Latest news – Millennials value culture most when choosing firm; Independent firms upbeat; AI likely to be biggest disruptor

Culture beats brand for millennials

A law firm’s culture is the main factor for millennials when they are weighing up whether to accept a potential employer’s offer, according to a new international study. The report, called Minding the Gap: Do Today’s Associates Defy Generational Stereotypes, has been published by legal recruitment firm Major, Lindsey & Africa and draws from the views of more than 1200 young lawyers. The vast majority indicated that a firm’s brand was either not a factor or that it was a secondary consideration in the choice of their firm. Just 26 per cent said brand was a primary consideration when selecting a firm.

Key findings from the report include:

• partnership remains the most common long-term career goal for associates;
• firm culture is the most important variable in the decision whether to accept a potential employer’s offer, far ahead of ‘compensation’ or ‘prestige’;
• work-life balance is the most important aspect of firm culture;
• millennials see little need for clients’ values to align with their own;
• about 70 per cent of millennials describe themselves as being loyal to their firms
• 60 per cent of all respondents agree that ‘US law firm culture is inherently sexist’.

Independent firms in confident mood

The latest LexisNexis Bellwether Report suggests that independent law firms are “stealing a larger share of the market by putting quality before quantity”. The Art of Success: Why Independent Law Firms are Thriving is based on 10 qualitative interviews and quantitative research with 118 lawyers from independent law firms and focuses on the theme of success. The report claims that “today’s independent law firms remain cautiously optimistic about the future – confident they can steal business away from their rivals by offering their clients a more bespoke experience, and their people a better quality of life”. It adds that a new generation of lawyers is shunning top-tier firms and their “high-pressure billable hours’ culture”

“Rather than chasing growth for growth’s sake or fixating on unrealistic targets, they’re focusing on delivering first-class legal services and creating a better working culture and environment for their people: firms where happy, productive, staff deliver a more personal, more ‘human’, level of service,” the report states.

In terms of defining success, the report says most firms see three important elements as the key: the quality of their expertise; solid commercial logic; and a commitment to treating staff and clients with respect. It also finds that the vast majority of smaller, independent firms are either stable or growing, with most planning to expand in the next five years. “At the same time, many at the smaller end of the spectrum (especially those with five fee earners or less) are content to remain as they are, not willing to jeopardise the ethos that makes their firm successful or compromise their hard-won work-life balance.”

AI to be the big disruptor for firms: survey

Artificial intelligence looms as they key element that is set to transform law firms, a new survey of leaders from 50 international legal firms has found. The second BDO Law Firm Leadership Survey polled managing partners and senior partners, with 98 per cent of respondents agreeing that the pace of change in the legal industry is accelerating and that technology is likely to have the biggest impact on firms. Artificial intelligence, in particular, is seen as a growing force, with one in five respondents putting AI at the top of the list of potential disruptors. The believe it will either replace much of the work of lawyers, or cut out a significant layer of work and revenue from law firms.

In assessing the report, Tony Young, partner in business services at BDO Australia, says that although the survey was undertaken in the United Kingdom it is relevant to the Australian market as it captures the sentiment of global law firms, many of whom have a footprint in the local market. “Technology and changing client demands are causing law firms to reconsider how legal services are delivered,” he says. “The question to ask is if it’s feasible for them to continue to provide legal services in the same way they have done for decades.”

Survey findings shows that technology is expected to have the greatest impact on law firms in the short term, with four out of five firm leaders seeing it as a major factor to their firm’s success during the next five years. After technology, leaders believe changing client demands, generational change and competition are the biggest threats. They expect businesses to take more work in-house, where automation is likely to reduce the need for external lawyers in routine and high-volume areas.