'Talent pathways' and 'listening culture' key to accounting staff retention

In order to retain accounting talent, firms should prioritise establishing clear progression routes and a culture of listening to staff, says Kreston Reeves’ HR director, Sharn Manku.

Kreston Reeves is the industry’s only mid-tier firm with Ofsted-recognised training courses, something Manku hails as a testament to “the quality of training” it provides.

However, with many businesses facing staff retention challenges, Manku adds that it has now become fundamental that they “keep talking to their people,” and offer them “meaningful work” which aids career progression.

“Having that [Ofsted] recognition, it’s fundamentally about people. We’re very invested in making sure that we support and nurture our talent,” she says.

“I think it’s a true testament that we have a talent pathway. Some may not want to become partners, so it’s about understanding our people. That’s why having in-house training is valuable. It allows us to really nurture our talent.”

Victoria Pounder, head of HR at Moore Kingston Smith, agrees that while recruitment is often the focus, retention is arguably a more pressing challenge.

Like Kreston Reeves, Pounder says her firm seeks to retain staff by building a culture of “trust, empathy, and respect,” which enables each colleague to fulfil their potential.

An “employee-led” talent market

According to Unum research published in December 2022 , the cost of living crisis could “spark the great resignation of 2023”, with up to 19% of UK employees to pursuing new jobs during the course of the year.

This figure tallies up with Broadbean Technology’s data from last June, which uncovered a sharp year-on-year dip in applications for accounting vacancies.

In fact, the study showed that its job boards attracted 36% fewer applicants, as part of a wider “skills shortage” that it describes as a “huge blow” to practices’ growth prospects.

David Morrison, a managing partner at EQ Chartered Accountants, argues that with “recent years having undoubtedly seen an employee-led market,” it would “seem perverse” if firms didn’t seek to retain high performers.

“A lack of trainees in the market over many years means that external recruitment, particularly at senior levels, is very difficult. So staff retention is critical,” he says.

“Growing a practice organically [also] requires retention of existing clients. Given that accountants make money by selling their time, then it is imperative to have committed staff. Support breeds huge loyalty and that creates growth.”

Prioritising ‘on-the-job’ training 

One of the trends Manku has observed is that new hires are increasingly keen to “get their teeth stuck in,” with on-the-job training becoming “fundamentally important” to them.

In light of this, he says, Kreston Reeves is able to effectively gauge what colleagues want and tailor training regimes accordingly thanks to initiatives like its reverse mentoring program. In extreme cases, this has even seen senior partners mentored by students.

“Again this a testament to the firm saying ‘look, we’re open to you telling us what we can do better.

“It depends on what their area of focus and development is, and what they want to learn more about. It’s about giving them the tools and availability to go through those things.”

Elsewhere, research by recruitment agency Jennings Morton Friel Associates has found that “fierce competition” for accounting talent is forcing firms to “raise pay rates” and offer benefits like flexible working.

In keeping with these findings, Moore Kingston Smith’s Pounder says that the firm often enhances its people policies, and recently improved its sick and maternity pay packages.

“We take a holistic approach to reward, salary, learning and development, recognition, and benefits, always taking individual needs into account,” she says.

Retention to remain “paramount”

Meanwhile, Kreston Reeves’ Manku argues that, while, Ofsted recognition “speaks volumes” about her firm’s training programs, she believes there’s more to it than simply “having the badge” for branding purposes.

Instead, she positions nurturing emerging talent as central to its staff retention strategy, and says she takes great pride in seeing how many colleagues have “come through” in-house training.

Manku adds that this is especially the case when it comes to social mobility, and that the practice values showing students how the “traditional pipeline of going to college and university, is not the only route”.

At the top of the end of the market, EQ’s Morrison says being a flexible employer, offering the right benefits, and providing a supportive environment, are all key aspects to staff retention.

That said, he also believes many merely pay lip service to these ideas, but what actually drives staff retention is creating a positive culture where they “look forward to coming to work.”

“We see other firms beginning to see more importance in the training of staff, so it may be, over a period of time, that there are more qualified accountants on the market. But for now, staff retention is of paramount importance to EQ.”