Posted by Sarah Murphy, general manager of EMEA at Legal Futures Associate Clio
Murphy: Law firms need to strike a delicate balance
A growing alternative to the traditional law firm employment model is disrupting the legal landscape: the consultant lawyer. Projections suggest that by 2026, one in three UK lawyers could work independently. But what does this shift mean for both firms and lawyers?
Consultant lawyers are self-employed legal professionals who operate independently from traditional law firm structures or through platform firms – businesses that provide infrastructure and operational support to self-employed lawyers.
Their growing presence is reshaping how legal services are delivered, with the number of fee-sharing lawyers increasing sharply in the years following the pandemic.
This new and evolving dynamic influences firm recruitment and retention strategies, alters traditional structures, and potentially transforms client relationships.
The rise of the consultant lawyer model
More and more lawyers are rethinking their priorities, with work-life balance becoming increasingly important. As such, many are placing a higher value on having greater control over their workload and career direction, feeling empowered by the consultant lawyer model.
Technology has significantly contributed to this shift. The Covid-19 pandemic accelerated the adoption of remote work, cloud-based legal tools and AI, making it easier for lawyers to work independently.
Meanwhile, as mergers and acquisitions reshape the legal landscape, many lawyers are seeking alternative career paths. The consultancy model offers enticing autonomy, but it may come with trade-offs.
Key benefits and challenges
The consultant lawyer model presents several advantages. For one, these types of lawyers typically spend less time on admin and more time focusing on clients. The model also provides greater flexibility, allowing lawyers to control when and how they work, which often leads to a better work-life balance.
This is particularly relevant as several high-profile firms recently issued return-to-office mandates, creating a stark contrast to the consultant model.
There’s also the potential for higher earnings. In revenue-sharing arrangements with platform firms, consultant lawyers typically retain a larger percentage of their billings than they would in a traditional firm model.
However, while the consultant lawyer model offers numerous benefits, it is not without risks. One of the most significant challenges is the lack of financial stability, particularly in the early stages of an independent practice, when consultant lawyers must find and retain their clients.
Without the backing of a firm’s reputation or supporting infrastructure, consultants must build their client base independently – a process that can be lengthy and stressful.
Another potential drawback is the reduced opportunities for collaboration and career development. The absence of a conventional office environment can limit informal learning and mentorship opportunities, which are often critical for growth, especially in the early stages of a career.
Additionally, navigating compliance requirements can be a key challenge. Without the direct support of a traditional firm structure, consultant lawyers must ensure they meet all regulatory and ethical standards independently.
How some firms are embracing this model
It’s not just lawyers who are benefiting from this model; several brick-and-mortar law firms are also adapting by actively integrating consultant lawyers into their structures. Sterling Law, a Legal 500 firm, is an excellent example of this shift – demonstrating that a more flexible approach doesn’t have to come at the cost of success.
Meanwhile, platform firms are emerging as an alternative to traditional partnerships. They offer administrative support, branding, and regulatory compliance services. This set-up allows consultant lawyers to remain independent while benefiting from law firm infrastructure and resources, reducing the risk of compliance issues.
Platform firms essentially act as a support system for consultant lawyers, enabling them to focus on their legal work without the burden of administrative tasks.
The supporting role of legal technology
Cloud-based practice management systems have become indispensable for consultant lawyers. They help them manage case files, meet deadlines, and communicate securely with clients. Remote working tools also facilitate collaboration, allowing consultant lawyers to offer services virtually anywhere, breaking geographical barriers and expanding their potential client base.
There are many tools and strategies both firm owners and consultant lawyers can use to grow their businesses. Digital onboarding processes, e-signatures, and automated workflows have further streamlined operations, reducing reliance on traditional administrative support. Lawyers can focus on their legal work by automating routine tasks and digitising paperwork.
Impact on the future of legal careers
Traditional law firms may need to reassess their recruitment and retention strategies to compete with the flexibility and autonomy offered by the consultant model. Lawyers, too, need to think carefully about their career progression and which model best suits their preferences.
Cultural shifts are likely as a result, with younger lawyers favouring autonomy over traditional career paths.
This changing mindset, accelerated by access to effective technology, is challenging long-held norms in the legal profession and may lead to fundamental changes in how law firms structure themselves and develop talent.
Moreover, the consultant lawyer model could potentially enhance diversity and inclusion in the legal profession by providing more flexible career paths that accommodate different personal and professional needs.
What lies ahead?
There is little doubt that the consultant lawyer model will continue to grow, creating new opportunities and challenges for lawyers and law firms.
This trend requires law firms to strike a delicate balance between committing to what has worked for them and adapting to more flexible working arrangements. For lawyers, it means more career choices, but with them, greater responsibility, and risk.
The most forward-thinking firms that successfully restructure, rethink, or reimagine how legal services are delivered will be best positioned to thrive.
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