There is no doubt that 2020 hit the legal recruitment market harder and more deeply than the Global Financial Crisis of 2009. Contingent recruiters, in particular, found that there were very few vacancies to fire CVs at and even at the executive search level, there was a dearth of new mandates leaving key strategic roles and legacy placements as the sole remaining sources of revenue.
Whenever there is a market shock, people tend to hunker down and rather than seek alternate employment, will stay where they are; preferring the devil they know and fearing the risk of being last in first out. The reality is that law firms are extraordinarily resilient and adaptable, and this is born out by the very strong financial results that most firms have delivered over the years. Equally, firms are not reckless in their hiring – they do not issue new roles without a great deal of thought about the internal need, client demand and the long-term prospects of the person placed in the role.
The cost of a failed hire is substantial. The management time of gaining sign off for a hire, the administrative and partner time invested in interviews and several months salary while getting them up to speed is all lost if the person then leaves in six months’ time – for a mid-level associate, the cash loss is something in excess of £100,000.
April 2021 has seen a volume of instructions come onto the market at a rate I have not seen in well over a decade. These roles have priced in any Covid effect and they need to be filled. We are a search firm and often find that we are instructed on critical roles when the contingent market has been unable to find a solution. At present, we are seeing a regular influx of retained partner searches and a substantially increased demand for M & A support as firms seek to add capability and gain market share through the acquisition of teams and boutiques.
While 2020 was one of the quietest years in the legal search market, it already seems clear that 2021 will be one of the busiest!
