COVID-19 proved to be a major distruption in the legal industry from the shift to remote working to the emergence of the new virtual court systems. Law firms who survived the black swan event learned lessons during the pandemic that could translate to permanent changes in operations, legal services and labor sourcing, according to a report from Georgetown Law.
Among the lessons learned were that working at home caused little disruption to business functions, and the overall moral and wellbeing of employees increased. The experiences of 2020 also emphasized the need for sound financial practices and made more firms open to new models of practice, including collaborations with other firms and “new law companies,” the report says.
The report cites a Thomson Reuters survey completed in October 2020, which found that law firms took these actions in response to the pandemic:
• 46% reduced partner draws
• 40% reduced the salaries of fee earners
• 34% furloughed support staff
• 32% reduced the salaries of support staff
• 36% discharged support staff
• 11% discharged fee earners
• 79% of small firms and 48% of large firms received government support, mostly through the Payroll Protection Program.
Read the full report here: https://legal.thomsonreuters.com/en/insights/reports/2021-state-of-legal-market.
Category: COVID-19 Relief Law
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