As transaction timelines have lengthened, with many now stretching from six to nine months or longer, investment banks are under increasing pressure to make each hire count. Cost consciousness remains high, and the imperative for hires to add directly to the bottom line has never been stronger. In such an environment, risk appetite around recruitment decisions has tightened considerably.

In our conversations with senior management across the market, two distinct hiring approaches have emerged:

1. Strategic Precision: Waiting for the Perfect Fit

Many banks are taking a proactive but highly selective approach to hiring i.e. going to market with a clear brief, looking for the ideal candidate to surface. This strategy reflects a desire for control and certainty, but it comes with challenges.

While a clear brief can help sharpen the search, the current supply of high-calibre candidates is limited. The best individuals remain deeply embedded in high quality mandates, well looked after by their firms, and are not easily dislodged. Below this top layer, the gap in experience can be stark, particularly given the lower deal velocity of recent years and the resulting lack of repeated execution experience in the mid-ranks.

For firms pursuing this route, a well-executed process is essential. Delays between interview rounds, a lack of internal alignment on the brief, or unclear positioning in the market can cause good candidates to lose interest or be picked up elsewhere. The firms seeing the best outcomes here are those running tightly managed, decisive processes with full internal alignment from the outset, clear briefings ahead of interviews, and transparency around competing opportunities.

2. Opportunistic Hiring: Acting When the Stars Align

The second approach is more passive, and involves opportunistically engaging with strong candidates as and when they surface. This strategy often requires less time up front but depends heavily on market dislocation or personal push factors to create momentum.

In some cases, this has yielded strong results - HSBC’s recent advisory restructuring, for example, has created opportunities to secure high-quality talent with ready-made experience and client relationships. However, firms pursuing this approach must be prepared to move quickly when the opportunity arises. The window to act is often narrow, and waiting for full market coverage or internal consensus can mean missing out entirely.

In either case, success relies not just on timing, but on preparation and execution.

The Role of the Headhunter: More Than Just Introductions

In this environment, headhunters play a critical role beyond simply providing CVs. Comprehensive discovery phases, which include mapping, sourcing, and referencing help bring visibility to a wider candidate universe and provide early insight into who may move and under what conditions. Equally important is having a single point of communication throughout the process to maintain momentum and control messaging.

We continue to believe that disciplined processes, early engagement, and clear communication remain the key ingredients to successful hiring, particularly in markets where talent is scarce, and the margin for error is small.

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