New data gathered by Accountancy Age and HSBC UK has revealed the UK accounting sector is poised for further growth in 2025. Coupled with a 4.2% rise in average salaries, this news demonstrates the sector’s resilience amid reported skill shortages.
With millennials set to comprise 75% of the workforce this year, significant transformation may be on the horizon as firms strategise how to attract and retain the next generation. Our recent survey revealed what experienced accountants prioritise in their careers. We’ll now explore data on the ambitions of younger accountants and how firms can adapt to meet their needs.
The accounting talent shortage: influences and new developments
Accounting talent shortages have been experienced globally, with reports dating back to 2018 when the AICPA witnessed a drop in student enrollments. In short, this dilemma refers to a lack of qualified accounting professionals, leading to high competition for firms to attract and retain staff. As highlighted by the ICAEW, the causes behind these shortages are multifaceted. Here are five of the most influential factors discussed by industry leaders.
1. Skilled accountants reaching retirement age
A 2023 Dext survey found that 67% of accountants aged 55 and over planned to retire soon. Two years on, there aren’t enough millennial and Gen Z accountants to match their expertise yet, according to Accountancy Age.
2. Fluctuating numbers of new accounting students
From 2017 to 2022, ICAEW, ACCA and CIMA enrolled 9,000 fewer students. Discussions emerged around whether a faster qualification route would attract younger accountants, though some experienced professionals debated that this could compromise the quality of work and skills. Encouragingly, the number of ACA students in the UK increased by 8.5% in 2024, defying the downward trend.
3. Increasing demand for work-life balance
In 2023, 36% of accountants and bookkeepers intended to leave their roles within five years, with 24% of those aged 25-44 searching for better work-life balance. This trend continues, with our recent report showing 60% of accountants plan to change jobs in 2025, prioritising firms that offer improved work-life balance and flexibility.
4. Gen Z’s concerns regarding accounting automation
In 2024, a study by Sage found that accounting firms had adopted AI technology faster than other sectors. Yet, this development has raised concern for some young professionals. According to one ACCA study, 75% of Gen Z believed technology would replace entry-level accounting roles, potentially deterring them from pursuing careers in the sector. With AI theorised to create 20,000 UK accounting jobs, reassuring younger professionals that automation can assist them – rather than replace, is crucial to tackling the talent shortage.
5. Combatting outdated stereotypes
Stereotypes in media and pop culture have hindered the sector’s efforts to shed the ‘number cruncher’ persona and attract younger accountants. Accountancy Capital believes this reputation deters individuals who seek innovative career paths, while 45% of accountants surveyed by Xero agree the industry has an ‘image problem.’ However, ACCA data shows many younger workers view the profession positively, with only a minority citing a negative image.
How to attract Gen Z accountants: key data from the ACCA
In the report ‘Groundbreakers: Gen Z And The Future Of Accountancy In The UK,’ the ACCA examined how younger generations could shape the future of accounting roles. By surveying individuals aged 18–25, their data revealed:
- 74% had a peer group which valued high pay and prestigious job titles
- 56% valued work-life balance
- 56% had concerns about job security
- 48% worried about personal well-being and mental health
Addressing these key concerns in interviews can give employers a competitive edge in attracting younger accounting professionals. Additionally, observing how these priorities evolve as Gen Z progresses in their careers may help to future-proof UK firms, by anticipating the needs of emerging accountants in Generation Alpha.
The ACCA’s executive summary deduced that accounting careers remain attractive for Gen Z, offering long-term career prospects and continued skill development. Security, work-life balance and skill development were also key to job satisfaction, alongside a desire for rapid career progression.
Strategies for UK firms to attract and retain accounting talent
1. Growth and learning opportunities
ICAEW research shows a lack of access to qualified staff and ‘future-proofing skills’ are two key challenges for UK firms. For accountants in our recent survey, career development ranked as their second highest priority, making upskilling a mutually beneficial solution. With 94% of employees remaining longer at companies that invest in their career development, this presents a powerful strategy for retaining experienced and younger accountants.
2. Emphasising purposeful work
In Deloitte’s 2024 ‘Gen Z and Millennial Survey,’ 89% of millennials and 86% of Gen Z agreed that a sense of purpose is important to job satisfaction. Further, they are drawn to employers who align with their values, such as environmental impact, inclusivity, well-being and work-life balance. Andrew Dobbs, Head of Talent Acquisition at Cooper Parry, suggests that firms can strengthen attraction strategies by emphasising their organisation’s moral and social purpose.
3. Work-life balance
As many other large-scale employers remained firm on their return-to-office mandates, the Big Four recently confirmed they would retain hybrid working for employees. For smaller firms to remain competitive, flexible working arrangements will be key to attracting and retaining experienced accountants.
Similarly, work-life balance remains a priority for millennials and Gen Z, with a 2023 psychological study finding that they value this significantly more than previous generations. Francesca Lagerberg, International CEO of Baker Tilly, recently advised firms; “they [younger accountants] want flexibility, intellectual stimulus and a work-life balance that simply wasn’t there 20 or 30 years ago.”
4. Investing in technology for productivity and well-being
According to Microsoft, 93% of millennials believe access to new technology is important when choosing an employer, while 91% of Gen Z say this influences their decision to choose between similar workplaces. Furthermore, a 2024 report by Medius revealed that experienced accountants view technology as a solution to their biggest operational issues.
In a recent global study by Thomson Reuters, professionals believed AI could save up to 12 hours per week by automating basic tasks. Therefore, Gen Z accountants’ concerns regarding automation may be eased by highlighting this potential to improve work-life balance, creating further time for training and development.
Work with Distinct
From our recruitment hubs in Nottingham and London, we strive to stay informed on the latest developments in the market. If you’re searching for your next accounting job or looking to hire talented professionals, contact us today.
