The 2025 State of Contract Hire & Payroll in UK Finance: Why Outsourcing Is the Strategic Choice
London, UK, 02 November 2025: After a period of unprecedented salary inflation, the private markets and broader financial services sectors are entering a new phase of equilibrium. The frenetic hiring and dramatic compensation increases of 2023 and early 2024 have given way to a more measured, strategic, and ultimately sustainable approach to talent management. Our analysis of the Carnegie Consulting Salary Survey for Autumn 2025, contextualised with authoritative market research, reveals a landscape of correction, consolidation, and evolving structural dynamics that will define the war for talent in the years to come.
This report delves into the key year-on-year trends from 2024 to 2025, offering forecasts and projections for 2026. We explore the nuanced shifts in compensation across private equity, hedge funds, and traditional asset management, providing critical insights for both employers and professionals navigating this complex environment.
The Great Correction: A Return to Market Fundamentals
The primary theme emerging from the 2025 data is a significant market correction. The salary surges of the recent past have met the countervailing forces of economic uncertainty and a rebalancing of talent supply and demand. This is most evident in the Human Resources sector, which serves as a barometer for broader market sentiment.
The Carnegie survey highlights a notable reversal in senior HR roles. Positions such as Senior Business Partner and VP, which had seen compensation packages climb as high as £150,000, are now facing downward pressure. The survey commentary bluntly states that firms now recognise these professionals “could be replaced by people as good for much less” [1]. Similarly, the ceiling for a Head of HR has descended from a peak of £210,000 to a more sober £180,000, a change attributed to a “lack of movement and strong supply of good candidates” [1].
This trend is corroborated by wider market data. A July 2025 report from WTW indicates that UK salary increase budgets are expected to hold steady at 3.6% for 2026, matching the actual increases in 2025 [2]. This stability signals an end to the reactive, inflation-driven pay rises of the past two years. The report, which surveyed 994 UK organisations, found that cost management concerns (52%) and anticipated weaker financial results (47%) were the primary drivers for organisations projecting lower salary increases [2].
private equity salary survey 2025
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