Covid has changed the world significantly and the legal industry has not been spared. In fact, it seems that the various changes that first came to light during the pandemic are likely to continue impacting legal firms unless they adapt, and quickly at that. There are various changes and challenges in the industry with a few standing out above the rest. The top challenges seem to be technology adoption and innovation, talent retention and attraction, and the all-important work-life balance.
Technology Adoption and Innovation
Time is money and because most law firms are striving for increased profitability and improved client service, it makes sense that integrating law firm software and systems is becoming increasingly more important and popular.
Technology is constantly changing the way people work in all sectors, including the field of law. This is evident in how the implementation of technology is transforming the legal profession at an alarming rate. While these transformations and developments offer their fair share of benefits, they do come with significant challenges. Most notably job displacement and ethical concerns.
Due to the nature of the job, it is paramount that law firms put priority on ethics and focus on developing policies that ensure their use of technology meets all ethical and professional standards. When technology is implemented correctly it can take care of tedious tasks through automation freeing up lawyers to focus on more high-value work, because again, time is money.
In the last few years, cybersecurity has become an ever-growing concern, especially in the legal profession. To protect the sensitive and confidential data that firms find themselves entrusted with, it is incredibly important that legal practices implement strong cybersecurity measures.
Cybersecurity is also incredibly important when it comes to a firm’s accounting practices. Sage is an accounting software designed to help law firms with their daily accounting tasks while ensuring their data is secure and their operations are automated and simple. This simple-to-use accounting software allows lawyers and solicitors the opportunity to automate admin, create quotes, and track billable time quickly and easily.
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Do you want to know more about the role of technology in modern law firm accounting practices? Click here.
Talent Retention and Attraction
The “Great Resignation” refers to the phenomenon of employees leaving their jobs in search of better opportunities. This global trend has affected law firms making it difficult for law practices to retain their top legal talent as employees leave in search of better compensation, improved work-life balance, and ultimately greater job satisfaction.
While firms struggle to retain staff, there is a marked increase in the demand for legal services, a demand which is expected to continue rising causing an increased workload for legal professionals. If firms do not meet the increasing demand they are likely to struggle to attract new clients and maintain the quality of service.
While firms struggle to keep up with the workload, clients are becoming more sophisticated and expecting more from their legal service providers in terms of value-added services, efficient communication, and transparent pricing.
There is also the added concern of non-traditional legal service providers like legal tech companies disrupting the market. Firms have no choice but to embrace technology and innovate service delivery models in order to adapt to the competitive landscape.
This is why talent retention and attraction are becoming far more competitive as law firms need to attract and retain talent that can add value to their brand
Do you want to get more insight into embracing great resignation from Lescault and Waldermans CEO: Mathew Lescault? Click here.
Work-Life Balance
Remote working has become increasingly popular and with cost of living pressures urges legal professionals to consider moving jobs as remote working allows greater flexibility and increased availability of roles.
The adoption of cloud-based technology gives attorneys immense freedom, allowing them to stay connected to clients from virtually any location. This has in turn resulted in more firms gravitating towards remote or hybrid work models.
Maintaining or creating a positive culture and keeping people involved with the company’s ideals is a challenge that arises from remote working. Working from home can cause some people to yearn for a sense of community as they feel isolated which is proven to have a negative impact on well-being.
There are a few things you can implement into your daily life in order to help manage the change from in-office work to remote work. It is important to establish clear boundaries between work and personal time. It is advisable to have a designated workspace to create a physical separation between work and personal life. Technology is helpful to keep you connected but can also aid in blurring boundaries so be sure to use technology mindfully. Prioritizing tasks and planning your work day is also very important along with taking breaks and practicing self-care.
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Conclusion
Although industry shifts have presented the legal sector with various challenges, these challenges can also be seen as opportunities for law firms to improve their processes. Being able to adjust to the ever-evolving trends is what makes a law firm stand out amongst its peers and be seen as resilient. A law practice that can maintain a flexible mindset is more likely to be able to set itself up for long-term success. To efficiently embrace these opportunities it is advisable to be aware of what the the best resources for knowledge and insights are.
To help meet these future challenges Law Firms have realized that outsourcing their CFO services, payroll and in some cases the whole accounting departments to specialized businesses like Lescault and Walderman is the best, cost-effective solution.
We have a dedicated team of over 30 accountants across 18 states with the required expertise to help your law firm succeed and we have an in-house software and technology department to ensure you have the best software solutions available to save your firm time and money.
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