Like many young people, when Zeeshan Malik left school he saw a job in finance as a stable career choice in an increasingly volatile economy. But in 2022, five years after securing an auditing apprenticeship at a UK-based firm, he left the industry forever.
“The work involved repetitive and mundane tasks and I was expected to work long hours, often till 10pm, yet compensation was poor,” Malik says. “It was difficult to maintain a work/life balance, leading to severe burnout.”
Many of his peers had similar experiences and “only a handful” worked in the profession for more than a couple of years, Malik says. “The industry has been slow to adapt to modern workplace expectations and it’s at risk of losing young employees like myself.”
While many industries are struggling to attract and retain talent, the scale of the challenge facing the finance field is particularly severe. Almost three quarters (71%) of financial professionals in the UK are looking for a new job outside of the profession, according to findings from software firm Medius.
Change is needed, not only to retain staff, but to become an attractive proposition for the next generation of accountants, auditors and financial analysts.
Why are people leaving finance?
There is a rising level of disillusionment among finance professionals. The same Medius survey found that only three in 10 senior finance employees would say they and their colleagues are satisfied with their role.
Monotonous administrative responsibilities, such as approving invoices and replying to vendor emails, are a key issue for finance teams who believe this work is demotivating and takes up too much of their time. Those surveyed said they spend an average of six hours a week replying to vendor enquiries about invoices.
While some of these challenges can be addressed by automation, it is not enough to overcome an overall dissatisfaction with working conditions in finance. Many believe other fields now offer better compensation, security and stability. As a consequence, most finance employees (75%) said they would not recommend a job in the sector to generation Z.
There is a lingering perception amongst youngsters that finance is too old-school
High stress levels and poor work/life balance are recurrent complaints from those working in accountancy. Almost all (99%) accountants say they have experienced burnout as a result of workload pressures, according to a study by accounting software firm FloQast. This increases the risk of errors and impinges on people’s personal lives.
“During the busy audit season [January through to April] there are restrictions on when you are allowed to take annual leave,” says Malik. “Some firms do not allow you to take holiday during these months because there is too much work to do and not enough staff.”
These are familiar challenges for Liz Parry, now CEO of telecoms software company Lifecycle Software. She first embarked on an accountancy career with the Foreign, Commonwealth and Development Office, but left the profession after growing frustrated at its inefficiencies and a lack of autonomy and innovation. “The industry didn’t make the effort to understand the operational constraints,” she says. “I wanted the freedom to innovate without daily compliance pressures, as well as greater flexible working provisions to accommodate family life.”
She adds: “Some organisations encourage you to step out of your lane and look beyond the pure financial responsibilities, but not many do and you can end up stuck in a very stereotypical finance department where it’s tough to gain exposure to other disciplines.”
Attracting young talent is a major challenge
At the same time, the number of young people entering the finance profession is dwindling. The sector is facing an “existential talent crisis”, says Vipul Sheth, founder and managing director of accountancy outsourcer Advancetrack. “Experienced finance professionals are leaving while the younger generation are less eager to enter the field,” he says.
Almost half (45%) of UK accountancy firms are being “severely” or “significantly” affected by talent shortages, research by Advancetrack found. Half (52%) say the biggest aspect hindering their efforts to retain and recruit talent is a lack of interest from university graduates and gen-Z’s aversion to menial tasks.
The number of accountancy students in the UK decreased from 164,000 to 156,000 between 2017 and 2022, the same Advancetrack research found.
The profession can also be perceived as being stuffy and boring. “There is a lingering perception amongst youngsters that finance is too old-school and all your time will be spent hunched over a desk crunching numbers,” Sheth says. “The industry has been notoriously bad at addressing this negative perception and marketing itself to a younger generation.”
Without skilled finance workers, the stability of modern commerce is genuinely at risk
While a background in accountancy was once seen as a viable path to the C-suite, this is no longer the case. “Many FTSE 100 CEOs are chartered accountants,” Sheth says. “But in the current age of tech startups and entrepreneurs, young people believe there are more exciting and better-compensated routes to the top.”
Lorraine Twist, a director at recruiter Hays specialising in accountancy and finance, says gen-Z no longer think a role in finance can fulfil their workplace expectations. This means the sector no longer holds the “allure” it once did. “They [gen-Z] want to work to live, not live to work,” Twist says. “In stark contrast, the finance profession is known for rigidity, long hours and high-pressured deadlines.”
What young people desire above all else is job security, according to research from Hays. Having experienced prolonged economic uncertainty, gen-Z place greater emphasis on stability and safety when looking for a job. In Twist’s view, growing concerns that AI will replace traditional finance jobs means the profession is no longer seen by younger employees as the safe and stable profession it once was.
Some firms are increasing wages in a bid to attract talent at a time when staffing shortages are critical. Sheth says this has led to soaring salary expectations, even for entry-level roles, which mean many smaller firms who cannot compete are missing out on talent.
What businesses stand to lose
This skills crisis presents a serious risk to organisations’ bottom line. A shortage of talent and the additional strain this places on already depleted and burnt-out finance teams can lead to mistakes. One-third of accountants admit to making “at least a few” financial errors every week due to being overly stretched, according to a Gartner survey.
Even minor mistakes can seriously compromise financial accuracy and integrity, especially if they spill into the monthly or quarterly close. Earlier this year, the CFO of food storage container company Tupperware Brands resigned following a period of financial difficulty for the company and delays in reporting quarterly and annual results.
Big accountancy firms, relied on by many businesses for tax advice and auditing, are struggling due to a lack of skills, raising concerns about the sector’s long-term stability. “It’s a perfect storm,” says Sheth. “Without skilled finance workers to oversee financial transactions, tackle a complex regulatory market and ensure compliance, the stability of modern commerce is genuinely at risk.”
How to support finance teams more effectively
Investing in the development of finance talent and rethinking recruitment approaches can help to reverse these worrying trends. Twist emphasises the importance of offering competitive salaries to attract talent and alleviate stress, but says this needs to take place alongside a culture where finance teams feel valued and supported.
At the same time, being open to new ideas and adaptable to technological change can help to overcome finance’s reputation for being too old-fashioned, she stresses. “Firms that are able to prove they are digitally savvy are typically more successful in attracting and retaining talent,” she adds.
Some financial training programmes are starting to place more emphasis on building AI skills. Business school HEC Paris trains students to use generative AI for financial data analysis and KPMG has developed a new AI audit tool to streamline financial reporting.
“Ultimately, firms need to show candidates that the job entails more than numbers and spreadsheets,” Twist adds. Client engagement, critical thinking, leadership and networking are softer skills that have not always been associated with the finance field but are becoming increasingly important.
Finance leaders, however, need to get better at highlighting the opportunity to use and develop these skills within their teams, she says. “This is what keeps people engaged.”
At a time when the sector is facing a multitude of challenges, it is up to finance leaders to find new ways to support their team, rebrand the profession and repair the talent pipeline.
