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

tl;dr / summary:

• upskilling vs. hiring: it’s more cost-effective to train your current F&A team than to hire externally. Studies show companies can save 70% to 92% by upskilling employees instead of replacing them.
• boost retention & ROI: upskilling is vital; 79% of Gen Z employees in the U.S. report they'd actively look for a new job if their employer didn't offer upskilling opportunities.
• 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 resumes 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. Frankly, the true burden of a talent gap isn't just the high cost of external recruiters and their fees; it's the steep internal cost of a vacant role itself. Every day that seat is empty, the business suffers from lost productivity, causing delays in critical reporting, slowing down financial decisions, and, crucially, driving the current team toward burnout. When the existing staff is constantly absorbing the excess workload, they run the significant risk of fueling the very cycle of attrition we are trying to stop, as high performers look elsewhere for better work-life balance.

In contrast, upskilling an existing member of your accounting and finance team is a more efficient investment. The Society for Human Resource Management (SHRM) estimates that the average cost of employee turnover is equivalent to six to nine months of an employee's salary, and can sometimes cost up to twice the amount of the annual wage just to recruit, hire, and train a replacement. Conversely, studies estimate that companies can achieve an average cost saving of 70% to 92% by upskilling existing employees rather than hiring new ones. This demonstrates 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 minimizes 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 program 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 modeling.
• ESG reporting skills for finance professionals: following the U.S. Securities and Exchange Commission (SEC)’s increased focus on climate-related disclosures and ESG risk, 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 positioning 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 visualization 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 programs 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 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. In fact, a recent survey found that 79% of Gen Z employees and 75% of Millennials in the U.S. said they'd actively look for a new job if their current employer didn't offer upskilling opportunities.

A formal upskilling program 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 specialized roles. As organizations like the AICPA (American Institute of CPAs) emphasize the importance of Continuing Professional Education (CPE), providing structured training is a key differentiator that sets your organization 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 program?

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 program:

• 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.
• 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.
• 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 leading to the CPA or CMA), mentorship schemes, and cross-functional projects that allow employees to apply their new skills in a real-world context.
• Measure and track ROI: don't just set and forget. Establish key performance indicators (KPIs) to measure the effectiveness of your program. Track metrics like reduced recruitment costs, improved employee retention rates, increased productivity, and the percentage of internal promotions.
• 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 U.S., forward-thinking businesses are already reaping the rewards of their upskilling strategies. Experts in the profession often argue that training existing accountants in data analytics is a better option than hiring a new specialist. This approach allows a major financial services firm, for example, to build a bespoke program to train existing accountants in data analytics and visualization. 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.