How Law Firms are Quietly Positioning Themselves (And What Lawyers Should Know)
As we move through the first quarter, many law firms are executing their 2026 plans. While some activity may feel quieter on the surface, behind the scenes, there’s a great deal of planning underway. Following year-end reviews, budgets are being finalized, teams are assessing their needs, and leaders are thinking carefully about how to position their firms for 2026 with renewed focus and momentum.
A Natural Time to Reset and Refocus
The first quarter has always been a moment for law firms to refocus and set direction. With clients facing tighter budgets and the economic picture still mixed, law firms are taking a close look at what’s working, what needs adjustment, and where they want to invest next as plans move into execution.
Hiring hasn’t stopped. It’s just become more thoughtful. Many employers are continuing with selective lateral searches, especially for mid-level associates and senior lawyers who can deepen practices, support succession, or add stability for key clients.
More Planning, Less Reacting
As firms move through Q1 and prepare for the post-bonus rush, many are prioritizing planning over reactive hiring. With multi-year staffing strategies becoming more common, firms are forecasting needs earlier, budgeting sooner, and keeping active conversations with potential candidates while also taking a closer look at compensation structures amid continued pressure across senior associate, counsel, and partner levels.
Preparing for What’s Coming
Three areas are shaping how firms prepare for 2026:
- Succession planning. Firms are thinking about long-term stability, such as who will take on leadership roles and who will maintain key client relationships. This matters for senior associates and counsel who may soon step into bigger roles.
- Compensation and transparency. Lawyers want clearer information about how pay works. Firms are slowly shifting toward more predictable and transparent models as salary pressure continues to rise.
- Technology and AI. Firms know client expectations are changing. More are adopting tools to increase efficiency and rethink how legal work is delivered. This will continue to influence hiring and team structure throughout 2026.
Movement Around Bonus Season
Even with a strong start to the year, bonus season still prompts many lawyers to explore new opportunities. Since candidates often wait until bonuses are paid before making a move, firms are preparing now for increased activity in February.
For senior lawyers thinking ahead, early in the year is often the right time to check in with yourself:
- How do you want to be positioned this year and forward?
- Are you aligned with your group’s goals and direction?
- Are you ready for partner or performance discussions?
- Do you know how your compensation compares in the market?
A little preparation now can make a big difference in how you end 2026.
What Firms Can Do Today
Firms that stay ahead tend to:
- Plan talent needs over several years, not just react to gaps
- Maintain ongoing relationships with potential candidates
- Communicate a clear and consistent message about their culture and direction
- Invest in leadership development and succession support
- Get ready early for the usual Q1 hiring activity
Looking ahead, the firms and lawyers who take a bit of time early in the year to plan will be the ones who feel more confident and ready when the market picks up. Whether you’re shaping a hiring strategy or thinking about your own career, this is a good moment to get organized, stay informed, and make sure you’re well-positioned throughout 2026.
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