While UK law firms are optimistic about headcount growth, skills shortages are said to be the biggest challenge with 67% concerned that access to talent could hamper growth, according to research from legal recruitment specialist Clayton Legal.

The research, The Challenges and opportunities facing legal firms in 2018, found that 66% of firms are looking to increase headcount over the next twelve months to contend with increased demand for their services.  In addition to skills shortages, staff retention was ranked as the second biggest challenge (20%). The research states its figures demonstrate that while firms may be optimistic about growth, talent management strategies will be business critical to ensure practices have the right people to service their clients effectively.

“Overall, there is still caution in the air amongst UK law firms relating to not only the talent landscape, but also the geopolitical environment,” Lynn Sedgwick, Managing Director of Clayton Legal, said. “So while firms must respond to these challenges accordingly, it is clear that, on the whole, practices are optimistic about the future. And with the legal profession evolving at a rapid rate, changing employee expectations, client demands, technology and external factors look set to alter the very nature of the jobs and skills required.  Firms that embrace and respond to these changes through the development of robust, forward thinking strategies, will succeed in 2018. However, a failure to do so will almost certainly be detrimental to firms’ success”.