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Middle skilled roles and the future of automation

31st May 2016
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By Paul Tooth, CEO and co-founder, BrightHR 

As technology shapes the way we work, and ultimately changes how we function across businesses as a whole, job roles and job functions will evolve accordingly. 

Across most sectors of business, there are currently two trends to note: the disappearance of middle skilled roles and the automation of aspects of jobs or entire job roles. 

From 1980 to 2005, some types of middle-skilled jobs saw a decline of up to 54 per cent, and over the same period, low skilled service jobs and high-skilled managerial and professional work increased by 30 per cent. Middle skilled roles, traditionally are those which require more education and training than A-levels, although less than a university degree. 

In terms of automation, some job roles may be open to this more than others. For example, as a result of advances in machine learning, the task of interrogating large amounts of data is likely to become fully automated, making jobs with any systematic component vulnerable.

At BrightHR, we recently worked with Futurologist David Smith and the Professor of Management practice at London Business School, Lynda Gratton, and her research consulting team ‘The Hotspot Movement’. Within the resulting BrightHR ‘A Future That Works’ report, we identified automation and the disappearance of middle skills as an important issue for accountants to consider this year and beyond.

Within the accountancy profession, how much importance should we place on this issue?

While it’s long been the case that machines have taken over repetitive and laborious tasks, automation and the disappearance of roles should be considered within future business planning, but not seen negatively as a threat or a problem. While job substitution by machines is alarming for those caught up in it, we know, from experience, that we have always been able to adapt and find new roles for ourselves.

We asked 100 accountants which upcoming workplace trends they felt were the most important to consider in future business planning. 30 per cent rated the disappearance of middle-skilled roles and automation as the most important aspect, and 45 per cent marked this as the most important element for their clients to consider.

The results are interesting, and thus suggest that accountants are thinking about their clients’ needs ahead of their own. A study by Deloitte and Oxford University found that chartered and certified accountants are at risk of automation by 95 per cent, however accountants shouldn’t be worried that their jobs are immediately at risk. 

Whilst areas such as data entry, administration tasks and statistical information could all be automated, making financial decisions and developing important relationships with clients is something which could never be replicated by a machine. Automation of simpler and time consuming tasks will ultimately mean that accountants have the time and space progress other tasks more quickly, thus improving efficiency. With automation comes an increase in free time, so the question for accountants should be what are they going to do to fill their time? My advice would be to increase your service offering to your clients, as this would help with client retention and attracting new business. It will also help you to develop new skills, for example, learning about and referring a software might be something you have never done before. 

With the disappearance of middle skilled roles, how can I move up the career ladder?

Following the decline of middle-skill roles, workers may find the ‘rung’ above their current role no longer exists, leaving a gap between their role and business leadership. As a result of this the career ladder may begin to look like a career web, where workers can move in all different directions in order to up their skill sets. 

Recent research by Randstad Financial & Professional revealed that 76 per cent of accountancy jobs advertised today are looking for candidates who can demonstrate strong soft skills. Soft skills can range from leadership expertise, communication skills and problem solving abilities. 

I would always encourage any employee to constantly develop and work on their soft skills in order to move forward and progress. These type of skills are highly sought after by employers, and excellent communication skills, leadership or management skills can’t simply be replaced by machines or robots. 

Should an accountancy practice invest in training its staff in additional skills? 

Interestingly, recent research conducted by the Association of Accounting Technicians found that 72 per cent of employees questioned want to learn more at work to help them do their existing jobs better, and 46 per cent said training would help make them more productive. 

Accounting practices should decide on the most important skills to invest in to help their employees, whilst ultimately benefiting clients. Digital skills training is always valuable, and communication and leadership skills can lead to more effective working and better systems. 

At BrightHR, we offer a partner programme for accountants to help build relationships with clients and extend their service portfolio. The programme allows our bright partners to strengthen client relationships by recommending an additional service. This not only helps you to stand out from the crowd, but also generates an additional income stream by recommending BrightHR. 

To find out more about this visit www.brighthr.com/partners     

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