Lawyer Monthly Magazine - November 2019 Edition

12 WWW.LAWYER-MONTHLY.COM | NOV 2019 Monthly Roundup News The LLP business struc- ture is beginning to look outdated, according to Smith & Williamson’s 25th annual Law Firm Survey, with 71% of respondents indicating that it was not ideal for their business. 21% of firms said they had already moved away from the partnership model, while a further 18% said it is proving to be a constraint on their grow- ing business. Key findings: • Confidence has taken a significant dip from last year’s all-time high, with Brexit and increased competition to blame. • Talent retention and investment in technology are top priorities. • Every year for the past 25 years firms have said they will improve lock- up but every year has only shown a marginal change. Where legal firms once sought safety in the LLP structure, its restrictions are now taking a toll on businesses. This is particu- larly true for the decision- making process, which can be cumbersome when attempting to carry out a consensus across a large partnership. In spite of the high numbers dis- satisfied with the LLP struc- ture for their business, 58% of respondents said they would still have the struc- ture in the next 3 – 5 years, suggesting that firms cur- rently place other short- term priorities higher up their agenda. Confidence in the legal market has fallen signifi- cantly this year, with the US-China trade wars, ten- sions in the Gulf, Brexit and signs of a weaken- ing global and domestic economy taking their toll on the levels of optimism across the industry. Much like the 2016 referendum, law firms were split on whether they thought Brexit posed a threat (47%) or an opportunity (53%). In addition, the perceived threat from international firms has increased while the ‘Big Four’ accountancy firms have continued to make their mark. Nearly a third of respondents said there was a significant increase in the competitive land- scape, up from just 23% last year. With more competition, retaining the best talent has become increasingly difficult and high-profile moves are more com- mon. As a result, more than half of respondents claimed talent retention is one of their top three concerns. Research of salaries over the last 20 years has shown the sal- ary gap between top-tier and mid-tier firms is wider than ever before, with the difference in pay for new- ly-qualified lawyers reach- ing £23,000. Outside of traditional law firms, new entrants to the UK market pose a challenge by of- fering greater flexibility in work patterns. Giles Murphy, Partner and Head of Professional Practices at Smith & Wil- liamson, said: “The legal sector was very different when we began this sur- vey 25 years ago. Today’s top concerns would not have been front of mind; technology was in its in- fancy and partners mov- ing between firms were an exception rather than the rule.” “There are strong signs the sector is continuing to change, including the move away from the LLP structure and the diver- sification of services. The traditional law firm has Four in five Brits (79.3%) lack sufficient knowledge when it comes to their legal rights at work, ac- cording to research by LegalShield, the legal ser- vices provider. The news came as Nation- al Work Life Week began, an initiative aimed at pro- moting wellbeing at work across the UK. The new research highlights the widespread lack of knowl- edge and understanding when it comes to legal rights in the workplace. Millions of Brits - a third of people questioned (34%) - had experienced an issue at work over the course of their career and nearly half (46%) didn’t to seek professional legal advice. Many of us will experience an issue at work at some 7 in 10 law firms say the LLP is not working for their business 80% of Brits don’t know their legal rights at work BUSINESS LAW EMPLOYMENT LAW never looked so dynamic but there are continuing issues they must address, particularly lock-up and talent retention.” As highlighted in Smith & Williamson’s recent UK Top 50 law firm analysis, poor lock-up has left firms holding in net cash on av- erage just three weeks’ wages. Yet according to the survey, law firms are still not getting the message. Throughout the past 25 years, firms have said they will improve lock-up and every year point – this could include anything from not being paid for overtime properly and harassment and dis- crimination, to wrongful termination, or even post- ing something on social media. Some might be inclined to complain to management but very few people have a clear un- derstanding of when these issues at work actually be- come a legal matter. LegalShield’s study also unveils a ‘justice gap’ when it comes to access- ing legal assistance for employment issues, with those earning £50,000 and above 64% more likely to seek professional legal support for workplace is- sues than people earning between £10,000-£25,000. Mike Roberts, Managing the figures only show mar- ginal change. This year is no exception, with 79% of firms expecting slight or significant improvement in lock-up over the next 12 months.” You can read the full re- port here: https://smith- andwilliamson.com/en/ campaigns/law-firm-sur- vey-2019/ The survey sought the opinions of 130 senior ex- ecutives from the top 250 law firms within the UK. Director at LegalShield, commented: “It’s certain- ly difficult to predict when legal issues will arise in the workplace, but it’s clear from our research that many of us will encounter a problem that requires legal support throughout our careers. The knowl- edge gap we’ve uncov- ered can cause situations to become much more serious. If employees aren’t empowered to know when and how to take action, a simple is- sue can cause enormous worry and stress. “Employers should look to assist their employees when it comes to legal rights, both raising aware- ness of employee rights and helping to foster posi- tive, inclusive workplace cultures.”