Since the country voted to leave the European Union back in June 2016, businesses have had to adapt to the new market conditions.
In the legal sector, it’s the type of recruitment that’s seen the biggest change, with less focus on transactional hiring and more on regulatory and financial services, crossing over with domestic employment and tax law. The deal flow in corporate and general finance remains busy in pockets, however, it is noticeably slower than previous years. And while statistically, firms are busier than ever, private practice law firm recruitment has slowed recently.
It’s very difficult to keep up with what’s going on, so here’s a snapshot of how the market is looking from a recruitment perspective, and how law firms are reacting to the changing market conditions.
Strategic recruitment and domestic lateral moves
Despite market uncertainties, law firm recruitment strategies remain in place, and the majority of firms are taking a “business as usual” approach. Some of London’s largest commercial law firms are still in growth mode, especially when it comes to the global push. This includes lateral hires of both Associate and Partner levels.
From a recruitment viewpoint, we’ve found the market to be moving quicker in certain areas, such as regulatory, financial services, employment and tax. As expected, there’s been a slow-down in transactional practice areas, due to investors putting plans on hold for large-scale deals in the UK, with financial market uncertainty as the key factor.
London and overseas workflow
Global commercial law firms that work out of London remain busy at the moment, especially those dealing with the US, Middle East and Asia, as well as “emerging economies”. But companies with a domestic- and European-centric focus are more negatively impacted.
In the short-term, some pockets of investment within the UK will continue. Law firm clients are generating large advisory mandates and exploring opportunities for major acquisitions, due to the latest FX rates being favourable to overseas investors. The deal between Softbank and ARM is a prime example. Longer term, we will know more details as we get closer to January 2021 when I’ll post an updated review. Watch this space!
Market Information
Legal websites have been advising that law firms should “put growth roles on hold” and “have a salary freeze in place”. In reality, only a handful of law firms in the City have done this. And these companies were already reviewing hiring needs and salaries before the referendum.
For further advice speak with a trusted recruitment professional who will be able to give an overview of the market, not just a glimpse from one individual firm.
Brexit – An Excuse?
In some circumstances Brexit has been the perfect excuse for delays, anything from slow responses after introductions to recruitment being put on hold halfway through the process. It’s important for law firms to be transparent when dealing with new hires and advising their preferred agencies.
Overall there is a sense of positivity in the recruitment market. The major law firms are busier since the vote, and this has filtered through to vacancies in new areas and new hiring strategies. Law firms have taken the opportunity to strengthen with senior level hires, especially salaried/equity partner and legal director level.
For more information, please contact me – I would be happy to help. I’m an experienced technical headhunter with legal and financial services experience from both agency and in-house environments.