The legal recruitment market has undergone significant changes throughout 2024, driven by a new political landscape, technological advancements and changing work preferences. At Chadwick Nott we have had a busy year with some areas of the business doing extremely well while others have had a bit more of a bumpy ride, which seems to be typical of the sector and may well continue in 2025. This blog explores the key trends we’ve witnessed as well as some of the external factors that have affected the legal recruitment market.
Competition at the top
The competition for the top talent within the US and top city firms has intensified, with the salary increases continuing unabated. Leading the charge are firms like Paul Weiss who have invested heavily in their London office, hiring over 70 lawyers in London in 2024. The Magic Circle firms have closed the salary gap with the US firms by putting NQ pay rates up to £150k, which has caused many firms City firms to increase salaries across the board. As well as competitive compensation packages, many law firms are considering what they offer in terms of progression opportunities and development. We have seen many lawyers accepting counter offers with promises of significant salary increases and promotion promises this year. Flexibility and well-being are also high on the agenda, firms are conscious of the importance of providing a supportive and rewarding work environment to retain staff. My colleague Briony Barber-Wood recently wrote an excellent blog about some of the things our clients are offering to support the mental wellbeing of their staff, here’s a link Are law firms prioritising the mental health of lawyers?
Practice areas in demand
We saw an uplift in demand in corporate and real estate in the second half of the year which bodes well for 2025. The new government’s plan to build 1.5 million homes will have an impact across the construction and property sector, in commercial, development and residential. Stricter environmental regulation requires many businesses to view all their decisions through a sustainability lens, which drives the need for more environmental, sustainability and governance (ESG) law specialists. Planning and renewables lawyers are also currently sought after.
The government is also driving through changes in employment law which has already resulted in increased demand for employment lawyers this year, and I expect that to continue in 2025. Similarly, the changes in the UK’s relationship with Europe, along with an uplift in competition litigation matters, as countries attempt to reign in the powers of tech giants and other emerging industries, has continued to drive demand for competition lawyers.
The new budget’s tax adjustments targeting high earners and corporations are expected to drive up demand for lawyers specialising in tax law, wealth management, and estate planning. This heightened demand may lead firms to adopt targeted recruitment strategies, including lateral hires and offering enhanced package including sign-on bonuses to secure top talent.
Demand for inhouse lawyers also continues to grow as organisations seek to reduce their legal spend. Major players across financial services, energy and technology have all significantly strengthened their legal teams this year. Many companies are also leveraging the gig economy to hire locum lawyers for specific projects or to cover busy periods. The quality of lawyers interested in this type of work has never been higher.
Technological advancements
In 2024, AI and automation have become integral to many areas of business and the Legal and recruitment sectors are no different. Many high-volume recruitment markets are using AI-driven algorithms to analyse CVs and applications. This technology makes it easier to identify and contact potential candidates but does lead to some candidates being contacted multiple times for the same opportunity. We find that our candidates and clients still benefit from discussing their options with one of our recruitment experts. Face to face meetings are happening less with digital platforms, virtual job fairs, online recruitment updates and briefings all commonly used by clients across our sectors.
Hybrid, remote and flexible work
Hybrid working has remained commonplace since the pandemic, with most legal professionals enjoying a mix of in-office and remote work. During the last year we have seen a gradual creep towards getting staff back into the office with some law firms, and while many lawyers are comfortable with their arrangements, this has resulted in firms missing out on many high-quality candidates who are simply not prepared to go back to a 5 or even 4 day a week office model. This flexibility has improved work-life balance and job satisfaction, making it a key factor in attracting diverse talent. This has no doubt contributed to the success of some of the platform firms, Setfords and Taylor Rose having hired around 170 lawyers between them this year.
Diversity and inclusion
Diversity, equity, and inclusion (DEI) initiatives have taken centre stage in the legal sector. Law firms are prioritising these efforts to build more inclusive teams and enhance their employer branding. This focus on DEI is seen as a strategic advantage in a competitive market, and we have seen candidates decline offers because the firm seems to lack diversity.
Chadwick Nott in 2025
I am lucky to have such a fantastic team of experienced legal recruiters at Chadwick Nott who are experts in their fields. I am really pleased to welcome two new additions in the second half of the year, Luqmaan Ayaz has joined our Midlands team with a very strong track record of recruiting lawyers in that area, and Morris Goodman has brought a lot of experience of recruiting senior lawyers to further strengthen our London team. I am very excited that we have a new addition joining in January to drive our in-house recruitment following.
I would like to thank all the clients and candidates we have worked with in 2024, and we look forward to helping you achieve your goals in 2025 and beyond.
Charlie Compton
(m) 07500 124845
(e) Charliecompton@chadwicknott.co.uk
