Strategic sector insights for the legal profession in 2025: mid-sized firms
Key areas of focus identified by firms for the next 12 months include:
- growth
- talent retention
- succession planning
- technological advancement
- geographic expansion
The research compares financial data, as well as deepening understanding of firms’ technological, environmental and social development goals.
Threats and opportunities
The main threats identified by mid-sized firms include recruitment challenges, rising costs, the economy, and increased regulation and compliance.
Growth plans
Nearly half of firms (49.3%) identified an opportunity to increase market share, particularly in relation to sector or service line specialisms. Areas with potential for growth include:
- private client matters
- litigation
- property – particularly commercial real estate
- family law
People
Lack of appropriate staff was identified as a major threat by mid-sized firms. Retaining talented staff is seen as a strategic priority to address this.
The key reasons identified for people leaving firms were:
- better pay elsewhere
- relocating
- lack of progression
- additional benefits elsewhere
- workload
Financials
For chargeable hours, the most common range was 20 to 25 hours per week.
For a typical 40-hour week, the average fee earner is achieving 50% to 63% chargeable time, which may be considered low.
This could represent a missed opportunity to increase chargeable hours, ultimately boosting turnover and supporting firms’ growth strategies.
Technology
Technology presents an opportunity for firms to drive efficiency.
However, it also poses a threat to firms that are not up to date with technological advances.
Firms are approaching artificial intelligence (AI) with caution, as the benefits and drawbacks are not fully understood.
Many prefer to wait for more evidence before investing in AI, noting that automation will have a bigger impact.
Premises
The most common working pattern was three to four days per week in the office (71.9% of mid-sized firms sampled).
There is a clear change in hybrid working policy as firms increase in size:
Expansion is a common theme, with 80% of firms looking to open a new office or expand their space.
ESG considerations
The survey generated a wide variety of responses in relation to firms’ attitudes towards – and progress with – environmental, social and governance (ESG) issues.
Regional and national law firms are very aware of equality, diversity and inclusion (EDI) issues and adopting appropriate policies.
On environmental matters, there is some momentum, with a large minority of firms reporting considerable progress.
Responses indicate ESG actions are now considered more important in the recruitment process, with a risk to the reputation of firms that get left behind.