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Law Practice Magazine

The Finance Issue

The Future of Law Practice: Balancing In-Office and Remote Work

Daniel E Pinnington and Reid F Trautz

Summary

  • The post-COVID debate about in-office versus remote work continues to evolve.
  • Reviewing the key considerations for each will help firms to make better decisions.
  • Firms ignoring workplace changes will find themselves at a disadvantage.
The Future of Law Practice: Balancing In-Office and Remote Work
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The debate over whether law firms should prioritize office-based work or allow associates and paralegals to work from home has intensified in the post-pandemic era. We have different thoughts and perspectives on this tug-of-war, and what it means for the future of law. So, in this column we explore both sides of the issue, considering key business metrics, potential impacts and examples to provide a comprehensive understanding of the issue.

In analyzing the issue, there are several key considerations that we’ll look at from both perspectives—in-office and remote:

1. Productivity and Effectiveness

In-Office

  • Immediate feedback and collaboration. Working in an office facilitates immediate feedback and spontaneous collaboration, which can enhance productivity and problem-solving capabilities.
  • Reduced distractions. The structured environment of an office can minimize distractions and help maintain focus on tasks at hand. But this can go both ways. Depending on their individual circumstances, some staff will be more productive at home when they are away from the interruptions they get at the office.

Remote

  • Flexibility and work-life balance. Remote work offers flexibility, which can lead to increased job satisfaction and productivity due to better work-life balance.
  • Technological tools. Advanced tools like cloud-based storage, video conferencing and legal practice management software support remote work, potentially maintaining or even boosting productivity.

While office-based work provides immediate feedback and reduces distractions (or not), remote work's flexibility and technological support can also sustain productivity. The choice depends on the firm's culture and specific needs. 

2. Recruitment and Retention

In-Office

  • Firm culture and cohesion. In-office work helps maintain a strong firm culture and cohesion among team members, which is crucial for long-term retention.
  • Networking opportunities. Being physically present in the office allows for better networking and mentorship opportunities, which are vital for career development.

Remote

  • Attracting top talent. Offering remote work options can attract top talent, especially younger lawyers who prioritize flexibility.
  • Retention of diverse workforce. Remote work can help retain a diverse workforce by accommodating different personal and family needs, particularly benefiting women lawyers.

A 2022 survey by the American Bar Association found that 44 percent of lawyers with less than 10 years of practice would consider leaving their current positions for more remote work opportunities. Yet only 19 percent of lawyers with over 30 years of experience said they would leave their firms for a greater ability to work remotely.

While in-office work strengthens firm culture and networking, remote work can attract and retain top talent by offering flexibility. A balanced approach might be necessary to meet diverse needs. 

3. Cost Implications

In-Office

  • Overhead costs. Maintaining office space incurs significant costs, including rent, utilities and maintenance.
  • Resource allocation. In-office work requires investment in physical infrastructure and resources, which can be substantial.

Remote

  • Cost savings. Remote work can reduce overhead costs by minimizing the need for large office spaces.
  • Technology investments. Savings from reduced office space may be offset by investments in technology and home office setups.
  • Tax implications. For employees residing and working in another state, there are various costs related to payroll and employment taxes.

Law firms using hybrid models have managed to reduce office space requirements by reducing each office or work area and increasing the density of workers per square foot, sometimes by hoteling, where workspaces are assigned for use on an as-needed basis.

Remote work offers potential cost savings by drastically reducing the need for office space. However, these savings may be reduced by the costs of periodical in-person meetings especially for employees who live outside the normal commuting area. 

4. Client Interaction and Service Delivery

In-Office

  • Face-to-face meetings. Although the need varies due to the types of work done in different practice areas, and will be subject to individual client preferences, some clients will prefer in-person meetings, which can build stronger relationships and trust.
  • Immediate access to resources. Being in the office ensures immediate access to resources and support staff, enhancing service delivery.

Remote

  • Virtual communication. Technology enables effective virtual communication, which can suffice for many client interactions.
  • Geographical flexibility. Remote work allows lawyers to serve clients from various locations, potentially expanding the firm's client base.

During the pandemic, most law firms successfully adapted to remote work, maintaining client relationships through virtual meetings and digital communication tools.
Fewer clients are coming into their lawyers’ office post-pandemic, so while in-office work supports face-to-face client interactions, remote work's flexibility and virtual communication capabilities can still meet client needs and expectations effectively. 

5. Firm Culture and Team Dynamics

In-Office

  • Enhanced collaboration. Physical presence fosters collaboration and teamwork that many lawyers believe is essential for a cohesive firm culture.
  • Mentorship and training. In-office work facilitates better mentorship and training opportunities for junior associates.

Remote

  • Autonomy and flexibility. Remote work supports a culture of autonomy and flexibility, which can enhance job satisfaction.
  • Digital collaboration tools.: Effective use of digital tools can support collaboration and maintain team dynamics even in a remote setup.
  • Growth opportunities for future leaders. While members within a specific practice area or group will regularly interact with each other, they will have less opportunity to interact and learn from lawyers or staff outside their immediate team.

Firms using hybrid models have successfully maintained team dynamics by strategically scheduling in-office days for collaboration and training. Remote firms must be creative to build or maintain firm culture. It will take a series of intentional efforts to stimulate team dynamics, including staff meetings and events and activities that both teach and facilitate collaboration. It seems lawyers and staff at smaller law offices in smaller communities have more readily and willingly returned to more of an in-office model, or at least more days per week in the office than some of their colleagues in bigger firms in larger centers.

And the winner is . . . a custom approach that fits your staff, office and culture. What fits and is working today is likely to change as we move forward. The marketplace continues to evolve. Technology continues to evolve. Client expectations, employee attitudes and the labor market all continue to evolve. So, law firms must pay close attention and evolve with these changes. That will involve compromises with the two camps. Those compromises will have to be revisited as things change, so don’t let your expectations become set in stone.

We see an approach that does the most to benefit the firm:

  • Hybrid model. Implement a hybrid model that combines the benefits of in-office and remote work. This approach can optimize productivity, enhance recruitment and retention and balance cost implications.
  • Technology investment. Invest in robust technological tools to support remote work and ensure seamless communication and collaboration. Make sure your entire team has the tools and training to meet, communicate and collaborate from wherever they work, with platforms like Microsoft Teams, Slack or similar collaboration tools.
  • Tailored approach. Customize work arrangements based on individual preferences, firm culture and client needs to create a flexible and inclusive work environment.
  • Continuous evaluation. Regularly evaluate the effectiveness of work arrangements and make necessary adjustments to align with evolving firm goals and employee needs.

By considering these factors and adopting a balanced approach, law firms can create a work environment that maximizes productivity, attracts top talent and meets client expectations while maintaining a strong firm culture.

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