Criminals are taking advantage of businesses being on the back-foot when it comes to recent rapid developments in work and consumer habits. And businesses are fighting back, by ramping up artificial intelligence (AI) capabilities.

With the pandemic enabling more employees to work remotely than ever before, the attack surface area has expanded. Simple corporate firewalls can no longer protect a business and criminals are targeting unprotected areas of operations. Equally, as businesses have scrambled to keep up with consumer demand, criminals have exploited the gaps.

From instant payments and fast deliveries, to increasing environmental, social and governance (ESG) scrutiny over supply chains, criminals are exposing business vulnerabilities created by rapid developments in these areas.

With cyber-attacks increasing exponentially, many companies are turning to AI to support with crime prevention and detection. So, in what ways are businesses deploying AI to help fight crime?

Sifting through big data

Big data is just that. Big. Where humans couldn’t possibly scan through such high volumes of data, AI systems can wade through terabytes every day. That’s why businesses are turning to AI to filter through big data and flag anomalies, identifying abnormal patterns of behaviour that could indicate criminal activity.

Regulatory fines and reducing false positives

Failing to prevent money laundering is a costly business, with ING in the Netherlands being fined €775m (£650m) for not identifying millions of laundered euros between 2010 and 2016. But wading through such a sheer volume of alerts is also time consuming and costly. That’s why businesses are using AI to analyse anti money laundering (AML) alerts faster and more accurately than human compliance teams.

With the cost of unnecessarily chasing false positives representing around 42% of the total outlay on a companies’ AML compliance (approximately £2.7bn), AI and machine learning bring the most pressing cases to compliance teams for review. This helps to greatly reduce time spent on investigating alerts, whilst also protecting businesses from criminal activity.

Keeping all businesses safe

It’s easy to think that financial crime mainly happens in financial services – money laundering through large banks, for example. But the truth is, it occurs across multiple sectors and business sizes – and financial crime is on the rise. Criminal gangs are known to employ smart people to exploit weaknesses in compliance practices. From rapidly growing businesses that are looking to secure investment, but haven’t established thorough compliance yet, to employees that have a gambling addiction – criminals know how to target vulnerability. And similar to investors, criminals analyse the market for trends and imminent IPOs – presenting an opportunity to launder money.

Businesses that don’t operate in financial services can’t rest on their laurels. Financial crime isn’t something that just affects banks. Criminals are looking for ways to clean large quantities of illegal money and they don’t care how. They just need a suitable vehicle within a business. This makes the role of AI even more important, in detecting and preventing such activity from occurring.

Exposing third party weaknesses

Companies can no longer simply guard the front door, when third parties might be exposing the back. Businesses must vet the security systems of third-party suppliers, to ensure their organisations remain safe. Utilising AI and blockchain technology together, organisations have a much greater transparency over supply chains – enabling them to identify where there may be higher risk and flagging where attention is needed.

Cross sector and country collaboration

Data gathered from business use of AI, is being shared with other approved agencies in fighting crime. Where one business may identify criminal activity, such as money laundering, other agencies can use this information to support cases against human trafficking and counterfeiting. This information exchange between public and private organisations is helping to deter offenders, as the wealth of information is being increasingly shared to drive down criminal activity.

As businesses and consumers conduct life increasingly virtually, the attack surface for criminals has expanded. Businesses are increasingly relying on AI to prevent and detect crime, but many need quality professionals to advise on what solutions would work best for them. This then helps organisations to maximise investment made in technology, to ensure AI solutions work across the business – rather than being focused on one area, such as crime deterrence.

Technology, cyber and security professionals can then ensure that intelligent solutions are embedded across the organisation, giving businesses multiple points to benefit from investment. The advantages are multifaceted too, protecting the organisation and customers, whilst becoming more data rich and able to support the wider goal of stamping out crime.

The “Great Resignation” is a concern for many businesses at present, with research indicating that more than 40% of the global workforce is considering leaving their employer this year. During this fragile time, of post-pandemic recovery and ongoing global instability, businesses can ill-afford to lose talent at such a crucial phase. Yet it looks set to happen anyway.

Whilst companies are scrambling to improve retention strategies, it can be a case of too little too late for some disengaged employees. Particularly for those that are still reeling from how their organisation behaved during the pandemic. Whilst some may already have one foot out of the door, it’s worthwhile remembering that the grass isn’t always greener on the other side. There may be an opportunity to win back ex-employees in the future. Here’s how:

Salary and… 

Whilst moving job for a greater salary remains in poll position as a reason to leave an organisation, it is closely followed by other factors. Namely flexible working and extra days off. Businesses need to rethink packages that they can offer returning employees and it doesn’t only equate to financial benefits. This is particularly important for employees with care responsibilities, that have proven they can balance work and home life more effectively when businesses operate flexibly.

Tap into motivators

The pandemic made many employees re-evaluate their lives, bringing health and wellbeing to the fore. Many want to work for an organisation that aligns with their values, creating greater purpose to their days. Whilst organisations can’t change the nature of their business overnight, they can create a space for employees to bring their values to work.

For employees that are passionate about the environment, for example, enabling them to work on environmentally friendly strategies for the business or clients could help tap into their motivators. Equally for those that want to participate in charitable activity, paid days off to support other organisations could entice them to return.

Exit interviews

Conducting exit interviews and analysing the output provides valuable insight into why employees are leaving in droves. All too often exit interviews are considered as a nice to have, or an opportunity for the departing employee to vent their frustrations. Yet it provides important information on how to stop the rot and win employees back in the future. One senior leader or manager could be the main cause of losing numerous talented employees, for example. Businesses should then consider whether the trade-off is worth it and how to act if not.

Addressing the mental health impact of the pandemic

Whilst the main crisis appears to be behind us, Covid-19 is leaving a growing legacy of poor mental health in its wake. Depression rates have doubled since the start of the pandemic and burnout is at an all-time high. Using another adage of “change is as good as a rest”, many employees will be seeking new employment as a means of improving their mental health. Hoping for less stress and a better work/ life balance. Yet employees may be stepping into a new job where the challenges are just the same; it’s only the business that is different.

This presents an opportunity for businesses to win employees back, but it’s vital they address mental health concerns first. Giving employees the opportunity to utilise healthcare packages and creating a supporting culture, that allows open and non-judgmental discussion around mental health, are two such solutions. Working collaboratively with employees and returners, ensuring their thoughts are listened to, can help create more robust mental health provisions in the workplace.

Open to change

The pandemic shifted many employees off their axis; going “back to normal” isn’t an option. Employers that are trying to get back to the way business was conducted pre-pandemic will be met with resistance at best, or resignations at worst. When trying to entice employees back, it’s important organisations commit to open discussion. Listening, demonstrating a willingness to change, and collaborating to establish solutions that work for all will help to re-engage departed employees. Old ways of working are just that. Old. It’s time businesses refresh their approach, and be more open to change, if they are to successfully tempt talent back.

Whilst the “Great Resignation” has a certain doomsday ring to it, businesses can turn their fortunes around. In a case of “better the devil you know”, businesses may be able to win back departed employees. This doesn’t merely mean flashing the cash. The pandemic has forced many to re-evaluate what’s most important and businesses need to listen and act. Adapting in this way not only encourages “boomerang” employees, returning to the workplace, but it acts as an incentive for new talent to join too.

The Big Four have more than 15,000 staff and partners in Russia, and alongside other consultancies, many have pulled operations out of the country in light of the conflict in Ukraine. So, what does this mean for Russian talent caught in the crosshairs?

Separating entities

Many large consultancies will no longer serve any Russian government clients, state-owned enterprises, or sanctioned entities. They will achieve this by separating from their Russian operations, leaving businesses to act independently.

As some of these Russian businesses aren’t bound by western sanctions, consultants can continue to operate on local and international clients. Indeed, local firms could face criminal punishment if they ceased working on clients, as a result of pressure from the international community that are bound by western sanctions. However local businesses and consultants may struggle to operate, without the benefits of being part of an international consultancy – such as accessing resources including IT systems, finance and marketing teams.

Relocating

There is a growing number of Russian consultants looking to exit the country, who are currently exploring different options. Some consultants in Russia are being offered relocation support by the companies they are in. Goldman Sachs is reportedly moving some of its Russian employees to Dubai, for example. Economists in Russia have likened the “brain drain”, particularly of those in the IT sector, as akin to that experienced in the “dashing 90s”; as the country braces itself for an exodus of talent.

Working on non-Russian clients

Some consultancies want to keep supporting Russian colleagues but are stepping away from any other arrangements with the country. By offering work for non-Russian clients, they are keeping staff employed, but severing other ties.

In a case of “act now, think about the details later”, recent reports suggest that many large organisations are pulling operations out of Russia rapidly, but will face severe consequences later down the line. For other organisations, severing ties quickly is proving difficult – due to ongoing contracts, impact on goods and supply chains. But wherever they stand in current business operations, all consultancies share the same disapproval of Russia’s actions and overall support for Ukraine. Consultancies globally are pouring funds into supporting those affected by the conflict in Ukraine, through matching or multiplying donations driven by their organisations.

Talent in Russia face a challenging outlook, whether they decide to stay or leave. With freelancers and those in the gig economy particularly hit, the future looks uncertain and tumultuous. As consultancies try to sever ties with Russia, it’s on a par with supporting both Ukrainian and Russian colleagues caught in the crosshairs. All the while, balancing an ethical conundrum of business vs people. We’ve seen the best and worst of human nature in the Russia and Ukraine conflict, but as many businesses and employees have thankfully shown through their actions – people always come first.

This Mother’s Day, what many working mothers really want is parity in the workplace. The same opportunity as their colleagues to achieve career progression, equal pay, support from their employer and the flexibility to manage work and home life.

We know how valuable women are in the workplace, with gender diverse boards delivering greater revenue overall, yet many working mothers still find work and childcare commitments an impossible juggle. This causes many to exit the workforce entirely or unfairly put their career on the backburner.

Businesses must do more to support working mothers, if they are to retain this talented pool of employees. Whilst the list is long, top three ways to retain working mothers in the workplace include:

• Understand the impact of the pandemic

The pandemic had a positive impact in some respects, as it showed organisations that employees could work from home productively. This is what parents, and in particular working mothers, have been crying out for over decades. However, the call to “return to the office” and “get back to normal” represented a wasted opportunity for flexible working, leaving many wondering whether anything positive was learnt from the pandemic.

In what PwC describes as the “motherhood penalty”, the pandemic also disproportionally affected working mothers who shouldered the burden of both work and childcare responsibilities. This impractical juggle led many mothers to drop out of the workforce entirely, taking a serious toll on their mental health in the process. In fact, research found that one in three women considered leaving the workforce or downshifting their career during the pandemic due to burnout – double the rate of men.

• Address the pay gap and extortionate childcare costs

According to the World Economic Forum, it will take more than 135 years to reach pay parity. According to the TUC there is a “motherhood pay penalty” too, with women who have children earning 15% less than those who don’t. Quite simply, the subject of equal pay isn’t a conversation we should still be having in 2022. It should be a given.

Coupled with the UK having some of the highest childcare costs in the world, representing more than half a salary for some families, it’s no surprise that some working mothers drop out of the workforce. The system can feel stacked against them. Working mothers, and indeed families, need greater support to manage childcare costs – with businesses working through suitable solutions to help retain talented employees.

• Get men on board

Men are crucial allies in achieving equality for working mothers. Husbands, fathers, brothers, sons – many men will have seen first hand the struggle that working mothers face. Male employees, especially those holding senior positions, need to be speaking up for working mothers. Making sure they aren’t overlooked for promotion, that their pay is aligned with male counterparts, and that they continue to be included in key projects and clients once becoming a mother.

Men should be leading by example, taking their full quota of paternity leave and sharing parental leave where possible. Normalising other childcare responsibilities, such as absence to care for a sick dependent, should also be shouldered by men too. This will help to level the playing field, so that women aren’t disproportionately taking all of the burden.

So, whilst many will be buying flowers and cards for the mothers in our lives this Mother’s Day, or remembering those that have shaped us, it shouldn’t just be a singular day that we give thanks. Businesses have the power to create meaningful change for working mothers, giving them the equal recognition and opportunities that they deserve. Providing greater support and empathy for working mothers would have a profound impact, not only on them personally and professionally, but businesses would reap the benefits from greater diversity too.

The theme of International Women’s Day (IWD) on 8^th March is “break the bias” and at eg.1, we decided to use this moment for reflection.

As specialists in helping organisations improve their diversity and inclusion (D&I) practices, we also know the importance of holding the mirror up. That’s why for this IWD, we’ve approached three of our talented consultants to get their views on how to “break the bias”. From asking what an unbiased world would look like, to understanding how they themselves are challenging the status quo. We want to understand their perspective on bias, discrimination, and stereotyping.

Question one: What would an ideal world without bias look like? 

Qing Mak, Head of Market Intelligence and Diversity & Inclusion at eg.1, answered: “An ideal world without bias, is where people are able to understand others without judgement or preconceived stereotypes. Some employees may also think that ‘banter’ is harmless, but it can be quite the opposite.”

Anna Gildenberg, Senior Associate at eg.1, commented: “For me, it is one where people acknowledge, understand, and celebrate our differences as individuals, rather than pretending that everyone’s life and experiences are uniform. This takes tremendous social, cultural, and personal effort and understanding – a world without bias is not about treating everyone the same, but about opening our hearts and minds to others to ensure all voices are heard and appreciated equally.”

Lisa Tomlinson, Engagement Manager at eg.1, adds: “An unbiased working world is one that is wholly based on meritocracy. Where everyone is valued and respected, assumptions are dismantled and there are no restrictive social constructs. Marginalisation – such as those based on race, religion, age, gender, social class, ability, or sexual orientation – wouldn’t exist.

Question two: What is the one thing that you, personally, are doing today to “break the bias”? 

Gildenberg comments: “I’m being curious and asking questions. I’m also encouraging my colleagues to challenge established ways of thinking and working – as those are often reflective of just one viewpoint or lifestyle. At the same time, I’m trying to be more open with speaking about my own experience and – although it is a cliché! – bringing my authentic self to all aspects of my life.”

Tomlinson responded: “It’s impossible to pick just one! But I’m being empathetic, championing other women, really listening to colleagues and clients, avoiding categorisation, and embracing cognitive diversity (understanding that people think, act, and feel differently to me). All the while being authentic, unapologetic, celebrating my own successes and trying to embody change.”

Mak adds: “I’m taking the time to really get to know my colleagues (their families, background, interests etc), particularly those from different backgrounds than me. It helps me to get a better understanding of my colleague’s personal situations, rather than allowing potentially incorrect assumptions to infiltrate my thinking.”

Question three: What can leaders in professional services do?

Tomlinson says: “Champion inclusion, mentor, challenge negative stereotypes and put character at the forefront of performance. Women shouldn’t have to compete to secure or maintain just ‘one seat’ at the table. All should be supported. Also empower everyone’s voice. The quietest person, might just have the best idea.”

Mak answered: “Leaders should go out of their way to promote the achievements of others, where possible. Showcasing diversity in success, from a range of employees. Representation is crucial to the diversity agenda and leaders can support this by celebrating the success of others more.”

Gildenberg concludes: “In recent years, we have seen professional services firms become more aware of the importance of diversity and inclusion, however, there is more to be done. Their leadership needs to welcome not only ‘visible’ diversity such as gender, but diversity of thoughts and backgrounds. Different cultural and family experiences, education, career paths. As one of our candidates put it, ‘most organisations are now happy with me not looking and sounding like their leadership, but they are still wrapping their heads around me not thinking like them’”.

It was in the bag, yet your consultancy failed to secure the client. So, before you rinse and repeat, take time to consider where it went wrong.

• Your expertise isn’t niche enough

Consultancies can turn their hand to anything, but deep expertise is what clients really value. No truer is this than in the technology sector. Whilst potential clients can be dazzled by pitches, they can see right through whether your expertise is robust enough. They can’t afford for you to learn on the job or be a test case. A recent tech acquisition won’t act as a panacea either. That’s why many businesses are turning to upskilling internally, as sometimes consultancies simply can’t compete on depth of knowledge.

• You got complacent

Familiarity breeds complacency. Long term contracts can stagnate, so it’s good for businesses to shake up the norm. New consultancies will be fresh and raring to go, bringing innovative solutions to business conundrums. If consultancies want to retain key clients, they need to ensure that talent and solutions are regularly rejuvenated to avoid inertia.

• You didn’t have skin in the game

Businesses don’t want to only see chargeable hourly rates, but how consultancies are investing in their organisation and adding greater value. They also want to see real proof of concept before investing. Consultancies need to put their money where their mouth is; invest in clients, take a stake in the risk, and show that you’re in it together.

• You failed to understand their culture

And not just company culture, but country culture. Large consultancies often boast about their global reach, but it’s the cultural nuances that can seal the deal. You need to understand the country in which they’re operating, how they prefer to work and how their culture works internally.

The consulting landscape has changed so significantly, that diversifying has become a “do-or-die” situation for many.  Accounting firms have transitioned to tech businesses, and tech businesses to consultancies. Armies of scientists are hired to help scale the value chain, and aggressive M&A strategies are all tactics deployed to stay ahead of the game. With advancements in technology and data, traditional barriers to entry have disappeared too – opening up the floodgates to start-ups.

For the consultancies that haven’t been appointed a recent contract, they need to consider whether their offering is keeping up with the rapid advances in the industry and reflecting the demands of clients. No longer will a globally recognised brand be enough to secure or retain contracts.

Governance data, unlike environmental or social data, has been compiled by businesses for a while. The criterion of good governance is generally understood and accepted, so the ‘G’ is often excluded during ESG (environmental, social, governance) conversations.

But one look at recent high profile business scandals, such as VW emissions testing and Facebook’s misuse of data, highlights that ineffective corporate governance is still at large. Many companies have suffered significant financial losses and reputational damage, due to poor corporate governance practices. Making the ‘G’ in ESG an important part of discussions.

With assets in dedicated ESG funds expected to grow to US$30 trillion (£22 trn) by 2030, investor interest is peaking. Equally, customers are demanding greater transparency from organisations. Resulting in the front-runners using governance to showcase accountability and improve ESG ratings.

So, what are some of the key governance areas for businesses to disclose within an ESG context? How are boards taking greater accountability for their actions, on behalf of their organisation and key stakeholders?

• Diversity

Research shows time and time again the benefit of diverse boards. More women on the board brings superior stock price performance and greater profitability. It also creates better representation and helps bring conversations around flexible working and equal pay to the fore. Diversity in opinion and experience also greatly improves exposure to risk, reducing the likelihood of corruption.

Coca-Cola has gone a step further with diversity requirements, threatening to withhold fees from law firms that fail to meet minimum standards. The company demands that for each new legal matter, at least 30% of each of the billed associate and partner time must be from ‘diverse attorneys’, and at least half of that must be from black attorneys.

Some businesses are incorporating governance that links diversity targets to executive remuneration too, making boards more accountable for their actions. Providing unconscious bias training, creating inclusive workplaces, and interrogating talent practices regularly with a D&I (diversity and inclusion) lens, are just some of the governance processes businesses are incorporating to improve workplace diversity. Creating a multi-pronged attack, businesses are fully acknowledging that D&I is a core ESG issue. Embracing a diverse board and understanding the benefits it can bring.

• Corporate transparency

With trust at an all-time low, customers are demanding greater transparency from organisations. From an environmental and social perspective, it is a simpler consumer explanation. Reducing water consumption and eradicating the use of labour below minimum wage, for example. Explaining governance is less clear cut. But all ESG elements are intertwined, meaning that governance is central to the success of environmental and social initiatives.

From a purely governance perspective, better corporate transparency may include implementing a framework in which employees can speak up if there are concerns over unethical behaviour. Creating reporting mechanisms, such as employee hotlines for staff to disclose sensitive information confidentially. This helps companies to better manage risk, whilst holding employees accountable for their actions.

Investors are also demanding greater transparency in accounting, assuring them that accurate methods are being deployed, and allowing stockholders to vote on important issues. Investors may also want assurances that companies avoid conflicts of interest in their choice of board members, don’t use political contributions to obtain unduly favourable treatment and, of course, don’t engage in illegal practices. Stakeholders have wised up to corporate smoke and mirrors, and underhand transactions, demanding greater transparency and improved governance from organisations as a result.

• Safeguarding privacy

Data breaches are common media fodder these days, but companies do have to abide by strict rules and procedures to protect the information of its stakeholders. And whilst governance calls for mastering not just the letter of laws but also their spirit, it’s important that organisations get in front of violations before they occur.

Cybersecurity is central to modern day operations. Businesses must ensure that not only are their own cyber practices robust, but their suppliers are too. By putting governance processes in place to comply with the law, and meet the cyber security needs of external stakeholders, organisations can better regulate both internal and external operations.

Investors are also increasingly scrutinising cyber practices within an ESG framework. Not only can an attack affect reputational damage, but financially breaches are estimated to cost $4 million (£2.9m) per company. Investors are keen to see what governance measures are in place to protect a business from attack, how stakeholder data is safeguarded and what support and training is in place to avoid future breaches.

With ESG criteria being an increasingly popular way for investors to evaluate a company and make financial decisions, businesses must ensure that their governance is sound – underpinning all processes. From diversity to cyber security, businesses are being more transparent about key areas they are actively monitoring or looking to improve. By putting in effective measures, shareholders and customers will be reassured that the company is taking ESG reporting seriously.

There are significant changes on the horizon when it comes to tax, aiming to create greater transparency, accountability, and fairness. The reforms will impact every area of large organisations, so what are the drivers of change and how are businesses preparing?

Forthcoming tax reforms

The OECD/ G20 created an inclusive framework on base erosion and profit sharing (BEPS), of 137 countries and jurisdictions, that aims to reform international tax rules to ensure multinational organisations pay a fair share of tax wherever they operate. With BEPS practices costing countries $100-240 billion (£75-£181bn) in lost revenue annually, the framework aims to tackle tax avoidance, improve the coherence of international tax rules, ensure a more transparent tax environment, and address the tax challenges arising from the digitalisation of the economy.

The European Parliament also voted to implement public country-by-country reporting (CbCR) across the EU. This requires multinational enterprises (MNEs), with group revenue of more than €750 million (£610 million), to disclose the amount of corporate tax they pay in EU countries. MNEs will need to be complying with the first provisions of the directive by mid-2024, representing a significant overall in operations. And in the US, the “Build Back Better” framework will impose a 15% minimum tax on the corporate profits of large corporations (those with over $1 billion [£756million] in profits).

As President Joe Biden says, “paying what is owed” and “putting an end to the race to the bottom”, means that businesses will have to review their entire value chain in light of global tax reforms. Moving to lower tax jurisdictions won’t be an option for many businesses, requiring a complete overhaul of operations.

ESG implications

As the march of Environmental, Social and Governance (ESG) continues, organisations need to balance tax reforms alongside these practices. The ramifications of COP26 means that many organisations will need to re-assess its transfer pricing (TP), as increases in carbon and plastic taxes – plus duties on air travel and use of landfill – will affect its cost base.

OECD tax reforms are also aimed at the ‘social’ aspect of ESG, ensuring no country is unfairly disadvantaged. Some developing countries can lose out in poor tax environments, due to a higher reliance on corporate income tax meaning they suffer from BEPS disproportionately.

ESG is an increasingly important, and unavoidable, consideration for businesses. With tax reforms aimed at creating greater transparency, businesses are expected to report on ESG practices, impact, and investment. As a result, ESG and tax professionals are moving out of silos and are working increasingly holistically across organisations to embed changes more effectively.

• Supply chain considerations

As Covid-19 and ESG initiatives have exposed weaknesses in supply chains, from over dependency on other countries manufacturing products to environmentally and socially questionable practices, tax reforms will also play a key consideration. Increased scrutiny over TP practices, clamping down on organisations that move profits to areas with low or no tax jurisdictions, means that supply chain transformation requires another area of consideration. Ensuring that supply chains meet tax requirements, support ESG practices, are robust enough to withstand unforeseen circumstances, all whilst chasing profits, is a complex equation for businesses to solve.

• Digitisation

Many organisations are looking to technology to solve the equation, reforming their tax position whilst creating greater oversight of supply chain opportunities and threats. AI can amalgamate differing information across the entire value chain, enabling businesses to make better informed decisions. Projecting how differing tax reforms are likely to impact business, AI can support leaders to effectively deal with complexity, keep up with changes, mitigate risk, and create value.

Ultimately though, businesses need quality tax, supply chain and technologically savvy professionals to guide them through the process. Professionals are understandably in high demand as a result, with skills shortages in this area being felt globally.

For businesses to survive and thrive during volatile times, they need the right talent and technology on board to guide them through tax reforms, creating greater transparency and predictability in the process. Many organisations are also seeing this an opportunity to overhaul supply chain and ESG practices too, ensuring they are future proofed for trading and acting with greater accountability. Preparing for forthcoming tax reforms now, factoring in the entire value chain, is giving businesses the competitive edge – being on the front foot for when changes are implemented.

Private equity deal values doubled at the end of 2021, reaching $1.1 trillion (£892 billion).

But what has been driving the boom? And what are the most lucrative opportunities?

• Covid rebound: UK dealmakers are making up for lost time, after a Covid induced slowdown. With significant hits felt in travel and hospitality during the pandemic, private equity specialists are maximising the recovery across multiple sectors.
• Shrugging off Brexit concerns: Even though Brexit induced changes to regulation and legislation initially worried investors, dealmaking opportunities are rife as European corporates remain attractive. In fact acquisitions of European corporates by UK private equity firms has jumped up by 80%.
• Tech remains king: Software and technology companies are high in demand, with investors keen to unleash the potential investment can bring. Which explains why one in three deals last year involved a technology company. This market boomed during the pandemic, as technology became even more integral to business and personal life, and the surge in investment shows no signs of abating.
• Ethical focus: With the pandemic highlighting widening inequalities, and environmental reports depicting future doomsday scenarios, it’s no wonder that nearly three quarters of investors (70%) have made ESG a part of their investment policies. The majority, 93%, said they would walk away from an investment opportunity if it posed an ESG concern. Investors are looking for organisations that can bolster their ESG portfolio, understanding both the financial and non-financial benefits it can have in the future.

Pent up demand, high levels of dry powder and robust markets are driving the current boom in private equity deals. But with the ongoing conflict in Ukraine and soaring inflation levels, activity in 2022 year may not surpass last year’s record-breaking figures. However, it’s clear that investment opportunities are still in abundance.

Consultancies are keen to get in on the action, helping private equity firms and investors to source lucrative deals. Advising on everything from growth opportunities and areas of risk to preparations required for IPO and M&A activity. Against a tumultuous global and economic backdrop, investors have to be rigorous with their portfolios. But with a wealth of deals still to be made, private equity opportunities remain plentiful.

With 17^th January being labelled as “Blue Monday”, it’s commonly known as one of the gloomiest days of the year. Against the backdrop of cold weather, limited daylight, and undoing of Christmas excesses, it’s a day where many re-evaluate their lives and consider overhauls – such as changing job. Recruiters typically see a spike in applicants during this time of year, and given that it’s an employee’s market, businesses need to do all they can to hold on to talent.

Dubbed the “Great Resignation”, 2021 saw a significant increase in employees voluntarily walking away from their jobs due to burnout and desire to seek a better work-life balance.  Resignations show no sign of abating this year either, with one in five employees expected to jump ship. So how can employers stop the rot, and encourage talented employees to stay with the business?

Think before acting

In an eagerness to return to pre-Covid days, some employers forced staff back to office working before they were ready. Even with government advice to work from home where possible, and a new Covid-19 strain having threatened to cancel Christmas once more, some employers still made staff be unnecessarily present in the office. How employees were treated throughout the pandemic won’t be easily forgotten, driving decisions whether to stay or go.

Employers that supported staff through the pandemic – both welcoming them to the office if they desired or continuing to support home working – will be reaping the benefits of an engaged workforce. Continuing to provide flexible working options and supporting the health, wellbeing, and external commitments of employees, will stand businesses in good stead for talent engagement and retention.

Those that put profit ahead of people, ploughing on regardless and returning to old ways of working, may find themselves in a precarious position with talent this year. The pandemic has taught us many things, and for organisations one important lesson is to think carefully before acting.

Tap into values

More than just a salary, employees are increasingly looking for organisations that align with their values. Just as consumers are becoming savvier about the products they buy, based on their values, employees are too about workplaces.

Working for a sustainable organisation is an attractive proposition for jobseekers, with 48% saying they would accept a lower salary to work for an environmentally responsible company. A further 71% of employees said sustainable companies are more attractive employers. Employees are demanding greater value alignment from the workplace, and they aren’t afraid to vote with their feet.

The rise of the “belief driven employee” can have a positive and negative impact on businesses, depending on how they react to the trend. Employees that have their beliefs supported are more likely to stay with a company for many years (76%) and recommend the organisation to other recruits (also 76%). However, belief driven employees are more likely to be activists (86%) and willing to take a matter public (50%) – acting as a warning to employers that don’t take this new organisational force seriously enough.  Tapping into employees’ values is no longer a nice to have, but a business imperative.

Listen to requests

Employees are more empowered than ever before, stipulating what they want from their careers and where and how they work. We know salaries and achieving partner status aren’t the only factors at play, which makes it even more important for organisations to genuinely listen to what employees want. And with 86% of employees feeling they had not been listened to equally or fairly, and a third (34%) saying they’d rather quit or switch teams than voice their true concerns with management, listening is a vital skill for businesses to have. Creating a safe space for employees to voice their opinions, whilst demonstrating they have been listened to, is crucial for engagement and retention.

As well as flexible working options and aligning work to values, many employees want to see wellbeing more robustly embedded in organisations. Listening to employees’ ideas about how this can be best achieved, supporting requests where possible, will help to engage staff and build a resilient workforce.

With the new year often encouraging reflection, many employees will be considering whether they can imagine staying with a company for another. Businesses that behaved considerately throughout the pandemic, listening to employee needs, and adapting where possible, will be rewarded with engaged and committed talent. Organisations that carried on regardless, not factoring in the health, wellbeing, and values of employees, may be in for another tumultuous year. But it’s never too late for businesses to start afresh either, ensuring that their employees are at the heart of everything they do.