UK accounting sector needs to put more emphasis on its people

Read the latest 50+50 report here.

Across the UK, increasing turnover rates have been observed across barrios sectors. The accountancy sector is no exception.

According to Accountancy Age’s latest 50+50 report, in 2022, the average staff attrition rate rose to 17.89% across the sector, compared to 14.69% in 2021. The decrease is minimal, but firms cannot afford to be losing additional staff while applicants for new positions are down.

“Competition has been the biggest factor over the last 12 months,” Chloe Alexander, head of HR for Larking Gowen, explained to Accountancy Age.

“It is a candidate-driven market which is moving at pace. As a firm we have had to be proactive in our response to attracting candidates, addressing workforce planning and aligning our recruitment strategy to reflect this.”

Larking Gowen, which ranked 43^rd in the 2022 50+50 list, has been working “smarter” to attract candidates and ensure its employer value proposition is reflected in it’s work practices.

Alexander also notes the firm has done a lot in the trainee space. “We find that nurturing and supporting talent within the organisation drives top talent and we hold onto this with our overall employee package,” she says.

Giving employees what they want

As the cost-of-living increases candidates across numerous sectors have been more salary focussed; accountancy firms have had to constantly review the market to make sure they remain competitive.

“We have made great strides to offer competitive salary packages and benefits and continually review these to make sure we remain competitive in the market,” Alexander explains.

“As an employer, we pride ourselves on developing our people at a pace which suits them and have created a culture of support where our employees feel they can strive to achieve their career aspirations.”

Dains, which ranked 33^rd in the 2022 rankings, has also put an onus on prioritising its people. Richard McNeilly, Dains’ CEO explains that from January 2022, the firm’s senior team “prioritised recruitment, retention, training and career development above other areas”.

Alex Fourlis, managing director at Broadbean Technology, implores employers to take immediate action and establish a recruitment market that can best support the UK’s economic bounce back.

“For employers and recruiters, now is a critical time. It is now essential for businesses in the accountancy sector to rebuild and nurture dwindling talent pools, utilise innovative technology and maximise partnerships with external talent suppliers to find the undiscovered talent that is so desperately needed,” he says.

Attracting the right talent

But in the current talent market, Dains’ McNeilly emphasises accountancy practices will need to work hard to become the employer of choice – something which does “not come about overnight”.

Dains has chosen to focus on “authenticity” to retain and recruit the ‘right’ people. This has involved being “upfront about what is on offer and ensuring both parties commit to this”, McNeilly says.

“We believe in helping our team to develop their skills and build a successful career and we are not about saying the right thing for effect. Great teams thrive on honesty and trust which leads people to become accountable and feel a genuine sense of empowerment”.

Larking Gowen has also placed development at the centre of its talent offering. “Training opportunities and providing employees the opportunity to learn and develop is essential to attracting talent,” Alexander explains.

“Candidates are demonstrating an increasing thirst for knowledge and want to understand how as an organisation we will support their learning and development.”

Skillsets required to future-proof your firm

Over the next 12 months, the majority of the leading UK accountancy firms will be competing with one another to obtain the top talent. The skills in demand are likely to be different to those in demand a decade ago.

While a strong proficiency in technical skills is still a must for most roles – including knowledge of accounting principles, financial reporting, tax laws, and regulations – the ability to use accounting software skills as well as data analytical skills has risen.

“The role of an accountant is evolving and there is a greater need for the use of up-to-date software packages, and cloud-based accounting solutions,” Larking Gowen’s Alexander stresses.

“Increasingly software does a lot of traditional accounting work and Larking Gowen look for people who are great communicators to help us maintain great client service and relationships.”

Most firms will now expect their accountants to be proficient in accounting software and systems, such as QuickBooks, SAP, and Xero among others. Similarly, the ability to analyse financial data and make informed recommendations to clients will also be crucial.

But Dains’ McNeilly notes it is not just the technical skill sets which will help practices scale – at Dains, a large proportion of its advisory team are “non-accountants”.

And while he notes that individuals with technical qualifications will always be necessary for the success of accounting practices, for Dains, it is no longer the sole focus. Developing softer skills to complement new technical skills, is essential for all Dains employees.

McNeilly says Dains is fully committed to training its managers in areas such as people development, emotional intelligence, interviewing and relationship management.

Similarly, McNeilly notes those who are “brilliant with data analysis” should also have great people skills. These people, he says, can not only “unlock data” for the practice, but more importantly, provide advisory services in this area to clients.