The Strategic Legal Sector Insights Report, developed in collaboration with the Law Society, has been created to understand the key trends and insights from decision makers of medium sized law firms. It identifies the key strategic priorities for the legal sector in 2025, based on the results and feedback received from practices.
Partners and other senior representatives of mid-sized law firms with 8 to 50 partners in England and Wales, which generally operate on a national or regional scale, were asked to complete the online survey with questions covering their firms’ outlook and strategic priorities reflecting people, technology, property, ESG and financial aspects.
This report compares financial data such as charge out rates, turnover and lock up , as well as deeper understanding of firms’ technological, environmental and social development.
Questions on borrowing give an insight as to how any organisational growth will be funded. Rising costs present one of the biggest challenges to mid-size law firms, which will be further impacted by the increase in employers’ national insurance revealed in the recent budget.
The research compares financial data, as well as deepening understanding of firms’ technological, environmental and social development goals. This report aims to help you identify strategic opportunities for your firm.
Download the full report or read on for a full executive summary
Strategic outlook
The main threats identified by mid-sized firms include recruitment challenges, rising costs, the economy, and increased regulation and compliance.
Growth plans & people
Nearly half of firms (49.3%) identified an opportunity to increase market share, particularly in relation to sector or service line specialisms. Areas with potential for growth include:
Private client matters
Litigation
Property
People
Retaining talented staff is regarded as a strategic priority, addressing the significant threat identified by mid-sized firms: the shortage of suitable personnel. This chart illustrates the percentage (%) of firms in the sample across various staff turnover ranges.
The key reasons identified for people leaving firms were:
- Better pay elsewhere
- Relocating
- Lack of progression
- Additional benefits elsewhere
- Workload
Financials & technology
Financials
For chargeable hours, the most common range was 20 to 25 hours per week. This chart show the percentage (%) of of firms in the sample with chargeable hour ranges
For a typical 40-hour week, the average fee earner is achieving 50% to 63% chargeable time, which may be considered low.
This could represent a missed opportunity to increase chargeable hours, ultimately boosting turnover and supporting firms’ growth strategies.
Technology
Technology presents an opportunity for firms to drive efficiency. However, it also poses a threat to firms that are not up to date with technological advances.
Firms are approaching artificial intelligence (AI) with caution, as the benefits and drawbacks are not fully understood.
Many prefer to wait for more evidence before investing in AI, noting that automation will have a bigger impact. The question remains, when though?
Technology presents an opportunity for firms to drive efficiency.
However, it also poses a threat to firms that are not up to date with technological advances.
Premises & ESG considerations
Premises
The most common working pattern (71.9% of mid-sized firms sampled) was three to four days per week in the office. There is a clear change in hybrid working policy as firms increase in size. This graph shows the percentage (%) of firms where their team attends office four or five days per week
Expansion is a common theme, with 80% of firms looking to open a new office or expand their space.
ESG considerations
The survey generated a wide variety of responses in relation to firms’ attitudes towards – and progress with – environmental, social and governance (ESG) issues.
Regional and national law firms are very aware of equality, diversity and inclusion (EDI) issues and adopting appropriate policies.
On environmental matters, there is some momentum with a large minority of firms reporting considerable progress.
Responses indicate ESG actions are now considered more important in the recruitment process, with a risk to the reputation of firms that get left behind.
Download the full report
ESG is no longer a ‘nice to have’ but a critical component of strategic planning for mid-sized law firms.
As this report shows, embedding environmental sustainability, social responsibility, and robust governance into daily operations not only meets growing client and regulatory expectations but also drives competitive advantage.
Firms that prioritise ESG are better positioned to attract talent, secure client trust, and achieve sustainable growth in an evolving market.
