2016 is set to focus on growth, technology advancements, change in landscape and investment in the workforce – despite some concerns over the ‘health’ of the global economy, as we look into the top 5 trends that will be shaping the Accountancy and Legal sector in the next 12 months. 

 

1. TECHNOLOGY:

The world of technology is constantly adapting, and 2016 will see innovation at the forefront of both the accounting and legal industry. 

Accountancy:

Advancements in technology are now transforming the profession, particularly with the move to online cloud and mobile platforms. The shift will enable the software to do much more of the ‘heavy-lifting’, fundamentally changing how clients are consulted as accountants will now be able to focus on being true advisors and moving beyond the commodity of a tax return. 

Legal: 

According to PwC’s Law Firm Survey 2015, 95% of law firms plan to invest in IT to improve efficiency, in particular, the adoption of cloud technology will allow firms to share stored information with clients online and is increasingly becoming popular due to operating safely and securely with data and client communication.

 

2. HIRING LANDSCAPE:

Recruitment in both these sectors will play a dominant role into how they will evolve this year, as the economic climate shifts away from recovery, into areas of growth, creating a sense of confidence amongst both markets.
 

For example, around 50% of accountancy firms will look to increase their headcount this year and law firms and corporate legal departments will strategically build their teams to manage workloads and plans for future growth.
 

A recurring theme is taking in the form of a skills shortage, of which both markets are suffering. From this we shall see competition intensify with salary rises and greater career development opportunities set to be the key measures to address the shortage. In addition to this, professional firms are also considering relaxing the need for trainees and others to have a degree in order to open-up the talent bank. 

 

3. ALTERNATIVE BUSINESS STRUCTURES:

2016 will see the continued rise of Alternative Business Structures. Today around 5% of legal services are no longer provided by traditional law firms and key players include a rising number of Accountancy firms, with 100 now licensed by the ICAEAW to offer legal services. PwC, EY and KMPG who have all seen success since becoming ABS’s with plans for further growth this year.

On the legal side, ABS’s have introduced the possibility of external investment into law firms, and is one of the several triggers transforming the legal market today. An example of this is Knights, the UK’s first private equity backed commercial law firm, who since their ABS, the firm has seen growth in their revenue, numbers of talented hires and the number of offices increase from 2 to 4. More recently, they have just announced the acquisition of Darbys LLP.

In 2016, the latest move for the firm will be their strategy to provide integrated solutions to clients as part of their wider offering, which will include looking to accountancy groups and tax specialists. Will other law firms follow in their footsteps this year?

 

4. ENGAGEMENT & CULTURE:

Frequent topic of conversation has been centred on employee engagement. Today 87% of firms consider culture and engagement top priorities and this focus will only get stronger as we move further into 2016 – given that engaged and committed employees are now at the core of the workplace success. 

 

5. THE RISE OF MILLENNIALS:

Millennials will begin to dominate the workplace culture, as values continue to shift to those prioritised by this generation.

In accountancy, we are likely to see the emergence of a new generation of accountants than can bring other skills and business knowledge to help clients beyond the numbers, whilst expanding their service offerings to take on a more pro-active advisory role. 

 

The first major wave of leadership transitions will impact the legal services industry as we shall see a structured growth within organisations of skilled young professionals move into more leadership roles.  

 

 

Overall, 2016 looks to be a positive one for the professional sector. This will mainly be driven by the continued growth, the rise in technological advancement and the weight of millennials driving the workforce. 

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Email: jade.soer@adlestropconsulting.com

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