For Immediate Release June 25, 2009
AS LEGAL FIELD ADAPTS TO CHANGING TIMES, LAW OFFICES FACE CHALLENGES, FIND OPPORTUNITIES, NEW REPORT REVEALS
MENLO PARK, CA -- Law offices are seeking new ways to deliver legal services and grow revenue in the face of the most difficult business environment in decades. Their success is tied closely to their specialty and their ability to adapt, reports a just-released white paper from Robert Half Legal, a legal staffing service specializing in attorneys, paralegals and other highly skilled legal professionals.
The report, Delivering Value-Added Legal Services in Challenging Times, presents the latest research from the firm’s ninth annual Future Law Office project. Key findings include:
- Demand for legal services is growing in practice areas such as bankruptcy, litigation, intellectual property and environmental law.
- Experienced attorneys with a book of business are finding new employment opportunities, but recent law school graduates and generalists are encountering a competitive market.
- Many law firms face steep revenue goals, prompting them to rethink client service methods.
- Alternative billing practices are gaining wider acceptance as clients ask for more flexible arrangements from their law firms.
- Corporate legal departments are limiting spending on outside counsel to the most strategic areas and reassessing the allocation of legal work.
- Increasingly, corporate legal departments are using project professionals to manage rising workloads and meet demand for their legal services.
For its annual Future Law Office project, Robert Half Legal commissions surveys of attorneys, interviews leading experts and conducts research to assess how law offices might operate in the future. The results are available at www.futurelawoffice.com.
Challenges, Opportunities in Profession
"This is a time of contrasts in the legal field," said Charles Volkert, executive director of Robert Half Legal. "Law firms specializing in bankruptcy, litigation, intellectual property and environmental law are experiencing increased demand for their services. Meanwhile, other firms are consolidating their resources and carefully managing expenses as they assess prospects for revenue generation in the coming year."
Volkert noted that job-seeking legal professionals face similar challenges. "For seasoned associates with a ready-made roster of clients, opportunities are available as law firms expand active practice areas. Recent law school graduates and even veteran attorneys who lack in-demand expertise are encountering a tighter job market."
Renewed Emphasis on Client Service
To remain competitive and meet steep revenue goals, firms are rethinking their client service methods and intensifying their efforts to add value.
Research conducted for the Future Law Office found that law offices have pursued various strategies for enhancing their team’s focus on client service. Lawyers surveyed by Robert Half Legal said the most effective techniques for improving service levels include mentoring and/or coaching (91 percent), technology training (87 percent), business development training (83 percent), leadership training (63 percent) and continuing legal education (2 percent).
"Corporate clients want more from their law firms than discrete legal advice about specific cases or matters," said Volkert. "In-house counsel also are looking for strategic guidance that will help the company avoid pitfalls and chart a course for business growth when the economy recovers."
Volkert added that cost-conscious clients increasingly expect their law firms to offer flexible billing arrangements such as flat fees, monthly retainers, blended rates, contingency fees and rate caps.
Legal Departments Weigh Costs, Benefits of Outside Counsel
The economy has prompted corporate legal departments in virtually every industry to re-evaluate their budgets and, in some cases, modify their use of outside counsel.
Thirty-seven percent of in-house attorneys surveyed by Robert Half Legal plan to decrease their work with outside counsel in the next 12 months while 40 percent forecast no change. Nineteen percent plan to increase their work with outside firms.
"One key concern for in-house counsel is how to keep providing high-quality legal services to the organization with fewer resources," said Volkert. "They are reassessing the way legal work is allocated to identify the optimal combination of in-house capabilities and outside expertise."
Volkert noted that many corporate legal departments are managing rising workloads by using interim contract professionals to immediately access the specialized expertise they need for key cases and projects while staying within budget limitations.
To order a complimentary copy of the complete white paper, or for more information on the Future Law Office project, please visit www.futurelawoffice.com.
About Robert Half Legal
Robert Half Legal provides law firms and corporate legal departments with project and full-time professionals, including attorneys, paralegals and legal support personnel. Robert Half Legal offers online job search services at www.roberthalflegal.com.
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