the secret to F&A talent retention: it's not who you hire, it's who you grow.

tl;dr:

• Upskilling vs. Hiring: It's more cost-effective to train your current F&A team than to hire externally.
• Boost Retention & ROI: Upskilling significantly increases employee loyalty, reduces costly turnover, and delivers a strong return on investment.
• Bridge Skill Gaps: Internal training directly addresses new, in-demand skills in AI, ESG reporting, and digital finance.
• Build Your Talent Pipeline: Investing in your team creates a sustainable internal pipeline for future leadership roles.

What if the key to solving your biggest talent shortage isn't another job ad, but the person sitting at the next desk?

The constant hunt for top finance and accounting professionals is a familiar and frustrating cycle. You're sifting through CVs and paying recruitment fees while the skills your business needs (in AI, ESG, and data) are moving faster than ever. It's an expensive and often unsustainable approach.

The truth is, investing in your existing F&A staff is the smartest move you can make. It's the most cost-effective and sustainable way to close those critical skill gaps, stop the talent drain, and build a resilient team for the future. This isn't just about training; it’s about making a strategic investment that delivers a powerful return. The next star performer isn’t out there. They're already on your payroll. It's time to help them shine.

This article explores the compelling return on investment (ROI) of upskilling your F&A team, comparing it to the costs of external recruitment and outlining how internal training can close critical skill gaps, boost retention, and build a competitive advantage.

upskilling vs. hiring: what's the ROI?

The choice between upskilling your current team and hiring new talent seems straightforward, but a closer look reveals a powerful financial case for the former. The costs of external recruitment for finance skills are often staggering and multifaceted. You have the direct expenses of advertising and agency fees, but also the hidden costs of a prolonged hiring process. This includes the lost productivity from a vacant role, the time and resource spent on onboarding, and the inherent risk of a new hire not working out.

In contrast, upskilling an existing member of your accounting and finance team is a more efficient investment. A report from the CEOWORLD magazine highlights that reskilling can save businesses up to $65,804 per employee compared to the cost of recruitment and redundancy. According to the data cited, reskilling an employee costs on average $40,760, which is significantly less than the $103,690 associated with redundancy and rehiring. Over a four-year period, a company with 30,000 employees could potentially save between $96 million and $147 million by upskilling their workforce, demonstrating a clear financial advantage over continuous external hiring.

Beyond the direct cost savings, which provide a compelling financial argument, upskilling your existing talent offers a dramatically faster time-to-productivity. Your current employees already possess deep institutional knowledge of your business operations, systems, and culture. They safeguard invaluable corporate memory that a new hire would take months, if not years, to acquire. This approach not only minimises operational disruption but also builds a more resilient and knowledgeable team from the ground up, proving that the ROI of upskilling F&A teams is far greater than a simple cost-benefit analysis first suggests.

how can upskilling close critical skill gaps in modern F&A?

The finance and accounting landscape is changing at a velocity never seen before. Traditional roles are giving way to new responsibilities that demand a new set of digital finance and future finance skills. A well-designed upskilling programme directly targets these emerging demands, ensuring your team remains relevant and competitive.

• AI in accounting/finance: The rise of AI is not about replacing your team but augmenting their capabilities. Upskilling in this area focuses on practical application, such as leveraging automation to streamline routine tasks like data entry and reconciliation, using predictive analytics for more accurate forecasting, and mastering generative AI tools to assist with report generation and financial modelling. A 2024 survey found that while 81% of UK IT professionals were interested in using AI, only 12% had the necessary skills to do so effectively. The skill gap here is a massive opportunity for the F&A sector.
• ESG reporting skills for finance professionals: Following the UK government's endorsement of the ISSB framework, the demand for ESG-related finance skills is skyrocketing. These new sustainability reporting standards will require a new level of expertise in data collection, analysis, and disclosure. Upskilling in this area is no longer a 'nice-to-have' but a regulatory necessity, preparing your team to navigate complex compliance requirements and position your business as a leader in sustainable finance.
• Digital finance transformation skills: The move to cloud accounting systems, enterprise resource planning (ERP) software, and advanced data visualisation tools necessitates upskilling. Your team needs to move beyond being data gatekeepers to become data storytellers, possessing the data literacy to extract meaningful insights that drive strategic business decisions.
• Essential soft skills: The future of accounting and finance is less about number-crunching and more about strategic business partnering. Upskilling programmes must also focus on developing crucial soft skills, including change management skills for F&A teams to help them adapt to new technologies, and enhanced communication and strategic thinking to collaborate effectively across departments.

why is upskilling a key strategy for F&A talent retention and competitive advantage?

In today's competitive UK job market, upskilling is a powerful tool for both attracting and retaining top finance talent. Employees are increasingly seeking opportunities for career growth and professional development, with 94% of employees stating they are more likely to stay with a company that invests in their learning.

A formal upskilling programme demonstrates that you are genuinely invested in your employees' future, fostering a sense of loyalty and boosting job satisfaction. This not only significantly reduces costly employee turnover but also helps build an internal talent pipeline, ensuring you have a continuous stream of qualified candidates for future leadership and specialised roles. As firms like ICAEW and ACCA emphasise the importance of Continuous Professional Development (CPD), providing structured training is a key differentiator that sets your organisation apart.

By cultivating internal talent, you are not just filling a role; you are nurturing a future leader with a deep understanding of your company's unique challenges and goals. This strategic approach ensures long-term stability and positions your business as an employer of choice in the F&A sector.

what are the best practices for designing an effective F&A upskilling programme?

To ensure your investment in upskilling delivers maximum ROI, a thoughtful and structured approach is essential. Here are the best practices for designing an effective F&A upskilling programme:

1. Conduct a Needs Assessment: Start by identifying the specific skill gap areas within your finance team. This includes a thorough analysis of both technical capabilities (e.g., in AI, data analytics) and soft skills (e.g., business partnering, leadership). Align these gaps with your broader business objectives.
2. Align Goals: Clearly define what success looks like. Your upskilling goals should be directly linked to business outcomes, such as improved efficiency, enhanced reporting accuracy, or the successful implementation of new technology.
3. Diversify Learning Methods: A one-size-fits-all approach won't work. Incorporate a mix of learning methods, including online courses, professional qualifications (such as those offered by ICAEW and ACCA), mentorship schemes, and cross-functional projects that allow employees to apply their new skills in a real-world context.
4. Measure and Track ROI: Don't just set and forget. Establish key performance indicators (KPIs) to measure the effectiveness of your programme. Track metrics like reduced recruitment costs, improved employee retention rates, increased productivity, and the percentage of internal promotions.
5. Foster a Learning Culture: Encourage a mindset of continuous learning. Celebrate successes, provide time and resources for training, and create an environment where employees feel empowered to take ownership of their professional development.

how have companies successfully leveraged upskilling to build F&A talent pipelines?

Across the UK, forward-thinking businesses are already reaping the rewards of their upskilling strategies. As experts have argued in Accountancy Age, training existing accountants in data analytics is often a better option than hiring a new specialist. This approach allows a major financial services firm, for example, to build a bespoke programme to train existing accountants in data analytics and visualisation. By partnering with external providers and internal experts, they successfully transition employees into new, high-demand roles. These success stories demonstrate that the benefits extend far beyond a single training course—they build the foundation for a sustainable, future-proof workforce while saving millions in recruitment costs and creating a robust internal talent pipeline.

conclusion.

The ROI of upskilling your F&A team is clear and compelling. In a landscape defined by talent shortages and rapid technological change, it is no longer a luxury but a strategic necessity. By consciously choosing to invest in your existing workforce, you are not only saving on recruitment costs and boosting retention but also building a future-ready, agile, and highly skilled team.

Your next star performer is already with you; all they need is the opportunity to grow.

FAQs.