HR Market Update: Financial and Professional Services, Signs of Positive Momentum
By Beth Hicks, Head of Financial and Professional Services
It’s certainly been an interesting 12 months in the world of HR hiring within Financial and Professional Services across London. Throughout 2024, the landscape was largely shaped by cost control and headcount management. Many HR teams operated with lean structures, often covering multiple roles due to redundancies or resignations, with minimal permanent replacement hiring. Instead, there was a notable emphasis on flexible resourcing.
However, 2025 is already showing signs of a positive shift.
Growing Demand Across Levels
The junior HR market has remained consistently active, with strong demand for both permanent and interim HR Advisors, particularly those with employee relations (ER) experience and a solid understanding of HR systems and analytics. There’s a clear trend towards “grow your own” strategies, where businesses are building internal progression routes to HR Business Partner level.
At the mid to senior level, demand for experienced HR Business Partners in the £90,000 to £120,000 range has increased significantly, making up approximately 70% of our current portfolio. These roles tend to be blended, requiring capability in transformation projects such as reorganisations, operating model redesigns, talent management, and complex ER or restructuring initiatives.
Notably, many of this year’s permanent hires have been for newly created roles rather than replacements. Interim hiring has also surged, particularly at the senior business partner level (£700 to £900 per day), contributing to a 102% increase in interim revenue year on year and accounting for 20% of our overall revenue in 2024.
Employee Relations Takes Centre Stage
Specialist Employee Relations professionals remain in the highest demand. Organisations are prioritising the shift from reactive to proactive ER functions, driven by regulatory pressures, restructures, and tighter return to office mandates. Roles range from hands on advisors managing day to day casework, to senior leaders designing ER strategies and building internal capabilities to free up HR Business Partner time.
Talent Acquisition and DEI, Evolving Priorities
Talent Acquisition remains intermittent, accounting for just 5% of our portfolio this year. The focus has moved from growth to retention, with demand centred on early careers and talent management, either as standalone specialisms or incorporated into HRBP responsibilities. There is also growing emphasis on leadership development, line manager capability, and cultural change.
While standalone DEI roles have declined, investment in diversity, equity, and inclusion hasn’t disappeared. Instead, DEI is being embedded into broader HR initiatives, with an emphasis on long term, education led programmes.
Sector Specific Insights
Market activity varies across sub sectors. Asset Management, Private Equity, and Banking are gaining momentum again, with Insurance showing steady growth after previously leading the way 12 to 18 months ago. Boutique private equity firms and financial services start ups are hiring HR leaders earlier in their journey, recognising the strategic importance of people functions in scaling, supporting portfolio companies, and attracting talent.
In Professional Services, law firms continue to lead hiring demand across all levels. Consulting and accountancy firms are focusing on transformation and workforce planning, with strong interest in professionals familiar with platforms such as Workday, SuccessFactors, and broader HR analytics tools.
Looking Ahead
Blended HR skill sets will remain critical. As businesses continue to adapt to technological advancement and AI, the ability to upskill and reskill teams will be paramount. Specialist roles in Employee Relations and transformation are expected to stay in high demand throughout the rest of 2025.
From an interim perspective, cost efficiency, target operating models, and flexible resourcing will remain key themes, particularly in organisations navigating ongoing transformation or uncertainty around future headcount. We’re also observing a shift toward global or multi location roles as businesses look to centralise and streamline HR functions.
Flexible and hybrid working arrangements continue to be a major point of interest, often ranking as a higher priority for candidates than salary. In some sectors, we’ve seen a move towards four day in office policies, although flexibility remains a key differentiator.
A Strong Start to 2025
Our team is seeing these shifts firsthand. Job volumes have increased, and we’re partnering with clients on more complex, hybrid roles that sit outside the traditional HR mould. Encouragingly, we’ve just had our best quarter in 18 months, and we’re optimistic that this momentum will continue throughout the rest of the year and beyond.
Click here to see the results from our HR Hiring Survey 2025