Business & Professional Services
Recruitment Dynamics in the Global Legal Sector
4 min read
Our professional services experts lend their view on talent shifts across the UK, U.S., and Germany.
Over the past two years, the legal sector has seen a marked rise in what can be described as ‘trophy hiring’ - the strategic appointment of high-profile, market-recognised talent. This trend has been particularly pronounced in London, where significant investment from U.S. firms has catalysed a wave of headline-making moves. These appointments, often valued in the tens of millions, are not only reshaping the UK legal market but also influencing global dynamics.
Our consultants explore the implications of this shift and what it signals for the broader professional services ecosystem.
Frequency of High-value Moves in Legal Sector vs. Other Consulting Areas
In the U.S., Richard Pooley believes the next 18-24 months will bring similarly high-value moves across the wider professional services landscape, including consulting: “This is primarily because the whole professional services environment is a large fragmented market, where with sufficient capital investment - including hiring high-value Partners – consulting, accounting and tax advisory firms can ‘buy and build’ to achieve scale”.
In Germany, Michael Proft observes that while such moves do occur, they remain relatively rare. “Senior Partner compensation in consulting seldom exceeds one million euros”, he explains, highlighting a more conservative approach to talent investment.
Private Equity Influence
“Due in part to changes in the regulatory environment, the influx of PE investment in the professional services sector is creating new opportunities for growth and transformation, with substantial hires being made in an attempt to attract high-value client work”, explained Alex Hamilton-Baily.
Michael adds that in Germany, PE interest is particularly strong in firms with AI and IT-driven models, challengers to the traditional ‘Big Four’. He cites Berlin-based Afileon as an example of a next-generation firm attracting investor attention.
Global Implications and Challenges
While these high-value moves are becoming increasingly common in the legal sector, the wider consulting industry is poised to follow suit, driven by the need to attract big-ticket client work and achieve scale.
However, this approach is not without risk. If high-profile hires are the main strategy for PE-backed consulting firms, there is a real risk of ‘touch and go’ Partners that can fragilise mid-size companies; prestigious Partners often join to be the CEO of the consulting activity, interested in developing solid and durable teams.
Firms must quickly and effectively integrate eminent hires into existing partner environments in certain leadership roles, and they need to generate credibility and trust in mostly conservative and reputation-based businesses, as well as maintain stability within a divided market.
As the key value of any professional services firm are its fee earners, there is always the risk, as seen in the U.S., where law firms have been dismantled in a very short period due to the departure of 'rockstar billers' who have moved with their clients and intangible assets.
Building for the Long Term
By prioritising the development of durable partnerships and leveraging the expertise of leading figures, legal and consulting firms can secure a sustainable and resilient future. Odgers' deep industry knowledge combined with our global talent networks will be crucial in achieving these ambitious growth objectives and positioning for long-term success in a competitive market.
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