Hiring activity has gradually improved throughout the financial sector at investment firms, retail brokerages, commercial banks and hedge funds. Here too, retention concerns also are on the rise, as opportunities expand and the most skilled professionals begin to weigh other options.

In high demand are professionals with advanced credentials including the chartered financial analyst (CFA) accreditation, master's degree in business administration (MBA) and specialized degrees in areas such as statistics and mathematics. These candidates are needed to fill positions such as derivatives operations analyst, hedge fund accountant and investment analyst. Other frequently requested designations are the Canadian Investment Manager (CIM) and Canadian Securities Course (CSC).

Regulatory pressures to improve internal controls are fueling demand for professionals with expertise in this area. Individuals with anti-fraud and anti-money laundering backgrounds are especially sought-after. Additionally, compliance and risk are two areas of financial services that are adding professionals given increased focus in these areas.

An improving business outlook has spurred financial services firms to move forward with large-scale projects and launch new products and initiatives. This has created renewed demand for financial and business analysts, project managers and individuals with process improvement experience. Some firms are turning to project consultants to provide the additional expertise needed to support these initiatives.

Compensation in the financial services sector has begun to rebound, but salaries for many positions have yet to return to pre-recession levels. Some professionals are starting to see healthy bonuses again, suggesting that firms may be realizing the need to improve compensation to compete for the best candidates in a tightening talent market.