December’s Eye on ESI saw Mike Quartararo, president of ACEDS, and Maribel Rivera, ACEDS VP of Strategy and Client Engagement and me discussing a year-end roundup of latest trends in the ediscovery industry, along with my predictions for the first quarter of 2025.
We started the webinar by highlighting TRU Staffing Partners’ top 5 hottest jobs in the ESI industry, including senior executive roles, forensics, ediscovery, and more. The ediscovery market is about to heat up, and there are opportunities for everyone. The fourth quarter was TRU’s best of the year, largely because job opportunities accelerated, and hiring speeds picked up.
Top Takeaways from 2024
Since this is our year-end review, Mike, Maribel and I focused on the most remarkable trends we’ve noticed. First off, it’s been a decade since law firm hiring has outpaced vendor hiring in the ediscovery space, and this year, that trend was undeniable. A lot of this shift is due to the adoption of RelativityOne, with companies bringing more work in-house — starting with technology licensing, followed by staffing, and then scaling and accelerating growth. This has been happening not just in law firms but also in corporate settings. Meanwhile, vendors ran lean this year, and we touched on how that impacted job seekers, where the jobs were located, and how many of those roles were remote or contract.
Secondly, burnout was the top motivator for ediscovery job seekers for 11 months in a row. However, by December, wanting more money reclaimed the number one spot.
Looking at the third point on the slide, there was a noticeable focus on full-time hiring in 2024. It varied throughout the year, but firms and vendors were definitely focused on full-time hires. One reason for this was the lack of a major litigation surge, and another was the recovery from the purported “great recession” where hiring slowed down because employers feared a real recession. However, it’s remarkable how quickly this trend shifted in the fourth quarter. I’ve noticed trends in the market tend to follow a two-year cycle, and after late 2022, we’re seeing things rebound strongly.
For the fourth point, executive-level opportunities were scarce throughout 2024, and what opportunities were available became very competitive. Executives aren’t leaving current roles, and there aren’t many new opportunities because firms are either not replacing people who leave or promoting from within. So, external hires at the executive level are fewer than they’ve been in previous years.
Now, moving to our fifth point, 70% of the jobs were hybrid this year due to the focus on law firms and direct hires. Only 30% of jobs were fully remote. However, there’s a catch: most fully remote jobs were contract roles. When those remote opportunities do appear, they’re highly coveted and tend to fill up faster than hybrid or in-office roles.
Predictions for 2025
Now, let’s dive into some predictions, as they tie into everything we’ve talked about so far:
- Contract job opportunities will skyrocket in 2025. A lot of organizations are looking for an exit in the next 2-5 years. As a result, they’re wary of adding permanent headcount. So, we’ll see more companies scale up with contractors for large projects (like a second request) and then scale down when those projects are completed.
- Adoption of AI in ESI will accelerate talent growth. This will create new opportunities for people to learn new skills and leverage them for career mobility, raises, and promotions. We’ll also see entirely new roles emerge in the industry, roles that didn’t exist before but will become established in 2025.
- Law firms and ALSPs will hire more attorneys. Lawyers will be expected to bill at a different rate, thanks to AI creating efficiencies. Corporations will pressure outside counsel not to bill for things AI can handle. However, law firms will pay a premium for lawyers with AI skills who can help manage legal matters related to AI.
- Individual innovators will reshape corporate legal buying. We’re seeing influential lawyers move from large law firms to smaller, growing boutiques. These individual innovators will play a key role in reshaping how corporations make legal buying decisions.
Current Market Trends
Now, let’s look at some stats on salaries. There have been salary increases in the last 30 days, and we’re seeing employers come to TRU, asking us to repost jobs at higher compensation levels.
The vendor side of the market has been running too lean for too long, and now, they have to move quickly to acquire talent before the new year.
Looking at contract vs. direct hire for 2024, direct hires have exceeded contract roles throughout the year. As we head into 2025, we expect this to shift to a 50/50 split, with full-time roles rising proportionally to contract opportunities.
As for remote vs. hybrid work, this is largely a result of law firms holding the majority of the jobs this year. Most jobs were hybrid, with only a few fully remote roles available — mostly in contract positions.
When it comes to motivations for ediscovery job seekers, burnout held the number one spot for 11 consecutive months. Money was number two, followed by unemployment, boredom, and a lack of challenge. Interestingly, remote and hybrid work dropped in importance, as the market has largely accepted that in-office work is the norm now.
Get in on the Action Now
The ediscovery industry is poised for significant growth, offering exciting job opportunities and the potential to hire top talent. With emerging technologies like AI and cloud-based solutions constantly advancing, staying informed is crucial. The Eye on ESI series will keep you in the loop on these developments, providing valuable insights to both job seekers and hiring managers on how to use the latest tools for more efficient job searches and hiring strategies. To learn more about the tips and trends discussed here, connect with the recruiters at TRU Staffing Partners.
