With London bankers at Barclays, Citigroup, and HSBC now required back in the office five days a week—and Amazon following suit from next year—the question looms large for the legal profession. Will law firms follow their clients' lead?
Law Firm Strategies
There is no universal approach to hybrid or remote work policies in law firms. At the beginning of the 2020s, firms had no choice but to adapt to remote working. Then as the demand for legal services grew astronomically between 2020 and 2022 - they needed lawyers and they needed them fast. Firms did not have the leverage (or perhaps the time) to instruct hard back to office mandates.
However, by late 2022, this advantage diminished as transactional work slowed and firms began implementing cuts. Consequently, office attendance policies have gradually become more stringent as law firms regain leverage in the market. Clients also wield considerable influence over law firm policies. There is increasing pressure for firms to align their practices with those of their clients to nurture strong business relationships.
For law firms, the task of bringing their lawyers and paralegals back to the office was a task fraught with potential backlash. Legal professionals had become accustomed to the advantages in work-life balance that the work-from-home period granted.
While some firms, such as Latham & Watkins, are transitioning to a four-day in-office policy, expectations are tightening across the industry. Most elite US firms are in tune with Latham. As reported by Law.com, some firm leaders are ready to play hardball, threatening to limit bonuses for partners who fail to return to the office in the coming months. UK firms however are less inclined to follow suit.
Top Talent Wins?
The best performing lawyers always have great leveraged. They want you, and so do other firms. This dynamic raises interesting implications, because by becoming too stringent, firms run the risk of a rainmaker partner moving shop. That's a lot of money walking out the door for the sake of coming into the City on a Friday.
Despite the tightening policies, firms will want to attract and retain talent, particularly as corporate work picks up. The active lateral market has given more leverage to partners and associates, who are now commanding high premiums. Firm leaders throughout the Am Law 200 are especially wary of their firms’ talent being poached. This need for talent has perhaps prevented more stringent working policies from hitting the headlines, and is a reason why UK firms are not enforcing stricter policies at the moment.
The Development of Younger Lawyers
There are compelling reasons why law firms are advocating for office attendance. Leaders are nervous about losing top talent but are increasingly frustrated by the impact of remote work on the development of younger lawyers. The office environment is crucial for shaping firm culture and facilitating mentorship opportunities. Being physically present allows junior associates to learn from senior partners, fosters a sense of belonging, and strengthens bonds among colleagues.
NQ (Newly Qualified) recruitment in London has suffered significantly, as firms still tackle the disruptions caused by the pandemic. Many partners feel that associates trained during these years are under-developed, so more focus has been put on junior lawyers as a result.
What do Associate Want?
Despite fears over return-to-work mandates, many legal professionals (up until this year) have eagerly embraced the office attendance policies that their law firms have put in place, a new report from Thomson Reuters shows. Backlash seems to have failed to materialise, with generally high degrees of satisfaction from legal professionals (at US law firms).
As legal recruiters, we frequently receive inquiries about the varying cultures within law firms. Most questions revolve around billable hour targets, partner working styles, trust, and autonomy in the workplace, rather than merely asking which days one must be in the office. This leads me to believe that when the environment is nurturing, associates will naturally want to be present. While stylish office spaces are appealing, it's the office culture and support from colleagues and management that truly matter.
These latest announcements of the 4-day week from Latham may spark more controversy, but I guess we'll see. Perhaps they will roll out summer bonuses soon to pair the good news with the bad!
The Future
The future of hybrid work in law firms is still taking shape. The balance between remote work and in-office requirements will likely hinge on factors like client expectations, talent development needs, and the competitive landscape.
It’s fair to expect that many top-tier firms will keep high standards for office attendance, so lawyers should be ready for a strong commitment to being in the office. On the other hand, if you're looking for more flexibility, mid-market firms might offer better options, as they often embrace flexible policies.
By providing flexibility and hybrid work arrangements, these firms could really stand out and attract top talent. But it does raise an interesting question: how much compensation would you be willing to give up for that flexibility?
If you need help navigating your next lateral move across, don't hesitate to reach out.
rebecca.adlington@sonderconsultants.com
