Taking on the skills gap: UK firms’ creative solutions

The skills gap is ever-growing. Here’s how firms told us they’re making it work.

Firms are still reporting shortages of qualified individuals to fill roles. Recruitment issues tend to be felt most at the smaller end of the scale, but bigger practices are struggling too.

AAT’s research as part of its Filling the Gap campaign has found that:

• 84% of UK employers face barriers to upskilling their workforce
• this has led to drops in productivity for 42% of employers and quality of work for 40%
• one-third (34%) of businesses struggled to recruit for finance and accounting positions in the last year.

Businesses also report finding the Skills system hard to navigate, unclear and inflexible.

The talent shortage challenge is not limited to the UK. 94% of respondents to the 2025 Accounting Talent Index, a global survey of accountancy leaders, agreed that talent and recruitment issues will affect their ability to grow. The survey was conducted by outsourcing specialists Advancetrack.

Around three-quarters (74%) of respondents said they are directly constrained from taking on more clients or recording more billable hours because of the talent shortage.

How are practices adapting during this challenging time? Are any firms turning to outsourcing? Is anyone stepping up their training and development, and what vacancies are the hardest to fill?

We spoke to firms ranging in size from three to 155 people and discovered commonalities among the challenges when it comes to finding the right people, especially when considering outsourcing.

We’ve created an environment where employees can grow

Kieran Burge, Partner, DS Burge & Co

For smaller firms like ours, the challenge is balancing flexibility and salary expectations with the realities of running a practice that serves owner-managed businesses.

We’ve adapted by placing more emphasis on developing people internally. We have been investing more time in training and supporting staff through their qualifications and trying to make the firm an environment where people can grow rather than move on too quickly.

We’ve tried several recruiters to find new joiners with mixed results. We have found one that works in a very structured and effective way. She sends over an initial concise shortlist, takes feedback and refines from there. It has made the whole process more productive.

We outsource certain functions, such as payroll and bookkeeping in the UK and abroad, which has allowed our core team to focus on advisory and client relationships. It’s not a perfect solution, but it helps ease such pressures.

Verdict: Developing people and creating an environment where people can grow helps. We’ve also trialled recruiters until we found the right one, while outsourcing some work.

We set up overseas to create growth

Natasha Frangos, Managing Partner, HaysMac

Business tax continues to be a candidate-driven market for experienced professionals, and we’ve seen the high demand across firms for similar roles. Demand for skilled professionals is growing, but the number of people qualifying in tax is declining.

Complex legislation, evolving HMRC requirements, and the need for commercially minded advisers mean we’re looking for individuals with technical expertise and strong client relationship skills – a combination that’s not easy to find.

In recent years, we’ve transformed our learning and development offering, keeping it dynamic and relevant to avoid complacency. Central to this is our mentoring scheme, which pairs partners with senior Managers and directors, and senior leaders with associates.

Plus, we’ve introduced an ongoing hiring programme to ensure a continuous pipeline of talented individuals join the firm. This proactive strategy means we give ourselves the best chance of engaging with candidates who are an excellent cultural and technical fit. It also means onboarding is quick and seamless, and jobs are effectively resourced with the best-suited team.

To mitigate staffing difficulties at home, we established an office in Cape Town in January 2024. In just under two years, the team has grown from five to 45 people – and we expect headcount to increase further by the end of our financial year. This expansion has enhanced our ability to meet client needs efficiently, despite broader market challenges.

We’ve also explored a range of outsourcing and talent solutions to help address recruitment and capacity challenges within the industry. Our partnership with AdvanceTrack provides valuable support in delivering select services and offers key insights into how to structure and scale effectively.

Verdict: We upskill current staff, set up a talent pipeline – which included going overseas to find talent, and work with AdvanceTrack to explore outsourcing.

If we find the right person, we hire them – even if we don’t need them just yet

Yogesh Patel, Managing Partner, Telic

The greatest challenge as an SME employer is securing the right talent. We need to find the new colleagues that deliver what our clients and existing team need. Recruitment per se is not the problem, but securing the strongest candidates that can help strengthen our offering with minimal investment time, while having the hunger to grow – wow, that is an issue.

We work hard to communicate our quality, ambition and culture. As a boutique company, it helps us punch above our weight as a great employment prospect. We’re only a 15-strong team, but we’re a B Corp, we’re multi-award-winning and we do interesting, technically challenging work. By telling that story, we can compete with the larger practices, especially appealing to people who don’t see their future lying in a global firm.

We commit to recruiting when we find someone that seems right for our firm, even when we don’t always need additional resources. This costs us in the short term, but we’re growing fast so it works for us. The personal touch is delivered through an in-house UK-based team, but we utilise outsourcing resources to support client managers in providing efficient and cost-effective solutions where appropriate.

We promote a culture of learning, from bi-monthly lunch-and-learns to external technical training. We place importance on continuous upskilling, from tax technical matters to industry developments such as the use of AI. It’s a joy when a relatively new colleague is proactive in directing and sharing their learning.

Verdict: Boutique firms can attract the right talent with a bigger-firm approach to investing in communications, training and technology.

Small teams should focus on finding capable people with the right mindset

Nick Robinson, Managing Director, Yorkshire Accountancy

We hire for capability and mindset first, not just certificates. As a small practice, we adapt by growing our own talent and flexing our resourcing. We’ve brought in an apprentice this year, someone who’d already completed two work experience placements with us, so training felt like a natural next step.

When we can’t find the right person locally, we use trusted outsourcing partners to bridge gaps without compromising service. It’s a practical mix that’s worked well for us, and we’re fortunate to have a brilliant, tight-knit team.

Verdict: Find the right people, and develop them.

Georgia Lewis is a journalist who has worked in Australia, the Middle East and the UK. Over 30 years, Georgia has covered a diverse range of subjects and industries, including business, insurance, technology and logistics..