Last updated: 29 Jun 2026 10:00 Posted in:
Chris Willsher examines recruitment, retention, rising salary expectations and skills shortages facing accountancy employers in a tightening market across Britain.
The accountancy profession enters 2026 in a position that looks, at first glance, relatively stable. Salaries are rising, demand remains consistent, and the discipline continues to command a premium compared with many other sectors. But beneath this surface lies a more complex story, defined by uneven pay growth, persistent skills shortages and a workforce whose expectations have been fundamentally reshaped by the cost-of-living crisis and wider changes to work.
For firms, the challenge is figuring out how to compete in a market where talent is mobile, expectations are higher and traditional retention strategies are under strain.
Our salary guide data shows salaries across accountancy and finance have increased by an average of 4.3% year-on-year, which is healthy in isolation, but still below the UK-wide average growth of 5.3% (see tinyurl.com/hpnzdfrv). This suggests that while the sector remains resilient, it is not fully keeping pace with broader labour market pressures.
At a national level, average salaries in accountancy and finance now sit at around £51,300, well above the UK average of £39,000. Senior roles command considerably more: chief financial officers average £144,700, while finance directors sit just above £103,900. Even mid-level positions such as finance managers (£62,000) and financial analysts (£56,200) reflect the ongoing premium placed on financial expertise.
Yet headline figures obscure sharp variation. Some roles, particularly those aligned to operational finance and business partnering, have seen double-digit growth. Accounts receivable managers have recorded increases of nearly 15%, and project accountants more than 11%. Regional data shows similar patterns, with roles such as project accountant growing by more than 17% in some areas.
By contrast, more junior or traditional roles, including assistant and commercial accountants, have seen increases of just 1% to 2%. This divergence points to a structural shift that many have been feeling over the past year: organisations are placing greater value on commercially focused, analytically driven professionals, while more transactional roles are under less upward pressure.
For employers, this raises two issues: how to remain competitive for high-demand roles while maintaining internal parity across teams.
Naturally, salary plays a major role in remaining competitive, both for attracting new talent and retaining existing employees. Despite continued salary growth, dissatisfaction remains entrenched. More than one in ten (15%) accountancy professionals report being unhappy with their pay, with more than half saying salaries are not keeping pace with the cost of living.
More broadly, workers across sectors are recalibrating what ‘fair pay’ looks like. The average employee now believes they would need around £4,000 more from their current employer to make a pay rise feel worthwhile, but more than £12,000 to justify a move elsewhere. While this points to a significant cost – one that many employers will struggle to meet through salary adjustments alone – it also presents an opportunity for firms to consider other ways of improving employee satisfaction, particularly as the financial threshold for changing jobs is relatively high.
However, expectations around pay progression have also risen. Nearly 44% of workers say their expectations of salary increases have grown in the past four years, and 73% say salary is now more important when considering a new role.
The combination of rising expectations and limited headroom for salary increases has widened what could be described as an ‘expectation gap’. Employees feel undercompensated relative to both inflation and opportunity, while employers face budgetary constraints and internal equity considerations.
The result is a more fluid, active workforce. Around 64% of accountancy and finance professionals are open to or actively considering new roles.
Compounding these pressures is a persistent shortage of skilled professionals. While accountancy as a field continues to attract talent, the supply of experienced candidates, particularly those with specialised or strategic capabilities, remains constrained.
When looking at salary inflation, demand is especially high for:
● finance business partners who can bridge finance and operations;
● analysts with strong data and forecasting capabilities; and
● professionals with sector-specific expertise, such as property and project accounting.
This is reflected in salary growth trends, with many of these roles showing above-average increases across regions.
Yet the profession is undergoing a gradual transformation. Automation and digital tools are reshaping transactional work, while increasing regulatory complexity and strategic expectations are elevating the importance of higher-level roles. This is squeezing the middle: fewer entry level opportunities at one end, and intensified competition for experienced professionals at the other. For employers, this means competition for key skill sets will remain intense.
In this environment, firms are increasingly looking beyond base salary to attract and retain people. Benefits that were once seen as secondary are now a core part of the value proposition.
Hybrid working remains one of the most widely offered benefits, alongside performance bonuses, enhanced pensions and health-related perks. But their role in decision-making is nuanced. While some accountancy professionals are willing to trade certain benefits for higher pay, such as birthday leave and cycle-to-work schemes (9%), free refreshments (13%) and life insurance (7%), a significant proportion (22%) say they would not sacrifice any benefits at all. Benefits are no longer interchangeable add-ons but integral to overall job satisfaction.
Flexibility has become a baseline expectation. Hybrid working, flexitime and even four-day weeks are increasingly part of the conversation. Removing or reducing these options can have a disproportionate impact on retention, even if salaries remain competitive.
Employers are also experimenting with more tailored approaches, such as allowing employees to build bespoke benefits packages or offering non-financial recognition. These can be effective ways to reinforce engagement and ensure that benefits do not become an unsustainable financial burden on the business.
Against this backdrop, hiring strategies are also evolving. The traditional approaches of posting vacancies and waiting for applicants are proving less effective in a market where top professionals have multiple options. Increasingly, firms that are ahead of the curve are:
● proactively targeting passive candidates, particularly for senior or specialist roles;
● accelerating hiring processes to reduce drop-off;
● offering clearer progression pathways to address long-term career concerns; and
● using interim or contract hires to bridge short-term gaps.
Speed and clarity are especially critical. Lengthy recruitment processes risk losing professionals to faster-moving competitors, while ambiguity around salary or progression can deter applications altogether.
There is also a growing emphasis on employer brand. People are not only evaluating roles but organisations – assessing culture, purpose and stability alongside financial reward. Firms therefore need to think about their branding not only to attract clients, but also potential employees.
The accountancy profession remains fundamentally strong. Salaries are competitive, demand is steady and the work itself is evolving in ways that increase its strategic importance. But the dynamics of the labour market have shifted.
What was once a relatively stable talent pool is now more fluid and more demanding. Amid the cost-of-living crisis, pay still matters, but it is only part of a broader equation that includes flexibility, purpose, progression and overall quality of life.
Firms that adapt and take a more nuanced, people-centric approach to recruitment and retention, balancing financial reward with broader employee value, will be best placed to navigate the challenges ahead.
For those that do not, there is a real risk of falling behind because, in an increasingly competitive market, talent will simply go elsewhere.
For accountancy practices and in-house teams alike, Reed’s salary guide data shows that the current climate demands a more holistic approach to recruitment and retention. Based on current trends, several practical priorities emerge:
Author bio
Chris Willsher
Accountancy & Finance Recruitment Expert and Regional Director
Reed
"Benefits are no longer interchangeable add-ons but integral to overall job satisfaction."
Chris Willsher, Accountancy & Finance Recruitment Expert and Regional Director, Reed