A job offer in finance is no longer the culmination of a successful hiring process. Instead, it’s the beginning of a strategic negotiation. Bonuses don’t land, salary rises don’t keep pace with expectations and flexibility is no longer guaranteed. The result? Promising hires stalling at the final hurdle, and top performers quietly walking out the door.
The problem isn’t a lack of effort. Employers are spending more, offering more and promising more. But in a fast-moving industry built on precision and performance, even a small misalignment between what firms think matters and what professionals value can be costly.
That disconnect is laid bare in the latest Selby Jennings Financial Services Talent Report, which draws on insights from nearly 700 senior finance professionals across Europe. The findings paint a clear picture: while firms are under pressure to compete for talent, too many are failing to understand what today’s finance professionals want - and what it takes to make them stay.
Bonus season: exit trigger or retention tool?
In theory, bonuses should motivate and reward high-performing staff. But in practice, they’re prompting exits and becoming one of the leading causes of attrition.
“This year, 42% of finance professionals across Europe say their bonus missed the mark, despite businesses performing better than in 2023”, explains Matt Nicholson, head of Selby Jennings Europe, a leading financial services talent partner.
Many are still applying broad-brush strategies to a workforce that demands nuance
“Even more striking, 86% would leave for better bonus potential. This isn’t just a retention issue, it’s a risk to business continuity. When top performers feel unrewarded, they don’t just disengage, they disappear,” he says.
It may seem paradoxical – a bank performs well, profits rise, yet key bankers depart. But too often individuals’ bonuses fail to reflect the success of the organisation. And in a world where pay mirrors prestige, high performers rarely stay where they feel undervalued.
“We’ve actually seen bonuses trend higher this year as firms rebound from 2023’s uncertainty,” says Nicholson. “But that doesn’t mean expectations are any lower. If anything, they’ve risen.”
In the UK, the removal of the banker bonus cap is already shifting the market. Regulated banks are moving toward more globally competitive pay structures, helping them go head-to-head with US and international institutions in the battle for senior talent. UK finance professionals received the highest bonuses globally this year, averaging $148,961 (£110,391), a 26% jump on the previous year and well ahead of peers in North America, Asia and the rest of Europe according to reporting by The Times.
Pay rises: modest gains, growing expectations
After several years of sharp salary inflation, pay increases in financial services have begun to stabilise.
“Salaries have stayed relatively flat over the past 12 to 18 months,” says James Warnaby, executive director, head of Selby Jennings London. “Salary increases of 20% or more, which were more common in previous years, have become rare, whereas bonuses are now a stronger indicator of positive market sentiment.”
Survey data from the report reflects this, with half of finance professionals who received a pay rise over the past year seeing increases between 1% and 5%, and a further 23% receiving a 6% to 10% increase.
Yet candidate expectations remain firm. Nearly three-quarters (73%) say they would seek a rise of 11% or more in a new role.
For hiring managers, this widening gap presents a clear obstacle. Offers that align with internal pay bands may fall short of market demands, particularly among sought-after talent. Negotiations must therefore extend beyond base salary to encompass long-term progression and broader reward packages.
In a market where candidates weigh total value as much as headline pay, understanding and addressing these expectations is vital. Those who fail to do so risk drawing out recruitment processes, or losing top performers to firms that offer a clearer pathway to growth and reward.
What really motivates finance professionals to move?
While pay and bonuses make the headlines, they rarely tell the full story. For many finance professionals, the decision to change roles isn’t driven by compensation alone. It’s the combination of stalled progression, a lack of new challenges and diminished work/life balance that quietly builds pressure over time.
When the pace slows or the purpose fades, no salary can compensate for feeling underutilised. And, while few leave a role for higher compensation alone, the promise of stronger pay or bonus potential often tips the balance once someone is already open to change.
That makes things harder for employers. Dissatisfaction at the top end of the talent pool rarely comes with advance warning. High performers don’t always signal their intent, they simply move on. By the time a resignation lands, it’s often too late to re-engage.
The takeaway for company leaders? Stay competitive on pay, but don’t overlook the everyday experience. Retention depends just as much on career development, meaningful work and work/life balance as it does on salary.
Flexibility is still on the table
Remote-first might be receding, but flexibility isn’t off the agenda. If anything, its definition is evolving.
In 2025, financial services professionals still value hybrid work. But, more than casual freedom, what they now want is clarity. Structure, consistency and honesty about what’s expected are becoming more important than blanket promises of flexibility.
While pay and bonuses make the headlines, they rarely tell the full story
Across Europe, structured return-to-office policies are becoming the norm. Yet only 63% of professionals surveyed by Selby Jennings have flexible working hours, a marginal dip from 65% last year. The ability to work remotely has seen a similar decline: 80% now have remote access, down from 85%, and just 20% of respondents work from home three days a week, a clear shift away from the remote-first setups that once dominated hybrid models.
Despite this trend, for finance workers, flexibility still matters. More than 80% of professionals rated it as important when considering a new role. Many, however, are willing to compromise. A growing number - 64% up from 57% last year - would accept a full-time, office-based position if the right opportunity emerged.
Expectations also vary by role. What’s non-negotiable in one function may be feasible in another. For hiring teams, the solution isn’t offering unlimited freedom but setting fair expectations. While complete flexibility may no longer be essential, total rigidity may be costly.
One size doesn’t fit all
If flexibility expectations vary, so too does almost everything else.
Across Europe’s financial services industry, employers are refining their value propositions, adjusting pay bands, revisiting hybrid policies and rethinking career pathways.
But many are still applying broad-brush strategies to a workforce that demands nuance. What motivates one high performer might not matter to another, and what secures one candidate might lose you five more.
For employers, the way forward is strategic customisation. Understand the motivators, tailor the message and meet each individual’s expectations, needs and working styles. In 2025, success is about getting the offer right in practice, not just on paper.
To discover the trends shaping the future of talent in financial services read the full Financial Services Talent Report 2025 - Europe.
A job offer in finance is no longer the culmination of a successful hiring process. Instead, it’s the beginning of a strategic negotiation. Bonuses don’t land, salary rises don’t keep pace with expectations and flexibility is no longer guaranteed. The result? Promising hires stalling at the final hurdle, and top performers quietly walking out the door.
The problem isn’t a lack of effort. Employers are spending more, offering more and promising more. But in a fast-moving industry built on precision and performance, even a small misalignment between what firms think matters and what professionals value can be costly.
That disconnect is laid bare in the latest Selby Jennings Financial Services Talent Report, which draws on insights from nearly 700 senior finance professionals across Europe. The findings paint a clear picture: while firms are under pressure to compete for talent, too many are failing to understand what today’s finance professionals want - and what it takes to make them stay.
