Legal sector needs rapid tech revolution to win over young talent

Kim Bower

The sixth annual salary guide into Scotland’s legal and financial service sectors from Core-Asset Consulting is a review of current salary levels and a guide to the major issues that professionals need to be aware of.

Kim Bower, specialist in legal recruitment at Core-Asset, said: “Shifts in both working practice and the operation of the justice sector means legal firms need to be realistic about the scale of the challenges facing their sector and the speed of technological change required.

“Covid has accelerated changing attitudes to the importance of good mental health and home working. Creating an effective work life balance will be increasingly important for legal firms and their employees. 

“Flexible and remote working is likely to become the norm rather than the exception; the way that advice is given, clients are advised and cases are managed will need to continue to adapt.

“But the speed of technological change and innovation in the legal services market needs to pick up pace. Scottish legal firms still have ground to make up before they can claim to have fully revolutionised caseload management and workflow through the use of technology.”

The report points out that Covid had a sharp and sudden impact on the legal sector, as transactions halted, business was suspended, the property market all but came to a stop and commercial and private client work was cancelled or postponed.

However, even before the pandemic, the profitability of legal firms in Scotland was lower than the rest of the UK and those financial pressures drove a number of global law firms merge with well-established Scottish practices – another factor driving the tech revolution.

Ms Bower added: “One of the key platforms for merger success is technology. IT integration can dictate merger timetables. The smooth and functional importance of operating platforms, workflow management, document creation and billing systems are all critical components.”

According to the salary guide, increased technological advancements will create new roles and lucrative opportunities in the legal sector, highlighting the importance of lawyers in identifying and reporting on money laundering, fraud, cyber security, compliance and business ethics.

The main challenge for private practice firms is talent retention. Ambitious lawyers will continue to move firms for good opportunities, but Ms Bower said: “To attract the best talent firms have to differentiate themselves by offering flexibility, access to cutting edge technology and clear outlines on progression.”

Core-Asset also predicts the percentage of the profession made up of in-house lawyers, both public and private, will grow. This reflects the changing requirements of companies and organisations on legal representation and reporting.

Despite strong female representation in the sector, the progression of women to more senior roles remains a challenge. Female solicitors represent around 30 per cent of partnership positions, while the sector suffers a 20 per cent gender pay gap.

Overall, the report predicts the legal sector will bounce back quickly from the pandemic, as more opportunities emerge from the crisis. Covid’s impact in hospitality, retail, tourism and the services sectors, will result in increased demand for skill sets in corporate restructuring, insolvency, litigation and family law.