9 Possible Effects of Coronavirus on Law Firms
1. Customer Trust is More Important Than Ever â—? Due to the coronavirus, new claims for unemployment benefits have skyrocketed, as over 22 million people in the US alone lost their jobs in one month.
2. The lavish offices â—? The decrease in income and savings that remote work will allow reflects Alexander H. Fuqua from Sevens Legal, will lead firms to consider their fixed costs, and, after payroll, rental spending is the second-highest. â—? Companies, especially big law firms, are aware that all these expenses fatten their invoices.
3. Humanization of the profession â—? It is a striking coincidence that the coronavirus may also play a pivotal role to humanize the legal profession where the culture of profit pursuit and win-lose mentality is deep-rooted. â—? The explanation for this phenomenon is that "the virus puts us all on the same level and teaches us how vulnerable we all are."
4. An opportunity for ALSPs â—? Fuqua introduces a last element that can change in the context of this crisis. "Budget constraints and job tips will push some law firms to experiment with other alternative legal providers (ALSPs) that they have so far been more reticent about," he concludes.
5. The end of the culture of presenteeism â—? "We have tried teleworking and it works," sums up Jim Mattis, partner and deputy to the management of Saggio Legal Consultancy. Until now, this firm had excessively awarded presenteeism. â—? He ruled out that no organization can operate alone in a teleworking regime.
6. Financial impact â—? Law firms will lean toward wage restraint. This is the case for Owen & Owens, which has announced the freezing of salaries for lawyers and staff, as well as measures that may eventually entail the retention of part of the partners' remuneration.
7. Creating a financial plan ● At Ahlawat & Associates, believes that, after experiencing this pandemic, firms will be obliged to rethink the care measures of their professionals. ● Perhaps we will have to run a year without bonuses to constitute a rescue fund so that if another crisis knocks in the near future, we’ll have a healthy cashflow to survive.
8. More work for less fee â—? The economic downturn that is already beginning to be felt will force firms to adjust their fees. Fewer operations, more labour, and more restructuring is expected by a majority of law firms in the next few months. â—? "Lower prices, longer payment terms and greater risk of nonpayment,"
9. Digital boost ● “A process that must be accompanied by other changes, such as the implementation of a digital project manager, investment in a robust videoconferencing system, etc.”
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