Staff burnout soars in professional services due to inefficiencies and outdated IT
More than a quarter of client-facing staff at professional services firms are wasting a large portion of their working week on manual administrative tasks rather than core client work, according to new research by Unit4.
The report, commissioned by Pierre Audoin Consultants (PAC), on global mid-to-large professional services firms, including those in the UK, revealed that the sector has a “serious productivity and efficiency problem”, as it identified the critical areas for the success of the sector: increasing revenue, retaining the best talent, and improving cost efficiency.
Respondents highlighted internal issues that cause delays, including fragmented IT systems, with nearly 20 per cent saying they rely on multiple systems that require manual work and spreadsheets, and that they spend time correcting errors on timesheets.
It was highlighted that 25 per cent of professional services organisations have yet to automate more than 20 per cent of their core systems. These operational inefficiencies have caused frequent project delays for 30 per cent of firms worldwide.
As a result of internal issues, teams reported they have been forced to work additional hours.
CityAM revealed last month that cuts at professional services firms, especially at the Big Four, have left staff feeling overworked after being forced to take on more work as headcount is reduced.
“Professional services firms are facing possibly the biggest inflection point in a lifetime as technology disruption and volatile economic conditions encourage clients to reevaluate their use of consulting expertise,” said Donna Dobson, director of professional services, Unit4.
Yesterday Grant Thornton unveiled plans to roll out Anthropic across its business, saying “firms are under pressure to demonstrate that clients are paying for expertise, not process” and the professional services industry moves “to transform how advice is delivered and respond to client demand for high-value advisory.”
Calls for modernisation ahead of complex hike
The broken IT infrastructure in firms is set to pose a challenge for the majority, as most respondents expect work volumes to increase or become more complex over the next 12 months.
Staff call for a more modernised operations and IT system. The majority (88 per cent) said that firms need to create a single, consistent view of data within their organisations to improve processes, and 86 per cent said it will improve the predictability of business performance.
The study then highlighted that 33 per cent of global firms operating on modern, integrated, cloud-based platforms spend less time correcting errors. They experience fewer errors in financial reporting and budgeting/forecasting.
“Many professional services firms are being pushed by clients to transform commercial models to better serve their needs, but this is only possible if firms embrace modern cloud-based systems,” Mayes added.
Additionally, the study noted that more than 60 per cent also expect AI to have a beneficial impact. But this comes as the consultancy sector, which relies on a traditional model and a profitable formula, faces a reckoning as AI rips up the old model.