Being an accountant can be stressful. But rather than accepting stress as an inevitable part of the job, firms need to recognise its tangible consequences for individuals, teams, clients and the business.
In this article, Lockton’s Matthew Thomson and Lucie Gosling-Myers outline how understanding and managing workforce stress can help accountancy firms protect their people, maintain professional standards and reduce the risk of complaints and professional indemnity (PI) claims.
Taking a risk-based approach to wellbeing is key to building a more resilient organisation – and is one of the themes of our Make a Difference Leaders AGM & Leadership Forum, taking place at the British Library on 19 October. Lockton will lead a workshop at the event, “Beyond Benefits: Breaking Down Silos to Minimise Risk and Build a More Resilient Organisation”, exploring this topic. Find full details and register your interest in attending here.
Growing burnout in the accountancy sector
When workplace stress goes unmanaged, it can contribute to ill health, reduced productivity, performance issues and increased professional risk.
In late 2024, caba, the occupational charity supporting the ICAEW community, published an industry report highlighting the extent of burnout among chartered accountants. The findings revealed that:
- 74% of those surveyed reported experiencing symptoms of burnout, including exhaustion, detachment or reduced job performance.
- 45% said burnout symptoms had impaired their ability to work or caused them to take time off.
- 41% had considered changing careers or leaving the profession because of burnout.
The impact of workplace stress
Occasional pressure can help improve focus and performance. However, prolonged stress can damage both mental and physical health.
The effects extend beyond employee wellbeing and sickness absence. Workplace stress can also increase organisational risk, including the potential for professional indemnity claims.
Why stress matters for PI claims
PI claims against accountants can arise from errors or oversights, such as missed deadlines, poor communication or inadequate record-keeping. Sustained stress can increase the likelihood of these mistakes.
When employees are under pressure, their ability to concentrate, exercise sound judgement and retain important information may be compromised. Decision-making and attention to detail can suffer, while competing priorities become harder to manage.
Accountants may rush client work, overlook inconsistencies or fail to escalate concerns. Supervisors and partners may have less time to check assumptions, review work or ensure advice is properly documented. These issues can feature in PI notifications.
Stress can also affect client relationships. Delayed responses, unclear communications and poorly managed expectations may lead to complaints. Where records are incomplete or communication has broken down, it can also be more difficult for a firm to defend its position if a claim arises.
How can accountancy firms reduce risk?
A healthy, engaged workforce benefits employees and the business. Wellbeing and client service should therefore be treated as connected priorities, with effective measures embedded throughout the organisation.
Firms that invest in manageable workloads, effective supervision and an open workplace culture can support their people while reducing the likelihood of avoidable errors, complaints and claims. Risk management should not depend on individuals simply coping with pressure; robust systems and processes are essential.
Practical steps include:
- Monitoring workloads and assessing capacity regularly.
- Encouraging employees to raise concerns about excessive demands at an early stage.
- Setting realistic deadlines for client work.
- Ensuring critical work is appropriately reviewed.
- Addressing cultural issues and setting the right tone from senior leadership.
- Including stress and work-life balance in performance reviews.
- Using pulse surveys and other workforce data to assess the impact of wellbeing initiatives.
Managers should also be trained to recognise potential signs of stress and burnout. Changes in behaviour, engagement or absence patterns can indicate that someone needs support. Early, constructive conversations help employees raise concerns and enable firms to address problems before they escalate.
Building a comprehensive approach to employee wellbeing
Firms can also consider comprehensive employee benefits packages to help employees manage stress and access appropriate support. Many benefit programmes include mental health resources at no additional cost to employers or employees.
An Employee Assistance Programme (EAP), for example, can give employees access to confidential support when they feel overwhelmed. Benefits are most effective when they form part of a wider strategy that addresses workplace pressures as well as individual needs.
Other measures that can help reduce people risk and support wellbeing include:
- Flexible working: Reviewing working arrangements can reduce commuting time and costs, helping employees manage competing demands.
- Salary exchange schemes: Options such as cycle-to-work schemes, season ticket loans and increased employer pension contributions can support employees’ financial and practical needs, subject to scheme terms.
- Buying or selling annual leave: Giving employees greater flexibility over their leave can help them take breaks or adjust their overall reward package.
- People risk audits and reviews: Analysing wellbeing, absence, turnover and workforce pressure data can help identify emerging issues before they affect service delivery or client outcomes.
- Early intervention and absence management: Clear processes can help employees access support promptly and reduce the risk of health issues becoming more complex.
- Occupational health support: Occupational health services, including those available through some insurers, can help employees remain in work, return successfully after absence and manage health conditions.
- Inclusive wellbeing strategies: Tailoring support to different employee groups helps ensure that benefits and services are accessible and relevant across the workforce.
Making wellbeing part of risk management
Employee wellbeing is increasingly recognised as an important element of organisational risk. Monitoring indicators such as absence, turnover and PI notifications can help firms assess whether their approach is effective and identify where further action may be needed.
Lockton’s People Solutions and PI specialists work together to help accountancy firms understand how workplace culture, burnout, absence management and employee wellbeing can influence service quality, operational resilience and claims exposure.
Taking a strategic approach to people risk enables firms to support healthier, more engaged employees while helping to reduce the likelihood of costly mistakes, complaints and PI claims.
To contact the team, visit Lockton’s Accountants insurance page.
For further information on employee benefits, visit Lockton’s People Solutions page.
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