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Now that the bubble has burst, so too will these charges go down. At least in non-protected professions.
Faraway hills?I used to be an accountant. I left because of the long hours. Even though the earnings look good on paper, by the time you have all your hours put in, you would be earning a similar hourly rate to a skilled administrator.
In fact I think HR officers are paid very well considering they don't have the pressure of deadlines, month end etc. Also when they go on hols there isn't a huge backlog waiting for when they get back. They can get in with a certificate or degree. This would only take 2 or 3 yrs. Of course some of them would do further study by themselves but they don't NEED lots of study to get into HR.
In fact I think HR officers are paid very well considering they don't have the pressure of deadlines, month end etc. Also when they go on hols there isn't a huge backlog waiting for when they get back. They can get in with a certificate or degree. This would only take 2 or 3 yrs. Of course some of them would do further study by themselves but they don't NEED lots of study to get into HR.
With such an over-supply of accountants, lawyers, architects etc professional fees should be dropping massively over the next few years. .
My understanding was that in relation to lawyers the fees will be going up, not down, to pay for the increased professional indemnity insurance, the lack of business and the dearth of clients who will actually pay their bills.
From the feedback I have received from friends who are solicitors, insurance is going to cause major issues for firms going forward. In the instances that I know of, insurance has increased 4 fold from 4k to 16K. The impact of this will be that firms have & will continue to downsize.......back to your demand & supply.....also many of those made redundant will not be able to go out on their own due to the aforementioned insurance costs as most banks are not throwing money around at the moment!!!
Purple, I think your phrase 'bizarre in the extreme' is a ridiculous comment.
From the feedback I have received from friends who are solicitors, insurance is going to cause major issues for firms going forward. In the instances that I know of, insurance has increased 4 fold from 4k to 16K. The impact of this will be that firms have & will continue to downsize.......back to your demand & supply.....also many of those made redundant will not be able to go out on their own due to the aforementioned insurance costs as most banks are not throwing money around at the moment!!!
When I referred to downsizing, I was not referring to a one person firm as downsizing in that instance would mean there is no one left!!
The people whom I know would be employees & the option of whether they are better off on the dole is irrelevant as the choice is not theirs. IMHO no one is better off on the dole as the financial impact is only one of the issues that people face in this situation.
Those who do lose their jobs would certainly struggle to start up a one person practice as where would they get the start up capital and the fee base to cover costs.
. I didn't think solicitors were earning less than €12.50 a hour. Live and learn I suppose...
How would an €8’000 increase in costs reduce your income by €20’000? Rent, wages, utilities, stationary etc are going down in price so that should offset some of the insurance increase.If you are say a one man practice and you were earning 40K to 50K a year and you PI goes from 4K to 12K before any other cost and your 40K is going down to 30K or 20K then the fees are going to go up because it doesn't make sense otherwise.
I agree, that’s what competition does; when supply is greater than demand prices drop.What will happen is that those on these low fees will have to go out of business, lose their premises etc and for a short while fees will go up but in about 6 months to a year things will change. We will see solicitors eager for business who have scaled back their costs coming back with more competitive fees. When they move from the upmarket office on the high street with 2 secretaries and one legal executive to working from home for example. I imagine much the same will happen with accountants and other professionals. We will also see young recently qualified people with no commitments eager to do business who will stir things up.
I had a quote for a job last month from my long standing solicitor, I consider the quote really really high for the job but I'm not in a hurry and I'll wait until things have settled and fees come back down or in my case I'll do the job myself when I have time.
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