At ETRA Talent, we operate at the intersection of global financial markets and world-class talent. As inflation continues to impact economies worldwide, businesses in Banking, Investment Management, Insurance, and Non-Financial Services are facing a new era of hiring challenges.
From rising wage demands to shifting workforce expectations, inflation is reshaping recruitment strategies across the board. The question is not whether these changes will affect hiring—it’s how organisations can adapt to secure top talent in an evolving landscape.
A Global Talent Market Under Pressure
Inflation is driving up the cost of living across major financial hubs, putting pressure on salary expectations and compensation structures. Businesses are grappling with several key trends:
- The wage inflation dilemma
As employees seek salaries that keep pace with rising costs, firms must strike a delicate balance between offering competitive packages and maintaining financial sustainability. Roles in risk management, compliance, and investment strategy are particularly in demand, pushing salaries higher in these sectors. - Shifts in workforce expectations
Professionals are increasingly prioritising total rewards beyond salary, including flexible work arrangements, career development opportunities, and well-being benefits. Businesses slow to adopt new working models risk losing top candidates to more agile competitors. - Market uncertainty driving specialised hiring
Economic volatility has heightened the need for professionals in risk, restructuring, and investment diversification. Financial institutions are seeking talent that can navigate inflationary pressures, regulatory changes, and fluctuating interest rates.
Financial Services: The Sectors Most Impacted
Banking & Investment Management
With inflation influencing global financial markets, banks and investment firms are adapting their hiring strategies to mitigate risk and capitalise on emerging opportunities.
- Demand for Risk & Compliance Talent: Regulatory scrutiny is increasing, leading to higher demand for specialists in financial crime, anti-money laundering (AML), and prudential risk.
- Portfolio Management & Alternative Investments: Investors are seeking hedges against inflation, creating a surge in hiring for professionals with expertise in private equity, hedge funds, and structured finance.
Insurance
The insurance sector is adjusting to rising claims costs and evolving risk landscapes. Key hiring trends include:
- Actuarial and underwriting expertise: Inflation is impacting pricing models, claims forecasting, and risk assessment, driving demand for professionals who can navigate complex financial environments.
- Technology and digital transformation: Insurers are investing in AI-driven analytics and automation, increasing the need for tech-savvy financial professionals.
Non-Financial Services
Beyond traditional finance, businesses across sectors are optimising their financial strategies to manage rising costs. The focus is shifting towards:
- Cost-control specialists: Firms seek finance professionals who can enhance operational efficiency and mitigate financial risks.
- Procurement and strategic finance roles: Inflation impacts supply chains, making financial forecasting, pricing strategies, and procurement management more critical than ever.
Adapting to the New Hiring Landscape
As global markets adjust to inflationary pressures, businesses must rethink their recruitment strategies. The most successful firms are:
Investing in high-impact roles: Prioritising talent that drives efficiency, innovation, and regulatory resilience over volume-based hiring.
Optimising compensation structures: Competitive salaries remain essential, but firms offering holistic total rewards - including performance-based incentives and flexible benefits - are attracting top talent.
Leveraging agile hiring models: A mix of permanent, interim, and contract hiring is helping businesses stay adaptable while securing the skills they need.
Strengthening employee retention: With professionals reconsidering their career paths in response to inflation, companies that offer clear career progression, continuous learning, and a strong culture will retain the best talent.
The Future of Recruitment in an Inflationary World
Inflation is not just a challenge - it’s an opportunity for businesses to redefine their hiring strategies for long-term success. Companies that proactively adapt to shifting workforce expectations, optimise compensation models, and invest in key talent areas will emerge stronger in the evolving global job market.
At ETRA Talent, we partner with financial institutions and businesses worldwide to navigate these hiring complexities and secure top-tier professionals. Whether you’re looking to build resilient teams, optimise recruitment strategies, or adapt to evolving market conditions, our expertise ensures you stay ahead of the competition.
Looking for top financial talent in a changing world? Let’s talk.