Latest news – Pricing and competition pose concerns; Demand for specialised expertise in legal field; Worries over data sovereignty and privacy

Pricing and competition the big challenges

Pricing and competition pose the biggest challenges to law firms this year, according to a LexisNexis Enterprise Solutions’ survey of more than 100 marketing and business development professionals in law firms. The report reveals there is optimism about growth this year, with 57 per cent of law firms across the surveyed regions being confident about their growth prospects.

The report, called Law Firms in Transition: Marketing, Business Development and the Quest for Growth, is based on responses from law firm marketing and business development professionals across the United Kingdom, Europe, South America, Africa, Asia, and Australasia. It shows that pricing (for 52 per cent of firms) and competition (for 46 per cent) represent the biggest barriers to achieving growth.

The key findings of the survey are:

• 62 per cent of respondents are targeting international growth;
• 88 per cent of respondents are shifting their marketing and business development strategies and activities in an effort to gain new business; and
• 94 per cent of professionals recognise marketing and business development as different functions that require different skill sets.

US law firms hunting for specialised expertise

As you consider international trends in the legal services field, it is worth checking out what is happening in the United States. The 2016 Salary Guide from Robert Half Legal, a legal staffing and consulting solutions firm, suggests law firms and companies are expanding their legal teams to pursue new business opportunities, while competition is intensifying for job seekers with in-demand skills and niche backgrounds.

Applicants with significant expertise in high-growth practice areas and industry sectors, including commercial law and healthcare, are seeing greater than average starting salaries, signing bonuses and multiple offers in the US market. “Employers are placing a premium on associates and paralegals who can assume full caseloads and deliver quality results to clients,” says Charles Volkert, executive director of Robert Half Legal. “The most sought after legal professionals possess three to five-plus years of experience in a hot practice area, technological proficiency and strong interpersonal skills.”

According to the survey, the five big hiring trends in the legal field are as follows.

• Recruiting and retention strategies are more essential – as baby boomers begin to exit the workforce and vacate leadership roles, employers are re-evaluating succession plans and focusing on how to become more attractive to Gen Z workers.
• Employers are enhancing benefits – law firms and companies are emphasising greater flexibility, training, career advancement opportunities and other perks valued by job seekers, such as telecommuting and business casual dress codes.
• Hybrid or blended paralegal-legal secretary roles are more common ­– aside from practice area experience, the most marketable legal support professionals have strong technology skills and are able to perform multiple job functions.
• Foreign language skills are in demand – in certain markets, bilingual abilities, including Spanish-language skills, have become increasingly vital for lawyers and legal support professionals.
• The market is improving for junior-level attorneys – while hiring has not returned to pre-recession levels, many law firms are expanding summer clerkship programs and hiring newly minted associates who can meet client demands for lower bill rates.

For more details, visit www.roberthalf.com.au

Data sovereignty and privacy a concern on cloud

A new survey claims that data sovereignty and data privacy are considerable concerns for law firms as they make or consider the switch to cloud platforms. While the cloud is seen as “the filing cabinet of the future”, a new survey conducted by InfoTrack and InPlace Solutions shows that 56.7 per cent of respondents cite data sovereignty as their primary concern, with 46.7 per cent highlighting data privacy. The report, which was completed by participants from small to large-sized Australian law firms in February this year, suggests that lawyers’ resistance to cloud services and technology are holding back firms.

While the chief priority of firms is to improve efficiency, their fears about adopting new tech tools are limiting improvements. Six out of 10 respondents argue that the biggest hurdle to overcome in achieving greater efficiencies is the resistance of lawyers to adopting technology that could improve productivity and mitigate risk.