Legal Sector Resilience

Legal Recruitment Resilience in Wales: Will 2026 be a reset year?

• Legal News Wales

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Welcome to the Legal Sector Resilience Podcast, brought to you by Legal News Wales. 

In this episode, Emma is joined by Karen Jones, Director at TSR Legal Recruitment, for their annual end-of-year conversation examining recruitment trends in Wales and what law firms and lawyers should be preparing for in the year ahead. As the sector looks towards 2026, they reflect on the challenges of skills shortages, changing candidate expectations, competition across regions, and the growing importance of culture, communication and long-term planning. 

To read our Reframing Recruitment Roundtable coverage - mentioned in the podcast, click here.

The Podcast

Legal News Wales Editor Emma Waddingham speaks with trusted voices from across the legal sector to explore what it really takes to build stronger, smarter and more sustainable legal practices in Wales. Each episode shares practical insight, lived experience and forward-thinking perspectives on leadership, growth, recruitment, technology, finance, compliance, culture, diversity, client care and more. 

Together, we look beyond short-term pressures to examine how law firms can build long-term resilience — not just for their businesses, but for their people, their clients and the communities they serve.

For more information and signposting, visit the insights section on legalnewswales.com and use the 'Legal Sector Resilience Podcast' filter.

Emma:

Welcome to the Legal Sector Resilience Podcast. Conversations with the people driving stronger, smarter, and more sustainable legal practices. I am Emma Waddingham, editor of Legal News Wales, and in each episode, I speak with trusted voices to inspire the legal sector, sharing advice, lessons, and lived experiences across leadership, growth, technology, finance compliance, culture, diversity, client care, and more. Together we'll explore what it really takes to build resilient law firms that make a difference, not just for clients, but across communities in Wales. Thank you for tuning in. Before we begin, don't forget to subscribe and share this podcast with colleagues and join our insights and events community at legalnewswales.com. So I'm here today and joined by Karen Jones, Director at TSR Legal Recruitment. And every year we sit down towards the end of the year to do a bit of a roundup looking at trends across the year in terms of recruitment and sustainability of those employees, what candidates are after, what employers are after. We're going to follow up a little bit on a round table that I'll tag at the end of this podcast that we hosted recently with TSR on recruitment in Wales. But today I want to talk about what it looks like for the year ahead. What are we going to expect in 2026? What law firms are struggling with right now, what candidates are struggling with right now, and hopefully a bit of a takeaway for you to sit and listen to, perhaps not over your Christmas dinners, but certainly just beforehand and in anticipation of those plans ahead. So, Karen, welcome. Thank you for joining me today.

Karen:

It's lovely to see you, Emma.

Emma:

Can we start a little bit from your vantage point, from your helicopter view as a legal recruiter? What are the key trends, issues, concerns that you're seeing across uh the legal jobs market in Wales right now?

Karen:

There's a huge shortage of candidates, that's the problem. Um, I think we're getting a bit of a backlash from COVID because I think that um there was a bit of a pause on training contracts. So we're now five years down the line, moving into six years in 2026, and so there is that skills gap. So um it's more kind of like the two to six years qualified solicitors, and when law firms are trying to recruit them, if they're finding it really, really difficult. There's a there was also the lure during uh COVID of the Bristol market, uh candidates going over to the Bristol market, which left us um a bit sort of light on on those kind of candidates in in the market in Wales. Um, I think that there's been a lot of growth in Wales. There's lots of firms moving into Wales, opening new offices this year, so there's perhaps less candidates to go around. Um, and we haven't seen this year, it's interesting, we haven't seen this year as many relocators back into Wales as we saw in the previous two years, which was again sort of a sort of you know follow-on from COVID. People people perhaps assess their lives, what they wanted to do, oh we make the move, and then you know that kind of hit us quite positively, sort of two years, maybe three years later, with people moving back to the region. But last year we didn't see so much of that.

Emma:

So perhaps those who relocated during COVID have probably either come back or that that that's it, that they're settled and they've probably got more senior roles. So, specifically a challenge between the two to six year PQE, um, and for growing firms that want those with a bit more experience, that's where it starts to be a bit more troublesome. Is that particularly an issue in Wales or is that generally in the legal market, do you think?

Karen:

It's generally in the legal market, it's right right the way across the country. We talked to a lot of in-house recruiters um for regional firms that have offices right throughout the UK. We had a conversation um on Tuesday actually with a firm who are sort of national, and they said exactly the same. Their in-house recruiters are finding the same. There's a real shortage. Um, what was really interesting as well last year in Wales um and again across the board was that the NQ market was quite difficult. So NQs qualifying, we're finding it quite difficult to find NQ positions. What's happened is a lot of the firms have reassessed their NQ salaries, and so their NQ salaries have gone up significantly. So when the recruiters in-house or externally are talking to the partners, the partners are saying, Well, if I'm gonna have to pay an NQ that amount of money, I may as well, I may as well look for somebody who um is two to four years qualified. But then of course their expectation is that those people will be out in the market and they're not. Right. So it's kind of stalled the market and made things quite tricky last year.

Emma:

Um I I I want to pick up a a little bit on that NQ situation because you know we've seen we still see a huge number of people and diversity of people um qualifying into the law. Uh uh we're talking about solicitors here, but that we know we've got legal apprenticeships are slightly different because they're probably in a firm already. Um it is I'm gonna be bold here. Is it that they're asking for too much money or the time or the flexibility around the job? What what we under I understand the piece about having a bit more experience, but you also need that next generation to have those next two-year PQE, right? Are they is it because firms already have them in-house and they're training them and they don't need them? Is there a conversation that needs to be had with the wider market around that particul at that particular point in time?

Karen:

I think this all goes back to COVID because I think you've got some solicitors that are sort of five years, coming up six years qualified, who trained during COVID, that are perhaps slightly behind the expectations of the partners in terms of their level of skills and the level of their experience, because they were obviously stuck in a house on their own, um, not working with other people. And you know as well as I do that you learn you learn well from other people that are in your team. So I think I think it goes back to there. Um I think a lot of a lot of a lot of the firms don't haven't really got to grips with the SQE and the way it works, and there's still a real element of, oh, we want them with a traditional training contract. I do think there is an element of that. I think it's um there's a lot of people failing their SQE, um, which is something I know we're gonna get onto later on, which is really disheartening and very difficult. Um, and I think it's frustrating internally as well for some law firms. I I was talking to one sort of mid-year who said they had the best paralegal that they had ever in a particular department, and that person had failed their SQE twice, so they weren't sure where to go with it now. But then when I'm talking, um talking generally to other people, they're telling me that it's very difficult and that there's a there's a high failure rate in the SQE. So I think I think there's it's like a perfect storm. You've got salaries going up for the NQs, I think you've got people qualifying through the SQE that firms and you know firms don't understand properly. I think the bigger firms do, but some of the sort of medium-sized firms are are finding it tricky, tricky. I mean, we as recruiters are finding it tricky, um trying to sort of navigate your way through it. Um, and then you've got this skills gap from uh COVID where you've got no sort of mid-level lawyers. So it's it's been an interesting year, 2025.

Emma:

Yeah, definitely, and and set to go into next year, I'm sure. And obviously, adding things like Missouri onto that too is very, very difficult. So um okay, so let's move on a bit. How can we talk a little bit about competition? We know this year we've had a number of our partners join um who are new, f new to market in a in terms of physical presence in Wales, you know, may have had cancer for a long time. How competitive is the legal market in Wales at the moment, and how do the structures of those firms influence recruitment and progression? How is that, you know, in terms of what they've got to offer, how quickly people can move up? There's an expectation that you can do that quite quickly, maybe within the larger firms that got more resources. But what are you seeing?

Karen:

I don't think it's just competition within Wales. I think the market is really competitive in Wales because there's a lot of interest in Wales and there's new firms opening, etc. But I think it's the Bristol market as well, um, because a lot of the sort of mid-level lawyers are looking at the money and they're thinking, right, I'll go to Bristol, um, I'll get extra money in Bristol. That, you know, there's bigger firms perhaps in Bristol that, or national, bigger national firms in Bristol that we can perhaps go and work for over there. So I think it's and you've you've still got some of these firms that are still, you know, there are a couple of firms that are sort of um on the M4 corridor that are still offering people complete flexibility to work at home, which is again interesting because uh in this region, and by this region I mean Wales and the sort of South West, there's a real trend to getting people back in the office. So um it's not just the competition in Wales, it's compet competition UK-wide.

Emma:

Yeah. Um we're five years on from the pandemic, obviously. We we we all know that going into six years next year. So we're starting to see now those, particularly the NQs at the time, would now be five years PQE. Um how has their career progression got? Have we, you know, looking back now half a decade later, are they going back into office, choosing to do that when they're looking for jobs at that level? Is that something that is there an understanding that actually, yes, in order to progress, I feel like I want to do that? Is there a lesson maybe to be learned that can be filtered back down to NQs now?

Karen:

I think that I think that the lawyers that were a couple of years qualified or were were training and sort of NQ during that period, they're the lawyers that when I talk to them are more rigid about wanting flexible working as well as um as well as sort of good work life balance and being able to sort of progress their career. Uh the lawyers that qualified before, perhaps have been qualified longer. Um, a lot of them are saying to me, I want to go back in the office. And I'm seeing a big trend, people going back in the office. Um, but the ones that were sort of two years out and maybe sort of six, seven years qualified now, they are the ones that are saying I need the flexible working. But that's probably because you know their lifestyle was geared up. Yeah. Now it's maybe if they've got children or they've got pets or you know, for for whatever reason, they kind of their lifestyle is geared up because of being stuck in the house for a couple of years, sort of working at home.

Emma:

Absolutely. And there's a wider generational thing, if peers in other industries are having that similar flexibility, you know, it works for everybody. And and and there is, you know, much more wider than this conversation, um, uh a narrative around how do we meet those changing needs of that particular generation and and in terms of the more senior lawyers in the market. Um, so what's holding employers back? We're talking about skills shortages. Um, is there anything else? And and particularly in terms of recruiting and also retaining the right people, what you know, what are the challenges around that? You know, we've got uh increasingly now, you see a lot of people qualify and then move firms, that that loyalty seems to have gone. That must be quite difficult as well.

Karen:

Just the economy. You know, there's it all it all goes back to the economy. Lawyers are moving for money rather than you know, 10 years ago they it was about their careers, it was, you know, it was about uh lifestyle, you know, the whole package now because we're all you know, we're all feeling all feeling the pinch. They're moving for money. Because if they've got a family or they've got commitments, they've got a mortgage, um, you know, these are you know, these are people, you know, we've got families, you know, we've got have got those commitments, they're moving for money. And but that isn't always a positive. I mean that you know, candidates this year, almost 80% of them, when we're talking to them, it is about money. So they're moving for money.

Emma:

Yeah. So in the in the round table that we hosted with a number of different law firms, this this came up. This is a really key conversation, obviously. Um, is it a myth or not? And I think um I I totally hear what you're saying, certainly in terms of what you can see from the the jobs that are being posed in money, money way. I probably in all industries we're we're the same. I get that. Um, we're all human beings, we all have needs and commitments, as you say. But in terms of retention, is that, you know, what happens when actually the reality is it's not worth the money, or maybe actually to get that, this isn't the job for me. And I think that's sometimes where employers are, it seems to be struggling a little bit in terms of expectations on well, this is the role that you're buying into. You know, we're not gonna we're we're not gonna put you into a tunnel of hell necessarily, but it is a challenge on retention then.

Karen:

So flexibility and and culture. I think because because of what's going on in the economy, people are looking at firms and saying, you know, have they got good quality work? Have they got good career structure for me? Have they got plans, ambitious plans? Holding them to account, yeah, absolutely. And thinking, well, you know, it's not just about money. For me, it's about long-term prospects, it's about stability, it's about the opportunity to progress my career, it's about um, you know, do I feel excited by this firm? Um, I think, I think years ago, if you've got a job as a as a lawyer in a firm, um, there was a there was almost a culture of right, I need to stay here for such, you know, definitely for a certain amount of time and progress my career. Because I think I think the lawyers that I'm seeing now are quite ambitious and they need to know, they need to know from the firm that they work for what their plans are for them personally, but also what their plans are for the business moving forward.

Emma:

Especially if they're buying in at a higher level as well. Yeah. Um it it it has to be really evident. And we know the firms that that do that, that have not just maybe an annual strategy day, but really lay it out very transparent about all the pathways as well and the opportunities in the firm, um, have that, seem seemingly have that retention um advantage in a way. And we but we talk about it all the time, but it it I think it's a point to continue to hammer home, particularly into 2026.

Karen:

I think, I think as well, I think people are more sort of open to information. I think a lot, you know, when I started my career working with law firms, a lot of things were done behind closed doors. I think employees expect more information now, they expect to be communicated with. Um, there's one firm that we work with in um in this region who are brilliant at communicating to their staff their plans, what they're looking to do. And it's evident when you walk in there, it's evident when you meet the people. They're all quite clear about what their goal is, what the firm's goal is. And I think I think that the lawyers that you know that are training and coming through now expect that. They want that, and that's you know, they want to be excited, they want to be excited by the firm that they're working for. They don't want to go into work every day and go, right, this is my job. I work in a this is my job, I work in a particular practice area, and that's what I'm expected to do. They want to know, well, the job that I'm doing, how does that affect the firm? How does that fit into the other teams? How does that work in terms of the ambitions of of the practice?

Emma:

All of them, yeah, yeah, exactly. And and and not working in silos, which you're trying to move away from as a um as a profession as well. Um thank you, Karen. So let's have a quick look at what candidates need to know and should be aware of for for 2026. So, what should they be prepared to ask for? Whether that's progression, hybrid, what is it that they should be asking firms for in those interviews? What should they be spotting when they look at the um recruitment advertisements? What is it, the advice that you would give them?

Karen:

Just getting as much information about the role as you can, really. But what I always say to candidates is we as recruiters, um, we can sell the firm to the candidate, we can sell the roles to the candidate, but it's always worth having a conversation with that firm. Um, they might go for an interview and perhaps it's not the particular right role for them at the time, but there might be another role in the firm. So it's it's you know, it's trying to understand from your from your interviews what kind of culture they've got, what they're what they're expecting in this particular role, what the plans are for the team, you know, are there growth plans? Um I I've heard a few stories where people have been recruited with the understanding that they're going into a particular role and then things change during that recruitment but when they're on sort of notice period and they end up doing a completely different job, or perhaps the position that they thought they were being recruited for isn't the position when they get when they get there. So just trying to get as much information as possible. And if you use a good recruiter to start off with um as a start sort of starting point, then you can get that in you can get that information. Um you know that and that those are the things that people want to know. Want to know if they're gonna waste their time with an interview or they're gonna waste their time sort of applying to a firm. It's really interesting because I've you know I've been in recruitment a very long time now, and I speak to recruiters all the time, and I have good relationships with other other recruiters, and your client is both your candidate and your client. So it's about you promoting that client to the candidate, but also that candidate to the client. So it's always like it's a it's a really fine line, it's a balancing act. Yeah, it's a tricky fine line sometimes, but um it's about making sure. I mean, it's I get candidates that come to me and say, right, I really I really want to work at such and such a law firm, but um I need to work at home three days a week, and that particular law firm says you've got to go into the office at least four or five days a week. So it's not gonna work. So it's just educating them about that. You can go for an interview, but ultimately their line is that they want people that so either you can do that, in which case that's great, otherwise you're wasting everybody's time, aren't you? You know, so it's just about so also as well for us, like we've been quite successful in recruiting teams and recruiting people that have sort of started off law firms and then and then the firm has grown. So it's about knowing the personalities because there is you know, so you know as well as I do, you can put the wrong personality in, it completely wrecks the culture. Yeah, so it's just about finding the right people for the right firms with the right ambitions and guiding people through their careers as well. I mean, I've been working at TSR for 22 years in April, and I'm working with people that are partners that they might have become clients now. But I started off working with them as paralegals. So it's what it's guiding them through their career and making sure you do the right thing for them career-wise, because it's it's you know, it's no good if somebody goes to a role and then leaves. They have to, you know, if you're going to move somebody out of a role, it's a big responsibility, it affects every aspect of their life. So you have to make sure that they're going to the right firm with the right culture for them. But also for the firm, you have to make sure you're recruiting the right people into there that will realise their ambitions as well.

Emma:

It can be a very expensive mistake to make. I think just touching quickly on whole team moves, you know, that that it's not something that can happen day in, day out. But has have we seen more of that this year? And do you see or expect the same, or is it quite a steady movement in terms of the number of whole team moves, particularly in Wales? It's steady.

Karen:

Okay. It hasn't been, it hasn't been um particularly more or less than any other year. It's been quite steady. So I I you know, I'll get people approached by people that will say we want to move as a team together. We're used to working together, but we don't feel that the firm working for now is right for us now. We want to move. So and it is tricky.

Emma:

Yeah, yeah, yeah.

Karen:

And I'm and I'm a really experienced recruiter, and it's very tricky because you within a team you get different personalities and you get people with different needs as well. So that is tricky. So it's tricky for the firm that you're recruiting them into, but it's also tricky dealing with the individuals as well. But I wouldn't say, I wouldn't say that there's been sort of mass exodus of of teams this year.

Emma:

Okay, yeah, that's really helpful to think. Um so looking ahead to 2026, um, we talked about some of the key trends. What advice would you give to both law firms and lawyers and aspiring lawyers um to, in terms of particularly within Wales, what are the what what advice would you give them when looking about to their career, to starting a career, um, and and also when they, you know, they may have not have used a recruiter before as well. And I think that's quite important. What advice would you give them?

Karen:

So don't be frightened to get in touch, don't be frightened to like get some career advice. Recruiters aren't just there to recruit you know, fill jobs. We're there to we'll give you advice. We'll give you advice about your career, we'll steer you in the right direction if we think you're making a mistake, which which people do. Yeah, we all do. Um, like so I'll get a lot of lawyers that come to me and say, Oh, I really want to go in the house and I'm one year qualified. And I always say, No probably not at this point, because then going back to practice would be a lot more difficult. If you've worked, you know, if you've worked in practice for maybe five, six years and then you do an in-house role, then you can go back to practice because you've got some experience underneath underneath your belt. Um, so we try and steer people in the right direction. If we don't think the culture's right for somebody, then we'll we'll point them in this direction of that. But just get in touch, just have a conversation with us because we might be able to help you, we might not be able to help you, but it's always worth having that conversation.

Emma:

Yeah, it doesn't mean you're going to jump on them and try and put them in a role, for example. Yeah. Yeah.

Karen:

And the biggest lesson I've learned in terms of law firms this year is make sure you're communicating with your staff about your plans, what you're planning to do, where you're going with the practice, because that is the biggest, that's the biggest feedback I've had this year. People have left firms because they're not sure what's going on. This, you know, are we being sold? Are we doing well? Are we not doing well? We're hearing rumours in the market, uh, we're not growing. I can't see any ambitious plans to grow. I can't see where my career's gonna go. And I think so. I think lack of communication internally um makes firms lose staff. I genuin genuinely do. More so than anything else. Yeah. Because, you know.

Emma:

So, and that very much came out in the in the round table, the recruitment round table. I think what was quite interesting, and and people can read this online on our insights section, is that where firms who perhaps either hadn't used recruitment agencies before or were struggling to have those difficult conversations about opening up, you know, other firms around the tables, and this is what I love about our events, other firms around the table said, look, we've been there, done that. Come and have a chat with us, have a coffee. We're really happy to share how we did that. It's not a trade secret. Um, if there are any pointers we can give you to enable you to have the confidence to have that conversation, you know, whether it's about pay, just uh, you know, across the regions being different because of cardiff, for example, um, and the bigger cities. Um, and that and we've got that system in place, that network is in place across Wales. You know, we encourage everybody to come. If you do, if you don't, if you want to come and join our roundtables and discussions and forums, please drop me a line because you're always welcome. And that's the bonus and benefit of those. It's not just about the article that comes out of it, it's that collaboration around the table.

Karen:

Something else that's really interesting to say is that we I've I've met with a few firms this year who are brilliant at what they do, but nobody knows anything about them.

Emma:

Yes, I was gonna say that, but there's absolute examples of those where they and people have moved in, right, and said, I have no idea. Wow.

Karen:

Yeah, maybe you're asking about this in the rooftop. I had no idea about some of these firms, and I've worked with law firms in Wales for nearly 22 years and worked with law firms in the UK for nearly 27 years, and I didn't have any idea about some of these firms. So whilst we, you know, some people see recruiters and recruitment as a bit of a you know a costly, hideous nightmare. Actually, the positive side of it of a good recruiter is that they can promote your brand, push be an ambassador. You'd be an ambassador, and you know, we've been really successful with some really good great firms in Wales in growing and helping them grow. And we shoot ourselves in the foot because what happens is we come in, we recruit the partners, maybe the senior associates, we do a good job of that, they get a good team, but then of course, then their reputation builds, yeah. And it's just the way it is, it's just that's just that's how things work.

Emma:

You can't talk about a lot of the role. We know you can't talk about a lot of the roles, yeah. You place and um and um for a variety of reasons, and I totally understand that. Um, but of course, it doesn't, you know, that that's going back to things we talked about previously in in terms of how the reputation of recruitment, you know, can uh can sometimes be an issue again. We spoke about it at that round table. Um, I think the fact that you just keep your head down and be those those consistently high-quality consultants is is you know testament to that, Karen. But um, you know, and and that's the advice, isn't it? Is it's work with trusted advisors, the recruiters who are there, adding value, not just that quick sale situation and do it in the right and responsible way, um, can add so much value, not just to, as we say, candidates, but also the employers. It's a partnership. Yeah, it's a partnership.

Karen:

And it's about it's about people finding out about you. Like I say, I've worked with some great firms this year that people don't know about. So when you talk to them, they're like, oh, actually, I would consider that. So we might be able to give them access to candidates that ought, you know, or just an interest in their business because people don't know anything about them.

Emma:

Yeah, yeah, absolutely. And it does come back to that communication again. Um, Karen, it's always such a treat to sit down at the end of the year and have my last conversation uh with you uh on on uh the recruitment and and what's looking ahead for the year ahead. Um hopefully this time next year, um, similar buoyancies, not too much of the same challenges, and and certainly we're going to be addressing some of those kind of NQ, SQE issues as well. Um, with an event coming up that's very much something I want to do as part of Cardiff Indistrict Law Society.

Karen:

Wise managing partner of a law firm told me once that wherever there's change, there's always legal work. He's so right. And uh this was just going into COVID, and um I think there's a lot of change, yeah, but I think we're already seeing it, we're already inundated with uh clients saying to us, right, we want to recruit this, that yeah for next year. Other recruiters are telling me that as well. So I think I think 2026 could be an exciting year, but I also think as well, it might be a bit of a reset year. Yeah, I think um that all this madness over salaries and you know, I think it I think things will settle down a bit in 2026, and I think it'll be more sort of a level ground in terms of of recruitment and sort of retaining staff and like growth for law firms. I think it will be a definitely a more stable year than 2025. And one of my um lasting thoughts about 2025 is I was asked by a law firm to go in and do a salary, um, salary review with them. And I sat down at the table and I said, I can tell you everything you need to know about NKs, I can tell you everything you need to know about the partner level recruitment. I said, but it's for the first time in my entire career, I cannot tell you anything about the salaries in between because they are so widely varied um based around what's going on in the market and the shortage of candidates that what I tell you today will not be right tomorrow. Um, and like I say, I've spoken to other recruiters and they've said exactly the same. So 2025 has been a bit of a challenging and interesting year. So I think 2026 will be a bit of a reset and more stable, hopefully.

Emma:

Hopefully, get through the elections as well. But um yeah, lots of change ahead. Um, but look, lawyers are uh uh entrepreneurs, um as you say, you know, always make the most of that change. We've seen that. Um and Karen, giving me a lot of your time this morning. I really appreciate it.

Karen:

Nice to see you. Happy Christmas.

Emma:

Merry Christmas, and um, yeah, looking forward to fun next year. Thank you. Thank you for listening to the Legal Sector Resilience podcast brought to you by Legal News Wales. If you found this conversation useful, please subscribe and share it with your colleagues. There's lots of episodes to follow and go back into. And you can also join our insights and events community at legalnewswales.com for more resources to help you build a resilient, future focused legal practice.

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