Posted by Samantha Griffin, professional development manager at Legal Futures Associate the Institute of Legal Finance & Management
Griffin: Firms need to take a proactive approach to retention
Understanding the legal finance market is important – not just for those actively involved in it day-to-day but also for managing partners, practice directors and senior finance leaders within firms.
Recruitment, retention, salary expectations and working patterns all have a direct impact on the stability and effectiveness of legal accounts teams – which, as we all know, are an integral part of every law firm.
The latest ILFM legal accounts salary survey, carried out with legal finance professionals across the UK, provides a useful snapshot of the current market. This year’s survey produced the most comprehensive dataset yet, offering insight into salary trends, bonuses, flexible working, staff movement and the factors influencing career decisions across firms of different sizes and regions.
The overall picture is one of a market that has stabilised but not softened. Pay rises remain common, movement has slowed and many legal finance professionals appear settled in their current roles.
However, beneath the surface, a significant proportion are still open to opportunities, particularly where salary, benefits and flexibility are competitive.
A less mobile candidate market
One of the clearest findings is that the candidate pool is less mobile than it has been in recent years. Only 7% of survey participants had joined their current employer within the previous 12 months, down from 12% in last year’s survey.
This suggests a more settled market. For employers, that can make recruitment more challenging. Legal finance professionals with the right experience are not always actively looking and those who are may be selective about the roles they consider.
The survey also found that 63% of respondents intended to remain with their current employer for the next 12 months, indicating a consistent level of staff loyalty. However, that still leaves a notable proportion either actively considering a move or open to being approached.
Interestingly, it is employees at the largest firms who are the least settled, with 47% open to switching employer over the next year, compared to 27% at small firms and 26% at mid-sized firms.
For those larger firms, this may point to a more competitive internal market, greater expectations around progression or a higher likelihood that employees are approached for alternative opportunities.
For smaller firms, it may suggest that culture, visibility and a closer working environment continue to play an important role in retention.
Pay rises remain common
Despite a more stable hiring market, salary movement has continued. The survey found that 79% of participants received a salary increase in the previous 12 months, compared with 77% last year.
As in previous years, those working in larger firms were the most likely to receive an increase. This reflects the wider market reality that larger firms often have more formal salary review structures, greater benchmarking capacity and, in many cases, more ability to respond to market pressure.
It is clear – and perhaps unsurprising – that even where employees are not actively moving, pay remains a key retention issue. Firms that allow salaries to fall behind the market may find themselves vulnerable when recruitment activity increases or when employees are approached by competitors.
Bonuses are also increasing
There were more bonuses this year – 61% of respondents received one, up from 58% last year.
Again, they were more common in larger firms. The average bonus was 5.5% of base salary, with bonuses of between 4% and 8% being most typical.
While salary remains the main driver for many candidates, bonuses can still play an important role in overall reward. They can help firms recognise contribution, support retention and demonstrate that finance teams are valued as part of the wider business.
However, bonuses are unlikely to compensate for an uncompetitive base salary, limited flexibility or a poor working culture. They are most effective as part of a broader and clearly communicated reward strategy.
Flexible working is now a baseline expectation
Flexible working remains one of the defining features of the legal finance employment market.
When asked which two factors would be most important when assessing a career move, 58% of people cited salary and benefits. Flexible working arrangements followed closely behind (42%) and then people and culture (20%), career growth potential (14%), and employer size or status (5%).
This shows that flexibility is no longer seen as an added benefit. For many legal finance professionals, it is now a core part of how they assess an employer.
Hybrid working policies are still adjusting across the sector. The most common arrangement remains three days in the office and two working remotely. However, nearly one in five respondents are now required to work from the office full-time, up from 12% last year. At the other end of the scale, 12% of respondents are fully remote.
For firms looking to recruit or retain experienced legal finance professionals, flexibility remains a significant competitive factor. Employers do not necessarily need to offer fully remote roles but they do need to be realistic about market expectations.
What this means for law firms
Building strong legal finance teams is becoming harder, not easier. Pay expectations remain high, flexibility is expected, and experienced candidates are often reluctant to move unless the overall offer is compelling.
The survey underlines the importance of taking a proactive approach to retention. That means benchmarking salaries, reviewing working arrangements, supporting career development and ensuring legal finance professionals feel recognised for the value they bring.
For legal finance and compliance professionals, the survey offers a useful benchmark for understanding where their role sits in the wider market and what factors are shaping career opportunities across the sector.
The full survey includes more detailed salary data by role, firm size and region, along with supporting graphics and further insight.
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