Addressing Finance Industry Turnover for Long-Term Success

Finance and accounting teams play a crucial role in business success, yet many companies struggle with high turnover in these departments. According to the U.S. Bureau of Labor Statistics, the finance and insurance industry had a turnover rate of 18.6% in 2023. This level of attrition leads to increased hiring costs, lost productivity, and knowledge gaps that disrupt business operations.

So, why do so many finance professionals leave their roles, and what can companies do to improve retention? In this article, we’ll break down the main reasons for high turnover in finance and accounting teams and explore proven strategies to reduce attrition, including stronger hiring practices, workplace culture improvements, and career development initiatives.

Common Causes of High Turnover in Finance and Accounting Roles

1. Burnout and Heavy Workloads

Finance professionals frequently experience intense workloads, especially during tax season, quarter-end, and year-end close. Long hours, tight deadlines, and constant pressure to meet financial reporting requirements can lead to burnout.

Employees who feel overworked and undervalued are more likely to seek jobs with better work-life balance. If companies fail to provide support—whether through additional staffing, automation, or flexible work arrangements—burnout will drive top finance talent elsewhere.

2. Limited Career Growth and Development

A lack of clear career progression is another major factor in finance team turnover. Many professionals leave their roles because they see little opportunity for advancement or professional development.

• According to LinkedIn’s Workforce Learning Report, 94% of employees say they would stay at a company longer if it invested in their learning and development.

• Upskilling programs, leadership training, and mentorship can help finance professionals see a future within the organization, reducing the temptation to leave for a competitor.

3. Competitive Compensation and Benefits

Finance professionals are in high demand, and firms that fail to offer competitive salaries and benefits risk losing employees to competitors.

• Many finance professionals are recruited by larger firms, fintech startups, or corporate enterprises offering higher pay, better bonuses, or stronger benefits packages.

• Companies that don’t regularly benchmark salaries and incentives may unintentionally drive employees to seek better financial opportunities elsewhere.

4. Workplace Culture and Leadership Issues

Toxic workplaces, lack of transparency, and poor leadership can drive employees to leave. In finance and accounting roles, where precision and collaboration are critical, an unsupportive culture can be especially damaging.

Companies that fail to address employee concerns, provide clear expectations, or foster a positive work environment risk higher turnover. Strong leadership, open communication, and inclusive workplace policies can make a significant difference in retention rates.

How to Reduce Turnover in Finance and Accounting Teams

1. Strengthen Your Hiring Strategy

A strong recruitment process helps ensure that the right candidates are placed in the right roles from the start. Partnering with a finance staffing agency can improve hiring outcomes by:

• Sourcing finance professionals who match both skill and culture fit.

• Reducing time-to-hire with pre-vetted candidates.

• Ensuring competitive salary benchmarks to attract top-tier talent.

Companies that struggle with high turnover should reassess their hiring process to ensure they’re selecting candidates who are not just technically qualified, but also aligned with company culture and long-term goals.

Need help with finance and accounting recruitment? Learn how Wenlock Talentconnects businesses with top finance professionals.  

2. Invest in Upskilling and Professional Development

Providing ongoing learning opportunities can increase employee engagement and job satisfaction. Consider:

• Offering tuition reimbursement or certification programs for finance and accounting professionals.

• Implementing internal training programs focused on leadership, advanced financial modeling, or emerging industry trends.

• Encouraging mentorship programs that help employees see a clear path to promotion.

By investing in employee growth, companies can reduce turnover while strengthening their finance teams with future-ready professionals.

3. Improve Work-Life Balance and Flexibility

Work-life balance is one of the top concerns for finance professionals. Companies can enhance retention by:

• Implementing hybrid or remote work policies where possible.

• Encouraging reasonable workloads and eliminating unnecessary overtime.

• Promoting mental health initiatives and employee wellness programs.

Offering flexibility and realistic work expectations makes employees more likely to stay, especially as remote work becomes increasingly normalized in finance roles.

4. Offer Competitive Salaries and Benefits

Since finance professionals often receive competing job offers, companies must stay ahead with competitive compensation packages. Strategies include:

• Conducting regular salary benchmarking to ensure pay remains competitive.

• Offering performance-based bonuses and retention incentives.

• Expanding benefits beyond salary, such as stock options, retirement plans, and profit-sharing opportunities.

By reassessing their compensation structures, businesses can improve their ability to attract and retain skilled finance professionals.

A Stronger Finance Team Starts with Better Retention Strategies

High turnover in finance and accounting teams is not just a hiring challenge—it’s a business risk. The costs of lost productivity, recruiting, and onboarding new employees add up quickly, making it crucial for companies to proactively address the root causes of turnover.

By strengthening hiring practices, investing in career development, improving work-life balance, and offering competitive compensation, businesses can create an environment where finance professionals want to stay.

Need help finding and retaining top finance talent? Wenlock Talent specializes in finance recruitment strategies that build strong, stable teams. Contact us today!  

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