
Legal Intelligence just released a white paper Finding the Right Balance: Nonattorney Law Firm Staffing Trends. ‘ (Cover title: Law firm staffing—Finding
the Optimal Mix. “) The survey was conducted during January and February 2014. The report studies the ongoing efforts by law firms to “optimize” support staff functions and ratios.It appears that law firm pulling back from the relentless focus on shrinking staff and management t is now trying to focus on staff optimization. Optimization includes upgrading functions and identifying the right mix of talents. Providing lawyer with billing support used to mean clerical help. Today billing support requires staff who can provide analytics. Libraries have shifted from managing books to overseeing competitive intelligence and knowledge manageme nt.
Key findings
- Large
law firms spent 16-6% of overall revenue on non attorney staffing. For 3-4 of
respondents staffing is the same or flat for 2014. (51% flat
22% increase). I guess the good news for the market is that only 25% may be
reducing staff. - Library services is the most thinly staffed non attorney staff function.
- Legal Support, Marketing, Litigation Support and Library Service are still largely staffed with law firm employees. Office services is the function which is most commonly outsourced.
- Legal support/secretarial is the area that experienced the most widespread reduction in 2013. 69%
of firms report reductions in this area. - Marketing and Business Development is the area that saw the most increase. 48%
of firm report an increase in full time part time or contact staff over the past 3 years.
23% expect to increase. in 2014. - The
technological self sufficiency of young lawyers is having an impact on
staffing. - Legal Support/secretarial is taking on more timekeeping and client
support functions. - Libraries are morphing into centers of competitive intelligence and
knowledge management. - Amlaw
ranked law firms spend a lower proportion staff support to revenue 15.3% - Although
outsourcing has been trending up, 15% of firms reported that they had returned a
function in -house after outsourcing. For the vast majority of firms non attorney
functions remain firm owned and on site. - Firms
need increasingly sophisticated staff. Billing work used to be clerical now it
is analytical. - Shift
from print to digital resources means library staff must support managing access,
passwords training. Everyone can do their own basic research, librarians perform more complex
and specialized research. -
Cost of Marketing
is justified by business expansion, protecting competitive advantage,
client retention. -
Staff
morale can be a competitive advantage for the firm. -
The prospect of layoffs is
the number one factor impacting staff morale.
Optimal
staffing is not low staffing. Optimal staffing allows a firm to enhance productivity and profits. Sophisticated clients want to know that the firm has sufficient staff to support their work effectively. Law firms are only as good as their people — and non-lawyer support staff are important for successful business management and client support.
staffing is not low staffing. Optimal staffing allows a firm to enhance productivity and profits. Sophisticated clients want to know that the firm has sufficient staff to support their work effectively. Law firms are only as good as their people — and non-lawyer support staff are important for successful business management and client support.