Despite these staffing challenges, every top 20 Irish law firm increased fee income over the past year. This paradox underscores an urgent need for robust resource allocation frameworks that align the right work with the right talent, at the right cost. Effective resource management has become essential for profitability, especially as firms navigate the twin pressures of talent retention and client demands.
This piece explores how firms are addressing talent attrition’s impact on profitability and the strategic role of resource management in mitigating potential losses.
While most firms attempt to address talent retention by increasing salaries - with nine in 10 top Irish firms offering 4-15% pay rises - compensation alone isn’t a sustainable solution. BigHand’s research shows that professional development opportunities are equally crucial, with 23% of equity partners citing lack of growth as a key reason for leaving.
Resource management is at the heart of the retention challenge. Lawyers who feel overworked, pigeonholed into narrow specialties, or undervalued experience lower job satisfaction. Critically, 41% of firms report insufficient visibility into their associates’ skills and career aspirations, limiting their ability to assign meaningful work that aligns with career goals.
BigHand’s Resource Management technology bridges this gap by providing insights into lawyers’ capabilities, availability, and aspirations. This enables firms to make strategic work assignments that support professional development, fostering greater satisfaction and long-term retention.
“[BigHand Resource Management] allows our fee earners to get their voices across through being able to allocate work to their areas of interest, helping them to lead their careers within the firm. This leads to greater retention rates while saving our partners time and money.” - Fran Perry, Resource Manager at Womble Bond Dickinson
Flexible work arrangements are another top priority, with 25% of equity partners citing lack of hybrid work options as a reason for leaving. However, there is still resistance, as less than half (46%) of leading Irish firms offer hybrid contracts. Productivity concerns are partly behind this reluctance, with nearly 12% of lawyers spending over five hours weekly on non-billable administrative tasks they’d normally delegate, which detracts from client-focused work and skill development.
Poor resource allocation plays a role here as well. Without streamlined processes, administrative tasks continue to consume valuable lawyer time, creating costly inefficiencies. Resource management technology enables firms to better manage and delegate tasks, freeing lawyers to focus on billable work. By optimising resource allocation, firms can meet the demand for hybrid work while sustaining productivity and profitability without compromising service quality.
In summary, there are two primary areas where attrition drains law firm profitability, compounded by ineffective resource management:
The Evelyn Partners report underscores this, noting: “As the legal sector faces cost challenges, firms must focus on resource optimisation and effective financial management to achieve growth in an increasingly competitive marketplace.”
The good news is that technology to retain top talent and safeguard profitability is more accessible than ever. BigHand Resource Management empowers firms to match the right talent with the right matters at the right cost, optimising client and lawyer satisfaction.
With insights into skills, experience, and career goals, BigHand’s tool keeps lawyers engaged by offering diverse opportunities - such as secondments and pro bono work - and broadens their expertise through collaboration with various partners and clients.
Interested in elevating your firm’s resource strategy? Get in touch to learn more about BigHand Resource Management.
BigHand Resource Management is a legal work allocation tool that allows law firms to identify resources, forecast utilization, manage workloads and add structure to career development for lawyers. The solution delivers real-time visibility of team availability, improved profitability on matters and supports DEI goals and equitable allocation of work.
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