Navigating the Biggest Challenges in Managing a Tax Team

Managing a high-performing tax or transfer pricing team is increasingly complex. With evolving regulations, rising workload demands, and a competitive talent market, tax leaders are facing significant challenges. Drawing on survey insights and global recruitment trends, this article explores the most pressing issues and practical strategies to address them.

Understanding the Current Landscape

A recent survey of tax professionals, combined with insights from global recruitment cycles, highlights four key challenges for tax leaders:

• Workload Management – 38% struggle with workload distribution and capacity planning
• Talent Retention – 33% face difficulties in retaining top performers
• Talent Acquisition – 25% find it challenging to attract qualified professionals
• Team Culture – 4% cite team culture as a primary concern

While these figures reveal clear priorities, each issue is interconnected. Addressing one area often has a direct impact on another.

The Global Tax Talent Market: Key Trends

As a specialist in tax recruitment, I’ve seen a notable shift in the skills and attributes in demand. Tax professionals with the following expertise are increasingly sought after:

• Tax/Digital Transformation, Operational TP and Pillar 2 specialists – Global tax complexity is driving demand for professionals with deep international and cross border expertise
• Technology and data analytics – Firms require professionals who can navigate tax technology and automation
• Flexible and remote working capabilities – The expectation for hybrid and remote work is reshaping recruitment strategies
• ESG and digital transformation – Tax teams are playing a critical role in environmental, social, and governance (ESG) compliance and digital tax transformation

Understanding these trends is crucial for structuring teams effectively and ensuring long-term success.

Retaining Top Tax Talent

Retention remains a priority, with high demand for skilled tax professionals leading to increasing mobility. Strategies to improve retention include:

1. Competitive Compensation – Regular benchmarking ensures salaries remain competitive within the market.
2. Career Development Pathways – Structured mentorship and professional growth opportunities enhance engagement.
3. Work-Life Balance Initiatives – A supportive and flexible work environment is essential for long-term retention.

Insights from the Global Recruitment Market

Key retention trends observed in major markets include:

• Successful salary increases for tax professionals to ensure staff retention (or to attract the best talent in the market) are averaging between 12.5% and 15% depending on the specialisation.
• An increased focus on non-monetary benefits, including professional development, flexibility, and well-being initiatives.
• Sign on bonuses are making a reappearance depending on the promotion cycle someone is moving to and also the bonus they may be leaving behind.

Addressing Talent Acquisition Challenges

The pool of experienced tax professionals is shrinking, making recruitment increasingly competitive. Effective strategies for attracting top talent include:

1. University Partnerships – Strengthening relationships with academic institutions can create a pipeline of future talent.
2. Internal Training and Upskilling – Developing junior professionals in-house ensures long-term talent sustainability.
3. Smart Recruitment – AI-driven recruitment tools help identify and engage the best candidates efficiently.

Expert Recruitment Strategies for Talent Acquisition

To remain competitive in talent acquisition, leading firms are focusing on:

• Employer Branding – Positioning themselves as an employer of choice.
• Clear Career Progression – Providing well-defined growth opportunities.
• Competitive Reward Packages – Offering innovative compensation structures beyond salary.
• Diversity and Inclusion – Creating inclusive hiring strategies to attract a broader talent pool.

The Understated Impact of Team Culture

Although only 4% of tax leaders highlighted culture as a primary concern, its influence on performance, engagement, and retention is significant. A strong team culture fosters collaboration, motivation, and long-term success.

Key approaches to enhancing team culture include:

1. Cross-Functional Collaboration – Encouraging engagement across departments enhances knowledge-sharing and innovation.
2. Transparent Communication – Open dialogue between leadership and employees builds trust and engagement.
3. Diversity and Inclusion – Fostering an inclusive environment enhances team cohesion and broadens perspectives.

A Strategic Approach to Tax Team Management

Tax leaders must adopt a holistic approach to workforce management, balancing workload distribution, talent acquisition, retention, and culture. Each of these elements plays a vital role in building and sustaining high-performing teams in an evolving global landscape.

For organisations seeking to optimise their tax function, an informed recruitment strategy is key. I can help with this... Whether you are benchmarking team structures, refining your talent acquisition approach, or navigating market trends, professional insights can make all the difference.

How is your organisation addressing these challenges? What strategies have been most effective in managing your tax team? If we connect at [email protected], we can discuss where you’re at and which areas resonate with you to help retain and further grow your team for what is looking like a very buoyant year ahead!