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Despite an uncertain economy, employees are happy to abandon their roles if it means embracing a better work experience. According to a Gallop workplace survey presented in mid-2023 over 96% of workers are looking for a new job.
In the UK the CIPD confirmed that over 6.5 million workers plan to leave their current roles in search of better jobs.
In a skill-short landscape, where it’s becoming increasingly difficult to find talent for your team, knowing how to boost your chances of retaining staff is crucial.
The first step to fixing high levels of talent turnover is understanding why employees choose to leave their roles in the first place. Today, we’re going to look at the 11 most common reasons accountancy and finance employees search for a new role – and what you can do about it.
1. Lack of Career Growth Opportunities
Every employee, no matter their industry, wants to see opportunities for growth in their career. This could mean everything from chances to move into higher-paying roles, to opportunities to take on more responsibilities at work. Unfortunately, only 48% of employees in 2023 said they felt a path for advancement was available with their current employer.
Creating clear and realistic succession plans to show employees there’s room to develop in your organisation is the best way to help them visualize/visualise a future with your company.
2. Inadequate Compensation and Benefits
Today’s accountancy and finance employees want and expect to be paid what they’re worth. Many employees know they can increase their income even higher than the rate of inflation.
This means if you’re not paying team members what they’re worth, or enhancing the deal with the right benefits, such as remote or flexible working and paid time off, they’re likely to look elsewhere. Make sure you regularly assess the hiring landscape to determine a fair compensation package for your teams.
3. Unhealthy Work-Life Balance
Poor work-life balance has grown increasingly common in the accountancy and finance industry since the pandemic. Remote and hybrid work is making it harder for employees to see the gap between their professional and personal worlds. However, team members are also less willing than ever to deal with a consistently poor work-life balance for long.
To minimise turnover and prevent burnout, employers and business leaders need to encourage team members to care for themselves, take time off, and disconnect from the workplace whenever necessary.
4. Toxic Workplace Culture
A problematic workplace culture doesn’t only dissuade employees from joining your team, it can also prompt existing team members to search for new roles or even disengage from their work. One study found that employees who feel excluded at work are at a 50% higher risk of turnover.
Focus on building an inclusive, respectful, and collaborative culture, where harassment, discrimination, and unfair treatment are effectively addressed and eliminated.
5. Limited Learning and Development
As accountancy and finance employees want to progress in their roles, they also want to ensure they have chances to develop new skills and abilities. Around 94% of team members say they would stay with a business for longer if it offered the opportunity to develop.
Investing in learning and development programs for your employees is an excellent way to increase engagement and reduce turnover. What’s more, it ensures you can upskill staff members with the skills they need to thrive in the changing accountancy and finance industry.
6. Poor Management and Leadership
Excellent leadership has long played a key role in employee retention. Employees often seek out new positions when they feel they aren’t getting the right managerial support. In fact, one Gallup study found that 75% of workers who voluntarily leave their roles do so because of a poor manager.
Learning which leadership and management styles work for your employees, and teaching your leaders how to implement them can help to minimise turnover.
7. Better Work-Life Fit
Employees in the accountancy and finance industry have frequently struggled to fit their careers around busy personal lives and commitments. However, since the pandemic, and the rise of remote and hybrid work, many team members have learned that they can always leave their jobs to find a better fit.
Working with your employees to adapt to their needs can help to reduce turnover. For instance, you could offer employees four-day work weeks, flexible schedules, or even opportunities to work from home when necessary.
8. Lack of Appreciation and Recognition
Every employee wants to feel appreciated. If you’re not recognising/recognizing your team members for the work they do regularly, then they’re likely to search for a new role. One report found that employees who only receive recognition a few times a year are 39% more likely to leave within the next twelve months.
Implement a comprehensive recognition strategy that encourages business leaders to share feedback and insights with team members on a regular basis. Even a simple “thank you” for a job well-done message from a team leader can work wonders.
9. Disconnection from Company Values
In today’s world, accountancy and finance employees are looking for more meaning from their jobs. They want to feel as though they’re having a positive impact on the industry, and they’re keen to work with companies that share their values. In fact, 87% of millennials in 2023 said they would leave a job to look for an employer that has the same values.
Ensuring you understand the values your employees hold and making it easy for them to understand the mission and vision of your business is crucial to talent retention.
10. Limited Job Security
In several articles shared on Forbes, Studies show employees around the world are facing a job security crisis. Though the right talent remains crucial to the performance of any accountancy and finance company, economic uncertainties are making job cuts more common. This leads to stress and burnout for staff.
While it might be impossible to guarantee long-term employment for your staff members, being transparent about layoffs, downsizing and continuity options is crucial.
11. Burnout
Burnout is still on the rise in 2023, with around 43% of the workforce now suffering from common symptoms. Not only does burnout harm productivity and performance in the workplace, but it also makes employees 3.4 times more likely to leave their roles.
Business leaders need to pay attention to the signs and symptoms of burnout and ensure they’re taking measures to overcome the problem whenever possible. This could mean offering therapy, guidance, and support for mental and physical well-being.
Talent turnover is still on the rise throughout the accountancy and finance industry. Ever since the Great Resignation began, employees have become less concerned about holding onto the same job for long periods of time. This makes it harder for businesses to ensure high levels of employee retention.
While it’s impossible to guarantee your staff will never leave your business in search of better perks or benefits, understanding the reasons employees leave is a good first step. When you know what prompts turnover in your company, you can take measures to avoid it.
Best regards
Paul Ryan ACMA, CGMA
paul@rdfr.co.uk
RD Financial Recruitment Limited
St Stephens House, Arthur Road, Windsor, Berkshire SL4 1RY
Tel: 01753 621902 www.rdfr.co.uk
http://uk.linkedin.com/in/paulryanacma
Why Partner With RD?
RD is different from other recruitment consultancies because it is managed by a qualified accountant. We have been specialising in accountancy recruitment since 2002 and because of our accountancy affiliations we have access to a pool of candidates which other consultancies cannot access call us now on 01753 621902, or email us at: recruit@rdfr.co.uk
We have also recently launched our new RD+ recruitment service
Features a cutting-edge online candidate delivery platform, McQuaig psychometric testing, video introduction and candidate suitability score. This is proven to increase your new hire retention rate to 96% and reduce the risk of an expensive ‘Bad Hire’.
Find out more: RD+ – RD Financial Recruitment Limited (rdfr.co.uk)
