Is there a succession issue across professional practices?

A recent article published by ICAS suggests that businesses in the professions sector are facing a shortage of leadership talent for the future.

The article highlights the generational shift in-play and suggests that millennial values are at odds with the traditional partnership structure: where trainees work their way up through the ranks. 71% of the surveyed millennial accountants, currently have no aspirations to become a Partner.

Typical professional firms will have one partner for every eight staff. Therefore, there is a need for one in three of those who aspire to become a partner to be successful to maintain this rate. One of the main challenges for business owners today, is the retention and incentivisation of staff. In order to engage and motivate staff, professional firms need to continually evolve with society’s expectations, not just the changes in regulations.

Future challenges will emerge following continuing technological advances. For example, within accountancy the introduction of Making Tax Digital and Cloud Accountancy systems will inevitably change the role of a traditional “accountant”.

With the pace of change ever-increasing, as long as traditional professions embrace change, embrace generational differences in values and focus tirelessly on doing their very best for their clients, then staff are more likely to continue their commitment with the firm. A loyal workforce are likely to be more focussed towards career progression within their firm if they feel valued.

Our EQ Professions team can provide valuable guidance on a variety of areas such as how best to structure your business, succession planning or implementing employee incentive schemes to support the future growth of your business.

If you’d like further information or advice, please contact one of our EQ Professions specialists via professions@eqaccountants.co.uk or call your local office contact.