The legal industry is undergoing a huge transformation in response to new market conditions according to the research gathered in BigHand’s latest report. Firms are combating a decline in client demand while looking to improve their efficiency and become more cost-effective. This demand for efficiency has sparked a drive to redefine support models, with firms embracing changes ranging from altering secretary-to-lawyer ratios to having centralized teams or incorporating outsourced support.
Firms want a clear strategy in place for how tasks are delegated between lawyers and support staff. In pursuit of this many have explored different support models along the spectrum from a traditional lawyer to secretary model, to a more centralized unit of staff supporting multiple lawyers and practice groups. What’s interesting in this data is that recent market conditions, including raised staff attrition and hybrid working, seem to have accelerated these goals.
The report shows that 53% of firms have witnessed an increase in support staff attrition in the past year. For those in the US, it’s at 60%. This level of expertise and talent is difficult for a firm to replace and many now have skill gaps within their teams that need replacing. This leads us to wonder how firms can find a solution to this without visibility into what skills are lacking and who is best suited for training and development.
Market conditions have raised serious questions on how firms can find the most optimal support structure. Striking the right balance between centralized and direct support, upskilling, and retraining staff, and minimizing attrition all contribute to the strategic overhaul of support services. Its evident firms have acknowledged this and have tried to introduce new roles as well as training to upskill staff. In addition, 40% of firms have also introduced junior administrative roles in the last two years, while 33% are upskilling/retraining staff. Although these initiatives will be beneficial, firms still need visibility into what skills they are lacking and need replacing, as well as the interests and goals of their support staff, including what areas they are looking to progress to create a development plan.
The shift to centralized teams
What stands out to me in the research is although a third of firms confirm they have a 50/50 approach to support structures, where 50% is centralized and 50% use a direct lawyer model, many believe that in the next few years they will start leaning towards an even more centralized system. Almost a quarter of firms expect to have 75% of support staff working in centralized teams in the next 2 years. This shift in model will result in firms bringing in new roles to their operations.
65% of firms confirmed that they will be hiring specialized staff for a new structure, based on their specific strengths and interests. Legal workflow technology supports firms making these changes as it gives them more insight into what their staff can achieve. 65% of firms have said they rely on a collection of data to identify the roles and skills required to replace. Access to granular data can be used to make data-driven decisions on the expertise they need and what positions they need to fill, driving operational efficiency. This will be integral to an optimized support structure.
A Strategy for Success
Amid declining client demand, law firms must transform their support structures into value-driving assets. Approaching this restructuring with a strategic mindset, fuelled by accurate insights and a clear understanding of long-term goals. It’s clear the market is trending towards centralized support, firms have a unique opportunity to enhance efficiency, control costs, and mitigate attrition through a well-thought-out career development strategy with Workflow Management Technology.
Successful support structures can provide a competitive edge by meeting and exceeding client expectations. Firms that embrace change, align with evolving market demands, and invest in their support resources stand in the best place to not only weather the storm but to thrive in an ever-changing legal landscape.
