Fresh eyes on the market: what changed in the financial services HR landscape while I was away

A few months into returning from maternity leave, I realised how unusual it is to step out of the financial services sector completely and then re-enter it with a clean lens. When you work every day across human resources recruitment, investment banking hiring cycles, asset management restructuring, private equity growth plans and fintech transformation initiatives, the shifts feel subtle. Taking a full year out and then stepping straight back in made the changes far more visible. So I wanted to share, candidly, what I am noticing across the industry.

Recruitment processes are longer and more diligent

One of the clearest shifts has been the length and structure of recruitment processes. The new Employment Rights Bill has added scrutiny to how organisations document decisions and structure assessments. Hiring managers want clearer conversations about skill alignment, cultural fit and long-term value before committing to headcount.

This is especially noticeable in investment banking and private equity, where governance and cost management are under the spotlight. Job seekers are responding by asking earlier about full-time expectations, hybrid work patterns and how in-house teams operate day to day.

New skills in demand: talent management, analytics, AI and broader HR capability

There has been a significant increase in demand for deeper skills across learning and development, data analytics, artificial intelligence literacy and workforce planning. Leaders want evidence-based insights, not just reporting. Interpreting metrics, predicting risks and shaping talent strategies are becoming core parts of HR Business Partner and HR Director roles.

Artificial intelligence and automation are also influencing role design. Organisations are thinking more seriously about digital transformation, upskilling, ethical considerations and how HR teams support people through change. This is creating new opportunities for HR professionals who understand how technology impacts culture, capability and employee engagement.

At the same time, there has been a rise in standalone HR roles, particularly within private equity firms, hedge fund environments, asset management and high-growth fintech providers. These positions require broad capability across employee relations, talent acquisition, onboarding, leadership development, wellbeing and the full employee lifecycle. It reflects a clear commitment to strengthening the HR function and investing in long-term people capability.

A selective and competitive market: fewer roles, more confidentiality and sharper expectations

There are fewer openly advertised roles than last year. Instead, there has been a steep rise in confidential and exclusive searches across financial services firms. Organisations are hiring quietly and selectively, focusing on positions that directly influence business performance, succession planning and leadership.

Senior strategic talent remains highly competitive. Organisations want HR professionals who can influence stakeholders, partner with front office teams and support complex organisational change. Capability, adaptability and commercial awareness matter more than ever. This environment is also encouraging more candidates to move between wealth management, investment management, fintech, real estate and other specialist areas within the financial services sector.

Compensation: strong bonuses and competitive salary positioning

Salary positioning has remained competitive over the past year, but organisations are being more deliberate about how and where they invest. Rather than competing purely on headline pay, many firms are taking a more balanced view, weighing fixed compensation, bonus structures, notice periods and long‑term retention considerations together.

This is particularly evident in senior and specialist HR hires, where longer notice periods are increasingly standard and factored into workforce planning from the outset. Both employers and candidates are approaching these conversations earlier in the process, recognising the operational impact of delayed starts and prolonged transitions.

The hedge fund world remains especially competitive, but also increasingly discreet. We have moved into an environment where non‑competes are enforced across all levels from day one and, in most cases, are adhered to when individuals resign. This has made hiring more complex and more strategic, reinforcing the need for forward planning and realistic timelines.

Agility and openness: shifting mindsets across the industry

Another positive shift is the growing openness to candidates from adjacent backgrounds. Organisations are more willing to consider professionals from fintech, investment management or real estate where the skills and trajectory align.

Working patterns are also evolving. There has been a gradual move back towards four days in the office, particularly for roles that require collaboration, leadership visibility or close stakeholder engagement. Candidates understand these expectations but want early clarity and a considered approach to wellbeing and flexibility.

What this means for clients and candidates

For hiring managers

Be clear about what you want a hire to achieve and define outcomes for the first year. Align stakeholders early and streamline your decision-making. Whether you are recruiting an HR professional with a specific skillset (talent, recruitment, ER…), an HR Business Partner or a Head of/CPO, clarity and consistency will help you secure top talent. Stay open to candidates from different parts of the financial services market and communicate expectations around hybrid work, leadership engagement and future growth.

For candidates

Show evidence of impact. Use measurable metrics to demonstrate how you have influenced employee relations, digital transformation, talent development or organisational capability. Demonstrate adaptability and your ability to partner with stakeholders, support onboarding and contribute to long-term strategic initiatives. In a selective market, a clear narrative about your value really matters.

Returning after a year away has energised me. The shifts I am seeing feel more pronounced, and the direction is clear. Stronger HR functions, deeper specialisms, a sharper focus on data, and a more intentional approach to talent. If any of these themes resonate, I would be delighted to discuss them.

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