Market Watch Germany – Webinar – Enhance your digital presence for the German market

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Enterprise Ireland’s offices in Germany have launched a series of Webinars: Market Watch Germany. Every Wednesday at 14:00 BST/15:00 CET a new theme will be addressed to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid 19.

The third webinar in the series; Website Optimisation: Enhance your digital presence for the German market, took place on Wednesday 29th April

The team was joined by consultant Suzanne Dirks, Ed ​Kelly, Creative Director and Emmet Dunne, Managing Director of Digital Agency Kooba providing expertise on:

  • how to leverage your website in terms of layout and localisation

  • how to increase traffic to your website by creating an enhanced user experience

Finally, Eoin O Siochru from Enterprise Ireland’s Internet Marketing Unit discussed the supports available to Enterprise Ireland client companies to drive these activities.

 

jenny melia

Support where it’s most needed for HPSUs

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The innovation and dynamism of Enterprise Ireland-supported high potential start-up (HPSU) firms are vital to future economic growth, and it is absolutely essential that HPSUs that were progressing prior to Covid-19 receive the support they require to get through the Covid-19 crisis.

“These firms and their founders are the future leaders of the economy and our focus is on ensuring that they have sufficient fuel in the tank and the right resources in place to get through the next three to six months and be ready to take advantage of the upturn when it comes,” says Enterprise Ireland Divisional Manager for HPSUs Jenny Melia.

HPSUs do face particular challenges in the current environment, mainly due to their early stage of development. “Many of them are not yet revenue generating and are continuing to fundraise to drive business development,” Melia explains. “This can mean that they do not qualify for some of the Covid-19 supports available at the moment. It can also be the case that they haven’t been in business long enough to have built up a relationship with a bank.”

According to Melia, the three main problems faced by these fast-growing firms relate to cash flow, investment, and talent retention.

“In a lot of cases sales have just stopped,” she says. “They have no cash coming in from that source and that can turn into a double whammy if investors back off. There is a softening of sentiment in the investment community at the moment and that is presenting problems. Holding onto key skills is another real pain point for a lot of companies. We were nearly at full employment in the economy just a few weeks ago and they had to work very hard to get the right people. They are in danger of losing them now and these skills will be critical to support future growth.”

Support is available to deal with these issues, however. In the first instance, Melia advises firms to avail of the Enterprise Ireland Covid-19 Business Financial Planning Grant scheme, with supports of up to €5,000 to help companies prepare financial plans with the assistance of an expert.

“We are asking start-ups if they have assessed the impact of Covid-19 on their business and if they need assistance and financial support to do that,” she points out. “We are already seeing a great deal of interest in the scheme. This will help start-ups develop a stabilisation plan, which should look at resetting their business plan e.g. reducing the cost base and lengthening the financial runway to tide them through the next 3-6 months and prepare for the upturn including raising new investment.”

The next step is to work with existing investors and shareholders. “Companies should discuss the possibility of bridging finance with their investors,” says Melia.

“Enterprise Ireland is also willing to co-invest as part of this investment. That is a new departure for us. Typically, when we invest in a company it’s to fund a growth plan for the next two or three years. In this case, we are absolutely willing to play our part alongside existing funders and investors in ensuring HPSUs get through the current financial crunch. Companies should speak to their Development Advisor about this.” advises Melia.

There is also the loan scheme from Microfinance Ireland. “This is open to start-ups with fewer than 10 employees, and the amount on offer has been increased from €25,000 to €50,000. The interest rate has been reduced to 4.5%, with a moratorium on interest and repayments for the first six months. I would encourage start-ups to look at the scheme to see if it is suitable for their needs.”

The Covid-19 Wage Subsidy Scheme is a valuable source of assistance in helping to hold onto talent. “The scheme was initially aimed at firms suffering a reduction in turnover but, recognising the particular circumstances of start-ups, Revenue introduced another criterion, which was a downturn in the level of investment companies had projected. Some companies are not aware of this.”

Enterprise Ireland is also organising a series of webinars to provide advice and support to HPSUs. “We have a number of former HPSU founders that have come through a number of recessions and downturns and have very valuable advice to offer.”

Companies should also leverage the advice available through their own networks, she adds. “They should contact their Enterprise Ireland Development Advisor, their investors, business angels, suppliers and customers out in the market and so on. These are the things that entrepreneurs do anyway, and they are more important than ever now. We firmly believe that there will be opportunities out there for firms when the crisis ends, and our focus is on helping our clients to be ready for these opportunities when they arise.”

 

The funding landscape – surveying the options

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Funding Landscape

With entire business sectors forced to either cease trading completely or go into a period of near hibernation as a result of the Covid-19 pandemic, many companies are faced with a situation where income has slowed to a trickle while outgoings cannot be eliminated entirely if the business is to survive and emerge from the crisis intact.

 

Look Inside the Business First

These factors make a company’s state of readiness for access to funding, from all sources, critically important. When surveying the funding landscape, John Power, director of specialist financial advisory firm SGL, says the best place for companies to start is internally. That potential source encompasses existing debtors and customers who may be willing to pay in advance for a discount and also maximising terms with creditors which may include payments to Revenue.

“Firms must still submit their returns on time, but Revenue is not going to apply penalties and interest for late payment,” says Power. “Revenue has really stepped up to the plate here. Companies should appreciate that flexibility and use it while they can.”

 

Investigate State Support Schemes

He also points to the range of supports on offer from the State, including the €450 million Covid-19 Working Capital Loan and €200 million Future Growth Loan schemes available through the Strategic Banking Corporation of Ireland (SBCI) and the €180 million Sustaining Enterprise Fund through Enterprise Ireland to help companies in the manufacturing and internationally traded services sectors to adapt their business models and return to viability. A Rescue and Restructuring Fund for worst-case scenarios is also available.

“The SBCI Working Capital Loan Scheme offers loans of between €25,000 and €1.5 million over three years with a maximum interest rate of 4%,” says Power. “The funding is available on an interest-only basis for the first three months, and that will help companies get through the initial period of the crisis. Also, the first €500,000 is unsecured. That’s very important for service-based companies who may have limited assets to use as security.”

Enterprise Ireland also has a new €5,000 Covid-19 Business Financial Planning Grant to help companies prepare financial plans for their internal needs and to better prepared to present a strong lending proposal to banks and the SBCI. There are also a number of strategic consultancy grants and other supports available to help companies maintain and enhance their competitiveness.

Smaller companies also have other options. “Microfinance Ireland has stepped up with loans of up to €50,000 over three to five years at an interest rate now reduced to 4.5%, with no repayments required and no interest charged in the first six months,” says Power.

 

Engage with your Bank

Bank finance is, of course, an option worth pursuing but can be difficult to get in the current environment. “Banks look principally at two things,” Power explains. “Capacity to repay and security. And they need both before they will advance a loan. I hope that banks take a forward-looking view or else look back on 2019 performance when assessing companies’ ability to repay loans. If they just look at the first quarter of 2020, it will make things very difficult.”

 

Credit Guarantee Scheme

Companies which can demonstrate capacity to repay, but fall down on security, can always utilise the Credit Guarantee Scheme, he adds. Managed through the SBCI, the scheme guarantees 80% of the value of the loan in return for a half a percent premium on the interest rate. “This gives the banks the security they require in many cases,” says Power.

 

Sustaining Enterprise Fund

For companies that have been unable to raise finance through either the SBCI or the banks there is the Enterprise Ireland Sustaining Enterprise Fund. The purpose of the €180 million fund is to sustain companies which have been impacted by a 15% or greater reduction in actual or projected turnover or profit, or which have seen significant increase in costs as a result of the Covid-19 outbreak.

In order to qualify, businesses must provide a Business Sustainment Plan outlining how the company will be stabilised and return to viability. Qualifying businesses will be offered a repayable advance of up to €800,000 to support the implementation of the plan.

Very importantly, there is a three-year grace period on repayments. The advance must be repaid by the end of year five.

“I am pleased to say that the new Sustaining Enterprise Fund is now open for businesses who are unable to raise adequate funding from the market,” says Enterprise Ireland CEO Julie Sinnamon. “My strong advice to companies is, if you haven’t already done so, to prepare an assessment of your financial requirements and progress funding applications to the banks and the Strategic Banking Corporation of Ireland (SBCI) immediately. Enterprise Ireland’s new Business Financial Planning grant will help companies to prepare a Business Sustainment Plan.”

Other supports available through Enterprise Ireland include the new €2 million Covid-19 Online Retail Scheme which offers grants of up to €40,000 to retailers employing over 10 people to develop a more competitive online offer. Companies can also avail of the new €2,500 LEAN Business Continuity Voucher to help them access the expertise to identify the key measures needed to ensure continued operations.

 

managing liquidity covid19

Managing liquidity through the Covid-19 crisis

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managing liquidity covid

Cash really is king for businesses contending with the Covid-19 crisis. Many of those still trading have to meet ongoing payroll, rent, utilities and other costs in the face of rapidly declining demand, while many others have been forced to close either as a result of government directive or adverse trading conditions and are looking at ways to reopen when the crisis abates.

The challenge for all of these companies is how to manage their liquidity through the coming weeks and months to ensure they are in a position to take advantage of the recovery when it does come.

Interestingly, recent events have served to prepare Irish companies for the shock. “We have been talking to a lot of companies in our role as an outsourced CFO,” says Barry Doyle, director of specialist financial advisory firm SGL.

“They have learned to deal with a lot of problems as a result of the Brexit crisis and they are better prepared as a result. With Brexit, the issues were reduced margins, foreign exchange issues and other disruptions, and they have been preparing for them.” says Doyle.

Of course, the scale of the impact of the Covid-19 crisis is greater by an order of magnitude. “This will mean a shutdown for many companies and a full loss of income for a sustained period,” Doyle points out. “They are seeing zero revenues on one hand while they face continued expenditure on staff, suppliers, customers and so on.”

 

Understand the Data with a Cashflow Forecast

Dealing with that situation begins with data. “The starting point is a detailed cashflow forecast,” Doyle advises. “That’s key to understanding where you are.” And what you need to do.

He describes cash and communication as the key elements of the approach to be taken once the forecast is complete.

“If working capital is the lifeblood of the business, cash is the oxygen,” he notes. “Companies have got to have working capital available to them to kickstart them after the shutdown.”

 

Engage with Creditors and Debtors

And that’s where the communication comes in. “You have to talk to your customers to identify what receipts are likely to come in. Are they still open? Are they still in a position to pay bills? Talk to your suppliers to see if they can extend credit to you. Part pay bills if necessary.”

Doyle says the best way for businesses to look at this situation is as akin to hibernation. “They have to squirrel away cash for when spring comes, so they can take advantage of the bounce that will come then. Many companies have seen this coming and have been working with their customers to get as much cash in as possible. Companies who haven’t done this should run an aged debtor analysis to see what might be out there. It might be a case of seeing who they can target for payment when business reopens, or it might be identifying customers to work with to find a way through the crisis.”

 

Wage Subsidy Scheme to Retain Staff

Cash will still be needed for payroll and other costs, of course. “Nothing is as important as your staff,” Doyle points out. “Your employees are a critical resource in business.”

He believes the Government Wage Subsidy Scheme can help companies avoid the damage of layoffs and advises them to avail of it where possible. “We are working with client companies to help them retain key staff and look after them during the crisis,” he adds.

 

Access Government Supports

Doyle’s Co-Director John Power describes the various State initiatives, including the Enterprise Ireland Stabilise and Rebuild Fund, Business Financial Planning Grant as a “huge boost”. Companies should monitor Government support developments and banking facilities offered from main banks and SBCI, to support their Working Capital needs to help them bounce back and restart their businesses quickly when working restrictions are eased

“The decision by Revenue to defer interest and penalties for late payment of VAT has also been very helpful,” he adds. “Revenue is not withholding Tax Clearance Certificates for late payment and that means companies will be able to continue to get paid by public bodies during the crisis.”

Power concludes by noting that businesses now have to become much more disciplined in terms of cost controls as well as in credit control. “In good times it is possible to be a bit more relaxed,” he says. “But companies now have to be a lot more disciplined when it comes to credit control. That means calling in debts as they fall due or even offering discounts to customers for early payment. They have got to build as much working capital as they can. Cash is king. That’s never been truer.”

Covid-19-An-Employer’s-Guide_

Covid-19: Know your responsibilities as an employer

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Employers and people managers around the country, especially those in small and medium-sized enterprises (SMEs) have legal obligations relating to the coronavirus crisis.

In conjunction with Enterprise Ireland, The HR Suite has produced ‘Covid-19: An Employer’s Guide’, a detailed document that outlines everything business owners and managers need to know about their responsibilities towards employees during this challenging time.

Caroline McEnery, Managing Director of the HR Suite says,

“Some of the relevant legislation is new and the changes in it are unchartered for both employers and employees. Other legislation was already in place, but most people wouldn’t have had to worry about it before so it wouldn’t have been on their radar.”

 

New legislative changes

The main points employers need to be aware of is emergency legislation introduced by the Government related to employee wages and payments.

Companies who can show their turnover has reduced by more than 25% due to Covid-19 may qualify for the Wage Subsidy Scheme. This provides a temporary wage subsidy of up to 85% of take home pay up to a maximum weekly amount of €410 per week to affected companies to help them continue to pay their employees.

Separately, employees who lose their jobs qualify for the new Covid-19 Pandemic Unemployment Payment of €350 a week for up to 12 weeks.

A new Illness Benefit, paid at the same rate, is also available — for two weeks to any employee medically required to self-isolate and for up to 10 weeks for any employee diagnosed with Covid-19.

“The good news is that the process of processing the payments and benefits is very  straightforward,” says McEnery. “It’s really important that you communicate all the above information as empathetically and sympathetically as you can to people who are already in a very emotional place.”

 

Relevant existing legislation

Among the older laws employees may now find relevant is the Redundancy Payments Acts 1967-2014. Under this act, people who are temporarily working fewer hours than they normally would can claim for a payment called Short Time Work Support. It is paid at the same level as Jobseeker’s Benefit (€203 a week), but on a pro rata basis for the days the person is not working.

Layoffs are also covered under the Redundancy Payments Acts. Employers can place employees on a period of temporary unpaid layoff if they believe they will be able to have them back in paid work again when the crisis passes. Employees who have been temporarily laid off qualify for the Covid-19 Pandemic Unemployment Payment, as outlined above.

“The only difference now is that if an employee were laid off previously, they could apply for redundancy after four weeks. That option is paused until the end of May [2020] and will be reviewed again then,” said McEnery.

 

Stay informed and communicate

With the Covid-19 situation remaining fluid, McEnery says employers should keep up to speed with what is happening and make sure their employees are in the loop too.

“Review your plans every two weeks in line with the latest Government and HSE guidance, while taking into account what is happening in your business,” she says, adding that employers should also make sure they keep communications channels open with their employees and make sure they are informed of any changes they should know about.

Download the ‘Covid-19: An Employer’s Guide’

Conor Fahy, Enterprise Ireland

Market Watch – A view from the Middle East, India and Africa

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The Middle East is expected to return to business sooner than Africa and India with the tech industry being the first to recover.

Key Takeaways

  • Companies need to closely monitor the changing business environment and be prepared to quickly pivot their offer or business model if the market demands.
  • Business is severely affected in the region even though the spread of the virus in Africa and India is weeks behind Europe.
  • Borders have been closed, international events cancelled, and most companies are looking to cut costs.
  • The Middle East is expected to return to business sooner than Africa and India with the tech industry being the first to recover.
  • Communication is vital for to maintain long term relationships.

 

The global pandemic has indeed affected every corner of the world and according to Conor Fahy, Regional Director, Enterprise Ireland, India, the Middle East, and Africa is no different.

“The area encompasses over 40% of the world population so lockdown and self-isolation presents many challenges,” says the regional director. “The situation in the Middle East is similar to Europe in timing and response and most companies are expecting a decrease in revenue and are looking to cut costs and consider cost containment and defer or pause investments.

“The double whammy of an oil price war and Covid-19 will affect budgets and Dubai has introduced highly restrictive measures, including closing its airport, so there is a risk of a sharp increase in business defaults and liquidations in the travel and tourism industry. Also borders have closed across the region and major international events have been cancelled or delayed.

“India and Africa are currently around three weeks behind in terms of cases and government response. But business is severely affected, while economic activity is suffering from the initial phases of lockdown. The medium-term impacts will be severe and combined with oil-price shock and reduced demand for commodities, the region is likely to tip into an economic contraction in 2020/21, in the absence of major fiscal stimulus.”

There are eight Enterprise Ireland offices across the region which are helping Irish companies stay informed, connected and exporting. And Fahy says it’s crucial for people to avail of this support and keep communications lines open in order to survive the challenges.

“We are providing in-depth customer engagement, virtual itineraries, bespoke buyer webinars and one-to-one advice and guidance,” says Fahy.

“Personal connection is vital to winning and retaining business so it’s essential to stay connected with existing customers. Be the trusted source of information: and proactively communicate with accurate market information and insights from your industry contacts, and from Enterprise Ireland’s Market Research Centre. When things get tough, the temptation is to become acutely focused on immediate problems but while these should be addressed, developing a strategy for recovery is just as vital. So extend your timeline assumptions and planning-against scenarios, even if it appears difficult. Now is the time to invest in strategic planning and to start thinking through decision criteria and conditions for return to business.”

Many organisations are still dealing with immediate concerns around the availability of cash.

While all sectors are being affected across the region, Tourism, Aviation, Construction, Industrial Manufacturing and Mining and Oil industries have been hardest hit but technology related businesses will be the first to make a recovery.

“CFOs in the Middle East are expecting to get back to normal sooner rather than later; pausing or delaying investments instead of cancelling them altogether,” he says. “In fact, the majority expect to return to business as usual within three months if Covid-19 were to end today.

“Investments in digital transformation, customer experience and cyber security are most likely to be protected as a result of Covid-19 and all indicators point to a technology-led recovery as AI is becoming pivotal in managing the huge amounts of data needed to deliver services and product.” said Fahy

While there are certainly challenges facing Irish exporters, Fahy says there are also some emerging opportunities, particularly for digital payments and cloud services.

“The near collapse of many online grocery retail platforms is driving demand for process automation and intelligent self-service and Irish companies quickly recognize the changing market dynamics,” he says. “But while positivity may be in short supply, there is optimism in around returning to business and continuing to invest where it matters.

“Business leaders need to invest time away from crisis management to show leadership and strategically look to future opportunities which will emerge when these economies rebound.”

Conor Fahy is Enterprise Ireland’s Regional Director of the Middle East, India and Africa. To learn more about the steps companies can take to address the impact of Covid-19 visit our business supports page.

Market Watch Germany – Webinar – Impact on Supply Chain

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Enterprise Ireland’s offices in Germany have launched a series of Webinars: Market Watch Germany. Every Wednesday at 14:00 BST/15:00 CET a new theme will be addressed to help Irish companies exporting to Germany navigate the challenges and opportunities presented by Covid 19.

For the second webinar in the series on Wednesday 15th April, we were joined by Dr. Patrick Kim from BridgeBuilder.de and Dr. Gökhan Yüzgülec from Inverto GmbH.

This Webinar explores how to cut through the noise to stay reliably informed during the crisis, the impact on supply chains and procurement, and how to prepare for the shifts after Covid-19.

Market Watch – Benelux

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The Market Watch bulletin for the Benelux region (Belgium, The Netherlands and Luxembourg) provides insights from Enterprise Ireland ’s market advisors across the region that may be helpful for your business, in the context of Covid-19.

Reporting from each Benelux market, in this edition we share information on travel to the markets and market specific government supports & initiatives.

Download the bulletin here.

Sean Davis

Market Watch – A view from North America

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North America, like the rest of the world, has been seriously impacted by the outbreak of COVID-19 and Sean Davis, Enterprise Ireland Regional Director of North America, says while there is no certainty in business at the moment, Irish exporters should seek to reassure their US customers.

 

Key Takeaways

  • The situation is changing daily but most states are operating on a work-from-home basis.
  • Travel and supply chain disrupted in many areas.
  • Irish exporters are advised to keep in contact with their North American clients, be aware of their situation and the need to communicate more personally via telephone or video link.
  • Business is still moving so Irish exporters are encouraged to adapt where possible and utilise time wisely in order to be ready for any business which should arise.

 

“It’s an evolving situation across North America but for the most part there are work-from -home requirements in most jurisdictions across both the US and Canada,” he says. “Travel is heavily restricted, and there is some supply chain disruption, also your customers are busily working to stabilize their own businesses. There is also uncertainty and fear of the unknown, along with customer cash flow disruption and in some cases contract negotiations frozen.

“With this in mind the focus of activity for Irish exporters should be around three pillars – stabilise, reset and recover, which in the immediate term, means stabilise. So staying close to customers and key strategic partners is vital, as is being aware of their situation, i.e. in addition to shared commercial challenges being able to connect by having an understanding of the specific impact of this crisis in their town or city is an important demonstration of empathy at a critical time

“We are seeing instances where contacts in some NA companies we are close to have been directly and profoundly affected personally by Covid-19, so again situational awareness is important and as much as possible communication needs to be via telephone or video conference as it is much more personal, empathetic and engaging.

“But brevity is key when it comes to the US and while many people are working from home, they are still time poor, so it’s important to keep things brief – to quote Franklin D. Roosevelt ‘Be sincere, be brief, be seated’.”

Davis says that the Reset and Recover phases will be more successful if companies use the stabilise period to accumulate as much market and customer intelligence as possible.

“This is an important time to identify where your company and product offering might have to pivot in order to be ready,” he advises.

“North America is an enormous economy, over $25TRN, and the US is the second largest single export market for Irish companies so despite the challenging times there will be huge market opportunity to develop as we recover and re-emerge. So any movement which demonstrates a willingness, where possible, to share some of the burden created by cash flow or credit terms is beneficial.” says Davis.

 

“But don’t over-extend your company’s credit terms either; this is a rapidly evolving situation and cash flow is crucial. Any Irish companies with an in-market presence and employing in the region, especially those with significant deployment, should be actively looking at what supports are being made available whether through economic stimulus packages or through funds available to support key sector strategic priorities within a country, state or province.”

Enterprise Ireland has seven offices across the region with teams ready to support their client companies throughout this journey.

“We have developed and completed a six-part webinar series called “Reliance and Adaptability in Extraordinary Times” led by a series of key opinion leaders in areas such as Leadership and Communication, Crisis Communication and Creating a New Narrative,” says Davis. “Our teams are working on a one-to-one basis with clients through key areas and deliverables. And for significantly impacted sectors, we have delivered, and are working on, other webinars bringing client companies and subject matter experts together.

“On a weekly basis, we are gathering market and sector intelligence which is being collated centrally in HQ and distributed via our colleagues in Ireland to client companies.”

While not all sectors are impacted equally, Davis says there are still  opportunities available and companies are still signing new business by solving problems, delivering innovation and fostering good partnerships

“Not everything has ground to a halt,” he says. “So I would advise companies  to pivot effectively, use our market research centre as it’s a prime time for under-utilised members of staff to build valuable market intelligence or look at opportunities in other North American geographies you have not previously considered.” 

“North America is a vast economic and geographical landscape which is likely to emerge from the current crisis in different stages and in different states (US) or provinces (Canada), hence some markets are likely to enter that Recover phase sooner than others and our network will be able to advise and support as this happens.”

Sean Davis is Enterprise Ireland’s Regional Director of North America. To learn more about the steps companies can take to address the impact of Covid-19 visit our business supports page.

Andrew O'Shaughnessy, CEO, Poppulo

Communications moves up to the Covid-19 front

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Poppulo helps ensure first casualty of war on virus isn’t truth

 

Irish technology company Poppulo is supporting critical communications for frontline workers in the battle against Covid-19.

The company, which is a global leader in employee communications technology, has opened up its secure, effective communications platform to healthcare crisis teams battling the pandemic – for free.

It is already assisting public health services such as Ireland’s Health Services Executive (HSE), having fast-tracked the set-up process so that its Covid crisis team can get up and running on the platform as quickly as possible.

Effective employee communications are Poppulo’s stock in trade.  It manages secure communications between over 25 million employees, in over 900 companies, across more than 100 countries, every day.

Its clients are some of the world’s most successful organisations. These include pharmaceutical company GSK (GlaxoSmithKline), car maker Rolls Royce, fast moving consumer goods company Unilever, telecoms giant Telefónica and building systems specialist Johnson Controls.

The Cork, Ireland based company has its US headquarters in Boston, MA. It specialises in enabling organisations with more than 1000 employees to solve the kind of complex employee communication and engagement challenges that can arise in large, international workforces.

Its custom-built software is designed for internal communications only, enabling managers to plan, target, publish and measure the impact of their communications across multiple digital channels.

These include email, mobile, video and social networks, all of which are handled securely via the Poppulo platform. It also provides organisations with extensive analytics, enabling them to measure and assess employee sentiment.

 

Staff under pressure

In recent weeks, communications relating to the COVID-19 crisis have soared on the platform.

“The key thing for organisations is to understand how important good communications is to all employees,” says Poppulo founder and CEO Andrew O’Shaughnessy

Frontline workers are shouldering the heaviest burden right now but all employees are facing challenges in a changed world, especially remote workers.

“Everyone is under a lot of pressure. This is something that was forced on all of us really quickly and all of a sudden many employees found themselves at home,” he says.

Equally suddenly, organisations must find ways to replace all the invaluable interactions that usually take place in the workplace.

“With remote workers, you can’t just pick up the phone and ring people because they are in virtual meetings, and their calendars are crowded,” says O’Shaughnessy.

 

Single source of truth

Yet good internal communications are more essential than ever. “Employees are under pressure not just from their job but from feelings of isolation, overwhelm, and mental health issues. At a time like this, your employee base needs huge support,” he says.

Clear, secure and engaging communication is one of the most effective ways you have to support staff them.

“Right now there is a lot of disinformation about, and things are changing very quickly, on a daily basis. It is therefore really important for every company to establish itself as a single source of truth for employees,” says O’Shaughnessy

In “just a couple of weeks” organisations, both private and public, have undergone the kind of transformation project that would previously have been given 18 months to plan and execute, he points out.

Such a radical transformation can only succeed on the basis of having an effective communications strategy, both in terms of content and delivery.

That means avoiding the kind of disinformation that may come via public social media platforms, such as WhatsApp. These “can’t be locked down, are crowded with noise, don’t allow you to target individual people, and offer no visibility of who is reading them,” he says.

 

Tracking talk

Poppulo allows organisations to rapidly send urgent communications to whoever needs to get them, track what’s been read or not opened in real-time, and take corrective action through resends, updates and instructions.

Poppulo’s Blackout functionality kills the circulation of non-essential information by ensuring employees only get relevant and useful information, during specific times, increasing clarity while minimising over-communication. Its targeting capability lets users engage the people, sections, and geographies who need the information, without needlessly involving those who don’t.

Its survey functionality allows users understand how their communications are resonating, both in business units and across the organisation, with reports that can inform further actions. The platform also provides content templates which allow users to save valuable time, for greater speed, efficiency and sign off.

 

Trusted source

Crucially, it alleviates employee uncertainty in a time of crisis through personalised communications from trusted sources.

Poppulo’s secure communications platform works across a range of channels including email, mobile and video and right now video is proving hugely important as a way of helping remote workers cope with isolation, he says.

In any change management scenario organisations appreciate that good communications are the key to success. In a pandemic, they can be no less than the difference between life and death. It’s why communications has moved not just centre stage but up to the front.

“People are calling communications a critical business system. That has never happened before,” he says.

shipping containers

Managing supply chain risk

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Global supply chains have been stretched to breaking point as a result of the COVID-19 pandemic. Enforced closures of companies, coupled with newly imposed border controls and other issues, have had a severe impact on many Irish businesses.

There are steps that can be taken to mitigate those effects, according to Shirlee Kelly, a strategic sourcing consultant with IDDEA, a strategic procurement consulting company.

“In Ireland, many companies rely on just-in-time delivery for the supply of goods and services, and the success of this strategy is dependent on highly integrated and efficient supply chains,” Kelly points out. “The availability of labour may impact on supply chains, while government actions may lead to delays in physically moving materials from location to location as well as at ports and across borders.”

As a first step, she advises businesses to assess their supply chain risks and identify those critical suppliers that can have a detrimental impact on the business. “Businesses should conduct a health check on their critical supply chains,” she says.

Start by looking at internal data.

  • Who are the high-spend, high-impact suppliers?

  • What are the immediate risks that you need to plan for?

  • How will you address any lack of supply?

  • What are the steps you need to take to ensure that you continue to meet your contractual obligations with customers?

Contingency Planning

The next step is contingency planning. “These plans may include, finding alternatives to normal supply routes, investing time in discovering and conditioning new suppliers,” Kelly advises. “Companies may need to change their sourcing strategies to include a more local approach. If companies are dependent on one supplier, they need to put measures in place to make sure they have sufficient stock and ensure business continuance. It is important for businesses of all sizes to build resilience across their supply channels and keep their key customers informed of the work they are doing to meet demand.”

Good supplier management is essential in order to reduce the potential impacts of supply chain disruption. “You may have 500 suppliers, so it is not possible to manage every supplier in the same way,” Kelly notes. “We use the Kraljic Matrix to categorise suppliers by the value you spend with them and the risk they pose to your ongoing operations.”

This matrix reveals those suppliers who are strategically important by evaluating them against their value to the bottom line and the risks of a disruption affecting their performance. High-value, high-risk suppliers clearly need careful management, as indeed do those in the low-value, high-risk quadrant who are defined as bottlenecks.

Supplier management begins with information.

“Capture all appropriate data about your critical suppliers, and use this information to drive value for your organisation.  Using tools such as Porters Five Forces and PESTEL analysis as part of your market research, will allow you to assess and evaluate the external factors which may affect your industry and business operations.” says Kelly.

The data analysed, and the knowledge gained, forms the basis of your supplier performance management. “Ensure you have a scorecard in place to allow you measure supplier performance? What metrics do you use and are they aligned with what you are trying to achieve in your overall business strategy?”

“It is important that strategic suppliers work with you on risk management strategies,” she adds.

Those risk management plans should be based on four key elements – awareness, impact, mitigation, and contingency planning.

“Awareness is about understanding the probability and potential impact of the risk,” Kelly explains. “The goal of risk management is to recognise, reduce or mitigate the likelihood of risk. The objective is to identify procedures for managing all stages of risk, this includes, disruption – interruption, response, recovery and restoration of service.

She concludes by pointing out that doing nothing is not an option.  “Companies need to act now, investigate the opportunities in your data, identify your key supply partners and work together on problem resolution.  Treat key suppliers as an extension of the business and find out how you can support each other. Irish businesses are very good at working together in difficult times.  Government bodies such as Enterprise Ireland are a great resource for information on the various supports available to Irish businesses.  The companies I am currently working with are sharing information with their supply base and this is helping to ease supply chain problems.”

man applying for funds

Support when it’s needed most

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The Department of Employment Affairs and Social Protection (DEASP) has launched a range of supports for employers and people who have lost work and income in order to support them during the COVID-19 crisis. These include the COVID-19 Pandemic Unemployment Payment and the Enhanced Illness Benefit Payment.

 

Pandemic Unemployment Support

The COVID-19 Pandemic Unemployment Payment is an emergency payment of €350 per week introduced by the Government in response to the numbers of people who have lost employment on foot of the pandemic. It is designed to quickly get thousands of people into payment.

According to the DEASP, all workers, including the self-employed, are eligible to apply for this emergency payment provided they are aged between 18 and 66 and have lost employment – or temporarily ceased trading if self-employed – due to the pandemic, and live in the Republic of Ireland.

To be eligible, workers must have been in employment or self-employment immediately before Friday 13 March and have been temporarily laid off from work, and are not in receipt of any employment income. For employees, their employer must not be in a position to retain them on the payroll.

 

Apply online for quick payment

The quickest and easiest way to apply for the emergency COVID-19 payment is to apply online at MyWelfare.ie All that is required is for the individual to have an email address, a bank account and a PPSN. Simply go onto the COVID-19 Services section of the website and apply for the payment. You will have to set up an account, but it is a simple and straightforward process.

The DEASP advises those with an adult dependent and one or more dependent children to apply for the Covid-19 Pandemic Unemployment Payment and then apply Jobseeker’s Benefit instead, as this will pay more than the €350 available under the COVID-19 scheme.

 

Enhanced Illness Benefit Payment

The Enhanced Illness Benefit Payment is available to workers who have been told to self-isolate by a doctor or the HSE, or have been diagnosed with COVID-19 by a doctor. To be eligible for this payment, a person must be confined to their home or a medical facility. The rate for this payment is €350, as compared with the normal Illness Benefit rate of €203. It will be paid for a maximum of two weeks where a person is self-isolating and for a maximum of 10 weeks if a person has been diagnosed with COVID-19.

A doctor will complete a medical certificate on the person’s behalf and send it directly to the DEASP. Alternatively, where the person has been advised by the HSE to self-isolate, they will need to submit a copy of the HSE notification with their Illness Benefit application form.

Once again, the quickest and easiest way to apply for the payment is by applying online at MyWelfare.ie

 

Short Time Work Support

Another payment available to workers is Short Time Work Support. This is a form of Jobseeker’s Benefit for people temporarily placed on a shorter working week. The payment is made in respect of the person’s regular salary for the days that they are no longer working. For example, if their working week has been reduced from a five-day work pattern to three days, they can receive support for the other two days. Payment is proportionate to the €203 Jobseeker’s Benefit rate.

People can apply for Short Time Work Support by applying at their local Intreo Centre or Social Welfare Branch Office.

 

Temporary Covid-19 Wage Subsidy Scheme

Operated by Revenue, the Temporary Covid-19 Wage Subsidy Scheme is an innovative initiative to support companies to retain employees and to re-employ employees who have been laid off due to the COVID-19 pandemic. Under the terms of the scheme, employers will be refunded 70% of an employee’s wages – up to a level of €410 per week.

The subsidy scheme applies both to employers who top up employees’ wages and those who aren’t in a position to do so. Employers make the support payment to their employees through their normal payroll process and will then be reimbursed by Revenue within two working days of receipt of the payroll submission.

The scheme is available to employers from all sectors (excluding the public service and non-commercial semi-state sector) whose business activities are being adversely impacted by the COVID-19 pandemic.

To qualify for the scheme, employers must be experiencing significant negative economic disruption due to the COVID-19 pandemic; be able to demonstrate, to the satisfaction of Revenue, a minimum of a 25% decline in turnover; be unable to pay normal wages and normal outgoings fully; and retain their employees on the payroll.

Revenue has made it clear that declarations made under the scheme are not declarations of insolvency.

Employers wishing to register for the scheme can apply to Revenue through ROS myEnquiries on the COVID-19: Temporary Covid-19 Wage Subsidy section.