Law Firms
Corporate Legal Departments
Specialties in Demand
Regional Trends

Law firms and corporate legal departments continue to address the challenges of one of the most difficult business environments in decades. Many law offices have experienced staffing freezes and personnel reductions while nonetheless striving to maintain productivity.

Many employers remain cautious about hiring, waiting for evidence of a sustained recovery before adding full-time employees. They are increasingly bringing in legal professionals on a project basis to access specialized knowledge, augment the work of their full-time staff, and assist with unexpected case loads related to e-discovery, document review and litigation. This approach allows employers to proactively address changing needs without having to make hiring decisions that may be unsustainable. In addition, more organizations are considering long-term and contract-to-hire engagements.

Law Firms

Facing increased competition and reduced client spending, law firms of all sizes and specialties are focusing on strategies to improve service levels and provide added value. They are concentrating their revenue-building efforts on the most active practice groups. While employment activity at large law firms has slowed, small to midsize or boutique firms specializing in niche practices such as litigation, bankruptcy and foreclosure, intellectual property, and labor and employment, are seeing an increase in demand for their services. They seek senior- and midlevel attorneys and paralegals with specialized expertise.

Corporate Legal Departments

In-house legal organizations are looking for additional ways to control costs in a conservative economy. General counsel are closely monitoring budgets, bringing more work in-house and being more selective about the projects they assign to outside firms. Some departments are hiring paralegals who can perform tasks that might have previously been transferred to outside firms.

Additional trends shaping the 2010 employment picture include:

Belt-tightening at law firms. Large national law firms have taken decisive steps to consolidate resources. On average, salaries for both support staff and attorneys have remained flat or decreased. Also, many firms have revised bonus programs, perks and contributions to 401(k) plans and are passing on a greater share of benefits costs to employees. Some firms have dropped summer associate programs and are delaying the start date for first-year associates.

Strategic hiring. Hiring decisions are more often linked to revenue-generation ability. Law firms seek experienced attorneys with an extensive client roster who can make immediate contributions to revenue. Organizations also look for well-rounded legal support staff with expertise in multiple areas. With more highly skilled candidates available, some prudent yet forward-looking firms are seizing opportunities to selectively upgrade their talent bench.

The government factor. Hiring of legal professionals may accelerate if the anticipated increase in government regulation occurs. Government spending on economic stimulus programs could also boost demand for legal services.