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Hiring for Growth, Risk, or Replacement: What Law Firm Hiring Strategies in Risk & Compliance Teams Really Signal

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​Risk and compliance hiring in London law firms is often viewed through a simple lens: growth. New roles appear, teams expand, and the assumption is that firms are scaling up.

But the reality is more nuanced.

In today’s market, hiring is being driven by three distinct forces: growth, risk management, and replacement. Understanding which of these is behind a vacancy reveals far more about a firm’s direction, stability, and opportunity than the job title alone.

For candidates, it shapes career decisions. For firms, it defines how they compete for talent.

Hiring for Growth: Investing in the Future

One of the clearest signs of confidence in the market is growth hiring.

We are seeing this most prominently among US law firms in London, many of which are continuing to build out their local risk and compliance infrastructure. Historically, a significant portion of this work was supported by US-based risk and compliance teams, with London operating with leaner on-the-ground functions. However, increasing regulatory complexity, global integration, and the strategic importance of having jurisdiction-specific expertise have led many firms to invest more heavily in building dedicated London-based teams.

This growth is showing up in several ways:

· Creation of entirely new roles

· Expansion of existing teams

· Hiring two Analysts or Advisors at the same time, particularly at mid-level

This shift reflects the growing recognition of London as a key regulatory and operational hub, and the value of having risk professionals embedded locally within the business.

This type of hiring signals long-term commitment. It also creates opportunities for professionals to join teams where there is genuine scope to develop, influence processes, and grow alongside the function.

For candidates, these roles can offer some of the most exciting career progression opportunities.

Hiring for Risk: Responding to Change and Uncertainty

Not all hiring is about expansion. Some hiring is driven by immediate operational or regulatory need.

We are seeing this particularly in the context of:

· Law firm mergers

· Office integrations

· Structural change

· Periods of unusually high onboarding or conflicts volumes

In these situations, firms often recruit on a fixed-term contract basis to manage spikes in workload and ensure regulatory obligations continue to be met.

This type of hiring reflects how critical risk and compliance functions are to business continuity. Firms cannot afford gaps in these teams, even temporarily.

Importantly, these roles can also evolve into longer-term opportunities, especially where workload remains high or teams expand permanently following structural change.

Hiring for Replacement: Responding to Market Movement

Perhaps the most common, and least discussed, driver of hiring is replacement.

The London market has seen significant movement over the past 18 months, particularly at the mid-level Analyst and Senior Analyst level.

Many professionals in these roles are reaching natural career transition points. After several years building technical expertise, they are looking for:

· Greater responsibility

· Leadership opportunities

· Broader exposure

· Clearer progression pathways

At the same time, newer and expanding teams are attracting talent from larger, more established functions by offering fresh challenges and opportunities to help shape developing teams.

This creates a chain reaction.

One move leads to another, and replacement hiring becomes essential to maintain team stability and performance.

We are also seeing some firms hiring multiple mid-level professionals simultaneously, reflecting both growth and the need to maintain depth and resilience within teams.

Replacement hiring is not a negative signal. In many cases, it reflects a healthy, functioning market where professionals are progressing and teams are evolving.

What This Means for Law Firms

Hiring strategy tells a story, both internally and externally.

Firms that hire purely in response to departures may find themselves constantly reacting to change.

Firms that hire for growth are often thinking more strategically about the future shape of their risk function.

And firms managing structural change effectively ensure they maintain operational stability while positioning themselves for long-term success.

The most effective organisations balance all three.

They plan for growth, manage risk, and create environments where talented professionals want to stay and develop.

What This Means for Candidates

Understanding why a role exists is just as important as understanding the role itself.

A growth role may offer long-term progression and influence.

A replacement role may offer the chance to step into a more established function with clear structure.

A role created during organisational change may offer accelerated responsibility and exposure.

Each presents different opportunities and understanding the context helps candidates make more informed decisions.

A Market Defined by Movement and Opportunity

The London risk and compliance market remains highly active.

US firms continue to invest in expanding teams.

Mergers and structural changes are creating new demands.

At Pembury Legal, we work closely with both law firms and professionals to help navigate these shifts, providing insight into not just what roles are available, but what they represent.

Because behind every hire, there is a strategy.

And understanding that strategy is key to making the right move.

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