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High Growth Companies Update People and the Workplace – practical and legal considerations on preparing for the next phase of the pandemic 2 June 2020
High Growth Companies Update People and the Workplace – practical and legal considerations on preparing for the next phase of the pandemic2 June 2020
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited. 2
Welcome
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Today’s agenda
Content Slide
Sector Update 05
The Future of Work 09
Navigating the Return to Work 16
The Future Office Space 19
Questions 32
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
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Matt HendersonDeloitte Private High Growth Companies Lead Partner
Introducing our presenters
Ryan CareyDeloitte Private Tax Director, UK High Growth Companies Tax Lead
Payal VasudevaPartner, Human Capital Consulting
Tushar Agarwal Co-founder & CEO of HubbleHQ
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
Andrew LilleyPartner and Head of Employment Law, Deloitte Legal
Arran SimpsonPartner, Global Employer Services
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited. 5
Sector Update
Ryan Carey
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited. 6
Future Fund – Application process:
• Went live on 20 May, with both the lead Investor and company needing to register online to progress the application
• A lead investor must initiate the application
− Company provides information to lead investor
− Lead investor submits the application based on provided information
− Company reviews documentation via the online portal as well as providing additional supporting information
− Company’s solicitors collate relevant documentation and liaise with the Matched Investors to arrange deposit of funds
− Future Fund reviews documentation before sending the Convertible Loan note Agreement, Director’s certificate and the Solicitor's confirmation letter for signing
− Once signed and uploaded to the portal, the Future Fund undertakes a final review before releasing the funds
• The scheme is not SEIS or EIS compatible due to EU state aid rules – care should be taken re previous EIS / SEIS investment. The government has suggested it may make rule changes to the existing EIS / SEIS rules to protect the positions of current EIS / SEIS investors but the detail is still TBA
• Headline terms are as previously announced – limited ability to negotiate but note discount rate and interest rate will be influenced by investor terms
• https://www2.deloitte.com/uk/en/blog/deloitte-private/2020/future-fund-10-things-you-should-know-about-convertible-debt.html -Deloitte Private blog on the Future Fund and key considerations relevant to convertible debt
The Future Fund Technology enabled businesses
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People and the workforce:
• Businesses are beginning to evaluate workforce changes
• In the short term, decision-making is generally related to “COVID contingency” but in some instances that is driving more strategic longer term discussions
• More frequently we are seeing questions on:
− How to make decisions impacting people who were overseas when lockdown happened and have remained where they are
− The impact of hiring someone who happens to live outside the UK for what would normally be a UK role and allowing that person to remain outside the UK permanently, or requiring them to return when travel restrictions lift
− Responding to requests from people who may ask to work outside the UK on a long term basis
• There are HR and tax consequences associated with responding to each of these points and managing those through appropriate employee comms is important
People and the workforce – Flexible workingTechnology enabled businesses
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Deloitte resources:
• Responding to COVID-19: Updates and practical steps (a series of weekly webinars chaired by Ian Stewart, Deloitte’s Chief Economist)
• Government funding response to COVID-19 (a summary of UK and global funding programmes, updated daily. You can also register to receive automatic updates here)
• Tax Atlas COVID-19 Tax & Fiscal Measures (sign-up to a one-stop summary of proposed and enacted tax and fiscal measures announced globally)
• Combating COVID-19 with Resilience: How Tax departments can prepare now (Tax specific webcast in response to COVID-19. Part of a wider series of tax webcasts available here)
• CHRO Virtual Forum: Bi-weekly webinars for HR leaders (a webinar series, led by Will Gosling, UK Human Capital Consulting Leader, to explore the implications of COVID-19 on work, the workforce and the workplace)
• Future of Work (library of Deloitte resources to explore the Future of Work)
Other resources:
• OECD country-response tracker
A summary of useful information available to businessesResources available
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited. 9
The Future of Work
Payal Vasudeva
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The Future of Work…is now
3 in 4Rethinking & Digitising Client Interactions (Deloitte Center for FS Survey)COVID Response
70%Making Technology Upgrades (Deloitte Center for FS Survey)
86%cite lack of collaboration or ineffective comms for workplace failures (Fierce survey)
42%Reimagining Talent Operating Models (Deloitte Center for FS Survey)
Technology-first & FS organisations planning permanent shifts ways of working
3 in 4 employees as or more productive WFH during lockdown (Future of the City)
70%Employees rate WFH experience as positive (Future of the City)
41%>81%FS employees expect to double their level of home-working (Future of the City)
Missing in-person interactions associated with negative sentiment (Future of the City)
Some gaps in FS home-working preparedness, especially with tech (Future of the City)
45%
UK Workers predict permanent changes to flexible working arrangements post COVID-19 (o2)
90% of companies believe their culture has
improved and they are radically rethinking their leadership development programmes to focus on empathy, resilience, caring and safety (Bersin, 2020)
of the workforce believe senior leaders have demonstrated a sincere interest in employee wellbeing – trust in Leadership is improving (Bersin,
2020)95%
organisations investing in training – especially virtual learning (Bersin, 2020)69% 48%
organisations are changing their performance management programs (Bersin,
2020)
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W O R K P L A C EW O R K F O R C E
W O R K
The context and environment in which work is done including physical design and technologies,
collaboration, culture, and workforce preferences
The combination of skills, talent options (such as FTEs, contractors, gig workers, crowd sourcing), jobs
and teams to perform the work
The activities performed and technology applied to produce work outcomes and create value
Value of Work
Tasks/Process
Outcomes of Work
Technology
Geographic Location
Physical Design
Virtual Collaboration
CultureTalent Options
Skills JobsHuman Capabilities
The important message for
the future of any
organisation at this time
must be that this will not
simply be a return to old
ways of doing business.
It has created an imperative for organisations to re-engage with the workforce and redesign the workplace
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Tap into the key ‘virtual’ moments that matter that can enhance employee & customer experience
Organisational Environment
Behaviours & Culture
Experience
Benefits
Better access to a dispersed talent pool
Greater resilience to be able to serve customers (internal & external) through any future disruption
Facilitate longer-term efficiency goals, such as optimisation of real estate
Offer a differentiated employee value proposition focussed on flexibility, empowerment, wellbeing and inclusion
Increased Virtual Working
External Environment & Ecosystem
Technology ecosystem
Ways of Working
Maintaining high performance in a digital environment
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Maximising productivity
Visibility
• Proactively and explicitly make our work and teams visible to each other
• Make tacit knowledge explicit
• Get knowledge and conversation into centralised, virtual locations
Real time
• Use meetings for purpose, not as a default
• Turning to asynchronous, centralised communication first (not email)
• Creating new habits with new kinds of technology, experimenting and failing fast
Tech first
• The right mix of digital platforms and technologies
• Accelerate individuals and teams to connect, collaborate and deliver value
Workplace
• In our personal space, we need to make sure that our physical space enhances our productivity, wellbeing, and is fit for purpose
Leadership
• A redefined set of management behaviours to guide teams that are working virtually
• Focus on outcomes versus effort
• Give people flexibility to deliver
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Emerging themes for Workforce Planning
EMERGING AND ON-GOING TRENDS FOR ORGANISATIONS
SPEEDBusiness functions all moving at different
speeds
TALENTLonger-term talent
implications and opportunities
IMPACTConsidering what the impact
of de-hibernation will be
REDEPLOYING STAFF
To meet rapidly changing demands
from the organisation
COORDINATIONUnderstanding a
coordinated workforce data picture
Timing
Flexibility
Work
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Workplace of the Future – the new normal
This new model should be done with the twin ambitions of optimizing the size, cost and carbon footprint of the corporate real estate portfolio; and enabling the new ways of working and talent models required to meet the demands of the “Future of Work” with greater resiliency.
Review strategic choices & trade-
offs
Test, iterate & refine based on data/ insights
Minimum
Viable
Footprint
Ris
k &
Reg
. Emp
loyee
Customer
Operations
Optimal
Operating
Footprint
Design Principles to inform
Organisation, Workforce & Real
Estate transformation
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Navigating the return to work
Andrew Lilley and Arran Simpson
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UK Coronavirus Job Retention Scheme:
• Furlough update
• Preparing to exit furlough
Emerging from Lockdown:
• Increased employee flexibility on workplace location, job tasks, reporting lines, future redundancies, etc.
• Changes to workforce numbers or structure: plan now
• Financial planning: bonuses, notice pay, redundancy pay, etc.
A COVID-19 Secure Workplace
• Who is legally responsible?
• Risk assessments and practical steps
• Workplace health tests
• Employee reaction
Legal considerations for returning to work
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Innovation in Reward:
• Is cash still king?
• A different kind of reward package
The Working Environment:
• Reimbursement of costs
• Provision of office equipment
Employee Share Schemes and Management Incentives
• Are employee share schemes still relevant?
• Creating a sense of ownership
• Resetting management incentives
• Tax valuation
Reward considerations for returning to work
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited. 19
The future of office space: HubbleHQ
Tushar Agarwal
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High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited. 32
Questions
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Key Contacts
High Growth Companies Update © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
Matt Henderson – UK Deloitte Private High Growth Segment Lead Partner| [email protected]
Ryan Carey – Deloitte Private Tax Director, UK High Growth Companies Tax Lead | [email protected]
Tom Rees – Deloitte Private Head of Business Development | [email protected]
Kariel Parian – Deloitte Private Client Portfolio Manager| [email protected]
For advice on responding to, and recovering from, COVID-19 get in touch with your usual Deloitte Private contact or the High Growth Central Team:
This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte LLP accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.
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