As law firms compete for top talent, culture is no longer a ‘nice-to-have’ – it’s a critical asset. With shifting priorities and rising expectations, our CEO Melissa Davis explains how investing in culture is now just as important as compensation.
Few professions find it harder to fight the “work, work, work” stereotype than the legal sector. This perception is fuelled by the ever-present billable hour [1], but that’s changing now too.
Our What Lies Ahead 2025 report reveals the value that law firms place on culture is on the rise. As a currency, an investment, and a competitive advantage, culture has finally come of age.
New definitions and measurements of culture are sweeping away old narratives and notions. From culture defined by what happens ‘when the bosses aren’t around’ to culture that is built, shaped and nurtured by everyone.
Workplace culture is also part of a much bigger conversation about happy, healthy, inclusive, fair and trusted professional environments. Simply put, better places to be. Spaces where people feel supported, at ease and clear on their roles, career paths and expectations.
Naturally, everyone still wants to be rewarded and remunerated – billable hours ultimately pay the bills. But there’s a rebalancing of culture. 83% of respondents cite salary as vital for recruiting and retaining talent, while 80% recognise culture is equally critical.
Nice is not enough
No longer a nebulous nice-to-have, culture is a priority. And there’s growing acceptance of the time, effort and investment it takes. As Peter Crowther of Winston & Strawn notes in the report, “the most forward-thinking law firms treat their culture as a dynamic, living entity requiring continuous investment, reflection, and adaptation.”
Richard Sallybanks of BCL Solicitors adds, “High-quality work is non-negotiable, but it’s the workplace culture that will differentiate successful firms.” In other words, when firms offer comparable salaries, culture is the tiebreaker.
So, what’s behind this cultural shift?
1. Next-gen thinking
Let’s face it, acknowledging that culture matters more than remuneration isn’t the default setting. Yet, our report suggests culture is becoming central to legal sector thinking, with a sharper focus on Gen Z career preferences and decisions.
There’s more open discussion today about burnout and mental health, which has shone light into cultural corners and previously taboo topics. Culture now influences employees’ views on everything from wellbeing to wages.
As Arty Rajendra of Osborne Clarke points out, “Firms that prioritise a healthy work environment may attract top Gen Z talent, while those that do not may find they have higher turnover rates and lower employee satisfaction at the level.”
Plus, newly qualified lawyers want transparency on career progression, not opaque pathways to partnership. The report highlights that clear development opportunities, feedback mechanisms, and mentorship now rank high on their priority list.
2. Flexible working
The pendulum is swinging back toward the office. In fact, an overwhelming 94% of survey respondents say that physical workspaces are important. The challenge is balancing the desire for flexibility alongside building a strong culture.
Modern workplaces aren’t just where work happens. Christine Blaise-Engel of Fidal describes them as “a place to gather”. Where culture is reinforced through meaningful personal connections. And where there are opportunities to learn and collaborate balanced with the hybrid working flexibility employees increasingly expect.
3. Culture consolidating
Rising tech investments and running costs, plus geographical reach are generating more merger activity. And that results in potential culture clashes and confusions.
Our report findings show how divided opinions are on mergers – 44% believe clients benefit most, while 25% say it’s law firms. However, most agree that integrating different cultures remains the biggest hurdle of mergers. Michael Pattinson, Global Chair of Interlaw, underscores shared culture as “the key to a successful merger and often, this comes too far down the list of considerations.”
Consolidating culture demands more intentional effort. As firms compete in the job market, mergers mustn’t dilute the cultural currency that attracts talent in the first place. Michelle Holford, Chief Commercial Officer at Slaughter and May, says, “Culture is critical. Firms that invest in creating environments where people thrive – offering meaningful work, development opportunities, and flexibility – will retain talent despite wage pressures.”
How to set a culture baseline
Whether it’s during a merger or business as usual, setting a baseline to measure culture is vital to show progress. It helps you develop your firm’s definition of the hard-to-pin-down concept of your unique culture. You could make employee experience more measurable by using:
- Regular employee satisfaction scoring
- Recruitment and retention metrics, from hire to retire
- Clear Diversity, Equality & Inclusion (DEI) targets
- Wellbeing initiatives with quantifiable benefits
- Transparent career paths and promotion criteria.
As Tim Richards, Managing Partner at Michelmores, emphasises, “a brand is built on the many small gestures of its people – moments of integrity, innovation, and connection.” These once-intangible elements can now be defined, measured and therefore improved – which looks good on more than just directory listings.
The bottom line with culture
Florence Brocklesby of Bellevue Law points out, that current City of London pay figures come “at a price in terms of working hours and the consequent strain on physical and mental health.”
There’s growing recognition that money matters less than many imagine. Matt Byrne, Deputy Editor of The Lawyer, calls money’s bluff, “UK firms can’t compete solely on salary anymore – they need to highlight work-life balance, flexible schedules, and a supportive culture.”
For firms caught in salary wars, 2025 may see a shift toward investing in culture instead of more wage inflation. As the report shows, more than 4 in 5 respondents put culture on a par with compensation and 94% value physical offices as places to connect.
While deep pockets might still sway candidates in the short term, creating workplaces where ambitious lawyers actually want to spend time is playing the long game. And where newly qualified lawyers are questioning whether £200K is worth the cost to their wellbeing, it’s clear that culture is now a major currency in today’s legal talent market.
References
[1] LexisNexis (2023). “Beyond billable hours: the new ways to measure lawyer performance”. Accessed here on 10.3.25.
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