2023 Bright Insight: The 2023 National Legal Sector Benchmark Survey Results

Nearly 90% of firms indicated they are looking to poach lawyers from other firms.

Overall, the strategies for firm growth in the current economic environment are similar to previous years, with most firms focused on more organic growth through building their business from within (56%) and recruiting laterals to strengthen existing practice areas (55%). Headcount and geographic expansion is also a common strategy cited by nearly half of all firms. Larger firms are more focused on expanding into new legal practice areas —the fourth most common cited strategy across all firms, but #1 among Global 100 and Am Law 100 firms. In fact, half of all larger firms are looking at this type of practice area growth as a way to increase profitability. Large firms are also more likely to see attorney or staff downsizing as a strategy for increasing profits, but it is still only in sight for one fourth of them. Regardless of size, downsizing is more commonly cited in 2023 than it was last year, which points to the economic challenges firms are facing as fee revenue growth has slowed since mid-2022.

Over the next 12 months, which of the following strategies is your firm considering in order to maintain or increase profits?

All Firms Global 100 / Am Law 100

60%

56%

55%

49%

47%

47%

45%

41%

40%

33%

23%

20%

17%

5%

2%

0%

Remain stable and build business from within (increase business from existing clients)

Recruit more laterals to strengthen existing practice areas

Facilitate growth through expansion (by increasing headcount and/or adding locations)

Add new legal practices

Downsize through careful attorney/staff evaluation

Other

Source: Cushman & Wakefield Research

THE 2023 NATIONAL LEGAL SECTOR BENCHMARK SURVEY RESULTS | 11