7 Ways to Minimise Turnover Rates in UK Accounting Firms

An increase in 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 35% annually, a figure that can be alarmingly high for precision-driven niches 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 minimise 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.  
 

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: 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. 

1. Be Selective: Look for people who share your firm's values and can grow with your team. 

1. Be Transparent: Let candidates know what they can expect from working at your company, including benefits and compensation. 

1. 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 so important 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. 

The Bottom Line 

While these strategies are effective in reducing turnover rates, it's essential to recognise that certain roles within an accounting firm can be highly repetitive, leading to job dissatisfaction. If employees perceive a lack of growth opportunities or find the workload monotonous, it may be time to reconsider the allocation of tasks. High employee turnover rates can significantly affect the operational capabilities of your firm. 

In such cases, outsourcing repetitive or specialised tasks to finance and accounting outsourcing companies, such as D&V Philippines, can be a smart decision for your firm.  

Outsourcing not only allows your firm to focus on core activities and strategic growth but also provides your team with the opportunity to engage in more varied and fulfilling work. 

Read Next: Outsourcing to the Philippines: Benefits & Tips to Consider 

By leveraging the expertise of specialised finance and accounting outsourcing companies, UK accounting firms can significantly enhance their operational efficiency, reduce employee turnover rates, and foster a more motivated and committed workforce. 

In need of a reliable finance and accounting outsourcing partner? <H3> 

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.