How to Hire Finance Talent Strategically During Market Uncertainty

Throughout 2026, financial firms in Europe have faced mixed signals when it comes to hiring. While the European Central Bank kept key interest rates unchanged on 30 April, they also warned that upside inflation risks and downside growth risks had intensified, and energy prices, geopolitical risk, and weaker sentiment are all weighing on hiring decisions. For employers, this does not mean freezing recruitment. It means being more intentional about where, who, and how you hire. 

As James Warnaby, Managing Director - Selby Jennings London, explains: 

That distinction matters. The market may be cautious, but it is far from inactive. 

Why leading financial firms are hiring despite a cautious market 

The ECB’s April 2026 view captures the tension many European employers are feeling. Consumers and businesses are less confident about the future, and banks are becoming more cautious in lending. However, the ECB also pointed to high employment levels, solid household finances, investment in new technologies, and increased government spending on infrastructure and defence as factors that should cushion the wider economy - creating a window of opportunity for employers. 

While some firms are delaying permanent hiring because they lack confidence in near-term conditions, others are using the same market to secure high-impact financial sciences & services talent before competitors re-enter at speed. 

This is where strategic hiring during market uncertainty becomes a competitive advantage. 

Where competitors are hiring in financial sciences & services 

Leading financial firms are focusing hiring into functions that protect revenue, manage risk, increase productivity, and strengthen long-term capability. Key areas include: 

• Investment banking and deal advisory. Europe’s largest banks are producing resilient results. Deutsche Bank, Santander, and UBS all delivered record or above-forecast first-quarter profits, while trading income benefitted from market volatility.  
• Senior coverage, origination, and country leadership. Competitive pressure is driving senior movement across European dealmaking. Financial News recently reported senior investment banking appointments by Bank of America in Italy and Morgan Stanley in France, while Lincoln International hired a managing director in Paris to expand its capital advisory coverage.  
• Private markets and private credit. Private markets hiring has defied the market despite wider caution, with insurance capital supporting demand. The Financial Stability Board has also warned about private credit exposure linked to AI infrastructure and other concentrated sectors, increasing the need for experienced risk, credit, structuring, and portfolio talent.  
• Compliance, financial crime, AI governance, and risk. 2026 is bringing multiple EU regulatory changes across trading, risk, capital, digital finance, sustainability, and market structure – all driving demand for technical specialists in AML, DORA, MiFID, reporting, licensing, and regulatory engagement.  
• Quantitative analytics, research and trading. Europe’s quant hiring market remains highly competitive, particularly across hedge funds, proprietary trading firms, investment banks, and fintech innovators. Alex Morris, Senior Vice President at Selby Jennings London, notes that firms are diversifying trading strategies, demand for machine learning talent is growing across the buy and sell side, and longer non-compete periods are affecting talent availability. Learn more here. 

Why top finance talent is more accessible during cautious markets 

Periods of uncertainty often make in-demand professionals more open to new opportunities. If their current employer disappoints on bonuses, pauses promotions, or overburdens on workload when budgets tighten, high-performing professionals will start to test the market, so firms that are prepared to act now are in a strong position. 

Selby Jennings’ Europe Financial Services Talent Report 2026 found that 56% of surveyed professionals feel positive about their prospects in the current job market. For those who feel less confident, the concern is mainly role availability and economic conditions, rather than doubts about their own skills.  

Meanwhile, compensation continues to trend upward. 58% of surveyed professionals received a salary increase in the past year, while over three quarters received a bonus - although half believe their base salary is below market rate. Ensure your offers aren’t based on outdated benchmarks by exploring Selby Jennings’ range of compensation guides. 

Lack of progression can also drive moves, even in cautious markets. Selby Jennings found that 68% of surveyed European financial services professionals had not been promoted in the past 12 months, creating a real opportunity for firms that can offer the next step.

Joseff Richards, Senior Vice President - Head of Selby Jennings Netherlands, advises further:

It’s important to note that the best candidates are not always active applicants. Many are open to the right conversation if a business can show stability, growth, competitive compensation, and a strong mission. 

The cost of pausing hiring for too long 

A hiring pause might protect short-term cost, but it can also create long-term exposure. 

If competitors hire while others wait, they gain access to candidates with fewer competing offers. They build capacity before deal flow accelerates, reduce succession risk, and send a positive message to existing teams that the business is still investing in growth. 

Selby Jennings’ Talent Report found that 41% of surveyed European financial services professionals are unhappy at their current company. In an active market where professionals are open to making a move, that dissatisfaction can move quickly from sentiment to resignation, leaving major workforce gaps that take time and cost to fill while competitors benefit from their knowledge and experience.   

How to improve your financial services hiring strategy in 2026 

Focus on aligning every hire to a business outcome. Depending on your needs, this could mean prioritising roles that support: 

• Revenue growth, including investment banking and advisory, sales and trading, private markets and private credit, investment management, quantitative research and trading, and wealth management. 
• Risk management, especially across financial crime, compliance, operational risk, credit risk, market risk, and model risk.  
• Technology and AI adoption, including financial technology, data, automation, AI governance, cyber resilience, and RegTech.  
• Regulatory readiness, including DORA, MiFID, AML rules, EU market structure reform, and the EU Pay Transparency Directive. 
• Succession planning, particularly at VP, Director, Managing Director, Partner, and C-suite level.  
• Retention of high performers, where internal dissatisfaction, slow progression, or weak bonus outcomes could create preventable attrition.  

The EU Pay Transparency Directive adds another layer to hiring plans. This comes into force in June 2026 and will require firms operating across EU member states to disclose salary ranges to candidates and prevents asking about current or previous pay. Firms with clear, defensible compensation structures will be in a stronger position to hire, which matters because market uncertainty may slow hiring decisions, but it does not lower candidate expectations.  

Specialist and senior financial sciences & services professionals want to know from employers: 

• Why the role matters.  
• How the business is performing.  
• How compensation compares to the market.  
• What progression looks like.  
• How fast the process will move.  
• How leadership will support the role.  

Checklist: key financial services hiring priorities for 2026 

Hiring effectively during market uncertainty starts with focusing on where talent will ultimately have the greatest business impact. Practical steps firms can take now to plan for the rest of the year include: 

• Mapping critical roles against revenue, risk, transformation, regulation, and succession plans.
• Identifying where competitors are still hiring.  
• Benchmarking compensation before launching a search.  
• Reviewing pay structures before EU pay transparency rules take effect.  
• Building talent pipelines before roles become urgent.  
• Keeping interview processes short, structured, and aligned internally.  
• Giving candidates clear information on progression, bonus potential, and team remit.  
• Moving quickly when the right candidate is engaged.  
• Using contract talent where flexibility is needed, while still making permanent hires in core growth areas.  

Build the teams your competitors will wish they secured earlier

Market uncertainty is creating a rare opening for European financial sciences & services firms to secure specialist and senior talent before confidence fully returns. 

Selby Jennings helps leading financial institutions identify, engage, and hire the right professionals across key sectors, using specialist market knowledge and established candidate networks to solve complex hiring challenges.  

Request a call back from Selby Jennings to discuss how your firm can hire the financial sciences & services talent needed to move through market uncertainty and come out stronger.