Law firms across Australia and New Zealand are facing a perfect storm in legal recruitment. Costs are rising, competition for talent is intensifying, and the traditional ways of hiring simply aren’t keeping up. Forward-thinking firms are now focused on optimising legal recruitment through data, technology, and smarter systems.
For years, recruitment has relied on agencies, advertising, and word-of-mouth networks. These reactive models were effective in a different time but in today’s market, they’re too slow, too expensive, and too unpredictable. The firms that will thrive in the next decade are those rethinking recruitment altogether using data, technology, and smarter systems to take control of how they hire.
The Challenge: Rising Costs and Shrinking Talent Pools
Top legal talent has never been harder to find. The best lawyers aren’t looking for jobs on Seek or signalling that they’re ‘open to work’ on LinkedIn. They move when the right opportunity aligns with their goals and in many cases, that opportunity is offshore.
In the past year, Insource data shows that more than 70 New Zealand lawyers have moved to Australia, attracted by salary hikes of up to 30%. For firms already struggling with tight resourcing, this movement has added even more pressure.
To retain key people, many firms are promoting earlier and paying more. Others are continuing to rely on external recruiters, paying agency fees of up to 25% of a lawyer’s starting salary, sometimes $60,000 or more for a single hire. When you factor in lost productivity and onboarding time, it’s clear this model is no longer sustainable.
The Shift: From Reactive to Proactive Hiring
Leading firms are now taking recruitment back in-house, supported by the right tools and technology. Instead of reacting to vacancies, they are building visibility across the entire talent market well before a hiring need arises.
AI-powered platforms like Insource give HR and leadership teams instant access to accurate, real time market data. This allows them to identify and engage top talent early, understand career motivations, and build relationships that lead to stronger long term hires.
Proactive firms aren’t waiting for candidates to come to them, they’re connecting directly, building trust, and staying front of mind. By doing so, they reduce time to hire, eliminate agency dependency, and save thousands in recruitment costs each year.
The Advantage: Time, Money, and Better Hires
Technology is changing the game. By automating repetitive recruitment tasks such as market mapping, candidate outreach, and data management, firms can redirect valuable time toward strategic hiring decisions.
Insource clients collectively saved over $2 million in recruitment spend in the last year alone, while dramatically reducing their average time-to-hire. As one internal recruiter at a leading firm shared, “I couldn’t do my job at 0.8 FTE without this technology.”
With AI-powered recruitment tools, law firms gain the ability to hire faster and smarter without compromising quality. They also gain valuable insights into their workforce data, from tenure patterns to future hiring needs, enabling more informed and confident decision making.
The Mindset: Embracing Change
AI isn’t here to replace internal recruiters – it’s here to empower them. The firms that succeed will be those that embrace innovation, challenge outdated processes, and empower their HR and management teams with the right systems and visibility.
Henry Ford famously said, “If you always do what you’ve always done, you’ll always get what you’ve always got.” In recruitment, that’s never been truer. Firms that continue to hire reactively will continue to face high costs, long lead times, and missed opportunities.
The Future: Hiring Better, Faster, and Smarter – Optimising Legal Recruitment with AI
The future of legal recruitment is proactive, data-driven, and AI-enabled. It’s about putting firms back in control so they can build sustainable hiring practices that save time, reduce costs, and strengthen retention.
At Insource, we believe every law firm should have the tools and visibility to hire the best lawyers directly. With the right technology and mindset, firms can finally do just that – hire better, faster, and smarter.
Ready to take control of your firm’s legal recruitment?
See how Insource can help your firm reduce costs, shorten time-to-hire, and access the full legal talent market.
Book a demo or contact our team to learn more about how AI-powered legal recruitment can transform your hiring process.
