Five Important Trends in the Legal Field 2009

by Marcus Ollig

1. Alternative billing arrangements (also talked about in a past newsletter): It used to be that smaller firms and specialty boutiques were the only firms adopting alternative billing strategies with their clients. While they are still the most innovative, many of the larger firms are now getting into the act. Kirkland & Ellis, for example, has expanded its use of alternative billing arrangements with its clients.
   
   
2. Associate salary changes: Both reductions in the salaries of incoming associates as well as merit- based pay are gaining a lot of momentum nationwide. Many local firms have taken significant steps in that direction and many others are pondering changes.
   
   
3. Associate training: Whether full-fledged training programs or just increased mentorship, firms will focus more on developing lawyers to become better practitioners, view their profession more as a business and even increase the training and emphasis placed on rainmaking. The firms that do this also tend to be more likely to provide incentive or merit-based pay.
   
   
4. Contract attorneys/temporary staff: They'll become a more permanent and larger fixture in both law firms and corporate legal departments. Traditionally, as we have moved out of recession, use of contract attorneys and staff increased until there was enough confidence in organizations to add fixed costs. We see that starting to happen now as well, but believe several trends may converge to make this permanent. First, if national healthcare passes in some form, it allows for a more free agent mentality among employees. Second, many people in the law are looking for more reasonable hours and increased flexibility. Finally, law firms and corporate legal departments will look for more variability in their cost structures and increased flexibility in headcount - staffing up for larger cases/projects only versus adding to their headcount permanently. Shameless plug: A good staffing partner can assist you in keeping a strong pool of qualified contract employees by keeping them busy over several assignments in a year, while providing certain benefits and avoiding co-employment issues and additional administrative costs for the employer.
   
   
5. Work migration from the coasts. Companies who have traditionally felt more comfortable with the top name brands in the legal field are looking for cost saving alternatives and will consider top regional firms, strong boutiques and midsized alternatives for a significant portion of their work. Outsourcing to India? Maybe not as much or as fast as people think. But outsourcing to St. Louis or Denver may become an attractive option for companies looking to save money and still have access to top caliber legal services.
   
   

Marcus Ollig is president of The Advocates, a legal search, staffing and consulting firm. His practice focuses on mergers, consulting and lateral partner placement. Phone: 303.825.2600; email: mollig@targetedlegal.com.