See Aebra Coe’s timely Law360 article on “Will BigLaw Regret Its Hiring Spree As The Economy Softens?”
Law360 (June 20 2022 9:02 PM EDT)
Dan Safran, Unbiased Consulting President/CEO, said “My concern is that what we’ve done over the last two to three years is we have dramatically increased the cost of delivering legal service.”
Safran went on to say, that as profits have gone up he’s seen waning interest from law firms when it comes to minimizing costs and streamlining their businesses. “As demand softens, law firms will be stuck with the same large payrolls and will need to increase rates in order to prevent issues with profitability. But as those rates climb higher and higher, demand could drop off further as clients work out lower-cost alternatives.”
“There is room for improved efficiency at many law firms, with some rethinking staffing models or how they perform work, Safran said. But without the pain of decreased demand, he suggests, law firms often aren’t willing to make investments in efficiency. “Having lots of cash come in the door makes it easy to avoid difficult decisions,” he said.
Read more about Unbiased Consulting’s work helping law firms to better control costs.
See Aebra Coe’s Law360 article at: https://www.law360.com/articles/1502744