Virtual law firms see 38% jump in recruitment
The number of lawyers working in decentralized legal practices where lawyers operate remotely has increased by 38% in the last year.
By the autumn of 2021, there were 1,875 lawyers working for virtual companies, up from 1,355 in late 2020. In 2019, 1,272 people worked for such businesses.
According to Hazlewoods, which conducted the study, the rise showed a substantial move toward hybrid and flexible working arrangements.
A “virtual” law firm, according to the accounting/consulting business, is a decentralized legal practice in which lawyers operate remotely and share services offered by a central hub. Although the businesses do not self-identify as virtual, they do provide lawyers with more flexibility than traditional firms while also serving as a central hub for service services such as compliance, accounting, and administration.
Covid-19, according to Hazlewoods, has caused a shift in attitudes on working arrangements, with lawyers now being more likely to have had better work-life balance. It noted that virtual law firms tended to give lawyers more control over the job they took on while also allowing them to work remotely.
The increased popularity of virtual meetings has helped virtual law firms, allowing clients to manage their legal matters from anywhere in the world without sacrificing service quality.
They also have lower overhead costs due to the fact that they pay for far less office space. This resulted in higher profit margins, which could be utilized to pay lawyers’ salaries.
Nexa Law (105 professionals in 2021, up from 54 in 2020), Keystone (456, up from 350), and Setfords are among the firms that have added the most lawyers in the recent year, according to Hazlewoods (up from about 190 to 350 in 2021).
Nexa Law is a virtual law company established in Shropshire with a WeWork office in London.
Keystone is a top 100 firm having offices in Newcastle, Bristol, and Leeds, as well as a Chancery Lane address.
James Knight, CEO and founder at Keystone Law, said: “Keystone Law is actually not a virtual law firm. We have a central office on London’s Chancery Lane which houses our 50 strong support team (administration, compliance, finance, marketing etc), 10 meeting rooms and space for lawyers to work permanently or to hot-desk. Senior lawyers are free to work where they choose. The physical interaction that our lawyers have with each other, with clients and with their business contacts is very real, but it is fair to say that we do have long corridors.
“Keystone’s modus operandi is so attractive to the modern lawyer because it delivers all the support and facilities that they require to do their job, while combining that with a level of freedom and flexibility that conventional firms do not afford. It enables them to focus on what they do best and enjoy most: being lawyers, as well as freeing them from a world of management responsibilities, commuting and office politics.”
Setfords, is a top 200 firm has offices in Guildford and Chancery Lane plus locations in numerous smaller towns across the UK.
Jon Cartwright, partner at Hazlewoods, said: “The virtual law firm model has been given an unexpected boost by Covid, even with more traditional firms returning to their offices. It’s clear that what was once considered an outlier in the legal industry is quickly becoming part of the mainstream.”
He added: “Many clients have accepted that liaising virtually works just as well as in-person meetings. Some may say the benefits are even greater as it offers both lawyers and their clients much needed flexibility while reducing the need for travel and office space.”