It seems like we have the worst of COVID behind us (fingers crossed), but there is still an air of uncertainty in the market. Some of it stems from return-to-work decisions faced by law firms and companies, but this is also true of non-legal businesses. It seems like the larger firms and companies are going to a hybrid model where people can work from home or the office, although some require at least a few days in the office. Feedback that we have received from attorneys has varied as well. Most would prefer the option to work from home, but also like to know they have an office when desired.
The market for attorneys has remained robust but has shifted to new practices areas. Last year was all about the M&A associate. Firms from this market and others were targeting M&A associates like never before. The demand led to significant pay raises and often increased billable hours requirements. Although interest remains for M&A, it’s at a slightly more senior level. The real push has been for commercial real estate and finance attorneys. While demand is up in these two practice areas, the supply is really limited in this market, which has made it extremely competitive.
Because increased compensation in the law firm market, companies are struggling to compete for attorneys who might consider a move in-house. Historically, private practice attorneys do not expect big financial gains when making the move in-house but would prefer not to take a step back either. Companies now must bridge the gap, which might add another $25-50K to what they were paying a few years ago. Needless the say, it’s been a bitter pill to swallow for companies, but they really have no choice if they want to continue to attract top talent.