In an increasingly complex and fast-paced legal market, law firms are evolving rapidly to keep pace with shifting client demands, regulatory challenges, and new technologies. The latest insights from the HSBC x Burlington Media Law Firm Strategy and Investment Survey 2024-5 reveal that the legal sector’s expansion strategy is no longer centred on domestic growth alone. Instead, firms are going global with more ambition than ever before, while grappling with the dual challenges of securing top talent and leveraging emerging technologies such as AI to enhance operational efficiency.
Despite economic uncertainty and geopolitical challenges, law firms are demonstrating a remarkable level of optimism for the year ahead. An overwhelming 84% of firms are confident in their growth prospects for 2024, with a particular focus on international expansion. The UK remains a key market, but international offices, particularly in Europe, North America and the Middle East, have gained importance as firms look beyond domestic borders.
Firms generating over £100m in revenue are particularly bullish, with 43% aiming to expand domestically and 13% of UK-only firms planning to establish an international footprint – more than double the percentage from 2023.
For law firms, the key to successful expansion is more than just opening new offices: it requires careful integration of global teams, cross-border expertise, and a deep understanding of the markets they operate in. For legal recruitment, this global push means a rising demand for legal professionals with international experience, cultural fluency, and cross-border expertise.
As firms expand, the competition for legal talent is fiercer than ever. Lateral hiring is seen as one of the main growth levers, with 92% of law firms planning to recruit laterally in the coming year. Almost half expect mergers or acquisitions to play a role in their growth trajectory as well.
Thanks to this surge in lateral hiring, talent retention has emerged as a critical issue. With salaries for junior lawyers also soaring, particularly in key markets like the UK and the US, the pressure to offer competitive packages is encouraging firms to look beyond traditional salary incentives and increasingly focus on creating environments that foster growth, professional development and flexibility.
Firms that adapt to this evolving talent landscape, offering a blend of competitive remuneration, clear career progression and a commitment to well-being, will likely come out on top in the battle for the best legal professionals.
If international growth and talent are two pillars of modern law firm strategy that emerge from the report, the third is technology. The rapid pace of technological innovation, particularly in high-profile AI, is reshaping the way law firms operate. 82% of firms have increased their tech spending in 2024, with many seeing AI as a game- changer in terms of document review, due diligence and even decision-making processes. The integration of AI tools is no longer a ‘nice-to-have’, but a strategic necessity for law firms looking to remain competitive in a fast-evolving landscape.
Technological transformation brings its own set of challenges, with lawyers increasingly being called on to navigate the delicate balance between leveraging AI to improve efficiency and maintaining the human touch that clients expect. This shift also creates new pressures in terms of talent, as demand for expertise in legal technology and data privacy grows.
Sustainable success
More than half of the law firms surveyed have established an independent ESG committee to guide their actions on environmental and social governance, with 61% implementing KPIs to track progress on their ESG goals, up from 48% in 2023.
This growing focus on ESG reflects both client demand and internal efforts to align business operations with sustainability and social responsibility goals. As ESG initiatives become increasingly integrated into firms’ strategies, the ability to deliver on these targets is likely to influence client relationships and long-term growth. Firms should focus on attracting diverse talent that aligns with and can support on these social and environmental goals, both internally and with clients.
As the legal industry evolves, our team at SSQ is uniquely positioned to support firms in finding the right talent to drive growth, leverage technology and build successful global operations. Whether you are expanding your team or seeking top talent with international and tech expertise, we’re here to help you stay ahead of the curve.
Contact us to discuss how we can support your recruitment needs across markets, practice areas and geographies.
