According to the Hays UK salary & recruiting trends 2016, an annual survey of over 20,000 employers and employees in the UK, within the next year half of millennials working in finance are expected to leave their jobs and a third are predicted to leave within six months.

Around half (54%) of accountancy and finance jobs are likely to change within a year and one in five (18%) to change between one to two years.

The demand for newly qualified accountants continues to grow across all sectors however, Hays’ report suggests that instead businesses should focus on retaining those already within the organisation.

A third of millennials have said that they wanted to leave their current role as they see no opportunity for career progression. Just over a third stated their reason to leave was due to their belief that there is no scope for progression within their current organisation with 38% feeling uncertain or negative about their career prospects.

According to Hays’ report, of the 20,000 questioned for their survey, over the next year salaries in the financial services and insurance sector are likely to change with 54% of these salaries looking to increase up to 2.5% and 20% are to increase above 2.5%.

According to the Hays UK salary & recruiting trends 2016 report that surveyed 4,000 accountancy and finance employers and employees, salaries for finance professionals increased on average by 1.7% in 2015 and nearly three quarters of employers expect to increase pay over the next year.

This average salary increase masks areas of double digit salary growth in some areas of finance including treasury, tax and credit management. Despite this, 54% of employees are still planning to move jobs in the next year.

Currently, an Association of Chartered Certified Accountants (ACCA) qualified accountant based in London has an average salary of £40,000. A corporate financial director can earn up to an average of £150,000.

Karen Young, director at Hays senior finance, said: ‘Although we have seen employers over the past year increase wages and plan to again, this isn’t a one size fits all solution to attract and retain the best talent. Making career pathways clear and putting in place individual development plans is paramount for organisations to retain and attract their finance staff.

‘Organisations that don’t consider the different needs and motivators of their staff risk losing staff and missing out on the best people who can shape their business for future growth.’

Many millennials are currently moving from junior positions into more senior roles and businesses risk losing the older millennials in their early thirties who are moving into management roles.

With many areas of finance including qualified accountancy, treasury, tax and audit already suffering from severe skill shortages in mid-level roles, it is worrying for businesses that this many accountants want to leave.

Young said: ‘Businesses and finance functions can’t treat all 21 to 33 years olds in the same way. New entrants to the finance profession or new graduates are at a very different stage in their career than those in their early thirties, with a number of years of experience and professional qualifications under their belts and businesses must put equal focus on them or they risk losing a generation of managers.

‘Businesses should focus on taking a more considered approach to incentivising and retaining their newest management generation while also appealing to junior employees. With acute skill shortages in early and middle management roles, there is certainly no time for businesses to lose.’