Human Capital Trends 2025: Navigating the Future of Talent in the Legal Industry

In a recent Platforum9 session, a panel of legal industry experts explored the implications of Deloitte’s Human Capital Trends 2025 report for the legal profession. The discussion, featuring Elena Folkes, Lucie Allen (Chief Growth Officer at Barbri), Chrissie Wolfe (Partner at Nexa and founder of LAB Consultancy), and Barry Murphy (ESMA), highlighted how transformative forces—particularly generative AI and changing worker expectations—are reshaping talent strategies in law firms and legal departments.

The Changing Expectations of Legal Talent

A central theme of the conversation was the evolving expectations of younger lawyers entering the profession. “The way they perceive the legal industry, the way they perceive mental health, the way they perceive work-life balance is completely different,” noted Sabrina, founder of Women in Mentoring, who participated in the discussion. “Unless we step forward to meet them halfway, the transformation is not going to happen.”

This generational shift is occurring against a backdrop of significant technological disruption. As Wolfe observed: “How disruptive lockdown and the pandemic was, we’re now experiencing a sort of new wave of disruption in the form of AI. That’s causing people to change what they want from their employment, what they want it to look like.”

The panel pointed to the Thomson Reuters Future Professionals report finding that 77% of respondents believe generative AI will have a transformational impact on their careers—an astonishingly high figure that underscores the scale of change the industry faces.

The Motivation of the “Unit of One”

One of the most compelling insights from the Deloitte report highlighted during the discussion was the concept of the “motivation of the unit of one”—understanding each individual’s unique drivers and tailoring approaches accordingly.

“How do you understand your lawyers or your fee earners at an individual level and therefore bring out the best in those individuals?” Folkes asked, noting that there are significant “variances in generational expectations,” from return-to-office preferences to technological aptitude.

Wolfe expanded on this idea: “Great leaders see what is there rather than what isn’t there. Instead of looking against a set of criteria and saying this candidate doesn’t meet these criteria, they see things and say, ‘Look at this incredible talent they have—let’s capitalise on that.'”

This approach represents a significant shift from traditional legal industry practices. As Allen noted, it raises questions about “whether we look more at skills versus traditional education pathways” and how firms might “build up competency understanding and project teams around skills that people have gained rather than perhaps ten years spent in an organisation.”

The Leadership Challenge

The session highlighted a persistent challenge in the legal profession: lawyers who excel technically often get promoted into leadership positions without necessarily having the skills to succeed in those roles.

The Deloitte report reveals that 54% of managers don’t feel confident in coaching people—a statistic that resonated with the panel. Allen suggested this creates “an opportunity for AI” through “functionality around coaching and feedback” that could “be transformational for the legal profession if they lean into it.”

Folkes observed that while there are “wonderful partners” in the industry, strong leaders remain less “plentiful” than they should be. This leadership gap impacts everything from talent development to firm culture and technology adoption.

The panel agreed that law firms frequently promote excellent technical lawyers or high billers into leadership positions where they may struggle. As Wolfe put it: “Being a great lawyer and being a high biller…doesn’t necessarily indicate that somebody is going to be a great leader, which is a very different skill set.”

The Personalised Learning Journey

A key recommendation emerging from the discussion was the concept of personalised learning journeys. “People need to lean into the concept of continuous learning,” Allen emphasised, noting that skills development “is something that goes on through the lifetime of your career.”

This approach aligns with broader labour market trends where skills are increasingly valued over credentials or tenure. However, implementing personalised learning in law firms faces significant cultural barriers, including the persistent pressure of the billable hour.

“The pressure of the billable hour is still omnipresent,” Allen noted. “How does that impact and perhaps deprioritise learning or experimentation with learning? Does it all become too much, and it’s difficult for people to see the ROI?”

Wolfe added that personalised learning connects directly to effective leadership: “Great leaders and great managers see what is there rather than what isn’t there… They see things and say, ‘Look at this incredible talent that they’re really amazing at, and let’s capitalise on that.'”

The Risk Aversion Barrier

A recurring theme throughout the discussion was how the legal profession’s inherent risk aversion impedes progress on talent development and innovation.

“A culture of innovation and change and progress and differentiation relies on you being able to trial things,” Wolfe explained. “It’s so ingrained in lawyers that every decision we make, we have to be kind of 99% certain that it’s the right one.”

This cautious approach stems from professional liability—lawyers are accountable for their advice and naturally extend this mindset to all decision-making. However, as Wolfe noted, “We have to separate ourselves from where we’re giving legal advice with that hat on, and where we’re actually building a business.”

She cited Barack Obama’s approach of being “only ever 51% sure about decisions” as a more effective business mindset. “The firms who will really differentiate themselves are the ones that fail fastest and find what works quickest,” Wolfe concluded.

Navigating Tensions Rather Than Making Binary Choices

A particularly valuable framework from the Deloitte report highlighted during the discussion was the concept of navigating tensions rather than making binary choices.

“It’s not about saying we’re either going to be a people-driven business or a profits-driven business,” Wolfe explained. “There is a scale in between. You don’t have to pick one of those things. It’s about getting the balance right for your business.”

Similarly with AI and human expertise, the goal is finding the optimal balance rather than choosing one over the other. This nuanced approach challenges the legal profession’s tendency to view issues in black and white terms.

“Historically in law, we have the tendency to look at things very black and white,” Wolfe noted. “What we really need to learn to do now is look in the grey and find out what shade of grey is right for your business.”

Preparing the Next Generation

The discussion also addressed concerns about how junior lawyers are being prepared for a rapidly changing profession. The Deloitte report found that 66% of managers say most recent hires are not fully prepared, with lack of experience being the most common failing.

However, Wolfe cautioned against applying outdated standards: “Managers are saying hires aren’t ready, but what is their expectation of readiness? There has to be accounting for how the landscape has changed. This new generation coming through has had a very different historic experience to the one that we had.”

She suggested reframing the conversation: “Maybe they don’t have the same level of experience in some of the human skills that previous generations have had, but they’ve got superior skills in technology. So they’re a lot more ready to start using technology but not as ready on the human side.”

Allen connected this to broader questions about legal education and skills development: “Where does this begin? It probably really begins in your early years as a human—how you’re raised, your schooling, your later education. Does anything happen at university? Should it? At law school? Your law firm?”

Looking Ahead: Collaboration and Purpose

The panel emphasised that addressing these challenges requires greater collaboration across the legal ecosystem. This includes not just law firms and legal departments, but also educational institutions, professional bodies, and technology vendors.

The purpose-driven mindset of younger lawyers was identified as a potential catalyst for positive change. As Allen noted, “Lots of people are driven by purpose,” and the industry is seeing younger professionals who “aren’t necessarily willing to stand by” when organisations fail to align with their values.

Folkes suggested that purpose and authentic leadership are becoming competitive advantages: “How do you set yourself apart as a law firm, as a fee earner, as an ALSP? Because you are tech-enabled and you are tech-savvy and you are pricing differently.”

Conclusion: The Path Forward

As the legal industry navigates these human capital trends, the panel identified several priorities for forward-thinking organisations:

  1. Embrace personalised learning journeys that continue throughout careers
  2. Develop leaders who can identify and nurture individual strengths
  3. Become more comfortable with experimentation and “failing fast”
  4. Balance competing priorities rather than making binary choices
  5. Create meaningful collaboration across generations and across the legal ecosystem

As Patricia, the host, summarised: “The two takeaways that I really have are bespoke learning and the motivation of the unit of one.”

These approaches represent a significant departure from traditional legal industry practices but may prove essential as firms and legal departments compete for talent in an era of generative AI and evolving worker expectations. By focusing on individual strengths, continuous learning, and balanced decision-making, legal organisations can transform these challenges into opportunities for growth and differentiation.

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