It is no secret that top talent is hard to come by in the legal sector – and now the challenging economic climate is heaping even more pressure on firms. The start of Q3 brought a spike in the number of firms facing financial difficulties, and many are bracing themselves for a tough winter and a recession that could be the longest we have ever known. In this climate, it will certainly be difficult for many to offer the sky-high salaries and other rewards that some candidates now expect. Faced with economic uncertainty, more firms will be looking to reduce their costs as much as possible, whether it be personnel, business support services, or property. They might also avoid making investments in the very things that could help them to respond quickly to changes in the market and not just survive but achieve growth, such as technology. Non-billing teams, like HR, are sometimes areas that are looked at first for savings, yet this is invariably short-sighted. Talent acquisition and retention are critical to the success and survival of any firm because their expertise will help to steer the ship at the very highest level and deliver exceptional client experiences. When talent is in such short supply, firms need to invest in every aspect of the employee experience – helping them to develop their skills, progress their career and achieve a good work-life balance. It is easy to see IT projects as an area to cut back, and we are already seeing firms exercise caution when it comes to buying legal tech. Some are opting for essential software over the ‘nice to have’, or only purchasing it when it is absolutely necessary rather than seeing it as a vehicle for growth and innovation. But a reluctance to harness technology can be just as damaging as failing to invest in people. In fact, the two go hand-in-hand. Driving Efficiencies That is not to say that there is no room for greater efficiency in law firms in both billing and non-billing departments. Those who are still paper-heavy and reliant on legacy software can streamline their processes, helping people to be more productive so they avoid clocking up Special Feature Whether in the United Kingdom or abroad, economic hardship is becoming a threat to the success or even survival of many law firms. But how can they adapt to these difficulties and continue to develop their business and their staff? In this article we hear from Bishu Solomon Girma, Customer Success Director for Access Legal, who argues that firms should continue to invest in their people if they want to weather the economic turbulence and emerge stronger. HowLaw Firms Can RetainTalent in aRecession 32 LAWYERMONTHLY JANUARY 2023
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