In this month’s Eye on ESI, Maribel Rivera, ACEDS’ vice president of strategy and client engagement, and I discussed some emerging trends and predictions identified this June for job seekers and employers in the current eDiscovery industry.
First, it’s important to point out that the free 2024 eDiscovery Jobs Report remains available on the TRU website. While ESI data changes monthly, the information in this report is timely and relevant. It’s a great resource, especially for hiring managers looking for job market endorsements and data points to help them secure hiring budgets or resolve hiring roadblocks.
The webinar introduced a new segment showcasing the diversity of current in-demand roles facilitated by TRU, including contract, direct hire, leadership and traditional mid-market project management positions, particularly as emerging technologies create new job types, such as leveraging eDiscovery technology for broader use.
So let’s take a look at the key trends for June.
Compared to last year, TRU recruiters filled 30% more positions in the first half of the year, indicating an increase and speed of recruiting activity in the eDiscovery sector. This indicates that organizations are hiring more quickly and indicates that there were more eDiscovery job openings this year than the same time last year. In June, we saw a notable trend of many job seekers declining multiple offers, highlighting the high demand for top talent who often receive multiple offers when hiring. Additionally, the job market is gradually shifting to favor candidates, indicating a shift from the employer-driven market of the past 18 months. Another key trend is the increase in corporate eDiscovery hiring, which is primarily contract roles, often remote. Moving from full-time to contract roles offers unique career opportunities within a corporate environment. In June, we saw more law firms move toward greater flexibility, such as reducing office work requirements to one day per week, to effectively attract top talent. This indicates that law firms are realizing they need to work harder to attract top talent. The moment a law firm makes that shift, the number of candidates interested in the open positions increases exponentially. TRU recruiters found that three out of four ESI job seekers prefer fully remote contract positions over direct employment with more frequent office-based obligations. This reflects the current job seeker preferences. We know that ESI professionals are more likely to leave their full-time positions and take remote contract positions instead of going to the office. This shows the current mindset of job seekers. As Q2 2024 ended, burnout emerged as the main motivation for job seekers to explore new opportunities, significantly impacting industry trends. This trend began in Q4 2023 and continues to rise. Firms continue to be understaffed and teams are overworked, which is why people stick to remote work. Remote work gives you some control over your career. This trend is really impacting the entire industry. People are willing to give up tens of thousands of dollars in salary to take lower-paying contract positions because they are exhausted and looking for a change. Additionally, hiring of ESI lawyers hit a 12-month peak by June, increasing demand for legal professionals skilled at addressing ESI issues beyond traditional document review.
Looking ahead, recent data highlights a shift in offer acceptance likelihood and an increasing trend towards direct hire. Employers now have a 50% first offer acceptance rate and need competitive offers to secure top candidates. Candidates wait weeks to see how many offers they receive and which one is the best. Being early and first to make an offer is no longer important. Now, you need to submit the best offer to secure top candidates. Despite many job openings, talent shortages are starting to have an impact. This is a trend that will be very similar to 2022.
The balance between contract and direct hire roles has shifted towards direct hire in June, indicating higher demand and preference for permanent roles. We expect this trend to remain the same between now and the end of the year. However, the only factor that could change this forecast is a higher proportion of contract work as project work becomes more extreme, requiring staff to perform duties for a period of time.
When looking at job seekers’ motivations, burnout emerged as a common issue, alongside challenges related to new business prospects and toxic work cultures. Burnout for ESI professionals is different. It can mean people are overworked or under too much stress. Regarding the second point, not being able to take on new business impacts sales professionals who come to TRU looking for new roles. If an organization can’t take on new work, sales professionals will want to move jobs to keep making money. Regarding the third point, a lack of vision or empathy for employees can allow a toxic culture to creep in.
Average salaries at mid-market law firms have increased significantly, signaling a competitive effort to attract and retain top talent. Average salaries have increased substantially across mid-market law firms.
In contrast, on the vendor side, salary trends are mixed, with increased demand and compensation for review managers reflecting the need for skilled leadership in reviews.
While salaries for some roles are falling, review manager salaries are rising, primarily because there are fewer review managers available. Vendors want more sophisticated review leadership and are willing to pay for it, and they are also focusing on attracting cheaper mid-market talent.
[View source.]
