As we approach the final quarter of 2024, we share an overview of the current ‘State of the Market’ across all business services functions.
Recruitment in professional services remains buoyant across all business services sectors. The need for data expertise is pervasive across all functions, with our consultants also seeing a continued focus on ESG and sustainability roles. Here, firms are widening the remit of hires to take an aspects that sit in ‘corporate purpose’, such as diversity and inclusion and health and wellbeing.
The war for talent is seeing many firms compete in the same talent pools for hires. This means that a well-articulated brand message is key – and as such, we are increasingly seeing Chief Communications roles sitting aside from Business Development and reporting directly to CEO/Managing Partner level.
We have seen a decrease in senior innovation and change roles, with innovation now seemingly being absorbed into existing functions. Similarly, our team are seeing fewer big ticket transformation roles, with firms focusing more on change and individual projects.
Finally, at the chief/director end of the market, positions are starting to reappear in most sectors after a quiet period, although less so in finance. As ever, technology roles are in high demand, with firms particularly focused on building out data teams.
Ross Mackenzie, Head of Practice, Technology
We are seeing firms recruiting heavily for data positions, with titles like head of data, data lead and data manager. The remit of these roles is often building out a data function from scratch, which makes sense given the drive towards artificial intelligence and the requirement of good data for this to be beneficial. If firms are not building their data teams or creating new ones, we have had several conversations around the need to do this in the past few months.
Secondly, security remains a top priority for firms. Whether this is expanding existing teams, or as smaller firms scale up, recognising the urgent need for a Chief Information Security Officer or a Head of Security, the importance of security is only going to grow.
Additionally, we have also seen an increase in iManage Cloud-based roles as firms continue to move from on premise to cloud-based DMS platforms. This couples will a decline in specialist Microsoft365 roles, as many firms have now built out these functions and have the required skillset within their teams.
Business Development & Marketing
Joanna Milne, Head of Practice, Business Development and Marketing
We’re seeing more recruitment in data, research and analysis type roles, with more sales led business development roles also coming to the fore.
Business development roles remain the highest priority for firms. There are two key pockets where there seems to be a continuous influx of roles – that is in private equity/wealth and in litigation. Both of these are quite understandable given the economy and the market.
In terms of the type of business development firms are looking at, there has definitely been an emphasis on proactive rather than reactive recruitment and we’ve been seeing more and more firms looking to hire sales and revenue oriented positions.
Martyn Draper, Director and Head of Practice, Finance
The last month has seen an increase in demand for roles in revenue control, finance business partners and tax. With overhead costs increasing, cashflow is even more key and unlocking revenue sitting in WIP is a great way to keep the coffers remaining as full as possible. Revenue Controllers are employed to do just this.
Firms are also feeling more pressure to be as commercially savvy as possible, whether that is coming from clients wanting a more competitive price, the growth in lawyer salaries meaning they need to be as fully utilised as possible, or the slowdown in client work available. This means firms need to work smarter and more efficiently.
In all these instances, divisional Finance Business Partners can help fee earning team leaders navigate how to run their practices as efficiently as possible. Recently tax in partnerships has come under focus, with the period basis reforms being a hot topic. As a result having internal partnership tax specialists has become ever more important in law firms.
This period has also seen a drop off in firms looking for CFOs and FDs, possibly a result of a particularly busy couple of years of recruitment in this area, but this is likely to be a short-term trend over the summer.
Laura McNair, Director and Head of Practice, People and Operations
We have seen less demand at the senior end of the market recently, although those firms that are looking to recruit almost always have a desire for change, both in terms of the role and what is required, but also the skillset of applicant from previous incumbent.
The People function is now more strategic and commercial than ever and is increasingly given a seat on the Board. Firms typically seek HR professionals who possess a blend of specialised skills and competencies that align with the unique demands of the legal industry.
At the junior and mid-level we have seen an increase in Advisory level roles across a few areas including generalist HR, L&D, Reward and Recruitment, with several being newly created to build out existing teams. Competition does remain high for candidates at this level who already have experience gained within the legal sector, or the wider professional services sector.
Hannah Leon Soon, Consultant, HR Practice
The responsible business space is still growing and more firms are looking at bringing in Head roles to manage the structure and strategy around their offering in all areas of ESG.
We have also seen an increase in firms building up their Responsible Business teams with new ESG roles such as Analysts, Reporting [reporting is not a level so this and Coordinators. Some firms we are working with are looking at creating new roles such as Pro Bono Manager, as this is an ever demanding focus for law firms.
Briony Jenkins, Consultant, HR Practice
We have seen an increased demand for strategic roles such as Business Managers and experienced Legal Project Managers with technology, client demands and regulatory changes continuing to drive these requirements.
These opportunities tend to be at the more senior end, but we are also seeing Legal Operations teams growing as a function. The market remains competitive within this area, with many firms requiring previous experience within the legal sector for these opportunities.
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