Attracting and retaining top talent in the accountancy sector has become a significant challenge. According to a new report from ICAEW, 56% of mid-tier accountancy firms cite hiring qualified accounting staff as one of their biggest challenges, with 60% struggling to retain qualified staff. One of the key obstacles focuses on the firm’s ability to understand what an attractive pay and benefits package looks like to their ideal candidate. Additionally, many firms continue to struggle with internal factors, including company culture, values and work-life balance. According to 15% of survey respondents, these challenges negatively impact their ability to attract new talent.
In addition, a recent article in the Financial Times highlighted findings from the Public Company Accounting Oversight Board (PCAOB), which indicates that major firms, including the Big Four (Deloitte, KPMG, EY and PwC), as well as Grant Thornton and BDO, are under pressure to reconsider their operations and strategies for retaining talent.
We recently analysed the accounting shortage and provided insights on how firms can attract the next generation of talent. For accountancy professionals, selecting the right firm is equally critical and can significantly influence their future opportunities. In this blog, we will explore the differences between large and medium-sized accounting firms, addressing common misconceptions that professionals may have when considering their next career move.
Brand reputation and firm growth
Understandably, numerous factors influence the career aspirations of accountancy professionals. Last year’s accountancy brand survey highlighted brand recognition as a significant element for both graduates and experienced professionals, with 86% of respondents indicating that a firm’s brand would affect their job applications.
The desire to work for large, well-known firms was also prevalent. PwC emerged as the most sought-after employer, with 60% of participants expressing interest, closely followed by Deloitte at 54%. EY and KPMG also ranked highly, attracting 48% and 49% of the respondents, respectively. BDO was next in preference, at 18%, while there was a noticeable drop in interest for RSM, at 9%, and both Grant Thornton and Moore, at 8%.
The 2025 Top Firms survey also provides insights into the differences in revenue growth between the Big Four and mid-tier firms. While the Big Four have historically held a dominant position, they are currently experiencing stagnant combined fee income growth of 5.7%. In contrast, many of the top 75 mid-tier and smaller firms are showing significant progress, with Grant Thornton reporting a 7.2% increase in fee income alone.
The infusion of private equity investment has also positively impacted 17 firms on the list, resulting in a collective 19.8% increase in fee income, which indicates robust confidence in the accounting industry, as well as their operational strategies and market positioning.
Salaries and promotion opportunities
In addition to brand recognition, large-scale firms are generally known for offering competitive salaries and benefits. They provide transparent salary progression pathways for professionals entering the industry, making it easier for them to understand expected earnings at different levels. Interestingly, the salary gap between mid-tier firms, especially those located in London, and the Big Four is not as wide as commonly perceived. As Tax Recruitment Director, Alex Alcock, notes, “While the Big Four tend to offer higher salaries at certain levels, the difference is not as pronounced as it once was. Mid-tier firms have significantly improved their compensation packages in recent years to attract top talent.”
Accountancy Practice recruiter, Curtis Weston, adds, “Salary increments at the Big Four typically align with promotions. In contrast, mid-tier firms may conduct one or two pay reviews annually”, which may allow employees additional opportunities for financial growth throughout the year.
Promotions within large firms often happen in waves, attracting considerable attention in the industry. A recent example is Deloitte, which announced the promotion of 60 individuals to partner level, bringing its total number of partners in the UK to the highest among the Big Four accounting firms.
However, the promotion process in large firms is not without its challenges. Weston commented, “In the competitive nature of the Big Four, it’s common for numerous professionals at the same level to vie for just one or two promotion spots. This rigorous process involves meeting specific targets and presenting a compelling case study. Unfortunately, many talented individuals may find themselves waiting six months to a year for the next opportunity if they miss out.”
On the other hand, smaller firms tend to have more flexibility in their promotion schedules, allowing them to recognise and nurture talent on their own timelines. Weston notes that mid-tier firms, especially those outside the top 20, benefit from their smaller size, which allows them to be more agile and adaptable in promoting employees who show readiness.
Work-life balance in accounting firms
The topic of work-life balance in accounting firms is becoming increasingly important. Currently, all of the Big Four firms promote hybrid working policies, with some more flexible than others. Last year, PwC announced that it would formalise its working policy, requiring employees to spend at least 60% of their time in the office or with clients. This approach maintains hybrid working but shifts the focus toward greater in-person interactions. Laura Hinton, the Managing Partner, stated, “This feels right for our business and for our people, given our emphasis on client service, coaching and learning and development.”
This year, it was reported that Deloitte US has linked office attendance to annual pay reviews, requiring employees to engage in face-to-face client meetings for at least half of their working week. However, in the UK branch, employees still determine how to allocate their time between client sites, the office and their homes.
Despite the increased emphasis on office presence, the opportunity to work from home is just one aspect of work-life balance. As Alcock explains, “The Big Four firms generally offer more opportunities to work from home compared to some mid-tier firms. However, during certain busy periods of the year, employees at these firms may still work much longer hours, typically 50 to 60 hours a week.” In a recent survey by Thirdfort, 42% of compliance team leaders in accounting firms reported working overtime at least twice a week. This suggests that although flexibility is available, the industry’s demands can still result in unsustainable practices.
In contrast, smaller firms often take a different approach. Weston notes that firms will promote an improved work-life balance by “implementing a standard 35-hour workweek in addition to providing fewer in-office days.” This reflects a growing recognition that firms not only need to attract talent, but also retain it by prioritising employee well-being.
Diversity and culture in UK accounting firms
The Big Four accounting firms in the UK are consistently recognised by The Times as top employers for gender equality and are making strides toward increasing female representation at the partner level, with varying progress.
EY has set an ambitious target of reaching 40% female equity partners by 2025. However, as of last year, only 28% of its UK partners were women. In comparison, PwC is aiming for 30% representation and is currently at 27%. KPMG currently stands at 29%, with a target of 40% by 2030. Deloitte has achieved its 30% target a year ahead of schedule, showcasing its commitment to gender equality. However, the path to achieving these diversity goals can be challenging for larger firms, emphasising the importance of nurturing a long-term talent pipeline.
The culture within large firms often operates within a more structured framework. Alcock commented, “The Big 4 retain a reputation for focusing on metrics such as billable hours and performance reviews, which may detract from fostering a collaborative work atmosphere”.
Conversely, medium-sized firms are typically characterised by an open and supportive environment. Weston explains that “in large firms, it can be challenging for junior team members to connect with senior leadership as they tend to be more separate. In smaller firms, however, partners often work alongside the broader team, which contributes to a more inclusive culture.”
Choosing the right accounting firm
Ultimately, potential employees should be able to make informed decisions based on their career goals and compensation expectations. At Distinct, we partner with a variety of top firms throughout London and its surrounding areas, regularly promoting positions that offer a healthy work-life balance and opportunities for career advancement. If you’re curious to learn more about your career options within the world of tax or audit, please get in touch with our recruitment specialists today.
