Struggling to Hire?

What’s Really Going on in the In-House Legal Market

You may have heard it repeatedly in industry updates and the press: the legal job market is quiet, and opportunities are limited. On the face of it, that should mean that legal teams who are hiring should find it straightforward. If there are fewer options for lawyers, surely the financial services companies who are hiring should find many more candidates applying to each new role? Yet many HR teams and Heads of Legal are finding the opposite to be true. Lawyers aren’t moving. Vacancies remain unfilled for months, shortlists are thinner than expected, and the right candidates are frustratingly elusive.

The reality is more complex than headlines suggest. Lawyers are hearing that the market is tough and because this is the first time in a long time that it has tough for so long it is causing them to stay put rather than explore new roles. In uncertain times, staying put feels like the safer option. Stability, a familiar culture, and predictable income outweigh the perceived risk of moving. Even when an exciting opportunity does arise, candidates don’t want to make the jump without other options to consider. Instead of feeling grateful for an offer, they become hesitant, concerned that making the wrong move now could limit their options later.

There are always lawyers that need to move – if they are unhappy in their role, underpaid, made redundant. But those who are happy are just not tempted to even consider moving with so few options in the market and the rhetoric sounding less than positive. Those that do dip their toe in the water, find there is no big sell from hiring teams. With cost cutting and efficiency modes fully in play, there can often a lack of excitement about the organisation and a lack of career progression for the individual.

Salary expectations play a significant role. During the boom years before and just after the pandemic, lawyers often saw significant increases in pay when moving roles. That upward momentum has slowed, and in today’s market, offers are often closer to current salaries than candidates would like. Many lawyers are still anchored to the expectations set in busier times, so the financial incentive to move is no longer as compelling. This misalignment between expectation and reality can create additional hesitation. A recent Reuters report highlighted that UK employers are reporting weaker hiring plans and slower pay growth this year, reinforcing why many professionals are hesitant to move without a significant step up. Lawyers are therefore often close to offer stage before deciding to withdraw which can be very frustrating for hiring managers. Financial services companies demand the best talent but are struggling to attract them.

The issue is further complicated by the profile of many hiring organisations. Fintechs, start-ups, and businesses still working towards profitability may represent some of the most exciting opportunities, but they can also be perceived as risky. For lawyers weighing up a move, especially those with financial commitments or families, the perceived security of a large, well-established bank or asset manager can be difficult to match. Even where the work itself is engaging, questions around long-term stability can deter otherwise strong candidates.

Beyond pay and security, lawyers are increasingly weighing cultural and lifestyle factors. Work-life balance, hybrid or remote working, mental health support, and clarity around hours are now central considerations. If your hiring process feels overly drawn out (often the case in a tougher market), if communication is lacking, or if the impression is that flexibility will be minimal, candidates are quick to lose interest. In a market where fewer people are looking to move, even small frictions in the process can make a big difference.

It is also worth recognising that skill mismatches play a part. Many lawyers interested in moving in-house from private practice may not yet have the experience that financial services roles demand. Employers are more demanding in a harder market, often look for a blend of qualities that can be rare: private practice technical skills, commercial awareness, regulatory expertise, and in-house experience. When this list of requirements is paired with a cautious candidate pool, it is no surprise that hiring feels harder than ever.

So, where does that leave you if you need to build or strengthen your legal team? The good news is that you don’t need dozens of applications to succeed. You only need one great candidate. But to find and secure that individual, you need to adapt to the realities of today’s market. That means working with a specialist recruiter who knows the financial services legal landscape inside out, someone who understands how to reach passive candidates and present your opportunity in the right way. It also means running a smooth and efficient hiring process, being transparent about expectations, and communicating clearly what makes your role attractive.

Above all, it means recognising that candidates are weighing up more than just salary. They are looking for assurance about stability, clarity about career development, and a sense that their personal priorities, such as flexibility and work-life balance, will be respected. The organisations that make these points clear are the ones that win trust and ultimately hire successfully.

At Fry & Brown, we specialise in helping financial services businesses navigate these challenges. We understand the cautious mindset of today’s legal candidates, and we know how to connect you with the right people. If you are finding it more difficult to hire than you expected, get in touch with us to discuss how we can help you secure the talent your team needs.

Oct 2025