It
has
been
widely
reported
that
law
firms
experienced
a
prosperous
start
to
2024,
with
momentum
from
a
strong
Q1
continuing
into
double-digit
revenue
growth
during
the
first
six
months
of
the
year.
Despite
these
positive
financial
figures,
challenges
remain
in
other
areas.
Recent
data
from
BigHand
highlights
ongoing
pressures
from
rising
client
attrition
and
talent
turnover,
exacerbated
by
changing
client
expectations
and
internal
resource
issues.
While
revenue
growth
is
important,
these
underlying
challenges
must
be
addressed
to
ensure
long-term
success.
In
this
article,
a
strategic
response
to
these
pressures
will
be
explored,
focusing
on
how
firms
can
leverage
technology
and
refine
talent
management
practices.
Client
Attrition
and
Evolving
Expectations
A
concerning
statistic
from
BigHand’s
report
reveals
that
96%
of
firms
lost
clients
in
the
past
year.
A
contributing
factor
to
this
trend
seems
to
be
the
shift
in
clients’
expectations.
The
report
shows
that
increasingly,
clients
prioritize
cost-efficiency,
with
33%
finding
cheaper
legal
services
elsewhere,
and
34%
reducing
the
number
of
firms
on
their
panels.
The
firms
that
remain
on
these
reduced
and
refocused
panels
are
likely
those
that
can
adapt
to
the
evolving
needs
of
their
clients.
Given
this
shift,
firms
should
be
especially
concerned,
as
failing
to
meet
these
changing
demands
could
lead
to
further
client
attrition
and
a
diminished
competitive
position
in
an
already
tightening
market.
We’re
also
seeing
clients
focus
on
diversity,
equity,
and
inclusion
(DEI),
with
33%
of
firms
reporting
client
losses
to
competitors
that
meet
their
DEI
criteria.
While
87%
of
firms
report
an
increase
in
client
requests
for
DEI
data
around
matter
staffing,
just
19%
say
DEI
is
a
priority
when
resourcing
matters,
and
47%
lack
the
tech
to
provide
reporting
on
DEI
across
matters
altogether.
This
data
shows
us
that
there
is
massive
room
for
improvement
when
it
comes
to
firms
delivering
on
this
demand
from
clients
–
it’s
now
more
important
than
ever
for
firms
to
prioritize
DEI
initiatives.
So,
how
can
firms
effectively
show
their
value
and
reduce
client
attrition?
The
answer
lies
in
data.
Tech-driven
firms
lead
the
pack,
with
64%
showcasing
efficiency
gains
through
technology
in
RFIs.
This
stat
tells
us:
-
Firms
embracing
technology
are
achieving
efficiency
gains. -
They’re
responding
to
changing
client
expectations. -
Technology
gives
them
a
clear
way
to
demonstrate
value
to
clients.
Top
Talent
on
the
Move
It’s
not
just
clients
that
firms
need
to
be
concerned
about
losing—
the
bullish
lateral
hire
market
continues
to
present
challenges,
with
movement
at
senior
levels
reported
by
53%
of
firms.
A
commonality
between
client
and
talent
attrition:
a
change
in
expectation.
Lawyers
are
being
drawn
increasingly
toward
firms
offering
a
better
work-life
balance,
hybrid
work
options,
and
clear
paths
for
career
advancement.
This
is
supported
by
data:
25%
of
equity
partners
have
identified
the
absence
of
hybrid
work,
while
23%
have
cited
insufficient
professional
development
as
the
main
reasons
for
leaving
their
firms.
Firms
should
take
note,
because
failing
to
meet
these
expectations
could
lead
to
further
movement
of
top
talent,
weakening
both
their
workforce
and
competitive
edge.
Flexible
work
arrangements,
transparent
career
pathways,
and
opportunities
for
professional
development
must
be
provided
to
ensure
employees
feel
valued
and
satisfied.
The
targeted
use
of
technology
can
provide
visibility
to
an,
at
times,
opaque
process.
For
instance,
BigHand
Resource
Management
can
be
used
to
align
workloads
with
career
goals
and
skill
sets,
ensuring
top
talent
remains
engaged
with
meaningful
work.
In
addition
to
the
visibility
of
workloads,
leveraging
technology
enables
the
hybrid
work
environment
that
many
new
hires
expect.
Firms
with
better
attrition
rates
have
set
the
expectation
that
utilizing
such
tools
is
essential
for
retaining
their
talent
and
maintaining
productivity
in
a
competitive
market.
Operational
Efficiency
and
the
Role
of
Support
Staff
Talent
attrition
is
not
limited
to
senior
staff;
over
two-thirds
of
firms
have
reported
losing
support
staff,
which
has
negatively
impacted
both
productivity
and
profitability.
Operational
efficiency
depends
heavily
on
making
the
most
of
support
staff,
yet
many
firms
continue
to
struggle
with
proper
work
delegation.
For
example,
12%
of
lawyers
spend
over
five
hours
a
week
on
non-billable,
client-facing,
or
internal
administrative
tasks
(and
this
figure
may
be
even
higher
at
several
firms).
This
creates
a
gap
in
utilization.
While
such
tasks
are
essential
to
client
service,
they
should
ideally
be
handled
by
support
staff,
allowing
lawyers
to
focus
on
billable
work,
where
their
skills
are
most
valuable.
Without
proper
support
systems,
lawyers
are
often
left
with
no
choice
but
to
manage
administrative
tasks
on
their
own.
Centralized,
data-driven
support
models,
enabled
by
workflow
technology,
are
key
to
improving
both
service
delivery
and
resource
allocation.
By
using
these
tools,
firms
can
ensure
that
tasks
are
appropriately
assigned,
giving
lawyers
the
necessary
support
to
maximize
their
productivity.
This
technology
also
offers
crucial
visibility
into
task
delegation,
something
that
is
especially
challenging
in
larger
firms.
In
fact,
68%
of
firms
have
acknowledged
that
greater
visibility
into
the
activity
of
support
staff
improves
understanding
of
their
contribution
to
lawyers’
work.
Such
visibility
is
essential
for
the
efficient
allocation
of
resources,
which
in
turn
strengthens
productivity
and
profitability.
As
firms
contend
with
the
difficulties
of
client
and
talent
attrition,
those
that
embrace
technology
are
positioned
to
maintain
a
competitive
edge.
By
integrating
tech
solutions,
resources
can
be
optimized,
client
retention
can
be
improved,
and
operational
efficiency
can
be
enhanced.
For
those
interested
in
further
insights
on
how
legal
talent
retention
and
resource
utilization
can
be
improved
to
deliver
value-driven
services
and
boost
profitability,
you’ll
find
plenty
more
valuable
findings
in
BigHand’s
benchmark
report,
available
now.
Rob
Stote,
Chief
Product
Officer,
BigHand