireland.

Read the full announcement here.