Celeritas works closely with the Am Law 100 and other large law firms to place professionals in their marketing, sales, finance, operations and other functional business areas to support their innovation, strategic growth and profitability goals. This provides us an interesting view on the overall business of law, the trends of the past year and what we can expect in 2022.

Activity in mergers and acquisitions, IPOs and the expansion of investment in legal technology increased over the past year. The industry was certainly ripe for disruption, and we’re seeing more private equity activity because there is much opportunity for growth among companies supporting the legal industry.

Likewise, we expect a continued uptick over the coming year in law firm M&As as more small and midsize general practice firms find themselves needing to consolidate to compete with their larger counterparts. Good internal communications and transparency during any integration are more important than ever, both of which can help attorneys and staff alike reduce the uncertainty and fear many feel during a transition period. Firms that fail to ensure the merger of their systems, processes and teams happens smoothly and transparently should expect some attrition, which most can’t afford in today’s competitive labor market.

With the shortage of talent at all levels expected to continue in the coming year, retaining the team you already have will remain a top priority for legal organizations. What can firms do to reduce staff turnover and the costs that accompany it?

• Flexibility – Firms that don’t offer a flexible work environment will suffer consequences, as people are no longer afraid to leave a job for better quality of life, better balance and better culture. Firms that have chosen not to provide the option to work remotely certain days per week will see attrition.
• Cultural Improvement – Business professionals are no longer content working in organizations that pay little attention to diversity, equity and inclusion matters. While some progressive firms have already prioritized DEI in recent years, we expect to see a bigger push to improve efforts industry wide in 2022. Similarly, the traditional firm culture in which employees are divided into two groups (timekeeper vs. cost center) is not working for many business professionals who can move to other firms where they feel more valued for their contributions.
• Compensation – Many factors are driving the salary increases we’re seeing today, with the main one being a talent shortage in a very competitive recruiting market. While we expect further discussion on things like location-based salaries, firms must be prepared to adjust where their pay scales aren’t as competitive as they need to be.

In addition to improving retention, continued progress in the areas mentioned above will also make a firm more attractive to prospective employees. Positioning yourself to attract new people will remain critical in 2022.

Despite the challenges faced with what is expected to be a continued talent shortage, we are seeing growth areas in law firms, some of which are driven by pressure from clients demanding greater transparency in pricing and matter management. Firms are adding business professionals in pricing and legal project management, in addition to greater expertise in operations, efficiency, service delivery and innovation.

It’s been our pleasure to work with so many of you in 2021, and we look forward to helping secure the best placements for you in the coming year!

Jason Caramanico, Managing Director