Motus Recruitment Insights

It’s a promising time if you are a lawyer considering a career move. 

Throughout the course of 2024, many law firms have reported double digit revenue and profit growth. The hunger by firms to increase in size through acquisition, merger or organic growth is as strong as ever which opens up exciting career opportunities for those lawyers looking for progression, improved remuneration, a new work environment or simply a fresh challenge.

So, what factors shape the supply and demand dynamics in the legal recruitment market? From economic and regulatory shifts to technological advancements and changing work preferences these factors all have a part to play. 

Here’s our breakdown of the key ones: 

1. Economic Conditions – economic growth tends to lead to an increase in transactions, litigation and other legal work, which in turn drives recruitment demand. Currently we are seeing a demand for lawyers in areas such as private wealth, real estate, employment, litigation, corporate tax and pensions. The forthcoming October budget will no doubt have a knock-on effect in some way, good or bad! 
    
2. Increased Focus on In-House Counsel – many businesses and large corporates are growing their in-house legal teams to reduce reliance on using external law firms. This shift has created demand for lawyers who can manage corporate legal issues internally, typically contract negotiations, compliance and regulatory matters
    
3. Remote Working and Flexible Working Trends – the pandemic truly changed the way many of us now work. Those firms that continue to offer hybrid, remote and/or flexible working are able to attract top talent from a wider geographical pool, especially as lawyers look for a better work-life balance
    
4. Salary Inflation and Competition for Talent – the last few years has seen intense competition for top talent with firms offering higher salaries and bonuses. Although the rate of increase appears to have slowed, we are still seeing joining bonuses and guarantees being offered. 
   
   Clearly this creates financial strain for some firms, thus limiting their ability to secure the best talent. Additionally, the large London-based UK and US firms who dominate the market with higher remuneration packages, create regional disparities in recruitment
    
5. Diversity and Inclusion Initiatives – there is increasing pressure on firms to improve D&I within their recruitment practices. Both clients and regulators are increasingly focusing on how well firms reflect diverse backgrounds which is having a direct influence on hiring policies 
    
6. Technology and Automation – the rise of legal technology is reshaping the skills needed by lawyers. Those who are tech-savvy and able to leverage the ever-increasing range of tech tools have a competitive edge
    
7. Regulatory Changes - areas such as data protection, employment law and financial services continue to influence demand for lawyers with specialised knowledge. Brexit created a need for lawyers with expertise in trade, immigration, and regulatory law, while also impacting the movement of talent across the UK and EU
    
8. International Competition and Globalisation – competition from firms in other jurisdictions affects the ability of UK firms to recruit internationally or expand their geographical footprint
    
9. Specialised Areas of Growth – demand for lawyers is often driven by high-growth sectors such as technology law, intellectual property and compliance. Lawyers with such specialist can knowledge typically command higher salaries
    
10.  Legal Education and Training – shifts in the legal education and qualification pathways, such as the SQE, have affected how some firms approach their recruitment. Apprenticeships are proving popular and more common, and are likely to reshape the future recruitment landscape at the junior level
     
11.  Corporate and Environmental Social Responsibility – increasing focus on ESG compliance has boosted demand for legal experts in sustainability, corporate governance, and ethical practices. This is especially so among firms advising companies on ESG policies and reporting requirements
     
12.  Regions vs London Markets - the dominance of London in the legal market creates a competitive environment, but regional firms can offer something different. Pay might be lower in return for a better work-life balance. 

Collectively, the above factors influence both hiring strategies and the opportunities available to lawyers. The good news is that we are seeing a significant demand for lawyers, both in London, regionally and in-house.

If you are thinking of a move and want to better understand the legal recruitment market and the opportunities you might have, please email enquiries@motusrecuitment.com