The theme for our 2019 Law Firms' Survey is 'Adapting to a new world'. The digital revolution means that the world of professional services is changing, and fast. Law firms need to invest in technology, and transform their workforces to drive productivity and innovation. At the same time, levels of economic and political uncertainty are high and firms must remain agile to find and exploit the opportunities for growth which do exist across the globe.
Set against this context, the UK legal sector has continued to show resilience in challenging times. The majority of firms reported both revenue and profit growth in 2019, although margins remain under pressure.
Whilst fee earner headcount has perhaps surprisingly increased, that’s been at junior grades with overall staff cost ratios remaining broadly flat. However, high staff turnover suggests firms need to work harder at meeting employee expectations, be that around flexible and balanced working, digital upskilling, or greater focus on diversity and inclusion.
Risk management continues to grow in importance in the legal sector, not least given the ever present cyber security threat.
Please do have a delve into the survey findings for more details on the opportunities and challenges facing law firms today.