How to Minimise Turnover Rates in UK Accounting Firms

A high turnover rate is an ongoing problem that every industry is going through, including UK accounting firms.   

A survey by the Chartered Institute of Personnel and Development (CIPD) showed that the average employee turnover rate in the UK is around 34% annually, a figure that can be alarmingly high for niche industries like accounting.  

Given this underlying problem, accounting firms in the UK must analyse different angles to better understand the motivations and frustrations of their staff and take action to lower the turnover rates in their firms.  

Hence, understanding how to reduce high turnover rates is essential for firms looking to maintain a competitive advantage.  

In this article, we will talk about how UK accounting firms can minimise high employee turnover within the organisation.   

Understanding Employee Turnover Rates  

In essence, employee turnover rate refers to the number or percentage of workers who leave a firm and are replaced by new employees. It's a mirror reflection of how well (or not) a company does in terms of employee satisfaction and retention.   

In addition, employee turnover is a crucial metric that reflects the rate at which employees leave a business and are replaced within a specific period.   

Key Causes of Employee Turnover in UK Accounting Firms 

Before we tackle the potential solutions for this problem, let’s look at some of the key causes of employee turnover in UK accounting firms: 

1. Lack of Career Advancement  

One cause of a high attrition rate in some UK accounting firms is the lack of career advancement in the organization, especially in today's generation where modern workers wanted to have a deeper sense of purpose in what they do. 

They want to make an impact on their work and be able to see results from it. If they feel like there's no room for growth or advancement within the organization, then they will look for another opportunity elsewhere.   

This is why it's important for employers to provide employees with opportunities for professional development and advancement to improve employee retention. 

Read: Talent Acquisition Strategies: How to Attract & Retain Top Accountants 

2. Inconsistent Management Styles

Another thing to keep in mind is the importance of ethical and consistent management practices. Leaders should provide feedback and discipline team members in a constructive and respectful manner. Failure to do so can create a toxic work environment, where employees feel they are being treated unfairly, which might also affect the number of employees and cause them to look for another opportunity elsewhere 

3. Low Salaries and Pay Raises

With the increase of inflation rates and high cost of living, it’s not surprising why workers are looking for new jobs that offer better compensation.  

In fact, a survey conducted by HireVue—an e-recruitment platform that let recruiters and hiring managers screen and interview potential candidates more efficiently—reported that over half (54%) of UK employees would consider quitting a low-paying job to pursue a pay rise, with just under a quarter (21%) planning to leave within the next six months. 

Given the survey, it only shows a sense of urgency to many organizations that they should be able to keep up and make their compensation package better and competent enough to retain their old and new employees. 

4. Poor Work/Life Balance

As the industry becomes more demanding, workers need to keep up and spend long hours just to meet client’s needs. In return, employees experience burnout in their mental and physical state, which is why they mostly leave their job to find an organization that places high importance in work-life balance.  

A survey conducted by Deloitte found 49% of Gen Zs and 62% of millennials say work is central to their identity but work life balance is something they are aiming for and a top consideration for an increased job satisfaction. 

Hence, UK accounting firms should create a positive environment and culture where respect and support are embodied in the principles and values of the organization. 

Doing this does not only enhance the satisfaction of the employees in their workplace but can also improve overall productivity, especially in terms of giving quality service to clients. 

5. Boredom

Aside from the need for growth, when employees feel that their tasks are no longer engaging or challenging, they may begin to feel that their true potential is not being fully realized within the organization, which somehow could also affect the average number of employees.  

In fact, a 2022 McKinsey study found that the most common reason employees resign is the lack of career development and growth opportunities within their organization. If team members don’t see a clear path forward, they’re more likely to look for it elsewhere. 

To reduce the risk of disengagement, leaders must play an active role in encouraging and pushing their team to step out of their comfort zones by assigning them challenging projects—ones that not only align with the organization's goals but also promote a "growth mindset" within the team.  

As a result, when the employees feel that their skills are recognized and nurtured, they’re more likely to stay, contribute meaningfully, and speak positively about the company culture, which is a win-win situation for both the workers and the organization. 

How to Minimise High Employee Turnover Rates 

To manage this common operational issue, here are seven (7) strategies that can help you reduce the percentage of employees who leave your firm.  

1. Offer Competitive Compensation and Benefits

One key driver of employee satisfaction is the compensation package. You need to make sure that salaries are not just competitive but also align with the expertise and experience of your employees.   

It is also recommended to regularly review and adjust your firm’s compensation structure based on industry standards so your employees will not be easily swayed by your competitors’ offers.  

2. Offer Work-Life Balance

It is essential to promote a culture that values work-life balance. This can be done through flexible working hours, the option to work from home, and by encouraging your employees to log off and rest after working hours.  

Doing this can enhance your employee satisfaction and retention, as employees will perceive you as an employer who values the health and life of its employees.  

Read Next: 5 Reasons Why Young Professionals Want Work-Life Balance  

3. Revise your Hiring Strategy

When building your own team of accountants, it is crucial to have a good hiring plan. This means making sure you find people who both possess the right skills and the ability to fit well with what your company believes in and how you do things.  

To make sure your hiring process works, you may consider these:   

1. Be Clear: Let candidates know the exact scope of the job and what your company is about.  
   
2. Be Selective: Look for people who share your firm's values and can grow with your team.  
   
3. Be Transparent: Let candidates know what they can expect from working at your company, including benefits and compensation.  
   
4. Be Honest: If a candidate isn't right for the job, let them know why so they can improve in the future.  

By adding these lists to your hiring process, you’ll be able to find people who are more likely to stick around and help you reduce the likelihood of having the wrong candidate on your end.  

4. Offer Competitive Pension Benefits

Sure, a generous salary might attract talent, but it is the robust pension plan that helps retain your employees. Salary only reflects an employee's present value, while a pension plan represents an investment in their future.  

By offering a competitive pension plan, you are signaling that your firm is more than just a stepping-stone in their career; rather, it is a place for them to work in the long term, not just a temporary job.  

5. Create Employee Development Programs

Investing in your employees' growth is a powerful retention tool. It's important to consider that staff may leave if they feel there are no opportunities for career advancement.  

Hence, it is important as an employer to create and conduct a list of special programs, provide clear career pathways, and offer mentorship programs for your employees. Such initiatives prevent your team from feeling stagnant in their career paths.  

You can also give them opportunities to earn new certificates, learn through training, and go to workshops.    

These initiatives do more than just making their skill sets better - it also shows that you’re genuine about investing in your employees’ career progression. This approach cultivates a team of proficient accountants who are passionate and excited to be part of your organisation.  

6. Organise regular evaluations and feedback sessions

Feedback lets your team know how they're doing and how they contribute to the firm's success. This practice is critical as it ensures that everyone on the team is aligned and that their ideas and concerns are heard.  

7. Reward and recognise employees

Lastly, you need to keep in mind that people like to feel valued – it's a basic human need, just like those described in Maslow's Hierarchy. Hence, it is important to develop a culture that doesn't merely recognise excellence but also celebrates it.   

Be it a formal ‘Employee of the Month’ award, a shout out or a simple email to say, "Great job!", these acts of recognition can help create a positive atmosphere. In such an environment, employees are likely to do more than just work—they can thrive better, making them less likely to leave for other jobs.  

Also Worth Reading: How to Expand Services and Reach More Clients for Your Accounting Firms 

How Outsourcing Helps Reduce Employee Turnover Rate 

With these strategies in place, there's one more solution that often gets overlooked—but can make a significant difference: 

Outsourcing specific accounting functions can ease your team’s workload —particularly time-consuming and repetitive tasks. This strategy not only optimises workload distribution but also enhances job satisfaction among employees, which in turn lowers the risk of turnover. 

Below are more reasons how outsourcing can be a smart move: 

1. Reduces Burnout from Repetitive Tasks

 When the team is constantly doing the same thing over and over again, they may become bored or frustrated with their work. This can lead to decreased productivity and increased turnover rates.  

Outsourcing lets you delegate repetitive tasks to external accountants, which in turn can be an effective way to reduce burnout among your internal team. 

 By freeing your team from repetitive tasks, they can get better opportunities to handle more interesting projects while still getting them done effectively. 

2. Access to Global Talent and Expertise 

Another important point to keep in mind is that outsourcing can give you access to global talent and expertise. This is especially helpful if your organization is looking for a specific skill set that may not be available locally.  

3. Provides Operational Flexibility 

As Benjamin Franklin said, “If you fail to plan, you plan to fail”, which is especially true when it comes to managing an organization. Having a good plan in place for your organization can help you avoid many of the pitfalls that come with running a company.  

But sometimes, things don’t go as planned. You may need to make changes or add support along the way. Good thing, outsourcing can provide you with operational flexibility whenever you need additional support without the long-term commitment and overhead costs of hiring a full-time employee. To know more about it, you may refer to this article. 

4. Better Resource Allocation 

Lastly, allocating your resources more strategically becomes easier when you outsource routine accounting tasks. Your in-house team can focus on higher-value activities—like financial planning, strategy, and analysis—instead of spending time on data entry, reconciliations, or payroll processing.  

This not only helps your business grow smarter, but also gives your employees a stronger sense of purpose and career growth, making them more likely to stay in the long run. 

The Bottom Line 

Reducing employee turnover is not about applying a one-size-fits-all solution. It’s about knowing your team, understanding what drives them, and creating an environment that supports both their professional growth and personal well-being.  

For UK accounting firms, this involves not just better compensation or benefits but also rethinking how work is structured and supported. 

Outsourcing, when done with the right partner, is a powerful way to ease the internal workload, boost morale, and ultimately create a workplace where employees are more likely to stay—and thrive in the organization. 

You may also read: Outsourcing to the Philippines: Benefits & Tips to Consider  

In need of a reliable finance and accounting outsourcing partner? 

We’re here to help. D&V Philippines has over 1000 accountants who are well versed with UK’s rules and regulations to meet your F&A requirements. Schedule a free consultation with us today.  

You may also download our whitepaper, Premium Solutions for UK Accounting Firms to learn and find out how we can help your firm. 

This post was first published on 3 May 2025 and edited on 9 May 2025. Edited by: Angelica Garcia