Agile and Intelligent: How Professional Services Firms are Addressing Talent Risk and Driving Profitability with Automation

The talent imperative: a double-edged sword for professional services

For professional services firms, while talent is certainly an asset, it is also emerging as the core driver of value.

However, a recent study found that the inability to find and retain top talent is cited as a primary risk within professional services. This, compounded by an efficiency gap that impacts the bottom line, has seen a substantial number of firms not seeing an increase in profitability. What does this tell us? A reliance on manual, low-level tasks and operational complexities significanlty consume valuable employee time and can be detrimental to margins.

The consequence of this inefficiency is a cycle of disengagement and attrition. When highly skilled employees are bogged down by administrative "busywork," they are less likely to feel their work is strategic or meaningful.

This directly impacts profitability and also increases the risk of losing top performers to competitors who offer more stimulating, value-add roles.

Automation and integrated technology are key to breaking this cycle, as they can solve both profitability and talent retention issues simultaneously by freeing up employees to focus on higher-value work.

Bridging the gap: the role of automation and cloud ERP

To address this challenge, professional services firms are increasingly turning to digital technologies to enhance efficiency, increase visibility, and improve client satisfaction. An integrated, end-to-end cloud ERP solution like SAP S/4HANA serves as a unified digital platform that automates work, streamlines core business processes, and provides employees with real-time information. This allows employees to move away from mundane tasks and focus on strategic activities that truly deliver client value.

AI plays a particularly important role in talent management for professional services.

Many professional services firms now consider automated processes for matching skill requirements with available talent to be essential for achieving their business goals.

AI-powered skills matching helps ensure the right people are assigned to the right projects at the right time, improving both delivery and employee satisfaction. These tools also support retention by recommending learning opportunities that help employees grow and adapt.

Intelligent copilots like the Joule Performance and Goals Agent, can significantly reduce the time managers spend preparing for and following up on performance reviews, making the development process more efficient and engaging for everyone involved.

Case in point:

Explore SAP SuccessFactors to support intelligent talent management and employee development.

Business model innovation and the strategic CFO

Automation and a modern cloud ERP are emerging as more than just tools for efficiency; they are enablers of business model innovation. By managing operational complexities more effectively, firms can test new delivery models and services, creating new revenue streams. For instance, reusable intellectual property can be packaged and sold as digital services, allowing firms to leverage new monetisation models such as XaaS (Anything as a Service).

The expanded role of the CFO is central to this transformation. Finance leaders are now key players in technology strategy, and a significant majority (81%) believe AI will have a moderate or significant impact on corporate finance and strategy. The increasing recognition of technology's strategic value by finance executives is driving the adoption of cloud and AI to overcome operational hurdles and pursue growth.

Learn more about the CFO’s evolving role in our blog: The CFO’s new mandate.

The convergence of human capital management and technology is becoming a key differentiator. Firms that use AI and automation to empower their talent by removing busywork and enabling more strategic roles will be better positioned to attract and retain the best people, innovate with new business models, and achieve higher profitability.

Foundational technologies like the SAP Business Technology Platform and Business Data Cloud are vital for this, as they provide the data and integration capabilities needed to power this intelligent, agile workforce.

Top business objectives and risks for professional services

For insights on how retail firms are navigating agility and digital transformation, read our blog: The retail revolution.

Conclusion: turning talent risk into opportunity

Professional services firms are at a crossroads. The talent crisis is real, but it's also an opportunity to rethink how work gets done.

By embracing automation, cloud ERP, and AI-powered talent management, firms can free their people from administrative burdens and empower them to do meaningful, strategic work. This shift not only improves profitability, it builds a culture where top talent wants to stay and grow.

Take the next step with EPI-USE

At EPI-USE, we help professional services firms unlock the full potential of their workforce through intelligent, integrated SAP solutions. Whether you're looking to improve operational efficiency, enhance employee engagement, or explore new business models, our team is here to support your transformation journey.

Learn more about our SAP solutions for professional services.

Contact us to start your transformation today.

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