The demand for specialised talent, competitive benefits, and flexible work options is playing a pivotal role in attracting and retaining professionals across the financial services sector.
Key trends in financial services
A significant trend in financial services hiring is the heightened demand for technical roles, particularly in compliance, financial advisory, and support functions.
The industry’s response to new regulatory requirements, especially under the Financial Conduct Authority’s Consumer Duty framework, has intensified the need for compliance experts. Financial service organisations are now prioritising technical and compliance roles to ensure consumer protection and regulatory alignment.
However, demand extends beyond compliance. Financial planning faces a talent gap, particularly among advisors.
A lack of younger advisors, coupled with the impending retirement of a large portion of the existing workforce, has prompted financial firms to invest in talent pipelines, often through internal academies that train and promote from within. This approach not only addresses immediate needs but also aligns with long-term goals for sustainability and succession planning.
Despite robust job opportunities, the financial services sector is navigating a candidate-short market. High-performing professionals are well-compensated, valued, and unlikely to seek new roles unless offered competitive packages.
In this environment, smaller firms struggle to match the attractive benefits and salaries of larger institutions, creating a divide where talent gravitates toward companies offering flexibility, dynamic working environments, and additional perks.
Job opportunities in 2025
Looking ahead, financial services in 2025 is expected to focus on compliance, advisory, and support functions. Compliance roles will remain essential as financial firms continue to adapt to regulatory expectations, ensuring all actions align with consumer duty.
Larger firms are expected to establish or expand their compliance departments, while smaller firms may increasingly rely on outsourcing to specialised compliance providers for efficient file reviews and risk assessments.
The financial planning sector is also positioned for significant growth. There’s a pronounced shortage of financial advisors aged 30 to 50, partly due to the trend of early retirement among successful advisors.
This demographic gap has spurred firms to expand their training programmes, emphasising the importance of internal growth. Many institutions are building programmes to develop junior advisors, ensuring a new generation of financial planners.
Meanwhile, demand for paraplanners and administrative roles will persist, particularly within mid-sized firms. Paraplanners, who support financial advisors with client reports, planning, and documentation, remain highly sought after. Due to their technical expertise, many paraplanners remain in their current roles long-term, making recruitment in this area particularly competitive.
The outlook for support staff may see some reduction, as advancements in artificial intelligence (AI) and automation allow for streamlined administrative tasks. However, client-facing roles are unlikely to diminish, given the industry’s reliance on personalised service.
Diversity as a strategic imperative
Diversity and inclusion (D&I) have become strategic imperatives in financial services, where diverse perspectives are recognised as essential for innovation, enhancing customer trust, and supporting long-term success. However, there are ongoing challenges, particularly in diversifying the advisor demographic.
Presently, only 16% of financial advisors are female, a statistic prompting firms to take actionable steps to increase representation.
Efforts to close the gender gap have led to initiatives focused on nurturing female talent, especially in traditionally male-dominated roles. Firms are beginning to implement mentoring programmes, training schemes, and networking opportunities targeted at female professionals, encouraging movement from administrative or supportive roles to advisory ones.
Additionally, companies are working to create inclusive environments where underrepresented groups feel welcome and valued, contributing to a more diverse and resilient workforce.
Age diversity is another critical issue. Many seasoned financial advisors are approaching retirement, yet the sector has not kept pace in nurturing young talent. The lack of mid-career professionals is a vulnerability for the sector, prompting firms to accelerate their recruitment and training efforts among younger jobseekers.
By creating structured development paths, they aim to retain and develop advisors, ensuring that institutional knowledge and client relationships are passed on to the next generation.
Meeting candidate expectations
In a competitive job market, financial services professionals increasingly prioritise flexibility, remote work options, and comprehensive benefits packages. Many professionals now rank flexibility as one of their top requirements, even above salary.
However, there is often a disparity between candidate expectations and employer offerings. While larger institutions tend to offer hybrid or flexible work environments, smaller firms are frequently bound by traditional office-based models.
This misalignment can be a barrier to attracting talent, especially in rural areas where smaller firms may struggle to find professionals willing to relocate. To bridge this gap, financial firms need to assess their operational models and explore flexible arrangements, particularly for roles that do not necessitate a physical presence.
Beyond flexibility, jobseekers are increasingly selective about benefits packages, seeking perks such as robust pension contributions, health insurance, and travel subsidies. These benefits have become essential tools for retaining the best people, and firms that continually refine their packages to stay competitive will be better positioned to attract and keep skilled professionals.
As firms benchmark against competitors, they may find innovative ways to enhance packages, such as offering four-day workweeks, performance-based incentives, or career development opportunities.
Navigating the job market
In a tight job market, hiring speed is crucial. Larger firms with multi-step hiring processes often struggle to keep up with more agile competitors. By streamlining recruitment, offering clear timelines, and providing rapid feedback, firms can improve their chances of securing talent.
A responsive hiring process reflects positively on a firm’s culture and builds goodwill, even among professionals who may not be selected.
It is worth noting that a positive recruitment experience is essential in this market. Financial services businesses that prioritise candidate experience – providing timely feedback, clear role expectations, and transparent communication – are more likely to leave a lasting impression.
Professionals in this sector are not only evaluating roles but also assessing the organisation’s culture, values, and respect for individual contributions.
Continuous learning is critical in financial services, where regulations, client needs, and technologies are constantly evolving. Companies should establish pathways for professional growth, whether through certifications, mentorship, or skill-building programmes.
Development opportunities contribute to long-term retention and help build a resilient workforce. As flexibility becomes a non-negotiable for many professionals, employers in the sector should continue to offer hybrid or remote options wherever feasible. While client-facing roles often require in-person engagement, back-office and administrative functions may benefit from flexible arrangements that enhance work-life balance and boost productivity.
While regulatory demands and technological advancements present challenges, they also create new opportunities for firms to innovate and grow.
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