The level of employee volatility within law firms is unprecedented. Lateral hires (and therefore attrition) are at an all-time high; salaries are rising fast; and a stand-off is emerging between firms’ hybrid working policies and employee expectations.
How is this rapid pace of change affecting the business of law? Is lawyer efficiency and effectiveness compromised? What is the impact on client services? Have key Diversity, Equity, and Inclusion goals been sidelined while firms fire-fight resourcing issues? If so, what is the implication for client relationships when clients are pushing for greater inclusivity? On top of all of these challenges, is profitability being compromised?
To understand the impact of the current employee instability on law firms both operationally and strategically, across May 2022, BigHand gathered a total of 836 responses across senior Operations, HR, Resource Management, and Practice Group Leader roles, from firms of 50+ lawyers in North America and the UK. In addition to exploring the latest resourcing trends and their impact on law firms, the research discovers how firms are responding to the demand for dedicated resource management expertise and technology.
The resulting report demonstrates how a better understanding of the way the industry is dealing with the stand-off between firms’ and employees’ hybrid working expectations can help to shape productive strategies that will also help win the current war on talent.
It highlights the current gap between firms’ DEI goals and what is currently being delivered – and how that can be changed. And it demonstrates the industry’s commitment to creating centralized resource management roles, supported by technology, in a bid to create a far more effective, equitable, and business-focused working environment.
Key findings include:
- Half of respondents (49% of NA, 52% of UK) report that their firm has mandated the number of days they must be in the office – yet 49% of NA respondents and 35% of UK admit to not complying.
- 69% of NA and 52% of UK firms report increasing client pressure to resource matters with diversity in mind. Yet less than one third (24% of NA and 27% of UK) law firms are prioritizing DEI when staffing matters.
- 71% of NA, 63% of UK firms have received pressure from clients to make sure legal work is completed by the most cost-effective resource.
One of the key steps to improving these challenges is to move from the “practice of law” to the “business of law.” This has resulted in the rise in dedicated resource management roles/work allocation roles in law firms – something that the Big Four accountancy firms have had in place for years.
The report found:
- 91% of NA and 94% of UK firms plan to recruit a Resource Manager in the future, and 29% of NA and 36% of UK firms already have dedicated Resource Managers.
- 87% of NA and 77% of UK firms either have a dedicated Resource Management technology in place or plan to implement one in the next 12 to 24 months.
Dedicated resource management processes, people, and technology are now key – supporting equitable allocation of work and career development for all. Employees now expect to be treated fairly and to have their individual career plans recognized and supported – which means firms’ approaches to resource management will be critical.
Can any firm risk losing valuable hires due to the continued reliance on outdated, inefficient resource allocation and employee support processes? If firms don’t change now, Associates will continue to leave, adding cost and challenging productivity and effectiveness. With the war on talent expected to continue, dedicated resource management has become essential for all law firms.
Read the full report here.
