Navigating the Talent Landscape in European Finance: GTT 2024 [Promoted content]

The accounting and finance industry is at a critical juncture, facing a rapidly transforming landscape shaped by technological advancements, shifting workforce dynamics, and an incredibly fluid job market. The ACCA’s latest Global Talent Trends 2024 report (GTT) provides a comprehensive overview of the key trends and challenges impacting the profession, based on insights from nearly 10,000 finance professionals across 157 countries, including 24 European nations.

Josefina Movillo is the Policy Manager at ACCA for UK & EEMA regions.

The comprehensive survey offers a valuable roadmap for both employers and professionals in the European finance industry, shedding light on the future of the profession and the strategies needed to attract, retain, and support top talent. Embracing change, supporting upskilling, adapting to wage pressures, and prioritising the wellbeing and development of teams will be crucial for navigating a future filled with both challenges and opportunities.

Six key challenges and opportunities that drive the profession.

1. Mastering the digital frontier: upskilling for AI.

The rapid digitalisation of the finance industry, including AI and machine learning automation, is driving a surge in demand for professionals with strong technical and data capabilities. While 72% of European respondents believe AI as an ally, an overwhelming majority (81%) require more support from their employers to obtain the necessary training to face these new realities. 

The need for upskilling has also impacted talent retention, with 29% of respondents willing to switch jobs to gain the skills needed for the future. As such, European employers and professional bodies must work collaboratively to ensure that finance tams are equipped with the necessary digital expertise and address accountants’ persistent concerns about the implications of AI for job security (44% of respondents show concern for the impact of AI on their role). 

2. Weathering the inflation storm: addressing wage pressures.

The escalating cost-of-living crisis represents both an economic concern and a significant talent retention risk if left unaddressed. More than half of European respondents (52%) are dissatisfied with their current pay, and 63% plan to ask for a raise in the next 12 months. Unsurprisingly, low pay would drive 49% of European respondents to leave their organisations.

These findings underscore the urgent need for organisations to prioritise competitive compensation packages and innovative approaches to employee rewards to remain attractive and retain top talent.

3. The rise of hybrid and remote work: embracing flexibility, maintaining productivity.

The pandemic-driven shift towards more flexible work arrangements is here to stay. While many organisations have embraced hybrid and remote models in Europe (52% of respondents declare to have some kind of hybrid working arrangement in place), disparities persist across the continent, with some countries and sectors more receptive to this transition than others. However, employee preference is clear: 71% of European respondents prefer fully remote or hybrid working.

For those employers who have successfully embraced hybrid work, the rewards are evident – happier, more engaged and productive employees (64% of respondents consider they are more productive under hybrid work). Nonetheless, the transition presents important challenges regarding team collaboration and management skills.

4. Fostering inclusive cultures and equitable opportunities for a brighter future.

Diversity, equity and inclusivity practices are a key part of the employee value proposition, playing a big role in the perceived attractiveness of an organisation – 60% of European respondents say a strong D&I culture within an organisation would be a key attraction factor. 

While positive strides have been made (only a third of Europeans believe a low socio-economic background is a barrier in their organisations), questions linger regarding true inclusivity of these initiatives.  By nurturing diverse talent pools and embracing broader spectrum of differences, organisations can unlock untapped reservoirs of creativity and innovation, bolstering their competitive edge in an increasingly dynamic landscape, as well as building internal employee satisfaction.

5. Tackling burnout and promoting work-life balance.

The ACCA’s survey reveals alarming stress levels across the finance profession, with 88% of global respondents wanting a better work-life balance and 71% seeking more organisational support for mental health. This is not far from European reality.

The persistent mental health challenges underscore the imperative for comprehensive workplace support structures. Despite some improvements since our first GTT report last year, work-related stress, anxiety, and burnout remain pervasive, with over half of European respondents (59%) suffering because of work pressures. As 32% of respondents have considered resigning due to wellbeing issues, stressors as blurred work/life boundaries, peak workloads, and inadequate organisational support structures must be addressed comprehensively.

6. The war for talent: global mobility and endless opportunities.

The GTT survey findings suggest the accounting profession is seen as a smart career choice, offering flexibility, rewards, and long-term prospects – even as it navigates the evolving talent landscape.

However, the industry is nonetheless facing severe skills shortages, with organisations fiercely competing to attract and retain top talent. Understanding the motivations behind the 38% of European respondents who plan to change jobs in the next 12 months is crucial. Our research shows that the main reasons include higher pay (31%), improved career opportunities (26%), and better work-life balances (13%). This underscores the need for organisations to develop proactive and adaptable strategies to address the evolving needs and mobility of professional accountants. 

Implications and Recommendations

As the finance industry continues to navigate global mobility and seize new opportunities, the 2024 GTT report underscores the importance of addressing multifaceted challenges with agility and foresight. Whether grappling with the ramifications of AI, embracing hybrid work models, or fostering inclusive workplaces, organisations must prioritise employee engagement and wellbeing to thrive amidst uncertainty.

Employers should focus on developing robust talent management strategies, investing in upskilling and reskilling programs, and fostering inclusive and flexible work environments to attract and retain the best talent. 

Professionals, on the other hand, should proactively upskill in areas such as digital technologies, sustainability, and data analytics to remain competitive and valuable to their organisations. 

Collaboratively embracing lifelong learning and continuous professional development will be crucial for long-term career success – and as ACCA we will continue to support and enable our members and the wider profession to upskill and reskill for the future.