Attorneys may be able to work from home if needed, which comes with pros and cons. Many professionals, including lawyers, need to work from home at least occasionally, making remote work significantly helpful for attorneys and law firms.
Working from home gives attorneys and other professionals the ability to work remotely, either at home or in another location, when they are unable to work from an office. Although remote work comes with benefits, such as the ability to improve an attorney’s work-life balance, it can also have setbacks.
Working from home offers several advantages for attorneys and law firms. Some potential benefits include:
Commuting can sap a lot of energy from attorneys, particularly if they have to travel long distances and wind up getting stuck in traffic. Oftentimes, attorneys need to get up early to get to the office on time, which could further drain their energy levels. Working from home enables attorneys to get better rest and avoid the pains of a taxing commute.
Attorneys can also benefit from increased focus while working remotely, as they select and establish their work environment.
Lawyers can save money without a potentially costly commute, and they may even eliminate the need for vehicles, along with the costs associated with them.
Other benefits include less stress and a mobile workforce that allows for more flexibility via telecommuting.
While there are many upsides to working from home for lawyers, there are some downsides to keep in mind. These may include:
Attorneys may enjoy the convenience of telecommuting, but it can make it more challenging for attorneys to meet with existing or prospective client candidates when an office setting is more ideal.
People in charge of law firms may be uncertain about how much work their attorneys are getting done at home.
Lawyers who work from home may also experience little to no contact with their fellow practitioners. Subsequently, attorneys working remotely and in the office may feel more isolated or out of the loop.
If needed, attorneys may benefit from working remotely, but it’s ideal to maintain a balance of in-office and remote work.
2020 treated law firms well, as the surge in COVID-19 related work led to record profits at many of the nation’s largest law firms. At the same time, these firms have had to increase paychecks to keep up in the constant struggle to recruit and retain talent. Nonetheless, higher compensation costs put little dent in profits.
Initially, it appeared as if the pandemic would cause significant economic disruption for law firms. However, it had the opposite effect. Clients hired law firms for a wide variety of matters, as they needed help in dealing with the pandemic. In addition, COVID-19 prompted numerous business deals and litigation. All of this added up to bountiful work for law firms. Remote work boosted these firms’ bottom line, with workers at home lowering their overhead costs. Many law firms moved to cut costs when the pandemic started, in anticipation of a slowdown in business that never happened. They reduced staffing levels and reduced compensation, only to reverse course later in the year. The factors that led to a banner 2020 are still in place, and law firms’ revenues continue to increase.
Strong performance usually leads law firms to raise salaries for associates. While the overall salary structure increases for firms because they almost all match the hikes, law firms need to remain competitive for attorneys. This is on the associate and partner level. Some firms try to gain an advantage over competitors by raising salaries to the point that other firms may struggle to match.
Large law firms raised salaries above the $200,000 level for first-year associates. However, this did not noticeably impact profits. First, law firms had more than enough work to absorb these costs. Revenues increased by double digits for many firms. Second, law firms find a way to raise expectations from attorneys when they are paying lawyers more.
While law firms reduced expenditures on things like staff and attorney recruiters, this is expected to change going forward. Once again, law firms will need to increase expenditures, especially as lawyers return to the office. Attorneys are in demand, and firms will compete for talent. In other words, while revenues will remain strong, there may be some pressure on bottom lines.
Law firms must continue to learn the lessons about the hybrid work environment that they have gained from the pandemic as they seek to stay competitive in the market for talent. A law firm is all about its collection of talent, and lawyers will often migrate to where they get the most flexibility. However, firms will need to balance this with their mission of serving their clients in the most efficient manner possible.
While telework had been gaining some traction before the pandemic, law firm leaders learned for the first time the exact feasibility of remote work. Their firms barely missed a beat while they continued to provide services to clients. The question is now how to integrate remote work with in-office presence as things return to normal in the future.
Law firms have learned that mixing in more remote work can help with their own bottom lines. Offices expenses have fallen, meaning that partners’ paychecks have risen. In addition, lawyers, freed from the requirements of a commute, can do even more work. Younger lawyers have found that they can build their skills even more effectively in a remote environment.
However, there are still some benefits to having lawyers in the office. In some cases, physical presence helps younger attorneys build their skills and get better assignments. Being able to walk into a partner’s office and strike up a conversation could lead to better work for the associate that they may not get when they are working from home. This will continue to be a challenge going forward. In addition, lawyers often benefit from other conversations with colleagues, since this is where they can pick up knowledge. They do not always get this at home.
Law firm leaders will need to strategize as they bring attorneys back to the office. They may not be able to go back to the way that things were. Their attorneys could leave for more flexible firms. However, they will need to ensure that all attorneys are integrated into the office and have every chance to succeed. The firms that strike this balance the right way will gain a leg up on their competitors in the competition for both clients and legal talent.
Current and prospective lawyers who want to maximize their earnings potential should know which areas of the law pay the most. The legal profession is once again on the upswing, and certain practice areas can be lucrative.
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IP lawyers are in high demand. Their practice area can be technical, requiring someone with a scientific background to understand complex legal issues. Clients are often technology companies with the legal budgets to pay a knowledgeable attorney an impressive rate. Moreover, IP matters are often litigated in court, leading to trials that last for years. Experienced IP lawyers could make more than $250,000 per year.
Trial attorneys could do well regardless of what side they represent in a case. Plaintiffs’ attorneys could earn high contingency fees if they win a big case in court. Conversely, defendants will pay high hourly fees for years in high-stakes litigation. There is a wide range of incomes in this practice area, but the upper end of the range can be very high.
The tax code is one of the more complicated things in existence. Individuals and corporations routinely need the help of a tax attorney to understand the immense scope of state and federal laws. There is also a chance that the IRS will get an increased budget for tax enforcement, leading to an even greater demand for tax attorneys. These lawyers could earn as much as $189,000 in a year.
The booming economy means that businesses are making deals, such as mergers and acquisitions and other financing arrangements. These can be time-sensitive transactions, and clients generally have a high legal budget for them. Corporate attorneys can average $130,000 per year, and many make far more. The great thing about this area of law is that attorneys can move between law firms and clients based on the demand for their services.
Individuals and businesses often need help in drafting, reviewing, and executing legal agreements. Contracts attorneys can average $140,000 per year. They may help clients on the front end, or they could assist when there is a dispute over the terms of the contract. These could eventually end up in litigation.
The legal industry is hot right now, and interested job candidates need to plan ahead, mapping out a strategy for how to succeed. Many legal employers are willing to pay top-dollar for qualified candidates, but their hiring processes can be rigorous. Education and preparation are keys to getting ahead in the legal field.
Legal education means more than the professional training that one needs for the job. It also means learning and understanding the field itself. The legal job market has many segments, and candidates should have a good idea of where they may fit into the equation. Legal employers who see overall awareness and strategic thinking from their candidates are more inclined to make job offers.
A job search in the legal field should begin with candidates taking an objective look at themselves to figure out which type of firm is the right fit and where they could best help an employer. This requires asking tough and objective questions in search of self-aware answers. Some may figure out that they are just not a right fit for a law firm or a particular job. This includes assessing one’s own personal values and strengths and weaknesses.
Job candidates can work with an attorney recruiter to develop their own plans. This includes the type of jobs that they should be applying for and their own marketing strategy. Prospective employees need their own plan for selling themselves to employers. Firms and companies will need to know exactly what the candidate can do for them when they make the hire. This explanation requires forethought and planning. It may be a different answer for each job.
Each job candidate must think about what he or she has to offer the law firm. Some may have prior experience in other fields that could help an employer. Leveraging one’s skills can significantly improve one’s chances of landing a dream job. Legal employers are often drawn to previous job experience, especially if there is a connection to a particular type of law.
Finally, contact with attorneys and employers ahead of time is helpful. A mentor could assist candidates by helping them talk through their career plans. They may also provide key advice about where their mentee fits into the legal profession and how to maximize appeal to potential employers.
Law firms that can identify when it is time to grow, and choose the right people when that time comes, are better positioned to handle new clients and the growth that comes with industry changes. Several factors can indicate the need to grow. From the inability to take on new work to the inability to get back-office work done, there are a variety of indicators that show a firm may need to hire new associates.
A key factor in indicating it is time to grow is when a firm is turning down new clients. The only way for a firm to grow is with new work, and if the firm cannot handle any new accounts, then it means they need more people to handle the workload. With new associates on board, the firm can continue to grow and bring on new, lucrative client accounts.
Good customer service is the hallmark of a successful law firm, but this is one area where many businesses suffer when they have insufficient staff. If the firm is not meeting the needs of its clients then it may mean they need to hire new associates. Every client needs exceptional treatment, prompt responses to phone calls and emails, as well as a positive face-to-face experience, and an understaffed firm cannot provide any of that.
Legal work comes with a lot of paperwork, and that paperwork must get done efficiently to keep the firm running smoothly. Sometimes understaffed law firms do a good job of meeting the needs of clients, but fail to get the back-end stuff done promptly. This is another indicator that it’s time for firms to consider hiring someone. If the existing associates cannot get the paperwork done, hiring more will help get these important steps accomplished.
Finally, if the existing attorneys are working too many hours and starting to feel burnout, hiring new talent can alleviate some of that stress. Working with a Chicago legal recruiter can make it easier for firms to find associates who are a good fit for the firm’s needs and overall culture so they can seamlessly integrate into the team and start working on the caseload to get things moving more efficiently again.
Today’s law firms are hiring more remote associates as the technology for remote work continues to improve and the shut-downs due to COVID-19 continue to affect the legal industry. Many firms had to figure out ways to make virtual appointments in the aftermath of the shutdowns of 2020, and this is a trend that appears to be sticking. Many attorney recruiter professionals are helping firms hire remote associates as firms continue to offer virtual appointments to their clients.
Hiring virtual talent demonstrates a major shift in how law firms do business. Now, instead of requiring talent to live in the vicinity and come to the firm’s brick-and-mortar location, firms can add quality talent to their teams without requiring a move. This, in turn, may allow them to recruit better talent in the long run.
One of the reasons many firms are hiring virtual associates is that it allows them to expand into new markets as they focus on growth. Firms can now hire attorneys who are licensed in new states, allowing them to practice in their state while bringing in clients to the firm from those states. As long as virtual law remains a factor in the modern law firm’s makeup, this trend is likely to continue, allowing firms to reach more people through their virtual partners.
Recruiters are indicating that the job market for associates is quite tight. High demand in the aftermath of COVID-19 combined with a candidate shortage is making available positions fill quickly. The option to offer virtual appointments is vital because it allows a new associate or partner to remain in their own geographic location even while joining the firm.
This shift towards hiring more virtual associates is creating a concern. These virtual associates are not making the connections or receiving the training they would if they were hired traditionally and brought on board in person. Firms hiring virtual associates can work with an attorney recruiter to set up training programs to compensate for this concern.
After the demands of 2020, the 2021 year brings significant challenges to law firms as they decide how to move forward on the tail end of the pandemic. From the remaining impacts of COVID-19 to the shift to virtual service and increased demand for the service of a legal recruiter, many firms have had to adjust their business models to address these changes. These are the challenges that law firms face as they move through 2021.
COVID and the challenges it brought to law firms are not yet over. As many as 81 percent of the top firms still report that they feel COVID-19 will prevent them from reaching their financial goals. Things are looking better with the vaccine on the horizon, but the crisis is far from over.
One of the best ways to overcome this 2021 challenge is with technology. Virtual interviews with a legal recruiter can help with the hiring process, and virtual meetings with clients can reduce the risk of virus transmission. Remote work may be the norm for legal work as 2021 progresses.
Legal consumers have changed over 2020, and those changes will follow them into 2021. One of the biggest changes is the demand for cyber services. Since consumers can now do everything from buying groceries to checking their bank accounts online, many are starting to expect legal services in a virtual format as well.
To address this challenge, firms can consider adding app-based services, virtual client meetings, and other technology-based approaches, where appropriate to meet the changing expectations of their clients.
As a firm adapts to the changes brought on by 2020, many find that they need to add additional talent. Yet few networking events will take place as the pandemic continues, leaving firms struggling to connect with potential new hires. A legal recruiter is often a great way to add talent and find people who may feel interested in a firm, without undue stress on the existing partners.
There’s no denying that 2021 is going to bring challenges to today’s law firms, but 2020 taught the tenacity needed to push through. As the pandemic becomes more manageable, smart firms will rise to the challenge and continue to grow through the coming year.
Big Law firms made sweeping changes to their budgets and work environments after the COVID-19 pandemic emerged that could alter how they do business in the future. The firms made overhead cuts and adopted remote work, which allowed them to boost profits and perform better than expected during the pandemic. Many of the changes are expected to remain in the post-pandemic period.
According to Burford Research, about 75% of lawyers said the impact of the pandemic would make them rethink their past approaches to business and improve them. The pandemic made law firms adopt measures to increase operational efficiency, such as remote working. An Acritas Sharplegal survey found that the number of American lawyers who want to work remotely on at least one day of the week to have more than doubled during the pandemic period.
The shift to a remote working environment has been largely successful in the legal industry. While the industry may not become entirely remote, a certain degree of remote working is expected to be a permanent feature of law firms in the future. The firm working environment will combine the best aspects of office and remote work.
In 2020, budget changes that were made necessary by the pandemic allowed law firms to reduce costs and increase profits. Firms became more efficient about:
For example, Am Law 200 firms boosted their profits through cuts like furloughs and reduced overhead expenses.
Technology allowed the legal industry to operate in a fully remote work environment. Consequently, there has been an increased appreciation for investing in technology. Law firms are expected to have bigger technology budgets. Faster and greater technology adoption rates will help law firms deliver legal services in the post-pandemic environment more efficiently.
Reduced travel has allowed law firms to save considerably on expenses. Firms are more likely to keep scrutinizing business travel more closely to evaluate what they consider essential. More meetings with their clients are likely to be by video whenever possible.
The pandemic has given law firms insight into the available opportunities for rationalizing their operations, such as the composition and size of their support services. Law firms have been actively reducing their support and professional staff ratios. They are likely to continue adjusting the number of paralegals, hospitality staff, and secretaries. However, headhunters for lawyers expect lateral poaching to carry on because of the rising dispersion in the performance of law firms.
Big Law firms have realized that the changes forced on them by the COVID-19 pandemic have the potential to make them better in the longer term. Therefore, the rate of acceptance and adopting the changes is likely to increase in 2021 and beyond.