In-House Legal US Market Trends 2024
2023 MARKET REVIEW
Large financial institutions conducted an exceptional amount of hiring in 2022, however, they started to take a more modest and cautious approach towards the back end of 2022 impacting growth plans in 2023.
Major plans to increase headcount were put on pause in 2023 and companies found themselves recruiting replacement roles due to the “war on talent” and salary transparency regulations in many states in the US as employees sought higher salaries elsewhere. Many Financial Services businesses had to recalibrate their salary benchmarking schedules, as they hired Attorneys on higher salaries than existing employees, in turn encouraging those employees to seek higher salaries in new roles creating a circular trend and increased hiring across the board.
The year unfolded against a backdrop of financial declines, geopolitical unrest, and a global economic downturn, creating challenges for leaders of Law Firms and In-House hiring managers. The return to the office, ongoing talent retention issues, and market segmentation added complexity, setting the stage for an organic reset in 2024.
Despite a cautious approach, specific skill sets, such as banking, derivatives, and insurance expertise, remained in high demand, particularly at the junior to mid-level. Companies sought candidates with BigLaw training, emphasizing a “plug & play” approach for a cost-friendly budget.
LOOKING AHEAD TO 2024
Anticipating that hiring may not match the levels seen in 2022, the Legal landscape is expected to exceed pre-pandemic levels. Replacement hiring, driven by increased salaries from job moves, will play a significant role. A more substantial growth and hiring surge in 2024 is expected as Financial Services businesses embrace a less cautious hiring approach and aim to reduce outsourced Legal spend.
With the shift to an insourced model and rising Law Firm charge-out rates, the demand for In-House Lawyers will sustain in 2024. Skills in Intellectual Property (IP) and data privacy, particularly in highly regulated industries, will command multiple offers in a highly competitive market.
2024 LEGAL SKILLS IN DEMAND
- Banking / Finance Regulatory: New regulations in corporate governance, capital liquidity, and AI (Artificial Intelligence) will drive demand for Regulatory Attorneys in Financial Services.
- Funds: Despite a downturn in Mergers and Acquisitions (M&A), Investment Funds practices remain competitive, especially in the resilient US equities market.
- Commercial Law: Commercial Contracts / Corporate Generalist Lawyers will experience steady growth in 2024 as In-House teams bring work back In-House.
- Corporate M&A / Private Equity: A revival in hiring is expected in corporate transactional sectors, with optimism for increased Attorney recruitment.
- Restructuring & Insolvency: Turbulent economic and political events create continued demand for restructuring and insolvency Lawyers across all sectors.
- Insurance: Insurance, including financial and cybercrime, remains a hot area, driven by the ongoing threat to businesses.
- Technology: The rapid development of technology sustains demand for Lawyers with key skills in privacy issues, security breaches, and tech advancement.
- FinTech & Payments: Despite challenges, FinTech and Blockchain Lawyers remain in demand, navigating Legal complexities surrounding digital currencies and smart contracts.
2024 LEGAL COMPENSATION TRENDS
Entering 2024, BigLaw remuneration will continue to pressure businesses to increase base compensation and bonuses.
While parity with Private Practice may be unattainable, start-ups will enjoy flexibility in hiring, particularly at the junior to mid-level. The appeal lies in the agility of these businesses and potential accelerated career progression.
Securing top talent will depend on equity or long-term incentives, potentially slowing the pace of base salary growth in certain sectors.
For more information on our US In-House Legal Market & Compensation report, the hiring market or career opportunities, please contact Aleea Cherry.
Aleea Cherry
Associate Director, US In-House Legal
T: +(1) 212 600 4903 E: acherry@danosassociates.com
