By Susan Smith Blakely • April 08, 2021•Careers, Firms and the Private Sector
Law firms are changing. The pandemic has changed just about everything in business, and law firms are no exception. So what are the big changes that law firms and their members are experiencing these days?
The biggest news involves bonuses. The Internet is jumping on an almost daily basis with news of the ongoing bonus war and one more BigLaw firm added to the big bonus list. Even big signing bonuses for associates, sometimes up to six figures.
All of this bonus activity has caused me to wonder what is driving it. After all, the law business has just come through a difficult year where most everyone is working remotely and the brick and mortar offices are sitting empty but very expensive for those firms with long-term leases. On the other hand, most firms are finding that there is no diminution of the quality of the work and profits look good. So it is a bad news, good news analysis.
The answer to this bonus activity appears to lie in the increased lateral movement in large law firms these days. The lateral movement is particularly significant among corporate transactions attorneys, and bonuses are a mechanism that firms use to retain talent and keep clients in place. According to one legal recruiter, "I definitely feel like corporate associate recruiting is the busiest I've seen since I've started my business." Another source describes the lateral activity right now as "absolutely absurd."
So there is that. But it's hardly a panacea for the increase in mental health issues, stress and burnout in the legal profession during these trying pandemic times. The question will be whether money will solve these problems. My guess is that it will not, but it will keep people in place for the near future and it will be a significant factor in the competition for market leadership.
And there also are other changes in law firms related to the pandemic. With the success of remote practice in terms of law firm profitability and the convenience of working from home for many practicing lawyers, the next challenge I expect is whether the five-day-work-week at the office will survive. According to some sources, law firms are beginning to address the benefits of bringing everyone back to the office full-time. One source reports that offices are being reconfigured with the concept of telecommuting in mind and with a reduction in personal office space in lieu of more collaborative spaces.
And this is likely to create yet another bidding war. One that is about lifestyle not money.
Only time will tell.
Susan Smith Blakely is the Founder of LegalPerspectives LLC and an award-winning, nationally-recognized author, speaker and consultant on issues related to young women lawyers, young women law students and young women interested in careers in the law. She is author of Best Friends at the Bar: What Women Need to Know about a Career in the Law (Wolters Kluwer/Aspen Publishers 2009), and Best Friends at the Bar: The New Balance for Today's Woman Lawyer (Wolters Kluwer Law & Business 2012), which addresses the work-life struggle for women lawyers and includes twelve profiles of women who have successfully transitioned from one practice setting to another. Her third book in the series, Best Friends at the Bar: Top-Down Leadership for Women Lawyers, focuses on the responsibilities of law firm leaders and was released by Wolters Kluwer Law & Business in 2015.
Ms. Blakely’s new book for ALL young lawyers, What Millennial Lawyers Want: A Bridge from the Past to the Future of Law Practice, will be released by Wolters Kluwer/Aspen Publishers in the summer of 2018.
Ms. Blakely frequently speaks at colleges and universities, law schools, law firms and law organizations, and she has been featured in media including Corporate Counsel Magazine, the ABA Journal, the LA Daily Journal, National Jurist, Washington Examiner Newspaper, Forbes Woman, Women Lawyers Journal (NAWL), DC Spotlight, Lawyerist.com, Daily Muse, Lawyer and Statesman, Law.com, Georgetown Law Magazine, Legal Toolkit Podcast, and Huffington Post Business. Ms. Blakely also is a frequent guest speaker and panelist at conferences on women's issues in business and the law profession, and she has been a featured speaker at the US Department of Justice, Civil Division. She is the recipient of the Ms. JD 2015 "Sharing Her Passion Award" and the Lawyer Monthly “Women in Law Award 2016” for her work on behalf of women in the law.
Ms. Blakely graduated from the University of Wisconsin with distinction and from Georgetown University Law Center where she was a teaching fellow. She is a member of the CoachSource global network of leadership coaches and is certified as a career coach for the Indiana University Marshall Goldsmith Leadership Development and Executive Coaching Academy. For more information, please visit www.bestfriendsatthebar.com.