In 2025, the legal industry across Australia and New Zealand is shaped by flexibility, strategic development, and cautious innovation. With 82% of employers offering remote work and 68% providing flexible hours, law firms are adapting to changing workforce expectations while maintaining cohesion and service quality. Professional development remains a cornerstone of retention, with 65% of legal employers investing in career training and 67% covering the associated costs.

Work-life balance, particularly for women balancing caregiving and career obligations, is increasingly influential in recruitment and retention. Law firms are placing value on empathetic leadership, structured team connectivity, and flexibility that accommodates broader life responsibilities. Hybrid work is widely accepted, but in-person connection is encouraged to strengthen collaboration and team culture.

Learning and development (L&D) initiatives are evolving. While firms have long invested in substantive legal training, there is now increased focus on leadership and business management development, particularly for emerging talent. Firms are also reassessing how best to identify and nurture future leaders in an industry traditionally slow to adapt business practices from the corporate world.

Meanwhile, AI and legal tech are slowly gaining ground. While the early hype has softened, many firms are now practically evaluating their tech stacks and working closely with providers to integrate AI into problem-solving processes. Whether in document review, discovery, or client interface, the sector is transitioning from experimentation to thoughtful adoption.

“You’ve got to know what the law is, but you also have to communicate it.”

Kalinda Campbell, people2people’s Permanent Legal Consultant, led a wide-ranging discussion with Damian Gordon, Principal at DFG Legal, and Emma Elliott, CEO at ALPMA, unpacking the complex shifts shaping legal careers and firms in 2025.

Gordon emphasised the lasting importance of communication. “You’ve got to know what the law is, and you’ve got to know how to advocate that,” he said. “But it’s about making the client understand exactly what their issue is and how you’re going to resolve it.” He cited communication as the key trait distinguishing successful legal professionals at all levels.

For Elliott, flexibility remains a powerful retention tool, especially for women in law. “We found that benefits like remote work and flexible hours are more valued than salary,” she explained. “Firms can’t afford not to offer them.” Her organisation operates entirely virtually across five time zones, but she acknowledged the irreplaceable value of in-person interaction, noting the benefits of regular team gatherings.

Gordon agreed: “It’s important to come into the office,” he said. “Even if we have virtual teams, we aim to meet quarterly for activities—it brings people together.” His firm combines flexibility with structured team connection, recognising that remote work requires deliberate engagement to avoid isolation.

On professional development, both leaders see clear shifts. Gordon noted that for senior lawyers, development is now about “deeply honing skills in a particular area,” while junior practitioners benefit from broader exposure to different legal disciplines. “The younger ones may shy away from litigation, so we try to tailor development across the board.”

Elliott shared data from ALPMA indicating a rise in future leader programs. “Firms are now identifying top talent and investing in leadership and management training,” she said. “They’re borrowing principles from business to build career paths within legal structures.”

The conversation also touched on ambition versus readiness. Gordon advised: “You’ve got to be careful not to confuse ability with ambition. Some want leadership before they’ve mastered the foundations.” This cautious but supportive approach underpins much of the mentorship strategy in boutique and mid-tier firms.

On AI, Elliott observed a maturing approach. “The hype is over. Law firms are now thinking practically—identifying a challenge and seeing how AI can help,” she said. “It’s about working with your tech provider, not just experimenting.” She noted discovery and document handling as key areas for initial adoption, while encouraging firms to integrate AI into existing legal platforms rather than build from scratch.

Key priorities for law firms this year

• Make flexible working arrangements a standard offering, particularly to retain women in law.
• Use L&D not just for compliance, but to identify and cultivate the next generation of leaders.
• Balance remote flexibility with purposeful in-person engagement to build cohesion.
• Differentiate development: broad exposure for juniors, specialist depth for seniors.
• Evaluate AI through a problem-solving lens, prioritising integration over innovation for its own sake.