This year, we’ve seen a notable shift in the compliance industry. With budgets tightening and cost control measures in full force, financial institutions are increasingly focusing on succession hiring and internal mobility as a strategic response. Firms are promoting employees and offering clear growth opportunities to strengthen teams from the inside. This approach is transforming the way financial institutions manage talent and resourcing, offering employees clear opportunities for growth while strengthening their teams from within.
At all levels, from junior positions to senior leadership roles, such as Heads of Compliance and MLROs, we are witnessing a rise in internal talent being promoted. Firms are leveraging natural career progression paths rather than seeking external hires. This approach not only ensures smoother transitions but also preserves continuity and drives consistent performance. For businesses, it provides stability while positioning the organisation for future success.
For employees, the benefits are equally compelling. Being recognised for their contributions and entrusted with new challenges fosters a deeper sense of belonging and loyalty. It sends a clear message that the organisation values their professional growth, which significantly improves employee retention and morale.
In Korn Ferry’s latest Workforce Survey found that 67% of employees would stick with a company if offered opportunities for advancement and upskilling, even if they dislike their current role. Conversely, a lack of career growth is the second biggest reason individuals leave.
Some companies are catching on – as 32% of their survey respondents plan to focus on upskilling to address skills gaps, and 30% are working on career paths for long-term growth.
As we look ahead to 2025, financial services employers may also need to explore innovative approaches to professional development to meet evolving roles and industry demands.
From a client’s perspective
From a business perspective, the advantages of this strategy are clear, reducing the costs and risks associated with external hiring while accelerating the process for internal mobility. This approach creates a win-win situation: businesses retain their top performers, while employees benefit from tangible career growth.
In a competitive market such as London’s financial services compliance sector, firms embracing internal mobility are not only enhancing their workforce but also creating a culture of opportunity and trust. For professionals, this trend highlights the importance of growing within their organisations and seizing the opportunities that come with internal mobility.
Will this trend continue into next year? Only time will tell. However, it is worth considering that your next leader may already be a part of your team, and as an employee, your next opportunity might be closer than you think. Taking the time to recognise and explore internal potential could be the key to long-term success for employees and the company.
If you would like to discuss any of the topics mentioned in this update, please reach out to Director William McCoppin via email at william.mccoppin@coopman.uk or +44 7311 387242.
