Law firms on the move to win the war for talent

In a 2016 survey, 48% of regional law firms stated that availability of high-quality people is their biggest challenge, up from 43% a year earlier.

A number of factors are driving this shift. Firstly, regional law firms are consolidating, with 70% of 2016 M&A deals involving a regional law firm.

This means fewer players competing for the same pool of talent and those struggling to survive, depending on attracting and retaining the best talent in order to differentiate.

Secondly, as technology automates and commoditises process driven work, there is a push to higher value work. This requires the brightest talent, equipped with skills like creativity, innovation and client-centricity.

It is these skills that are in greatest demand across all industry sectors. Thirdly, new players such as the on-demand lawyers and legaltech are poaching legal talent. Finally, demand is increasing; national law firms who launched business services centres outside of London are expanding their remit to include lawyers and tech talent. The regions are no longer seen as “back offices”. 

The result is an intensified competition for talent, putting ever more pressure on regional law firms to attract and retain the best legal people.

Of course, the reasons why people choose to work in a given city are complex, likely to include factors such as the cost of living and personal ties however having the right office space in the right location that provides an outstanding user-experience is crucial in order to win the war for talent.

The office is the place where impressions are made, if you went for two interviews one in a grey office with banks of desks or people hidden in offices in a poor location vs modern office space that had a great buzz about it in a well-located, amenity rich area which would you go for?

Many law firms are recognising this and are on the move, relocating to best in class office space in amenity rich areas.  Nine out of ten of the top law firm deals in the UK regions from Q1 2016 to Q1 2017 were relocations to new and enhanced premises. Great examples include Schoosmiths relocating to the XYZ building in Manchester.

Their new workspace includes a garden, a library that includes elements of modern and traditional design, a multi-zonal project room, touch down zones and group booths. Each of the firms practice groups has their own “neighbourhood” that offers a variety of working space. Schoosmiths also invested in a purpose-designed IT system meaning that employees can stay fully connected. The XYZ building incudes a mixture of public amenity space, a bike park and leisure facilities.

The XYZ building is situated in Spinningfields business district in the heart of the city.  In Leeds, Schoosmiths selected Bruntwood’s Platform redevelopment above Leeds station.

The buildings inspirational design is centred around collaboration, social interaction and coworking. In Bristol Foot Anstey acquired space at 2 Glass Wharf. Key drivers were talent attraction and retention. More examples are detailed in our Legal Services Sector profile. 

Firms are also embracing more flexible ways of working. A Regus Home working survey found that 61% of respondents would change jobs for greater flexibility.

This has clear implications for real estate in terms of potential opportunities to drive greater efficiency in usage of space and the need to incorporate the right technology to enable greater mobility. 

Success in legal services depends on access to high quality talent. This talent is in shorter supply as competition increases. Occupying well located, thoughtfully designed buildings that focus on the user-experience will give firms a competitive edge. Having a second class working environment will put law firms at a competitive disadvantage.  

To accomplish this, real estate decision makers must look beyond a rent per sq ft metric and understand the true value of space as a powerful means of winning the war for talent. 

Read more in our latest report: UK Regional Cities: Your Future, Now