Legal?Job?Market?Update

As we approach the end of 2023, we look back on what has been a turbulent year for the?legal industry. Following the knee-jerk reactions that many firms took to the changing demands imposed upon us by the pandemic, followed by record increases in inflation and the cost of living, lawyers have been re-evaluating their priorities while law firms have been assessing their long-term strategic objectives.

Although the general election next year could create uncertainty, at the moment, the economy is looking relatively stable, and we are seeing firms seeking to recruit high-quality?legal?talent, rather than quantity. These firms are prepared to pay a premium for this talent and offer a range of soft benefits to reinforce their overall employer value proposition.

Matching skills to fit

Firms are looking not only for highly skilled candidates for their vacancies, but also those who will best match their culture, whose values align with the firm's strategic objectives and whose complementary soft skills and technological abilities will strengthen the workforce. A great deal of effort is being expended in the hiring process to ensure that matches are successful.?

Enhanced employer value proposition

To compensate for the increased scrutiny at the hiring stage, employers are offering a more attractive range of benefits than has typically been the case. Recognising that fulfilment is often as important as salary, employers are increasingly offering hybrid working arrangements, well-being packages, enhanced reward packages and a suite of learning and development opportunities to attempt to secure the top talent for the long term.

Growth areas

The areas that have experienced greatest growth this year have been in renewable energy, leisure, biotechnology and media and entertainment, although firms have increasingly been seeking out lawyers with expertise and experience in the fields of data privacy, regulatory compliance and risk management.?

This is likely due to the increased reliance on?legal?tech and AI and the need to prepare for any new regulatory requirements which may be imposed in the future as the technology becomes more embedded into everyday life.

2023?legal?salaries

Firms are being less and less transparent on pay deals as they attempt to reduce poaching of top talent by competitors and navigate in-house cost efficiency drives. Sacco Mann's?Legal?Salary Survey 2022/23 provides useful insight into cost bands across a range of firm types and industries, noting the usual differences that are to be expected based on location and PQE level.

Matching services to expectations

As clients recover from high interest rates and adapt to the intricacies of conducting international business post-Brexit, law firms wishing to retain high calibre clients and attract new ones must adapt their services to deliver against client requirements.

For many, this is a reduced cost and a more comprehensive service. Many firms are managing to achieve this goal by bringing generalist lawyers onto their books, introducing AI technology to automate many menial functions such as document routing and contract drafting, and increasing focus on building client relationships so that lawyers function not only as?legal?advisors but as valued business partners.?

In a report by Thomson Reuters, it has been suggested that 35% of UK businesses will increase their?legal?spend in the coming year while 26% will see a decrease in?legal?costs. This indicates that law firms whose clients value their input could be in for impressive profits next year.

Priorities

As pressure to achieve governmental environmental sustainability targets continues to increase, law firms with strong ESG credentials and who have proven their ability to bolster the ESG reputation of their clients will continue to experience growth.?

In conclusion, whilst clients are always seeking cost-cutting measures, you should never underestimate the value placed on building strong business relationships based on mutual trust, expertise and business acumen.

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