Global financial services HR trends: reflections from H1 2026
What does it take to lead the people function globally when change is constant and expectations continue to rise?
That was the central theme at a recent Frazer Jones roundtable dinner, where a select group of CHROs from leading financial institutions came together to reflect on the first half of 2026. The conversation highlighted both momentum and complexity. Activity levels are high, yet so too are the demands placed on HR leaders navigating economic volatility, rapid technological advancements and shifting workforce expectations.
The data supports this. We have seen a 52 percent year-on-year increase in HR executive hiring activity across financial services, driven by sustained investment in people functions. Funds and asset management lead, followed by investment banking, private equity and a fast-evolving wealth management sector.
Behind this growth lies a clear shift. HR is no longer a supporting function. It is central to business strategy, workforce transformation and long-term value creation.
Private markets: linking HR strategy to value creation
Private equity and investor-backed businesses remain highly active, with CHROs playing a critical role in aligning HR strategy to commercial outcomes. The focus is on building workforce strategies that directly support exit timelines, performance improvement and scalable growth.
This includes embedding data-led workforce planning, strengthening succession pipelines and addressing persistent skills gaps through targeted upskilling. Increasingly, generative AI and broader artificial intelligence capabilities are being introduced to enhance decision making, from talent analytics to onboarding and internal mobility pathways.
Alongside this, demand for HR Non-Executive Directors continues to rise. These appointments bring independent oversight on governance, culture and leadership effectiveness, particularly during periods of transformation, such as scaling.
The message from investors is clear. HR must demonstrate measurable impact on value creation, and CHROs are responding with sharper alignment between human capital and business outcomes.
Global expansion and the rise of transatlantic HR leadership
Furthermore, as firms pursue international expansion and seek new avenues for growth there’s continued growth of transatlantic hiring activity across financial services.
“We’ve spent H1 partnering with Pan-European headquartered firms making their first HR hire in the US, while also supporting US-headquartered firms as they appoint their first People Lead in London. It’s a reflection of how closely connected the UK and US markets have become as investment firms continue to expand internationally, taking an increasingly joined-up approach to growth.
As they establish new offices and build out their first teams of investment professionals, HR is no longer an afterthought, it’s becoming one of the earliest strategic hires.
Getting the right HR leadership in place helps shape culture, navigate local employment landscapes, build scalable infrastructure and create consistency across jurisdictions.
It’s been encouraging to see this cross-border collaboration continue to flourish.”
This trend speaks to a broader evolution in how organisations approach workforce planning and international growth. Whether entering a new market, launching a regional headquarters or building a new investment team, firms are increasingly recognising that effective HR leadership and sound partnerships are fundamental to sustainable expansion.
Banking: transformation driven by AI adoption and workforce design
Banking has regained momentum, with significant investment in HR leadership at a Group, Regional and Country level. This resurgence is underpinned by large scale HR transformation and workforce transformation programmes.
Organisations are redesigning their operating models through zero-based workforce planning. AI adoption, automation and AI in HR are accelerating change, supported by technologies such as Workday and broader HCM platforms.
The rise of generative AI, in an increasingly AI saturated world with a shift towards agentic organisations, it is also reshaping how HR business partners operate, enabling more predictive insights, faster decision making and improved employee experience design. However, this also introduces new priorities and opportunities around AI governance, risk management and ethical frameworks.
In parallel, financial institutions are strengthening their approach to change management, recognising that successful transformation depends not only on technology but on leadership capability, communication and employee engagement.
HR leaders are now firmly embedded at the centre of enterprise change, shaping how organisations respond to the future of work.
Wealth management: competing for hybrid talent
Wealth management has emerged as one of the most dynamic areas of growth. As digitalisation accelerates and client expectations evolve, firms are investing in strategic partnerships, talent and operating models to remain competitive.
CHROs are focused on building client-centric capability while addressing skills gaps in areas such as fintech, digital advisory and data driven decision making.
The competition for talent is intense, and employee experience has become a critical differentiator. From onboarding to career progression, organisations are investing in seamless journeys that promote engagement, performance and retention.
Employee wellbeing and employee benefits are also rising up the agenda, particularly as firms look to sustain performance in an environment characterised by complexity and pressure.
This sector is quickly becoming a defining battleground for talent, where workforce strategies must be both innovative and highly targeted.
The convergence of HR capabilities
Across global markets, a consistent trend is emerging. Traditional HR silos are giving way to more integrated and agile models across HR Centres of Excellence to be more future-fit.
Talent acquisition, workforce planning, organisation development and HR strategy are increasingly aligned to deliver faster and more responsive outcomes. Internal mobility and talent marketplaces are being scaled to optimise existing capability and address skills gaps more effectively.
Reward, performance management and job architecture are also converging, driven by regulatory requirements, transparency and evolving expectations around fair and skills-based progression.
At the same time, people experience and culture strategies are becoming more sophisticated. AI-enabled listening tools and analytics are improving insight into engagement, while enabling more personalised and responsive interventions.
HR operations are also evolving rapidly. Automation and digital platforms are removing transactional work and enabling self-service models, freeing up HR teams to focus on strategic priorities. This integration supports not only efficiency, but also better data quality and more informed decision making. The evolution towards integrated HCM ecosystems reflects a broader shift. HR transformation is now inseparable from business transformation. Global Financial Services firms are transitioning into integrated domains instead of specialist silos with the removal of transactional work and the need for faster workforce reconfiguration relieving cost pressure and supporting employee experience and data unification.
Leadership in a disrupted environment
In this environment, the role of the CHRO continues to expand. The most effective leaders are those who can translate complexity into clarity and action while building trust through repetition, not a single message.
They are leading with a strong vision, aligning human capital priorities with business strategy, and using data and artificial intelligence to guide decision making. At the same time, they remain focused on culture, employee experience and continuous listening.
Balancing pace with sustainability is critical. The demands of transformation, combined with economic volatility and regulatory pressure, mean that foresight, resilience and adaptability are essential capabilities for both leaders and employees. Recognising HR change is a journey not a destination.
Insights from organisations such as the World Economic Forum continue to emphasise that the future of work will be defined by continuous learning, upskilling and the ability to navigate disruption. Empathy and accountability is also deemed consistently critical to achieve the desired results. This is already evident in how CHROs are reshaping workforce strategies across financial services.
“One theme we’re hearing consistently from CHROs across the U.S. is that HR is no longer measured solely by talent outcomes. Increasingly, it’s being evaluated on its ability to drive business performance, productivity, organizational effectiveness, and growth. HR also has a unique opportunity to lead the conversation around AI, helping organizations determine how to best blend people and technology to create a more agile and effective workforce. The U.S. market remains strong and competition for talent is fierce, making it critical for HR leaders to think beyond the traditional talent agenda and ensure their people strategies are directly aligned with business priorities and execution.”
Looking ahead
There is cautious optimism for the remainder of 2026. For Frazer Jones and the global HR financial services practice it has been another incredible year of growth, with consistent record levels of performance across markets such as the US, the UK and Asia.
Investment in HR and people functions remains strong, and the strategic relevance of HR continues to grow across financial institutions and adjacent sectors such as fintech, where talent and transformation agendas increasingly overlap.
However, the pace of technological advancements and the scale of change mean that standing still is not an option and human connection is everything.
The challenge for CHROs is clear. How do you build an organisation that is not only prepared for change, but designed to thrive in it?
Continuing the conversation
It has never been a more exciting, and demanding, time to lead HR in financial services.
We would welcome your perspective. What trends are you seeing across your organisation? How are you evolving your workforce strategies and HR transformation agenda in response to ongoing disruption?
For deeper insight into market trends and compensation benchmarks, download our Global HR Financial Services Salary Guide 2026.
As one global team, Frazer Jones continues to partner with Boards, investors, CEOs and CHROs to build high performing HR functions through strategic partnerships, market insight and expert delivery. If you are considering a critical hire or exploring your next move, we would be pleased to support a confidential conversation.
Some of the key leaders across our sizeable and market leading HR Financial Services Practice including: Charlotte Matthew (APAC), Erica Ravich (North America), Abigail Benham (UK), Dona-Mirelle Battat (Europe) and Simon Stephens (Middle East), Brad Law (Reward), Charlotte Faktor (Interim), John O’Brien (Payroll).
