UK salary growth narrows as hiring stabilises in 2026
Morgan McKinley has released its 2026 UK Salary Guide, revealing a labour market where salary growth is increasingly concentrated in a small number of high-demand specialisms such as AI, cloud computing, compliance technology and private capital, while broader pay remains largely flat.
Salary increases for professionals changing jobs are expected to be focused on niche, high-demand roles rather than across the board, reflecting an employer-led market defined by caution and selectivity. The report finds that while hiring sentiment is stabilising as the UK heads into 2026, the market has not yet entered a phase of strong growth.
Broader macroeconomic uncertainty has made employers increasingly selective throughout 2025, leading to extended decision timelines and moderated expansion. Structural shifts and a continued focus on cost rationalisation persist in certain areas, particularly within technology and logistics, where some organisations continue to reduce headcount.
From a candidate perspective, differentiation is now essential. Professionals with niche technical expertise, strong personal branding and the ability to navigate AI-assisted recruitment processes are best placed to succeed. In contrast, competition for generalist roles remains high, with firms applying greater scrutiny and leverage throughout the hiring process.
David Neal, managing director, Morgan McKinley UK, said: “The outlook for 2026 suggests a market defined by modest and steady growth rather than a rapid boom. Employers will continue to navigate a landscape where talent is treated less like a cost line and more like a strategic lever for protecting margins and adapting to volatility. In this environment, those who move decisively for the right candidate with competitive compensation and a clear career proposition will maintain a significant advantage.
Professionals with specialist capabilities in AI, private capital, compliance technology and digital transformation are commanding strong premiums, while those in more traditional or generalist roles face a tougher negotiating position.
Success for organisations will depend on understanding that distinction and building talent strategies that reflect it. Rising employment costs and ongoing regulatory pressures mean employers are scrutinising every hire more carefully, but those that get the right people in place will be best positioned to drive innovation and maintain customer confidence.”
Focus Sector Insights
Accounting & Finance
- Hiring activity in Accounting & Finance remains steady, with organisations focused on replacement hires, revenue generation and transformation-driven roles rather than headcount expansion.
- Demand is strongest for professionals who can support finance modernisation, regulatory compliance and strategic planning.
- Structural shift has seen the downsizing of London-based transactional and middle-office functions, with roles offshored to lower-cost locations.
- Most in-demand roles:
Fund Controllers (private credit and private equity)
Systems Accountants
Data-savvy Finance Business Partners
Interim Transformation Leads
Commercial Finance Managers
Banking & Financial Services (BFS)
- The BFS market is shifting towards hybrid roles that combine operational expertise with data, automation and risk capabilities, as firms navigate digital transformation.
- Middle office professionals who combine strong operational processes with skills in data, automation and risk controls are in demand with more career options.
- Decline in entry-level positions has created a gap in the mid-level talent pipeline, representing a growing risk for firms.
- Professionals who have adapted to technological shifts are capturing the better-paid, high-demand roles, while traditional operations roles that do not require tech-savvy capabilities are seeing modest, stagnant pay levels.
- Most in-demand roles:
- Post-Trade Operations Specialists
- Regulatory Reporting Specialists
- Specialised product support roles
- Fund / Asset Servicing Specialists
Legal, Risk & Compliance
- Demand in Legal, Risk & Compliance remains steady showing a positive recovery as organisations respond to increasing regulatory complexity and governance requirements.
- Candidates in compliance product advisory, compliance technology and niche areas of financial crime continue to be the strongest salary performers Professionals with these specialisms can still command increases of 15% or more when moving roles.
- The broader compliance market, however, is experiencing more tempered growth as firms leverage technology to manage headcount costs.
- Most in-demand roles:
- Commodities risk and quantitative risk
- Price Risk Specialist
- Operational risk and controls testing: first line
- Risk Analytics Quant for FRTB
Projects & Change
- Demand for transformation talent remains strong, particularly across digital, cloud and AI programmes. Contractors are increasingly utilised for time-bound transformation phases, while permanent hiring is focused on building smaller, high-value internal capabilities.
- Competition is intense for project talent. Organisations willing to pay a premium for niche capability are also more heavily invested in internal training, apprenticeships and upskilling existing staff.
- Most in-demand roles:
- Change Directors
- Programme Managers
- Hybrid Project Managers / Business Analysts
- Product Managers 5. Senior Business Analysts
- Optimisation / Operating Model Consultants
Technology
- Despite a challenging Technology market following the bursting of the post-pandemic hiring bubble, demand remains strong for critical technical skills in AI, cloud and cybersecurity.
- Employers are selective and more willing to negotiate on compensation.
- Organisations continue to treat technology investment as a strategic priority, and professionals at the intersection of technical capability and business delivery command a meaningful salary premium.
- Most in-demand roles:
- Software Developers
- Cybersecurity Specialists
- DevOps / DevSecOps Engineers
- Cloud Computing Specialists
- Data Analysts
- AI and Machine Learning Engineers
Outlook for 2026
The UK talent market is expected to see modest, steady growth over the coming year rather than a rapid rebound. The salary landscape will remain divided. Premium compensation will continue to follow niche technical and specialist skills particularly in AI, compliance technology, private capital and digital transformation while generalist roles face a more competitive and price-sensitive environment.
Employers will continue to balance cost pressures with the need to invest in critical capabilities. Rising employment costs and regulatory requirements mean every hire is subject to greater scrutiny, but organisations that take a strategic approach to talent. Those who combine targeted hiring with investment in skills, technology and internal development will be best placed to navigate ongoing uncertainty and capitalise on emerging opportunities.
The 2026 UK Salary Guide provides up-to-date salary data across a broad range of roles and sectors, helping employers benchmark compensation and giving professionals greater visibility into their earning potential. For the full Morgan McKinley UK 2026 Salary Guide, visit www.morganmckinley.com/uk/salary-guide.