Key Takeaways
01. Tailor offers to talent demand and expectations.
Job confidence is not uniform, and candidates hold leverage where demand for skills is high. Employers must ensure they have a compelling proposition from first contact, with offers tailored to expectations across function, seniority level, and location.
02. Human-led hiring is non-negotiable.
Half of respondents accept AI for background screening, but only a fraction are comfortable with AI interviewers - and a meaningful share would withdraw from a process that uses them. Keep every candidate-facing stage personal, informed, and led by someone who understands both the role and the individual.
03. Prepare now for the EU Pay Transparency Directive.
From June 2026, EU-based employers must publish salary ranges and cannot ask candidates about current earnings. Firms that conduct a pay equity review and build transparent comp structures before the deadline will be well positioned to attract, retain, and defend their pay decisions.
04. Salary increases are happening - but expectations are running well ahead of them.
Most increases are sitting at 1-5%, while most professionals expect 21% or more when moving. That gap creates real offer-stage attrition. Employers should use live market data to set competitive but achievable expectations early in the process. Selby Jennings provides current benchmarks across all major European markets – contact us for more information.
05. Flexibility expectations vary by market - apply a local lens.
Two days at home per week is the European average, but local standards differ significantly. Employers setting regional policies should build in local market knowledge rather than imposing a single standard.
06. Career stagnation is a major attrition risk.
Two thirds of professionals have not been promoted in the past year, and progression blocked internally becomes movement externally. Well-supported internal progression paths, regular development conversations, and timely promotions are the structural investment that retains people before resignation decisions are made.
07. Variable pay is a retention lever - do not treat is as an afterthought.
Bonus dissatisfaction is high relative to salary dissatisfaction, and 73% say a reduced bonus would push them towards looking. The firms that retain people are the ones that deliver on bonuses, communicate how decisions are made, and build clear line of sight between individual contribution and variable payout.
08. More than two in five professionals are unhappy - act before they become departures.
41% saying they are not happy at their company is another significant attrition risk. Proactive engagement is far less expensive than the cost of a resignation and replacement. Selby Jennings is here to help firms identify where attrition risk is highest and what is driving it.
Summary
European financial services talent in 2026 is in a period of gradual but positive change. The market has not returned to the frenetic pace of 2021-22, but activity is building steadily and compensation is trending upward, so the professionals who have stayed through the cautious middle years are increasingly willing to test what the market will pay for their skills. For employers and hiring managers, the priority is preparation rather than reaction. The data in this report points to a clear and consistent set of pressures driving attrition: compensation dissatisfaction, bonus expectations running ahead of delivery, career progression stalled, and a workforce where over 40% report being unhappy. Addressing these issues now, with real data and genuine follow-through, is critical for keeping ahead of competitors.
Financial services professionals across Europe are seeing many skills are in demand, salaries moving in the right direction, the return-to-office trend stabilising, and a strong market for those willing to consider relocation. Invest in developing AI fluency, benchmark your compensation against live market data, and have a plan for what you want your progression to look like, and you'll be well-positioned regardless of how the macro environment evolves. Selby Jennings specialises in placing mid-to-senior financial sciences and services professionals across Europe and around the globe. Whether you are a firm building out a team in a competitive market, updating your compensation structures, or exploring what the current market holds for you, our consultants have the sector expertise, the market intelligence, and the networks to help you move with confidence. Reach out to your local Selby Jennings team to learn more.
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