Financial services HR trends in 2026: hiring, skills and culture

After a year defined by growing specialist demand, shifting junior expectations and renewed activity across talent acquisition, the HR function in financial services enters 2026 with a much clearer view of the capability, culture and future potential organisations are looking to build. As the year progresses, employers are refining their HR strategy to meet changing business needs, new technologies and rising expectations around how the function supports people and performance.

From my position within the permanent financial services team at Frazer Jones, I am seeing these shifts play out in real time. Having spent most of my career in London and now focusing on HR recruitment across asset and investment management, banking, fintech, private equity and venture capital, I spend my days speaking with HR leaders, candidates and hiring managers who are adapting to a much more competitive and fast‑moving market. As recruiters, we are increasingly asked to advise not only on hiring decisions but also on talent strategies, workforce planning and the skill gaps emerging across different HR specialisms.

This article explores the HR trends shaping the sector, based on a recent conversation with my colleague Georgie Procter, who focuses particularly on the emerging future leaders market.

A busy 2025 sets the tone for 2026

From a recruitment standpoint, 2025 was far from quiet. This momentum has carried forward, especially across private equity, asset management and the quant trading space, where demand for high‑performing HR professionals continues to rise. These roles often sit close to the senior leadership team, and in some cases, the CHRO, giving HR professionals broader exposure to stakeholders and decision making.

We also experienced a noticeable uplift in talent acquisition. The increase in talent acquisition reflects a market where organisations are being more selective, more considered and more focused on long‑term potential and retention. Many clients are reviewing their recruitment processes to ensure they can attract top candidates without unnecessary delays, particularly in areas where competition is strong.

Specialist skills and a more capable junior market

One of the most encouraging trends this year is the rise of specialist skill sets within HR. Georgie and I spoke at length about how much the early‑careers landscape has shifted. As she put it, “Something that has been our main focus has been the more specialist roles within HR. The people joining at a junior level who really understand the fundamentals of HR are going to be our future of HR.”

This is especially true in learning and development, employee relations, talent and other verticals. Many junior candidates are entering the industry with stronger foundational knowledge, greater adaptability and a clearer sense of how the HR function underpins wider business outcomes. This aligns with a wider move towards skills‑based hiring, particularly for candidates with a strong understanding of data, analytics and workforce strategy.

Operational confidence still matters, but strategy is essential

Although strategic capability continues to rise in importance, operational grounding remains crucial. As I mentioned in the conversation, “The HR Business Partner role is not just about wanting to do the fun strategic piece. They also have to be heavily involved in the operational elements to understand how the department actually functions.”

This balance is something I see regularly when partnering with clients. Organisations want HR Business Partners who can manage workflows, understand the mechanics of their teams and contribute confidently to decision making, while also bringing forward‑thinking ideas that support culture, performance and long‑term workforce planning. Increasingly, these expectations also stretch into areas such as employee experience, wellbeing and even burnout prevention.

Future talent, broader ownership and more exposure

A major shift over the past twelve months is the evolution of entry‑level HR roles. “Junior level roles are not just administration. There is so much more to the HR role now,” Georgie pointed out. This is something I consistently hear from candidates and clients alike.

Those entering human resources today are gaining exposure to onboarding, employee engagement, employee‑experience initiatives, projects and talent management work far earlier than before. This creates a more capable and future‑ready talent pipeline, and it sets clearer expectations around adaptability, problem solving and skill‑set breadth. Many early‑career professionals are also becoming comfortable discussing career development through podcasts, webinars and more collaborative learning spaces.

Culture, EVP and the competition for top talent

Competing for top talent in financial services has never been solely about salary. As I mentioned in our discussion with Georgie, “It is not just about paying a slightly increased salary. It is more about what the culture is and what we can offer outside of compensation.”

This is where workplace culture becomes a genuine differentiator. Flexible working, hybrid work options, employee wellbeing, learning and development and opportunities for internal mobility all play a part. In a market where shortages of specialist HR talent persist, organisations with strong values and modern ways of working are standing out. This extends beyond financial services into areas such as fintech, healthcare and even adjacent corporate functions where HR capability is evolving quickly.

For more information, you can download the 2026 Frazer Jones UK HR salary guide. It provides comprehensive salary benchmarking and insight into the HR job market, across all specialisms and UK regions.

Download the guide now

Technology, AI and the evolving HR landscape

While our discussion focused less on technology, the broader market continues to explore AI adoption, AI integration and AI‑driven tools to streamline processes, support automation and enhance data‑driven decision making. Conversations around generative AI are also beginning to influence how businesses consider future skills, talent strategies and the blend of human judgement with AI‑powered support.

In permanent recruitment, this means HR skill sets are gradually broadening. Many candidates are now expected to understand how Artificial Intelligence can support workflows, without replacing the need for strong human judgement. As recruitment continues to change, we are also seeing a higher demand for reskilling across HR teams to ensure they remain competitive and confident when supporting senior stakeholders.

Looking ahead

With the new HR salary survey released and more events and conversations planned across the financial services network, 2026 is already shaping up to be an important year for capability building, culture and future planning.

If you work within financial services and are hiring into your HR team, or if you are an HR professional exploring your next move, I would be very happy to meet and discuss how I can support your search and share more insight from the market. My approach has always been centred on relationships, and I am proud to work as part of a team that takes the same consultative, people‑focused view of recruitment.