The sixth Annual Salary Guide that takes in a forensic review of the legal and financial services sectors in Scotland has claimed that legal firms are ‘behind the curve’ on tech and diversity.

The report states that the sector adapted well to working from home during Covid lockdowns and embraced digital technology in deal-making and transactions, but more needs done to embrace customer relationship management systems and end a dependency on paper.

The other main challenge for all legal firms and in-house legal teams for the rest of 2022 will be identifying and retaining the best talent while progressing diversity agendas, in an exceptionally limited and tight candidate pool.

A result of the shortage of talent has seen significant salary uplifts, with even newly qualified candidates being offered significantly higher basic salaries, exemplified by Pinsent Mason’s recent 35% increase in entry-level salaries. In turn, this is making it increasingly challenging to fill in-house legal vacancies.

Kim Bower, specialist in legal recruitment at Core-Asset, said: “Firms must be aware of how to attract the best talent over and above their competitors, differentiating themselves by offering flexibility, access to cutting edge technology and clear outlines on progression.

“Job availability now outstrips candidate availability and the legal sector is now in the midst of a ‘buyers’ market’, a situation in which changes according to the underlying economic conditions that shape supply and demand.

“Scottish legal firms still have ground to make up before they can claim to have fully revolutionised case load management and workflow through the use of technology which can offer new opportunities and greater efficiency.”

The report also cited a November 2021 survey by the Law Society of Scotland which highlighted gender, diversity and ethnicity imbalance in the legal profession.

While annually around two-thirds of newly admitted lawyers are woman, progression to more senior roles remains a challenge, with females under-represented in senior committee and managing partner positions.

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There appears to be difficulties in attracting male Black, Asian and Minority Ethnic (BAME) background lawyers into the profession with only 28% of BAME solicitors under 30 being male. It was significant that in a profession where 88% of members are white, less than 4% of members came from a BAME background.

Kim Bower added: “Despite encouraging strides taken by the industry on gender, there appears to be ample room for diversity programmes to be expanded and improved in 2022 and further industry work is required to address issues of disability, gender, LGBTQI+, race and social mobility.”

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