What trends will shape training and HR for financial services in 2025? 

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From bridging generational divides to closing skills gaps, Paul Butler explores financial services training challenges

It’s hard to say whether financial services (FS) firms will think of 2024 fondly in years to come. The sector has faced a significant number of challenges, from elevated interest rates to the implementation of new regulations.  

However, considering the difficulties it has had to navigate, FS has remained remarkably resilient. With the economic climate continuing to improve, the outlook for the coming months and years looks brighter than what we have experienced in recent times. 

FS firms need to have an all-encompassing strategy in place to manage their people and attract new talent  

This resilience stems from the talent and expertise within the FS workforce. People are always the main driver of success, which is why it’s so important that firms – and the industry as a whole – invest in attracting a wide range of professionals to the industry. 

As we progress through 2025, workforce management will be central to overcoming the challenges that are currently buffeting the industry, and those that could emerge. From multi-generational teams to the rise of flexible working, FS firms need to have an all-encompassing strategy in place to manage their people and attract new talent.  

With that in mind, these are the trends I predict will shape the financial services people and learning landscape over the coming months. 

Managing multi-generational workforces 

Today’s workplaces can have up to five different generations of employees within them, each with unique work/life expectations and styles of working.  

Gen Z, for example, is significantly more digitally fluent than Baby Boomers on average and may require less digital skills training compared to previous generations. Meanwhile, research shows that the career stability that Generation X seeks contrasts with Millennials, as Millennials are more open to switching jobs to align with their aspirations or personal values. 

At the same time, leaders need to address the risk of the loss of institutional knowledge as older workers retire. In the FS sector, for instance, the anticipated departure of an estimated 260,000 highly skilled professionals by 2035 due to retirement and attrition could create significant challenges if left unaddressed. 

Managing this diversity in age and expectations can be challenging for businesses. It requires a nuanced understanding across the business of how the needs of these groups differ. As a result, I believe 2025 will see a significant rise in demand for development programmes specifically designed to bridge generational divides. 

These programmes could include initiatives to foster knowledge-sharing between the generations. Meanwhile, onboarding programmes for Gen Z and the incoming Generation Alpha must be prioritised, equipping them with ‘world of work skills’ such as effective communication, time management, and navigating workplace dynamics to ease their transition into the professional environment. 

Failure to implement these measures could lead to deeper challenges, such as diminished team cohesion, talent shortages, reduced productivity and, ultimately, a loss of revenue. That is why it’s so important that firms can leverage the unique strengths of each generation in 2025. 

Rise of flexible working and challenges 

Flexible working is becoming the new norm, and employees increasingly value autonomy and work-life balance. Flexible working rights are therefore likely to expand in 2025, which will bring with it new challenges for FS firms, particularly in maintaining collaboration and productivity, and result in high attrition rates. 

Firms continue to operate with hybrid working models with different arrangements for employees and teams to split their time between home and the office. However, clarifying a well-defined framework for working arrangements is something organisations struggle with. Moreover, it necessitates that leadership foster trust and accountability with their staff. Without this, there is a risk of fragmentation, miscommunication and disengagement among employees, which can hinder overall productivity. 

As a result, some businesses have begun to mandate that homeworkers return to the office, raising new questions about how to manage this transition respectfully. While such mandates may address some of the challenges associated with remote working, such as better integration and training of younger employees, I believe the drawbacks of abandoning hybrid setups can outweigh the benefits. As such, it’s important that businesses can strike the right balance to ensure that they can address the challenges of remote working without sacrificing its benefits.  

This may seem like a daunting task, but with a careful plan in place, businesses can create a culture of inclusion where all employees – regardless of where they are working – feel valued and connected with their team. 

Need for leadership development 

Connected to this is the need for higher levels of leadership development. 

Leaders in today’s world are not simply managers of people. They’re now key drivers of the culture of a team or firm, which makes them an even more vital piece of the puzzle for many FS businesses.  

Leadership training will therefore be an important focus for firms in 2025. Programmes should emphasise emotional intelligence, resilience and the ability to lead diverse, hybrid teams. Additionally, as AI and machine learning continue to transform FS, leaders must be equipped with the people skills needed to manage technological integration effectively. 

Addressing the skills gaps within the sector 

This speaks to a wider point that needs addressing in 2025: the various skills gaps within the FS sector. 

Leadership aside, the rapid pace of technological advancement has intensified the demand for digital skills within FS. Yet, a significant proportion of firms still struggle to close these gaps – a Davies survey found that 38% of businesses have a lack of in-house digital skills. 

This year, addressing these gaps will require a dual approach: upskilling the current workforce and attracting new talent with in-demand skills.  

For existing employees, targeted training in areas such as data analysis, cybersecurity and AI integration will be essential. These efforts should be complemented by partnerships with educational institutions to ensure that new hires are equipped with relevant technical knowledge. 

The apprenticeship levy can play a role in this. But, while recent reforms have made the scheme more flexible, businesses must approach these changes with caution. For instance, the de-prioritisation of level 7 apprenticeships and the introduction of shorter, foundation-level programmes could impact the depth of training available to FS employees.  

Therefore, businesses should choose how they use the levy carefully, focusing on schemes that address the most significant skills gaps in their workforce. 

Making financial services more appealing 

Attracting and retaining talent is also vital for the future of the sector. Following the fallout of the financial crisis in 2008, we have had to work hard to counter the reputation for unethical practices that we’ve understandably got.  

FS firms must therefore focus on making their company a great place to work to resonate with today’s workforce and demonstrating the good that the FS sector can do. This includes offering meaningful development opportunities, fostering inclusive leadership, and creating roles that align with broader societal values, such as sustainability and social impact.  

We’ve been prioritising this, and I expect a greater number of firms to follow suit in 2025. In addition, better utilisation of things like the apprenticeship levy can help build a stronger talent pipeline, ensuring that firms stay competitive and ready for whatever the new year will bring. 

If businesses can address the challenges that I’ve outlined above head-on in 2025, they will be well positioned to mitigate any risks that arise while also unlocking new opportunities. Indeed, the firms that thrive will be those that view workforce development as a top priority for the year ahead. 


Paul Butler is Senior Partner at Davies 

Paul Butler

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