As we near the end of 2024, the UK finance job market presents a unique landscape shaped by a blend of economic factors and shifting priorities. At NC Associates, we closely monitor these trends to support our clients in securing top talent and guide finance professionals in making informed career decisions. Here’s a look at the key trends impacting the finance sector as we move through Q4.
Salary trends: a new approach to talent acquisition
The past few years saw considerable increases in salary expectations as companies competed intensely for finance talent. However, 2024 has revealed a shift. According to research by Morgan McKinley, the average salary increase for finance professionals moving between organisations in 2023 was around 16%, a decrease from 22% in 2022. This trend suggests companies are focusing more on cost controls and cash flow stability, taking a more measured approach to hiring amid broader economic uncertainty (Morgan McKinley).
For candidates, this change means that while salary growth is still achievable, employers are increasingly highlighting benefits, career growth potential, and stability as part of their offers. Employers, on the other hand, must balance competitive compensation with the long-term value and advantages of their roles.
In-demand skills: the rise of data science, ESG and cybersecurity
The skills required in finance are continually evolving, and 2024 has seen an increased demand for expertise in data analysis, ESG (Environmental, Social, and Governance), and cybersecurity.
Data Analysis: As organisations lean more on data-driven decisions, finance professionals skilled in data science are highly sought after. These skills are crucial for accurate forecasting, financial modelling, and strategic insights, according to TalentFinance.
ESG and Sustainability: With tighter regulations and a focus on sustainable practices, roles like ESG analysts and sustainability finance managers are on the rise. These roles focus on evaluating the environmental and social impact of business practices, aligning with the priorities of companies and their stakeholders.
Cybersecurity: As finance is increasingly a target for cyber threats, there’s growing demand for finance professionals skilled in cybersecurity. Risk management and IT compliance roles are gaining prominence as organisations prioritise the security of financial data.
For finance professionals, developing skills in these areas can enhance their career prospects. For employers, aligning hiring needs with these in-demand skills is essential for staying competitive in an evolving market.
Hiring activity: a tale of two trends
The UK finance sector has experienced a slight decline in job vacancies compared to last year. According to data reported by Reuters, London’s financial services industry saw a 17% decrease in vacancies year-on-year, influenced by economic factors like geopolitical tensions, inflation concerns, and post-Brexit regulatory adjustments (Reuters).
Despite this annual decrease, there has been a 7% increase in City vacancies from Q3 to Q4 of 2024. This quarterly growth highlights that, despite broader economic challenges, specific areas within finance, such as regulatory compliance, digital transformation, and ESG initiatives, continue to see strong demand.
For finance professionals, this means that while some areas may have slower hiring activity, there are still ample opportunities in sectors with growth potential. For employers, this quarter-over-quarter increase in vacancies emphasises the importance of adaptability in workforce planning, especially amid shifting economic conditions.
Navigating the market with NC Associates
At NC Associates, we understand that staying informed is just the beginning. For employers, we provide the insights and resources necessary to attract the right talent with the skills needed to meet current trends. For candidates, we offer guidance in finding roles that align with their career and financial goals, even as market conditions shift.
Whether you’re a client seeking finance talent or a finance professional exploring new opportunities, NC Associates is here to provide data-driven, strategic support every step of the way. Ready to navigate the Q4 job market with confidence? Get in touch with us today.
Conclusion
The finance job market at the close of 2024 reflects both challenges and opportunities. With evolving demands for specific skills, a tempered approach to salary adjustments, and a selective yet steady hiring landscape, understanding these trends is essential for hiring managers and finance professionals alike. At NC Associates, we’re committed to helping you adapt to this landscape, providing insights, guidance, and support tailored to your needs.
