Hiring activity has improved modestly at investment firms, retail brokerages, commercial banks, private equity firms and hedge funds.

Large investment banks are rebuilding their workforces in select specialties, while boutique firms and foreign banks are expanding their presence through new hires. In demand are professionals with advanced credentials, such as a master's degree in business administration (MBA) and the chartered financial analyst (CFA) accreditation.

Trading positions in fixed income and equities are among those being added. Demand also is rising for positions related to managing credit and operational risks, due diligence, mergers and acquisitions, foreign exchange, compliance, and operations.

The brokerage and wealth-management sectors are hiring candidates who have the combination of financial acumen and soft skills needed to advise individual clients on retirement and wealth-management strategies. Firms are once again focused on capturing a greater share of the aging baby boomer market as well.

The implementation of the Dodd-Frank Act is another factor fueling hiring in some areas. Banks, financial institutions and regulatory agencies such as the U.S. Securities and Exchange Commission and Federal Deposit Insurance Corporation seek financial professionals with expertise in areas such as derivatives, hedge funds, data analytics and credit ratings.

Compensation in the financial services sector has begun to rebound, but pay for many positions has yet to return to pre-recession levels. Investment firms are putting more emphasis on base compensation and moving away from large annual cash bonuses. Many believe these incentives may have encouraged practices that focused more on short-term gains than long-term stability.