‘Salaries will hold steady’: The hiring trends that will shape banking in FY24–25

With the new financial year just kicking off, new hiring trends are emerging, giving us a glimpse of what the banking sector could look like going forward.

New insights from Randstad have highlighted the five trends that may be set to shape the banking sector over the next year. The economy for the past financial year, was volatile at best, with many businesses in banking being extremely cautious with their hiring practices, avoiding financial consequences at all costs.

For example, many businesses took the more conservative approach by elongating recruitment cycles and focusing intensely on retention strategies.

However, this financial year, Jo Jakobs, director of professional talent at Randstad, believes that the banking sector must remain agile, upskilled, and informed if it wants to thrive in a constantly evolving space. Therefore, the ability to adapt, innovate, and attract top talent has never been more important.

Jakobs listed five hiring trends that will have a large impact on the banking sector in FY 2024–25:

1. Teams will expand

“Backfilling positions has been the top priority over the past year, but we anticipate a shift back towards team growth and expansion. This change is already evident with the rising demand for customer-facing frontline roles, such as business development managers, driven by the need for dynamic lead generation and enhanced customer engagement,” Jakobs said.

2. Non-bank entities will intensify talent competition

“Non-bank entities will continue to be formidable competitors for top talent, often outbidding larger banks with better compensation packages, a more agile structure, and a less bureaucratic work environment. Traditional banks will need to consider how to replicate or surpass the competitive positioning of non-bank offers to attract and retain top talent.”

3. Salaries will hold steady

“Salaries are expected to remain steady over the next year, with potential for slight increases as firms adjust for CPI, inflationary pressures, and the competitive demands of staff retention and counteroffer negotiations. Firms must stay vigilant and responsive to these economic factors to maintain a competitive edge.”

4. Boom in technology, automation and AI skills

“The increasing automation of administrative roles and the gradual integration of AI into banking processes will underscore the need for tech-literate, adaptable candidates.”

“As banks continue to update or replace outdated legacy systems, hiring professionals who can navigate and excel in a technologically advanced banking environment will be crucial for organisational success and differentiation.”

5. Juniorisation strategy will strengthen

“Amid ongoing economic challenges, the strategic shift towards hiring junior staff will persist. This approach not only reduces salary expenses but also builds a robust pipeline of talent that can mature within the bank, enhancing long-term stability and knowledge retention.”