New Zealand’s legal sector is evolving rapidly, and law firms and in house legal teams are being forced to rethink how they attract, retain, and develop talent. 

Hybrid work has shifted from a pandemic response to a long-term expectation across much of the workforce. Economy wide data from the 2023 Census indicates a sustained increase in remote and hybrid work compared with 2018, particularly in Auckland and Wellington. While legal services remain more office centric than many sectors, expectations around flexibility have changed permanently for lawyers at all levels. 

While some public sector organisations are tightening in office requirements, flexible working arrangements remain an active point of debate across the New Zealand workforce, including professional services. For law firms, this tension is now shaping recruitment conversations, retention risk, and succession planning. 

Technology adoption is the other major structural shift. New Zealand courts and professional bodies have issued early guidance on the use of generative AI, highlighting the need for accuracy, confidentiality, supervision, and appropriate disclosure. Recent cases have reinforced the risks of unchecked AI use, including fabricated citations and so-called hallucinations. 

In 2025, the Government released a non-binding Public Service AI framework aligned with OECD principles, signalling a preference for enabling responsible innovation rather than prescriptive regulation. This approach is influencing expectations across both in house legal teams and private practice, particularly around governance and risk management. 

Private practice is responding cautiously. While many large firms report strong workflow, overall headcount has remained relatively stable since 2023, placing pressure on leaders to drive productivity through technology and process improvement rather than expansion alone. 

SEEK data shared with Stellar Recruitment shows between August and October 2025 legal job advertising up 4.9 percent nationally, with applications per role increasing by 2.3 percent. Regional growth remains uneven, with strong year on year increases in Auckland at 11.7 percent and Otago at 27.5 percent, reinforcing the importance of location specific hiring strategies. 

Demand signals are also diverging by practice area. Construction law job advertisements increased by 71.4 percent, while applications per role fell by 37 percent, pointing to genuine candidate scarcity. In contrast, Environment and Planning roles declined by 70.8 percent, with applications per role increasing by 78.5 percent, highlighting pockets of oversupply. Similar pressures are emerging across corporate and commercial, property, and senior in house regulatory roles. 

Broader HR benchmarks from ALPMA reinforces this picture. Average wage growth across surveyed firms sat at 2.0 percent, below the national average of 3.3 percent. While 71 percent of firms successfully recruited in the past year, 59 percent remain concerned about securing skilled staff. Women now represent a majority of salaried partner roles across surveyed firms, although equity partnership representation remains materially lower. These insights are increasingly shaping both compensation frameworks and diversity strategies. 

What this means for hiring and candidate expectations: 

“Candidates are now weighing three things very carefully: purposeful work, flexible structure, and modern tools,” says Jenny Gallagher, Senior Consultant Legal at Stellar Recruitment. “For private practice, this means having a transparent hybrid policy that works in practice, supported by investment in AI enabled workflows with clear ethical guardrails. In house teams continue to attract talent by combining flexibility with broader mandates across compliance, privacy, and strategy, as well as clearer pathways into leadership.” 

“We are increasingly seeing experienced lawyers ask not just whether firms use AI, but how they use it,” Jenny adds. “Document review, drafting support, and knowledge search are all on the table, but lawyers want to understand the governance behind the tools. Firms that can demonstrate productivity gains without compromising ethics or confidentiality are attracting talent faster.” 

Action points for law firms 

• Codify hybrid and flexible working arrangements to reflect market norms and reduce senior associate attrition. 
• Invest in AI responsibly by aligning with court guidance and public sector principles, training teams, and implementing clear review and supervision protocols. 
• Target sourcing efforts geographically and by practice area, particularly in Auckland and Otago, and in construction and corporate commercial roles where demand continues to outstrip supply. 
• Link compensation, progression, and diversity initiatives to clear and transparent career pathways, particularly for women and underrepresented groups. 

Flexible working models and responsible technology adoption are no longer optional. They are baseline expectations. Law firms that operationalise both effectively, while targeting roles where demand is rising fastest, will be best positioned to secure top legal talent in New Zealand’s next phase. 

Ready to strengthen your legal team? Connect with Jenny Gallagher for expert support and advice on your next hire.